TaxTMI 
TaxTMI 
1999 (2) TMI 100
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....arch, 1996. While making the assessment, the AO made an addition of Rs. 3,43,117 in respect of the alleged difference in inflated purchases made from M/s Jay Shree Steels and M/s Jay Shree Industries and he also made, an addition of Rs. 51,995 on the same alleged ground in respect of purchases from M/s Shree Ram Steel Centre. There were a few minor additions and disallowances made in the assessment by the AO against which the applicant filed an appeal before the CIT(A). The appeal came to be heard by the CIT(A), II, Meerut, camp Ghaziabad, who not only confirmed the illegal additions and disallowances arbitrarily and vexatiously made by the AO but also resorted to an enhancement of income of the appellant to the extent of Rs. 57,98,103 whic....
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....ds interest charged illegally under s. 234B, 234C and 220(2) of the IT Act, 1961. The entire actions and orders of the authorities below being mala fide and motivated by extraneous reasons not authorised by law and without being guided by any of the correct legal positions and the facts and materials on record, the entire demand as well as the impugned orders of the authorities below are liable to be set aside and quashed by this Tribunal. 2. The applicant further prays that the authorities below be summoned to appear in person before the Tribunal and to explain their conduct and behaviour in the most vexatious, arbitrary and mala fide manner for causing deliberately hardship and harassment to the appellant to create fictitious demands a....
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....so submitted that financial resources are severely strained due to severe recession in the iron and steel industry and it is facing acute liquidity crunch, the bank account is already heavily overdrawn. Thus, the applicant is not in a position to pay this huge demand. Any coercive proceedings for collection and recovery of the demand at this juncture will cause serious hardship and harassment to the applicant and will adversely affect the business. Bank a/c stands already attached. In order to support the contention for grant of stay and to highlight the infirmities in the order of authorities below reliance was placed on CIT vs. Shapoorji Pallonji Mistry (1962) 44 ITR 891 (SC), CIT vs. Rai Bahadur Hardutroy Motilal Chamaria (1967) 66 ITR 4....
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.... the year when the stock inventory was physically verified and tallied with the stock register but no such reconciliation was placed before the AO or before the appellate authority. Further no worthwhile explanation has been submitted to explain such a strange coincidence in the g.p. rate of two years as well as the percentage shown in the production account. Similarly purchases made from M/s Jai Shree Steels and M/s Jain Shree Industries India and M/s Shree Ram Steel Centre are concerned, it is evident from the facts recorded by the AO that manufacturing activities were not being done in the two concerns and this is further proved by the fact that the goods were transported in such vehicles which were found non-existent trucks or through s....
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....ed that request for stay of demand deserves to be dismissed. 4. We have heard rival submissions, perused the record, gone through the relevant papers to which our attention was drawn. We have also gone through the case law as cited. From the documentary evidence we find that the assessee has paid the entire demand as created by the AO and stay of demand is being urged for the demand created on the basis of enhancement order passed by the learned CIT(A) against which the present appeal is pending. After carefully considering the request of the assessee we are of the view that the assessee has been able to make out a case for stay of recovery of demand. Therefore, while accepting the application of the assessee we stay the demand as outsta....