2020 (8) TMI 187 - AT - Income Tax

Assessee granted stay on demand recovery with installment terms and strict conditions

Sunder Vishan Lakhani Versus Asstt. Commissioner of Income Tax – 15 (2) (1), Mumbai

The Tribunal granted the stay application filed by the assessee regarding the recovery of outstanding demand in the assessment year 2015-16. Specific ... Stay of recovery of outstanding demand - assessee has already paid more than 27% of the amount - HELD THAT:- We are of considered view that assessee deserves the benefit of stay of recovery of outstanding demand. The assessee shall pay a sum of ₹ 4.00 lacs in two instalments of ₹ 2.00 lacs each. Assessee shall furnish proof of deposit of aforesaid amounts to the Registry of the Tribunal within a week from the date of such deposits and shall also furnish copy of the same to the Office of D.R. The assessee shall not seek frivolous adjournments. Issues: Stay of recovery of outstanding demand in the assessment year 2015-16Detailed Analysis:1. Submission by Appellant and Respondent:Ms. Ritika Agarwal, representing the assessee, highlighted that a significant portion of the demand had already been paid, amounting to more than 27% of the total demand. She referenced a decision by the Delhi Tribunal to support the appeal's merit. On the other hand, Shri Rajesh Kumar Mishra, representing the Department, opposed the stay application, arguing that the case cited by the assessee was factually distinguishable.2. Decision and Conditions Imposed:After hearing both sides, the Tribunal acknowledged that the assessee had a prima facie good case and deserved the benefit of stay on the recovery of outstanding demand. The Tribunal imposed specific conditions for granting the stay, requiring the assessee to make two installment payments totaling &8377; 4.00 lacs by specific dates. The assessee was also instructed to provide proof of deposit to the Tribunal and the Department. Additionally, the assessee was prohibited from seeking frivolous adjournments and was instructed on the filing of a paper book as per ITAT Rules. Breach of these conditions would result in the automatic vacation of the stay and loss of the benefit of early appeal hearing.3. Duration of Stay and Next Steps:The recovery of the remaining outstanding demand was stayed for 180 days from the date of the order or until the appeal's disposal, whichever came earlier. The appeal was scheduled for a hearing on a specific date, and separate notices for the hearing were waived due to the announcement in open court.4. Final Decision:Ultimately, the Tribunal allowed the stay application filed by the assessee based on the conditions specified in the order. The order was pronounced in open court on a specific date in March 2020.