Appellate Tribunal Grants Stay of Demand for Assessee Facing Financial Difficulties

The Appellate Tribunal granted a stay of demand for the Assessment Years in question, recognizing the financial difficulties faced by the assessee due to disallowances made under sections 68 and 69. The Tribunal acknowledged the impact on the assessee's business operations and directed the cases to be fixed for hearing in the next Division Bench. The decision aimed to provide relief to the assessee, considering the financial stringency and the legitimate revenue deprivation caused by the Revenue's demands.

---

---

Issues involved: Stay of demand for Assessment Years u/s.10B of the I.T.Act,1961, financial stringency due to disallowances u/ss.68 and 69, discretion of the Bench regarding stay.

In this judgment by the Appellate Tribunal ITAT CUTTACK, the petitions for stay of demand for the respective Assessment Years were considered. The assessee had claimed income exempt u/s.10B of the I.T.Act,1961, and the demand was raised due to disallowance of this exemption. The assessee, facing financial stringency as disallowances were made u/ss.68 and 69, requested a stay of demand until the appeals were disposed of by the Tribunal. The Tribunal acknowledged the financial difficulties faced by the assessee and granted stay for both Assessment Years, directing the cases to be fixed for hearing in the next Division Bench. The Revenue's raising of demands had deprived the assessee of legitimate revenue, impacting the business operations which had been closed on government direction. The Tribunal's decision aimed to provide relief to the assessee in light of these circumstances.

---