ANEES BEGUM,HYDERABAD V. .ACIT., CENTRAL CIRCLE-2(3), HYDERABAD

SA 34/HYD/2024

AI Insights

Anees Begum filed a stay petition against the recovery of an outstanding tax demand of Rs.1,83,02,004, which arose from an assessment order under sections 144 and 153C of the Income Tax Act. The Assessing Officer had estimated the profit at 12% on turnover and added Rs.1,50,00,000 for unexplained investment in land. The assessee contested the validity of the assessment order, arguing that it lacked a valid satisfaction recorded by the Assessing Officer for initiating proceedings under section 153C. The Departmental Representative opposed the stay. The tribunal, considering the circumstances, dismissed the stay application but granted an early hearing of the appeal, emphasizing that no coercive action should be taken until the new hearing date.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473073 (ITAT-HYDERABAD)
• Appeal Type: Stay Application
• Pronouncement Date: 20-12-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: P. MURALI MOHAN RAO
• Keywords: Unexplained investment; Application of stay
• Section: 153C

Judgement Text

" SA No 34 of 2024 Anees Begum Page 1 of 3 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ B ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Madhusudan Sawdia, Accountant Member S.A. No.34/Hyd/2024 आ.अपी.सं /ITA No.971/Hyd/2024 (िनधाŊरण वषŊ/Assessment Year: 2019-20) Anees Begum Hyderabad PAN:BBHPB8220J Vs. A.C.I.T Central Circle 2(3) Hyderabad (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Shri P. Murali Mohan Rao, CA राज̾ व Ȫारा/Revenue by:: Shri R. Kumaran, DR सुनवाई की तारीख/Date of hearing: 20/12/2024 घोषणा की तारीख/Pronouncement: 20/12/2024 आदेश/ORDER Per Vijay Pal Rao, Vice President By way of this stay petition, the assessee is seeking stay against the recovery of outstanding tax demand of Rs.1,83,02,004/- arising from the assessment order passed u/s 144 r.w.s. 153C of the Act. 2. The learned AR of the assessee has submitted that the Assessing Officer has made an addition by estimating the profit @ SA No 34 of 2024 Anees Begum Page 2 of 3 12% on the turnover and also made a further addition of Rs.1,50,00,000/- on account of unexplained investment in the land. The net profit estimated by the Assessing Officer is highly exorbitant without any basis. He has further submitted that the assessee has challenged the validity of the assessment order passed u/s 153C for want of a valid satisfaction recorded by the Assessing Officer for initiating proceedings u/s 153C of the Act. Thus, he has prayed that the assessee will be allowed to pay 20% of the demand in instalments and the rest of the demand be stayed till the disposal of the appeal. Alternatively, the learned AR has submitted that, an out of turn early hearing be granted for the appeal filed by the assessee. 3. The learned DR, on the other hand, has vehemently objected to the stay against the recovery of the demand. 4. We have considered the rival submissions as well as the relevant material available on record. The appeal of the assessee was listed for hearing on 19/12/2024. The learned AR has sought adjournment and accordingly, the hearing further adjourned to 28/01/2025. Therefore, in our view, the assessee has not made out any case for stay of recovery against the outstanding demand. However, in the interest of justice, we accept the prayer of the learned AR to grant an out of turn early hearing of the appeal. Accordingly, the appeal of the assessee is directed to be listed on 24/12/2024 as out of turn hearing. The SA No 34 of 2024 Anees Begum Page 3 of 3 Assessing Officer is directed not to take any coercive action for recovery of outstanding demand till 24/12/2024. The assessee is directed to file paper book, if any, before the next date of hearing with advance copy to the learned DR. Parties are directed not to take any adjournment of hearing of the appeal. Since the next date of hearing is pronounced in the Open Court and noted by the learned AR and learned DR, therefore, no separate notice to be issued in this regard. 5. In the result, Stay Application filed by the assessee is dismissed and an early hearing is granted. Order pronounced in the Open Court on the conclusion of hearing on 20th December, 2024. Sd/- Sd/- (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 20th December, 2024 Vinodan/sps Copy to: S.No Addresses 1 Anees Begum, C/o P Murali & Co. CAs, 6-3-655/2/3 Somajiguda, Hyderabad 500082 2 ACIT Central Circle 2(3) Hyderabad 3 Pr. CIT – Central, Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "