Tribunal grants stay on outstanding tax demand pending appeal with deposit and property restriction The Tribunal granted the stay application for the outstanding demand of Rs. 63,71,370, inclusive of interest, until the appeal for the Assessment Year ...
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Tribunal grants stay on outstanding tax demand pending appeal with deposit and property restriction
The Tribunal granted the stay application for the outstanding demand of Rs. 63,71,370, inclusive of interest, until the appeal for the Assessment Year 2011-12 is disposed of. The stay was allowed for a period of six months or until the appeal's conclusion, with the condition that the assessee deposits an additional sum of Rs. 12.50 lakh by a specified date and provides an undertaking not to dispose of any immovable properties. Violation of the terms would lead to the vacation of the stay. The order was pronounced in favor of the assessee on 23.03.2016.
Issues: Stay application for outstanding demand of Rs. 63,71,370 inclusive of interest till disposal of appeal for AY 2011-12.
Analysis: 1. The primary issue in this case is the stay application filed by the assessee requesting the Tribunal to stay the outstanding demand of Rs. 63,71,370 inclusive of interest until the appeal for the Assessment Year 2011-12 is disposed of.
2. The major addition leading to the demand is related to transfer pricing adjustment of AMP expenses. The assessee's representative argued that the Hon'ble Delhi High Court has ruled in favor of the assessee in similar cases concerning this issue, which was contested by the Departmental Representative.
3. After hearing both parties and examining the relevant material on record, the Tribunal decided to grant the stay for a period of six months or until the appeal is disposed of, subject to the condition that the assessee deposits an additional sum of Rs. 12.50 lakh by a specified date. The assessee agreed to comply with this condition. Additionally, the assessee was required to provide an undertaking to the Assessing Officer, pledging not to alienate or dispose of any immovable properties until the appeal's final disposal. The Tribunal also imposed restrictions on seeking adjournments without just cause. Violation of any terms and conditions would result in the vacation of the stay granted.
4. The Tribunal directed the Registry to schedule the appeal for a hearing on a specified date after giving notice to both parties. The stay application was allowed based on the aforementioned terms and conditions.
5. The order was pronounced in the open court on 23.03.2016, concluding the disposition of the stay application in favor of the assessee.
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