Tribunal grants stay on recovery of disputed penalty, with conditions. Stay Petition provides temporary relief.

The Tribunal granted a stay of recovery for the balance of the disputed penalty for two months from the date of the order, with the condition that the stay would be vacated if the assessee sought an adjournment on the date of the appeal hearing. The Stay Petition filed by the assessee was allowed, providing temporary relief from the recovery of the disputed tax amount.

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Issues: Stay of recovery of disputed tax

Issue 1: Stay of recovery of disputed tax
The assessee filed a Stay Petition in its appeal against the penalty levied under section 271(1)(c) of the Act for long-term capital gains from the sale of agricultural lands. The assessee had paid Rs. 10 lakhs out of the total demand of Rs. 50 lakhs and requested a stay of recovery due to financial constraints, as the capital gains were reinvested in a residential house. The appeal was scheduled for a hearing on 02.01.2018. The Departmental Representative opposed the Stay Petition, citing the decision of the Ld.CIT(A) on the penalty. The Tribunal granted a stay of recovery for the balance of the disputed penalty for two months from the date of the order, with the condition that the stay would be vacated if the assessee sought an adjournment on the date of the appeal hearing.

In conclusion, the Stay Petition filed by the assessee was allowed, providing temporary relief from the recovery of the disputed tax amount. The Tribunal's decision was based on the specific circumstances of the case, considering the partial payment made by the assessee and the upcoming appeal hearing date. The order was pronounced in an open court on 29th December 2017 in Chennai.

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