BT INDIA PRIVATE LIMITED,DELHI V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 4(2), DELHI

SA 428/DEL/2024

AI Insights

The case involves BT India P. Ltd., which filed an application seeking a stay on the recovery of an outstanding tax demand for the assessment year 2021-22. The assessee argued that pending rectification applications for previous years would likely reduce the outstanding demand significantly and that refunds from these years could cover 20% of the demand for the current year. The department opposed the stay, requesting the payment of the 20% demand. The tribunal considered the precedents and the financial implications of the pending refunds and rectifications, leading to its decision to grant a conditional stay.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29176 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 12 day(s)
• Appeal Type: Others
• Pronouncement Date: 06-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Next Hearing Date: 06-12-2024
• Assessment Year: misc
• Appeal Filed On: 24-10-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Keywords: Application of stay

Judgement Text

" आयकर अपीलीय अिधकरण िदʟी पीठ “आई”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं ŵीमती रेणु जौहरी, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SMT. RENU JAUHRI, ACCOUNTANT MEMBER SA No. 428/Del/2024 (Arising out of ITA No. 4904/Del/2024, A.Y 2021-22) BT India P. Ltd., 11th Floor Eros Corporate Tower, Oppsoite International Trade Tower, Nehru Place, New Delhi 110019 PAN: AABCC-4785-E ...... आवेदक/Applicant बनाम Vs. Deputy Commissioner of Income Tax, Circle 4(2), New Delhi ..... ᮧितवादी/Respondent आवेदक/Applicant : S/Shri Ankul Goyal & Ashish Sharda, Advocates ŮितवादीȪारा/Respondent by : Shri Rajesh Kumar Dhanesta, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 06/12/2024 घोषणा कᳱ ितिथ/ Date of pronouncement : 06/12/2024 आदेश/ORDER PER VIKAS AWASTHY, JM: This application has been filed by the assessee seeking stay of recovery of outstanding demand of Rs.20,00,76,900/- for assessment year 2021-22. 2. Shri Ankul Goyal, appearing on behalf of the assessee referring to the observations of the Bench dated 08.09.2024 submitted that assessee’s application for rectification for assessment years 2006-07 to 2021-22 are pending for disposal before the Assessing Officer. After rectification the outstanding demand in the 2 SA No.428//DEL/2024 respective assessment years would substantially reduce. The assessee would be eligible for refund and the refund amount will be sufficient to cover 20% of the outstanding demand in the impugned assessment year. He pointed that in assessee’s own case in preceding assessment years i.e. SA No. 236 & 237/Del/2022 for AY 2017-18 and 2018-19 respectively and in SA No. 418/Del/2024 for AY 2020- 21, the Tribunal after considering the amount of refund due and the demand for the relevant assessment year has directed the AO to adjust refund towards 20% of the outstanding demand and in case of any short fall, the assessee was directed to make the short fall good. 3. Per contra, Shri Rajesh Kumar Dhanesta representing the department prayed for direction to the assessee to pay 20% outstanding demand for the impugned assessment year. 4. We have heard the submissions made by rival sides and have examined the orders of authorities below. Considering facts of the case, prima facie we are of considered view that the assessee deserves the benefit of stay of recovery of outstanding demand. The stay of recovery of outstanding shall be subject to following condition: (i) The assessee shall pay 20% of the outstanding demand for the impugned assessment year. The assessee has furnished a table giving a summary of refunds due to the assessee starting from AY 2006-07 to 2023-24. The total value of expected refunds according to the assessee is Rs.18.17crores. Subject to crystallization of refunds after disposal of rectification applications of the assessee for respective assessment years pending before 3 SA No.428//DEL/2024 the AO, the AO shall first adjust the refund, if any towards 20% of amount to be payable by the assessee and if there is any short fall, the assessee shall cover the deficiency of 20% within two weeks from the date of service of rectification order passed by the AO. (ii) Subject to recovery/payment of aforesaid amount the remaining demand is stayed for a period of 180 days from the date of this order or till the disposal of appeal, whichever is earlier. (iii) The assessee shall furnish paper book, if any before the next date of hearing with an advance copy to the opposite side, in accordance with ITAT Rules. (iv) The Registry has already fixed the appeal for hearing on 18.02.2025, the assessee shall not seek adjournment on the date fixed for hearing. 5. In the result, the Stay Application of the assessee is allowed, in the terms aforesaid. Order pronounced in the open court on Friday the 06th day of December, 2024. Sd/- Sd/- (RENU JAUHRI) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी / Delhi, ᳰदनांक/Dated 06/12/2024 NV/- 4 SA No.428//DEL/2024 ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "