ALTISOURCE BUSINESS SOLUTIONS PRIVATE LIMITED,BANGALORE V. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1)(1), BANGALORE

SA 19/BANG/2025

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Altisource Business Solutions Private Limited filed stay petitions against the outstanding tax demands for the assessment years 2020-21 and 2021-22. The company argued that a significant refund due from a previous assessment year should be considered against the current demands. The Department of Income Tax opposed this adjustment, citing ongoing proceedings for the stay applications. The Tribunal, considering the statutory provisions and the circumstances of the case, decided to allow the adjustment of 20% of the outstanding demands against the refund and stayed the remaining demands.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34989 (ITAT-BANGALORE)
• Appeal Type: Stay Application
• Pronouncement Date: 14-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PARITHIVEL V.
• Assessee Lawyers: KETAN VED
• Keywords: Opportunity of being heard; Application of stay
• Section: 143(3)

Judgement Text

"SP Nos.18 & 19/Bang/2025 Altisouirce Business Solutions Private Limited, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “C’’ BENCH: BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER SP Nos.18 & 19/Bang/2025 (Arising out of IT(TP)A Nos.1843 & 2473/Bang/2024 Assessment Years: 2020-21 & 2021-22 Altisource Business Solutions Private Limited C/o Altisource Business Solutions Private Limited Vaishnavi Tech Park Ground Floor Tower C Outer Ring Road Bellandur Bangalore 560 103 PAN NO : AAACO9467A Vs. DCIT Circle-1(1)(1) Bangalore APPELLANT RESPONDENT Appellant by : Sri Ketan Ved, A.R. Respondent by : Sri Parithivel V., D.R. Date of Hearing : 14.03.2025 Date of Pronouncement : 14.03.2025 O R D E R PER KESHAV DUBEY, JUDICIAL MEMBER: These stay petitions are filed by the assessee company seeking stay against the outstanding demand for the assessment years 2020-21 and 2021-22 as follows: Asst. year Order reference Outstanding demand (Rs.) 2020-21 154 r.w.s. 143(3) of the Act dated 4.2.2025 13,78,13,930/- 2021-22 143(3) r.w.s. 144C(13) r.w.s. 144B of the Act dated 25.10.2024 17,09,05,720/- SP Nos.18 & 19/Bang/2025 Altisouirce Business Solutions Private Limited, Bangalore Page 2 of 7 2. Both these stay petitions are heard together clubbed together and disposed of by this common order for the sake of convenience and brevity. 3. At the outset, the ld. Counsel for the assessee drew our attention on page 254 of the assessment order dated 22.01.2025 passed for the AY 2012-13 (placed in page nos.244 to 254 of the stay application bunch filed for assessment year 2020-21), the computation sheet of which are reproduced below for ease of reference and convenience- SP Nos.18 & 19/Bang/2025 Altisouirce Business Solutions Private Limited, Bangalore Page 3 of 7 3.1 On going through the above, we find that although refund of Rs.19,75,60,197/- has been granted by the AO as per the order of the assessment passed u/s 143(3) r.w.s. 254 r.w.s. 144B of the Act vide order dated 22.1.2025 for the AY 2012-13 but according to AR of the assessee, the refund is not yet received by the assessee company. 3.2 Further, the ld. A.R. of the assessee also drew our attention on page 242 of the stay application bunch, wherein the AO vide letter dated 21/02/2025 has requested to pay outstanding demand for various assessment years including assessment year 2020-21 and 2021-22 and stated that in case of failure of payment of the outstanding demand, the recovery action will be taken according to the provisions of Income Tax Act. The copy of which is reproduced below for ease of reference and record: SP Nos.18 & 19/Bang/2025 Altisouirce Business Solutions Private Limited, Bangalore Page 4 of 7 3.3 Finally, the ld. A.R. of the assessee submitted that although the stay applications are also filed before the AO as well as before ld. CIT but both the petitions are still pending for disposal and further prayed that the assessee is agreed to adjust 20% of the disputed tax demand for both these assessment years against the SP Nos.18 & 19/Bang/2025 Altisouirce Business Solutions Private Limited, Bangalore Page 5 of 7 refund due for the assessment year 2012-13 and the balance amount may be stayed for 180 days or till the disposal of the appeal, whichever is earlier as quantum appeal is pending before this tribunal for disposal. 4. The ld. D.R. on the other hand, vehemently objected the adjustment of refund for the assessment year 2012-13 with the demand of assessment year 2020-21 and 2021-22 and submitted that the stay petitions are already pending before the ld. AO as well as ld. PCIT and without disposing the said petition, the AO cannot take a coercive action and accordingly submitted that no cause of action arises. 5. We have heard the rival submissions and perused the materials available on record. A perusal of the provisions of section 254 (1) of the Act shows that the Appellant Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. After analyzing the facts, considering the submissions made by ld. A.R. and ld. D.R. as well as the material placed on record, we cannot brush aside the fact that the ld. AO has already sent a letter dated 21.2.2025 requesting the assessee company to pay outstanding demand for the AY 2020- 21 and AY 2021-22 in spite of the fact that the stay applications are pending not only before the AO but also before the ld. CIT. As per section 254(2A) of the Act, the Tribunal may after considering the merit of the application made by the assessee, passed an order of stay in any proceedings in relating to an appeal under sub-section (1) of section 254 of the Act, for a period not exceeding 180 days from the date of such order subject to the condition that assessee deposits not less than 20% of the amount of tax, interest, fee, penalty, or any other sum payable under the provisions of this Act, or furnishes security of equal amount in respect thereof and the SP Nos.18 & 19/Bang/2025 Altisouirce Business Solutions Private Limited, Bangalore Page 6 of 7 appellate Tribunal has to dispose of the appeal which the said period of stay specified in the order. In our opinion, once a statutory provision specifically provides that the Tribunal can only grant a stay subject to deposit of not less than 20% of disputed demand, or furnishing of security of equal amount thereof, it is not open to this Tribunal to grant stay in violation of this basic provisions as the Tribunal being a creation of the statute and we are not in a position to question the provision of this section 254(2A) of the Act. 5.1 Coming to the fact of present case, as rightly pointed out by the ld. Counsel of Assessee that total outstanding demand for Assessment years 2020-21 as well as 2021-22 are Rs.30,87,19,650/- whereas the refund granted vide assessment order dated 22.1.2025 for the assessment year 2012-13 are Rs.19,75,60,197/-. Being so, considering the totality of the fact of the case, it will be unjust for the assessee if we direct the assessee to pay 20% of the outstanding demand for the Asst years 2020-21 & 2021-22 especially when the refund amount of Rs. 19,75,60,197/- of the assessee company is lying with the Department. Accordingly, we direct the AO to adjust 20% of the total outstanding demand for the AYs 2020-21 & 2021-12 amounting to Rs.6,17,43,930/- (Rs.30,87,19,650/- x 20%) with the refund of Rs.19,75,60,197/- granted for the assessment year 2012- 13 and the balance amount of demand for these assessment years are stayed for payment till 180 days from the date of issue of this order or till the disposal of the appeal, whichever is earlier on the above terms. 5.2 The stay petition is disposed of as per the terms indicated above. SP Nos.18 & 19/Bang/2025 Altisouirce Business Solutions Private Limited, Bangalore Page 7 of 7 6. In the result, stay applications filed by the assessee for both the years are partly allowed for statistical purposes. Order pronounced in the open court on 14th Mar, 2025 Sd/- (Waseem Ahmed) Accountant Member Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated 14th Mar, 2025. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. "