ITAT Jaipur Grants Stay on Penalty Demand

The Appellate Tribunal ITAT Jaipur granted a stay against the balance outstanding demand of penalty under Section 271AAB of the Income Tax Act, 1961, up to 28/2/2019. The assessee had already paid a significant portion of the penalty amount, and the Tribunal considered this fact in deciding to grant the stay. The appeal was set for a hearing on 13/02/2019, with directions for both parties not to seek adjournments unless necessary. The Stay petition was allowed, and the order was pronounced on 11th January 2019.

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Issues:
Stay against outstanding demand of penalty under Section 271AAB of the Income Tax Act, 1961.

Analysis:
The Appellate Tribunal ITAT Jaipur considered a Stay petition filed by the assessee seeking relief against the outstanding demand of penalty imposed under Section 271AAB of the Income Tax Act, 1961. The penalty amount levied by the Assessing Officer was Rs. 1,00,10,000, out of which the assessee had already paid Rs. 41,59,744, which was more than 41% of the total demand. The Tribunal had previously granted a stay against the outstanding demand when the appeal was filed, considering the fact that the assessee had already paid over 40% of the total demand. However, due to the release of the appeal for fresh hearing, the stay granted by the Tribunal had expired. Therefore, taking into account the circumstances and the fact that the assessee had already paid a significant portion of the demand, the Tribunal decided to grant stay against the balance outstanding demand up to 28/2/2019. The appeal was scheduled for a hearing on 13/02/2019, and both parties were directed not to seek adjournments unless absolutely necessary. Ultimately, the Stay petition was allowed, and the order was pronounced in open court on 11th January 2019.

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