2015 (12) TMI 1861 - AT - Income Tax

Tribunal Grants Stay on Tax Demand, Allows Balance Payment Stay for 180 Days

The Tribunal granted a stay petition against the outstanding demand of &8377; 3,45,87,830 for assessment year 2009-10. The petitioner had already paid ... Seeking stay against the balance outstanding demand - assessee has already paid 50% of the total demand - AO has already granted stay against recovery after payment of 50% of total demand but stay granted by the AO is only till the disposal of the appeal or 29/02/2016 - assessee’s grievance is that if the assessee’s appeal is not disposed of by 29/02/2016, then there is an apprehension for taking a coercive action by AO for recovery of balance of 50% - HELD THAT:- Since assessee has already paid 50% of total demand and AO himself has stayed recovery till disposal or 29/02/2016, therefore, assessee has made out a good prima facie case for stay of balance outstanding demand till disposal of appeal or for a period of 180 days whichever is earlier. Accordingly, balance outstanding payment which is 50% of total demand is hereby stay for a period of 180 days or till disposal of appeal of assessee whichever is earlier. Appeal of the assessee is already fixed for hearing on 05/01/2016 which may be listed in the category of stay granted cases out-of-turn hearing. In the result, stay petition is allowed. Issues: Stay petition against outstanding demand for assessment year 2009-10.Analysis:1. The petitioner sought a stay against the outstanding demand of &8377; 3,45,87,830 for the assessment year 2009-10.2. The total demand initially raised by the Assessing Officer (AO) was &8377; 6.92 crores, inclusive of interest amounting to &8377; 2.44 crores.3. The petitioner had already paid 50% of the total demand, which amounted to &8377; 3.46 crore.4. The AO had granted a stay against recovery after the payment of 50% of the total demand until the disposal of the appeal or 29/02/2016.5. The petitioner expressed concern that if the appeal was not disposed of by 29/02/2016, the AO might take coercive action for the recovery of the remaining 50%.6. Considering that the petitioner had already paid 50% and the AO had stayed recovery until the appeal's disposal or 29/02/2016, the Tribunal found a prima facie case for granting a stay on the balance outstanding demand.7. The Tribunal allowed the stay petition, staying the balance payment of 50% of the total demand for 180 days or until the appeal's disposal, whichever is earlier.8. The appeal was scheduled for an out-of-turn hearing on 05/01/2016 in the category of stay granted cases.9. The Tribunal pronounced the order on 11th December 2015, allowing the stay petition.