The High Court upheld the Tribunal’s order extending a stay on tax demand beyond 365 days. The Court noted the Tribunal’s finding that the delay in disposing of the appeal was not attributable to the assessee. The High Court held that the issue was definitively settled by the Supreme Court in Dy. CIT v. Pepsi Foods Ltd. [2021] 126 taxmann.com 69 (SC). That judgment struck down the part of the third proviso to Section 254(2A) which mandated the automatic vacation of a stay after 365 days, even if the assessee was not responsible for the delay. Accordingly, the Tribunal’s decision to grant the extension was correct in law, and the Revenue’s appeal was dismissed.