2019 (3) TMI 642 - AT - Income Tax

Tribunal grants stay on tax demand, conditions apply

M/s. Zebra Innovations P. Ltd. Versus The Addl. CIT, Range-27, New Delhi.

The Tribunal granted a stay on the outstanding demand of Rs. 2,53,05,130 for A.Y. 2014-2015, subject to conditions. The assessee was required to pay Rs. ... Stay petition - recovery proceedings - HELD THAT:- Assessee has a prima facie case for grant of stay till disposal of the appeal, subject to certain conditions. We, accordingly, stay the outstanding demand for a period of six months or disposal of the appeal whichever expire earlier, subject to payment of ₹ 15 lakhs to be paid by the assessee to the Revenue within 10 days from the date of the Order. Appeal of the assessee be fixed for early hearing on 09.05.2019. Assessee shall not seek any unnecessary adjournments in the matter. Paper book, if any, be filed as per Rules. With the above directions, stay application of the assessee is allowed. In the result, stay application of the assessee allowed. Issues: Stay application for outstanding demand of Rs. 2,53,05,130 for A.Y. 2014-2015Analysis:1. The assessee filed a stay application for the outstanding demand of Rs. 2,53,05,130 for the assessment year 2014-2015.2. The counsel for the assessee referred to a rectification tax demand order passed by the Assessing Officer, stating that the net demand amounted to Rs. 2,20,08,160, out of which the assessee had already paid Rs. 33,01,224. The counsel argued that the outstanding demand as of a certain date was Rs. 1,87,06,936. He highlighted that a substantial addition was made without specifying any defects in the books of account maintenance under section 145(3) of the Income Tax Act.3. The counsel contended that the assessee had a prima facie case and the balance of convenience favored the assessee. The assessee expressed willingness to argue the appeal on any fixed date and to pay an additional Rs. 15 lakhs to the Revenue, making the total deposit against the demand 21.82%.4. The Departmental Representative (D.R.) suggested that the assessee should deposit more amount and did not object to an early hearing of the appeal.5. The Tribunal, without commenting on the case's merits, found that the assessee had a prima facie case for granting a stay until the appeal's disposal, subject to certain conditions. The Tribunal granted a stay on the outstanding demand for six months or until the appeal's disposal, whichever was earlier, with the condition that the assessee pay Rs. 15 lakhs to the Revenue within 10 days. The appeal was scheduled for an early hearing, and the assessee was instructed not to seek unnecessary adjournments.6. The Tribunal allowed the stay application of the assessee, with the order pronounced in the open court.