ATHARV STAR INDIA PRIVATE LIMITED,THANE V. DCIT CENTRAL CIRCLE 5(2), MUMBAI, MUMBAI

SA 109/MUM/2025

AI Insights

Atharv Star India Private Limited filed two stay petitions seeking relief from the outstanding tax demands for the assessment years 2021-22 and 2022-23. The assessee argued that they had already paid over 40% of the total tax demand and were willing to pay an additional Rs. 10,00,000 to facilitate the lifting of the bank account attachment, which was hindering their business operations. The revenue opposed the stay, asserting that the additions made by the assessing officer were reasonable and the assessee had no merit in their case. The Tribunal considered the payments made by the assessee, the ongoing appeal process, and the potential hardship caused by the bank account attachment in deciding to grant the stay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785073 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 12-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2021-2022
• Appeal Filed On: 19-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURENDRA MOHAN
• Assessee Lawyers: HIMANSHU GANDHI
• Keywords: Application of stay

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER & MS. PADMAVATHY S, ACCOUNTANT MEMBER SA No. 109/MUM/2025 (AY : 2021-22) (Arising out of ITA No. 4805/Mum/2025) & SA No. 110/MUM/2025 (AY : 2022-23) (Arising out of ITA No. 4791/Mum/2025) (Physical hearing) Atharv Star India Private Limited Ground Floor, Shop No. 15, Kasturi Heights, Near RBK School, Eden Park Road, Mira Bhayandar, Thane – 401105. [PAN: AASCA9374J] Vs DCIT, Central Circle – 5(2), Mumbai Appellant / Assessee Respondent / Revenue Assessee by Shri Himanshu Gandhi, AR Revenue by Shri Surendra Mohan, Sr. DR Date of hearing 12.11.2025 Date of pronouncement 12.11.2025 Stay Order under section 254 of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER; 1. These two stay petitions are filed by assessee for seeking stay of outstanding demand for A.Y. 2021-22 & 2022-23. The ld. AR of the assessee submits that out of the total tax demand for A.Y. 2021-22 & 2022-23, the assessee has paid about 40% of the total tax demand, the details of the tax demand paid by the assessee has been shown in the application of stay application. Though, the assessee has paid more than 20% of tax demand, yet the assessee still ready and willing to pay Rs. 10,00,000/- for A.Y. 2021-22 & 2022-23 and on making payment such additional amount of Rs. 10,00,000/-, in case the astonishment from bank account is removed. The total paid tax Printed from counselvise.com SA Nos. 109 & 110/Mum/2025 Atharv Star India Private Limited 2 liability would be about 50% of the total outstanding liability. The assessing officer has attached the bank account of the assessee and due to attachment of bank account; the assessee is unable to run his business smoothly. The assessee has already filed appeal which is listed today and in final adjudication it may take some time. The assessee has good case on merit and is likely to succeed. The balance of convenience is in favour of assessee and the assessee is facing hardship due to attachment of bank account. The ld. AR of the assessee submits that stay of further recovery of outstanding demand may be stayed and assessing officer may be directed to remove / lift the attachment from the bank account. 2. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the revenue submits that the assessing officer has made reasonable additions in the assessment order. The assessee has no case on merit. He further submits that bench may pass appropriate order in accordance with law. 3. We have considered the submissions of both the parties and have gone through the orders of lower authorities on the basis of which demand notice / outstanding demand is created. We find that assessee has paid more than 40 % tax liability and still ready to make payment of Rs. 10,00,000/- against the outstanding demand for A.Y. 2021-22 & 2022-23. Considering the fact that appeal of assessee is being heard today itself and in final disposal, it may take some time in passing final order. Considering the fact that that assessee has paid more than about 40 % of the outstanding demand and still ready to make further payment of Rs. 10,00,000/- out of total outstanding Printed from counselvise.com SA Nos. 109 & 110/Mum/2025 Atharv Star India Private Limited 3 liability. Hence, the assessing officer is restrained from making further recovery of outstanding tax liability. The ld. AO is further directed to remove / lift the assessment from bank account of the assessee. On removal of attachment / left from bank account, the assessee shall pay Rs. 10,00,000/- within five working days. The operation of this order shall remain in force for 180 days or till the disposal of appeal whichever is earlier. The operative part of this order was dictated in open court in present of parties with the direction of ld. Sr. DR for the revenue to communicate this order to assessing officer. 4. In the result, both the stay petitions of assessee are allowed, copy of this order be provided to both the parties if so desired. Order pronounced in the open Court on 12/11/2025. Sd/- PADMAVATHY S. ACCOUNTANT MEMBER Sd/- PAWAN SINGH JUDICIAL MEMBER MUMBAI, Dated: 12/11/2025 Biswajit Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order Assistant Registrar ITAT, Mumbai Printed from counselvise.com "