Tribunal Grants Stay Applications for Outstanding Demands with Conditions

The tribunal granted the assessee's Stay Applications for outstanding demands for AY 2014-15 and 2015-16, subject to conditions. The assessee was directed to deposit a specified amount against the demand for AY 2014-15 by a certain date, with a warning against unnecessary adjournments. The tribunal considered the incomplete construction project and attachment of bank accounts in making its decision, opting not to delve into the merits at that stage. An out of turn hearing was scheduled, and notice issuance was waived as both parties were present in court.

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Issues: Stay of outstanding demands for AY 2014-15 and 2015-16.

Analysis:
The assessee sought a stay of outstanding demands for two assessment years, 2014-15 and 2015-16, amounting to Rs. 2,46,34,402 and Rs. 97,95,814 respectively. The demands were based on additions made due to on money, discovered during a survey conducted under section 133A. The assessee, engaged in construction business, argued that the additions should be made upon project completion, following the project completion method. The department had attached the assessee's bank accounts, and the assessee had deposited Rs. 25 lakhs against the demand for AY 2014-15. The AR requested a stay without out of turn hearing to prevent irreparable loss to the project. The DR opposed, suggesting a 50% deposit precondition for a stay.

After considering the arguments, the tribunal noted the incomplete status of the assessee's construction project and the basis for the additions from the survey. The tribunal refrained from delving into the merits at this stage and decided the stay petitions based on a prima facie case. Given the incomplete project and the attachment of bank accounts, the tribunal found it reasonable to grant a stay. The assessee was directed to deposit Rs. 25 lakhs against the AY 2014-15 demand by a specified date and the case was scheduled for an out of turn hearing. The assessee was cautioned against unnecessary adjournments, failing which the stay would be reviewed. The issuance of notice was waived as both parties were informed in court.

In conclusion, the tribunal allowed the Stay Applications of the assessee, subject to the specified conditions, to address the outstanding demands for the mentioned assessment years.

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