Tribunal grants stay on recovery of Rs. 81,37,741 balance demand pending Rs. 15 lacs payment

The Tribunal granted a stay on the recovery of the balance demand of Rs. 81,37,741, subject to the payment of Rs. 15 lacs by the assessee. The recovery was stayed pending appeal disposal or 180 days, with attachments on bank accounts to be withdrawn upon payment. An expedited appeal hearing was scheduled contingent upon compliance with the payment directive, with non-compliance leading to vacation of the stay. The assessee was instructed to produce the payment Challan before the next hearing without a separate notice.

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Issues:
Stay against demand of Rs. 81,37,741 comprising principal amount and interest arising from the order of the Commissioner of Income Tax(Appeals) for the Assessment Year 2009-09.

Analysis:
The assessee sought stay against the demand of Rs. 81,37,741, including principal and interest, arising from the order of the Commissioner of Income Tax(Appeals) for the Assessment Year 2009-09. The assessee, an individual and unemployed lady, surrendered her right to reside in a property for Rs. 7.25 crores in 2008, leading to a capital gain of Rs. 5.08 crores. The Assessing Officer disallowed certain benefits claimed by the assessee, leading to a reduced demand of Rs. 81,37,741. The Commissioner of Income Tax(Appeals) partially allowed the assessee's claims, resulting in the reduced demand. The Assessing Officer attached bank accounts and FDs of the assessee, her aunt, and a trust, causing financial hardships. The assessee argued for the stay of demand and lifting of attachments, citing settled issues in her favor and inability to pay due to the attached accounts.

The Tribunal noted that the Assessing Officer allowed exemption only for a specific property, denying other benefits claimed by the assessee. The Commissioner of Income Tax(Appeals) upheld the denial of certain deductions while allowing others, leading to the current demand. The Tribunal found the issues debatable and requiring detailed consideration during the appeal hearing. The Tribunal observed that the assessee faced hardships due to the attachment of bank accounts, questioning the need to attach accounts of other individuals when the demand could be satisfied from the assessee's account alone.

Considering the circumstances, the Tribunal granted a stay on the recovery of the balance demand, subject to the payment of Rs. 15 lacs by the assessee. The recovery of the demand was stayed pending appeal disposal or 180 days, subject to the specified payment. The Tribunal directed the withdrawal of attachments on the mentioned bank accounts upon the payment. The appeal was scheduled for an out-of-turn hearing, contingent upon the payment directive. Failure to comply would result in the vacation of the stay and removal from the expedited hearing category. The assessee was required to produce the payment Challan before the next hearing date, with no separate notice to be issued.

In conclusion, the Stay Petition was allowed subject to the specified payment conditions, aimed at addressing the financial challenges faced by the assessee due to the demand and account attachments.

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