Tribunal grants stay on tax demand, considering financial constraints and partial payment.

The Tribunal granted a stay on the realization of the remaining outstanding tax demand of Rs. 13,99,830 for six months or until the Tribunal's order, whichever came earlier. The Tribunal considered the assessee's financial constraints and the fact that over 50% of the total tax demand had already been paid. The Tribunal also accepted the request for an out-of-turn hearing scheduled for 11.06.2019 without sending a separate notice. The decision balanced the interests of both parties, ultimately providing relief to the assessee regarding the outstanding tax demand.

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Issues Involved:
1. Stay application for outstanding tax demand
2. Exemption claim under section 10(38) of the IT Act
3. Payment of tax demand and request for stay

Analysis:
1. The assessee filed a stay application seeking to halt the realization of an outstanding demand of Rs. 13,99,830. The Assessing Officer had disallowed the exemption claim under section 10(38) of the IT Act regarding capital gains from the sale of listed company shares, resulting in additions to the total income. The Ld. CIT(A) upheld the Assessing Officer's decision, leading to a total tax demand of Rs. 28,12,330, including interest. The assessee had already paid Rs. 14,12,500, with only Rs. 13,99,830 remaining outstanding. The Ld. Counsel argued that stay should be granted due to financial constraints and cited precedents supporting the exemption claim.

2. The Ld. Counsel highlighted that the assessee had paid over 50% of the total tax demand and was unable to immediately pay the remaining amount. Emphasizing the balance of convenience, the Ld. Counsel referenced Tribunal decisions where similar exemption claims were allowed. The Ld. DR contended that the assessee should pay the balance amount. After considering both arguments and reviewing the records, the Tribunal noted that the assessee had indeed paid more than 50% of the total demand. Consequently, the Tribunal granted a stay on the realization of the remaining outstanding demand for six months or until the Tribunal's order, whichever came earlier. The Tribunal also accepted the request for an out-of-turn hearing, scheduling the appeal for 11.06.2019 without sending a separate notice.

3. The Tribunal's decision to grant the stay application was based on the assessee's financial situation and the substantial payment already made towards the tax demand. By allowing the stay and setting a hearing date, the Tribunal balanced the interests of both parties. The stay application was ultimately allowed, providing relief to the assessee regarding the outstanding tax demand.

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