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 50% of the total demand, and the Assessing Officer 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 remaining outstanding demand and allowed the stay petition, staying the balance payment for 180 days or until the appeal's disposal. The appeal was scheduled for an expedited hearing in the category of stay granted cases, with the Tribunal's order pronounced on 11th December 2015.

---

---

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.

---