2011 (10) TMI 738 - AT - Income Tax

ITAT grants Stay Petitions for assessment years 2008-2009 and 2009-2010, directs Assessing Officer on demand .

The ITAT granted the assessee's Stay Petitions for assessment years 2008-2009 and 2009-2010, directing the Assessing Officer to stay any remaining demand ... Stay of demand - giving effect to the order of the CIT(A) - direction to Assessing Officer to stay demand pending compliance - conditional interim stay for a limited period (180 days or until disposal) - part payment as basis for grant of interim reliefStay of demand - giving effect to the order of the CIT(A) - part payment as basis for grant of interim relief - conditional interim stay for a limited period (180 days or until disposal) - Stay of outstanding demand for A.Y.2008-2009 after giving effect to the order of the CIT(A). - HELD THAT: - The Tribunal noted that substantial part of the tax demand for A.Y.2008-2009 had already been paid pursuant to its earlier directions, leaving an outstanding demand of Rs. 83,69,094/-. The assessee contended that once the Assessing Officer gives effect to the CIT(A)'s order there may be no demand and possibly a refund. The Tribunal directed the Assessing Officer to give effect to the CIT(A) order and, if a demand nonetheless remains, ordered that such demand be stayed. The stay was made conditional and limited: it would be effective for 180 days from the date of the order or until disposal of the appeal by the ITAT, whichever is earlier. The Tribunal relied on the fact of substantial part-payment as a basis for granting the interim protection.Assessee's stay petition for A.Y.2008-2009 allowed; AO directed to give effect to CIT(A) order and to stay any residual demand for 180 days or until disposal of the appeal.Stay of demand - giving effect to the order of the CIT(A) - part payment as basis for grant of interim relief - conditional interim stay for a limited period (180 days or until disposal) - Stay of outstanding demand for A.Y.2009-2010 after giving effect to the order of the CIT(A). - HELD THAT: - The Tribunal observed that for A.Y.2009-2010 a substantial portion of the demand had been paid, leaving an outstanding balance of Rs. 2,41,93,478/-. The assessee asserted that giving effect to the CIT(A)'s order might eliminate any demand. The Tribunal directed the Assessing Officer to give effect to the CIT(A) order and, if any demand remained thereafter, to stay that demand. The interim stay was expressly conditional and limited to 180 days from the date of the order or until the ITAT disposes of the appeal, whichever is earlier. The partial payments already made were treated as a material circumstance warranting interim relief.Assessee's stay petition for A.Y.2009-2010 allowed; AO directed to give effect to CIT(A) order and to stay any residual demand for 180 days or until disposal of the appeal.Final Conclusion: The Tribunal allowed the assessee's stay petitions for A.Y.2008-2009 and A.Y.2009-2010, directed the Assessing Officer to give effect to the CIT(A)'s order and ordered that any remaining demand after such compliance be stayed for 180 days from the date of this order or until disposal of the appeal by the ITAT, whichever is earlier. Issues involved: Stay of demand for assessment years 2008-2009 and 2009-2010.Summary:The assessee requested stay of demand for &8377; 83,69,094/- and &8377; 2,41,93,478/- for A.Y.2008-2009 and 2009-2010 respectively. The counsel argued that the department had not given effect to the order of the CIT(A), and if done, there would be no outstanding demand against the assessee. The Departmental Representative contended that the assessee, being a cash-rich company, should pay the outstanding demand. The ITAT reviewed the tax payments made by the assessee and the outstanding demands for both assessment years. It was noted that a significant portion of the demands had already been paid by the assessee. The ITAT directed the Assessing Officer to stay any remaining demand after giving effect to the CIT(A) order. The stay was granted for 180 days or until the appeal disposal by the ITAT, whichever is earlier.In conclusion, the assessee's Stay Petitions were allowed, and the appeals were scheduled to be heard on 14th December 2011.