2013 (9) TMI 1187 - HC - Income Tax

High Court quashes demand order, directs reconsideration. Petitioner challenges additions under sec 28(iv) and sec 80-IA.

Idea Cellular Limited Versus The Union of India & Ors.

The High Court quashed the order for stay of demand of Rs. 1517.69 crores for assessment year 2010-2011, directing reconsideration of the petitioner's ... - Issues involved: Challenge to order for stay of demand u/s 28(iv) of Income Tax Act, 1961 and disallowance of deduction u/s 80-IA.Summary:The petitioner challenged an order for stay of demand of Rs. 1517.69 crores for assessment year 2010-2011, which was upheld by subsequent orders. The Deputy Commissioner of Income Tax directed the petitioner to deposit Rs. 900.47 crores to not be treated as an assessee-in-default, with a total stay of Rs. 617.22 crores. The High Court found that the impugned order did not consider relevant facts and was contrary to the record.An addition of Rs. 2069.45 crores was made u/s 28(iv) on assets of a telecom undertaking transferred to the petitioner. The petitioner contended that the addition cannot be income u/s 28(iv) and cited a Tribunal decision, which was not considered by the tax authorities. The petitioner also claimed a deduction u/s 80-IA, disallowed by the AO based on a Supreme Court judgment, which was contrary to a High Court judgment relied upon by the petitioner.The High Court quashed the impugned orders and directed reconsideration of the petitioner's application for stay. Recovery proceedings were stayed for two weeks after an adverse order, and parties were given liberty to expedite the appeal hearing before CIT (Appeals). No costs were awarded in the disposition of the Writ Petition.