BLUE FIN FROZEN FOODS PRIVATE LIMITED,MUMBAI V. ITO 9(2)(1), MUMBAI

SA 30/MUM/2026

AI Insights

The case involves Blue Fin Frozen Foods Private Limited, which filed an application seeking a stay on the recovery of an outstanding demand related to the Assessment Year 2022-23. The demand arose after the Assessing Officer disallowed 10% of the assessee's purchases, suspecting them to be non-genuine based on information from the GST Department. The assessee contested that the disallowance was made without a rational basis and despite having genuine documentary evidence for the purchases. The Tribunal considered the arguments and evidence presented, including the partial payment already made by the assessee, and decided to grant the stay on the recovery of the outstanding demand.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 835312 (ITAT-MUMBAI)
• Duration Of Justice: 3 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 13-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2022-2023
• Appeal Filed On: 10-02-2026
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AANAVARAN KOSURI
• Keywords: Application of stay
• Section: 2

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VP AND SHRI MAKARAND VASANT MAHADEOKAR, AM SA No. 30/Mum/2026 (Arising out of ITA No. 953/Mum/2026) (Assessment Year: 2022-23) Blue Fin Frozen Foods Private Limited D-2, Medley House, Chakala MIDC S.O. 16th Road, MIDC Area, Mumbai-400 093 Vs. Income Tax Officer-9(2)(1) Mumbai PAN/GIR No. AADCB 6509 M (Applicant) : (Respondent) Applicant by : Shri Ravi Sawana, Ms. Neha Sharma and Shri Prativa Agrawal Respondent by : Shri Aanavaran Kosuri (Sr. DR) Date of Hearing : 13.02.2026 Date of Pronouncement : 13.02.2026 O R D E R Captioned application has been filed by the assessee, seeking stay on recovery of outstanding demand of Rs.5,44,89,094/-, pertaining to the Assessment Year 2022- 23. 2. Before us, ld. Counsel appearing for the assessee submitted that based on information received from the GST Department that assessee has entered into transactions with entities not registered under GST, the Assessing Officer (A.O. for short) has treated the certain amount of purchases as non-genuine and disallowed 10% of purchases, which is without any rational basis. He submitted, such Printed from counselvise.com 2 SA No. 30/Mum/2026 (A.Y.2022-23) Blue Fin Frozen Foods Private Limited vs. ITO disallowance has been sustained by ld. First appellate authority mechanically. He submitted, though the purchases are supported by genuine documentary evidences, however, based on irrelevant considerations, the A.O. has made the disallowance. Thus, he submitted, the assessee has a strong prima facie case in its favour. Without prejudice, he submitted, out of the demand raised in the assessment order, the assessee has paid an amount of Rs.1,38,11,486/-, which covers 20% of the demand. Thus, he requested for the stay on the balance demand and also grant early hearing of the appeal. 3. The ld. DR opposed grant of stay. 4. We have considered rival submissions and perused the materials on record. We have gone through the respective orders of the departmental authorities, other materials on record as also the submissions of ld. Counsel for the assessee. It is observed, in course of assessment proceedings, the assessee produced supporting documentary evidences like purchase invoice, delivery challan and ledger account, etc. of the parties from whom purchases were made. The assessee had also produced its regular books of account and bank statements. It appears, the A.O. has suspected the genuineness of the transactions primarily due to non-furnishing of GST registration and PAN of the sellers. Hence, he disallowed 10% of the total purchases. According to the assessee, such disallowance is without any rationale. We find some merit in the aforesaid submission of the assessee. Hence, according to us, the Printed from counselvise.com 3 SA No. 30/Mum/2026 (A.Y.2022-23) Blue Fin Frozen Foods Private Limited vs. ITO assessee has made out a strong prima facie case in its favour. Further, the assessee having paid 20% of the demand raised, the balance of convenience also lies assessee’s favour. Thus, we are inclined to grant stay on recovery of the balance outstanding demand for a period of 180 days from the date of this order or till the disposal of the appeal, whichever is earlier. We further direct the Registry to fix the appeal for hearing on 15.04.2026. Paper books, if any, must be filed by the parties sufficiently prior to the date of hearing of appeal. We make it clear that in the event of any unnecessary adjournment being sought by the assessee, the stay granted is likely to be vacated. We make it clear, the observations made by us in the order in no manner will influence the final outcome of the appeal. 6. In the result, the stay application is allowed as indicated above. Order pronounced in the open court on 13.02.2026. Sd/- Sd/- (Makarand V. Mahadeokar) (Saktijit Dey) Accountant Member Vice President Mumbai; Dated : 13.02.2026 Roshani, Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT - concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai Printed from counselvise.com "