High Court modifies ITAT order, directs Assessee to deposit reduced amount, no adjournments. Appeal to be decided promptly.

The High Court modified the Income Tax Appellate Tribunal's order in a case involving M/s Flipkart India Limited for the Assessment year 2015-16. The Court directed the Assessee to deposit a reduced amount within a specified period and refrain from seeking adjournment during the appeal hearing scheduled for 09.04.2018. The Tribunal was expected to decide on the appeal within three months from the High Court's order. The writ petition was disposed of without costs, and the Court instructed prompt communication of the order to the Income Tax Appellate Tribunal.

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Issues:
Challenge to interlocutory order passed by Income Tax Appellate Tribunal on stay application for Assessment year 2015-16.

Analysis:
The High Court heard a writ petition filed by the Assessee, M/s Flipkart India Limited, challenging an interlocutory order by the Income Tax Appellate Tribunal regarding a stay application for the Assessment year 2015-16. The Tribunal's order directed the Assessee to pay 50% of the demand by a specified date and furnish a bank guarantee for the remaining amount. The stay order was valid for six months from the date of the order or until the appeal was disposed of, whichever was earlier. The High Court refrained from expressing any opinion on the merits of the case to avoid affecting the rights of either party pending the final hearing scheduled for 09.04.2018 before the Tribunal.

The Assessee contended that the assessment was overstated, resulting in a substantial demand against declared losses for the Assessment year. The Assessee argued that it was unable to comply with the Tribunal's payment and guarantee requirements due to the high demand amount. Despite generally not interfering with interlocutory orders of the Appellate Authority, the High Court, considering the circumstances and the imminent final hearing date, directed the Assessee to deposit a specific amount against the demand within two weeks and commit not to seek adjournment during the appeal hearing. The Revenue was also instructed to cooperate and present arguments at the scheduled appeal hearing on 09.04.2018.

The High Court modified the Tribunal's order to require the Assessee to deposit a reduced amount within a specified period and refrain from seeking adjournment during the appeal hearing. The Court expected the Tribunal to decide the appeal within three months from the date of the High Court's order. With these directions, the writ petition was disposed of without costs, and a copy of the order was to be sent to the Income Tax Appellate Tribunal promptly.

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