Charitable trust granted stay on tax demand, must pay monthly installments. The Tribunal granted a stay of demand for a charitable trust under Section 13(1)(c) of the Income Tax Act for the assessment year 2016-2017. The trust was ...
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Charitable trust granted stay on tax demand, must pay monthly installments.
The Tribunal granted a stay of demand for a charitable trust under Section 13(1)(c) of the Income Tax Act for the assessment year 2016-2017. The trust was required to pay monthly installments of 2,00,000, with the first installment due by 31st March 2020 and subsequent installments by the last day of each month. The stay was subject to conditions, including vacating the stay if the trust sought adjournment from the appeal hearing without just cause. The stay petition was allowed, and the order was pronounced on 13th March 2020 in Chennai.
Issues: Stay of demand for assessment year 2016-2017 under Section 13(1)(c) of the Income Tax Act for a charitable trust.
Analysis: 1. The assessee, a charitable trust registered under Section 12A of the Income Tax Act, filed a stay petition seeking a stay of demand amounting to B38,79,000 for the assessment year 2016-2017 due to the invocation of Section 13(1)(c) of the Act.
2. The assessee contended that there was no violation of conditions warranting the application of Section 13(1)(c) and requested the balance of demand to be stayed until the appeal's disposal.
3. The Senior DR vehemently opposed the stay petition.
4. The Tribunal, after considering the submissions, found it unsuitable for an absolute stay as a detailed examination of materials before the Assessing Officer was necessary to determine the applicability of Section 13(1)(c). However, considering the charitable nature of the trust operating an educational school, the Tribunal decided to grant a stay subject to the payment of monthly installments of 2,00,000. The first installment was to be paid by 31st March, 2020, and subsequent installments by the last day of each calendar month. The stay would be vacated if the assessee sought adjournment from the appeal hearing without a just cause. The appeal was scheduled for hearing on 31.03.2020, and the stay petition was allowed accordingly.
5. The order granting the stay petition was pronounced on 13th March 2020 in Chennai, allowing the assessee's request for a stay of demand under the specified conditions.
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