CHAND JEWELLERS,NAKODAR V. INCOME TAX OFFICER, JALANDHAR

SA 6/ASR/2025

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Chand Jewellers, a partnership firm engaged in the jewelry business, filed a stay application concerning a tax demand for the assessment year 2017-18. The Income Tax Officer (ITO), Ward, Nakodar, had assessed the firm's income significantly higher than declared, leading to a substantial tax demand. The firm contested this assessment and sought relief from the Income Tax Appellate Tribunal, Amritsar. The Tribunal's decision required the firm to deposit a portion of the disputed tax demand in cash and secure the remainder with a bank guarantee to facilitate the hearing of their appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783862 (ITAT-AMRITSAR)
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 10-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 29-07-2025
• Laws Referred To: Income Tax Act 61
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHARAN DASS
• Assessee Lawyers: AMIT BAJAJ
• Keywords: Application of stay
• Section: 147

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR. BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. UDAYAN DAS GUPTA, JUDICIAL MEMBER SA No.6/Asr/2025 (Arising out of in I.T.A. No.574/Asr/2025) Assessment Year: 2017-18 Chand Jewellers, Sarafan Bazar, Nakodar. [PAN: AAHFC5908J] (Appellant) Vs. ITO, Ward, Nakodar. (Respondent) Appellant by Sh. Amit Bajaj, Adv Respondent by Sh. Charan Dass, Sr. DR Date of Hearing 26.09.2025 Date of Pronouncement 10.11.2025 ORDER Per: Udayan Das Gupta, JM: The assessee has filed an stay application for stay of demand for the assessment year 2017-18 as per 1st Proviso to section 254 (2A) of the Act 61, in respect of an appeal pending before the Hon’ble Tribunal being ITA No. 574/Asr/2025 filed on 18.07.2025 u/s 253(1) of the Act, which has emanated from Printed from counselvise.com SA No.6/Asr/2025 (Arising out of in I.T.A. No.574/Asr/2025) Assessment Year: 2017-18 2 the order of the ld. CIT(A), NFAC, Delhi passed u/s 250 of the Income Tax Act 61, dated 10/06/2025. 2. In course of hearing, the ld. AR of the assessee submitted that the assessee is a partnership firm and is engaged in the business of jewellery. Return of income filed declaring a total income of Rs.1,52,910/- has been assessed at a total income of Rs.1.05 crore u/s 147 r.w.s. 144B of the Act, vide order dated 29.03.2022. 3. The ld. AR of the assessee submitted that the total demand of tax and interest together amounts to Rs.1,28,42,328/- (one crore twenty eight lakhs forty two thousand three hundred twenty eight) out of which 20% of the said demand is calculated at Rs.25,68,465/-. 4. The ld. AR submitted that the assessee has already deposited an amount of Rs.6,50,000/- (six lakhs fifty thousand) pending appeal before the first appellate authority. As per provision of section 254(2A) 1st Proviso the assessee is liable to make a deposit of 20% of outstanding tax demand (including interest pending disposal of appeal by the tribunal), and the assessee is accepting to pay the same. 5. The ld. DR has no objection. 6. In this case, we find that a total amount of Rs.19,18,465/- (rounded of Rs.20 lakhs) is required to be paid by the assessee for consideration of the stay application. The ld. AR of the assessee submitted that out of the remaining Printed from counselvise.com SA No.6/Asr/2025 (Arising out of in I.T.A. No.574/Asr/2025) Assessment Year: 2017-18 3 balance, the entire amount will be difficult for the assessee to pay in cash because it will effect the fund flow of the business, and as such, he prayed that at least a part payment may please be allowed to be made in cash and the balance may please be allowed to be furnished by way of security amount. 6.1 As such, considering the prayer of the assessee, we direct the assessee to make deposit of Rs.10 lakhs (Ten lakhs) cash to be deposited to the credit of the Income Tax Department and the balance amount of Rs.10 lakhs may be furnished as security by way of bank guarantee in favour of the jurisdictional Commissioner of Income Tax. 6.2 We further direct that this stay order will remain valid for a period of three months (Ninty days) from the date of deposit and furnishing of security as stated above or till the date of disposal of the appeal by the Tribunal whichever is earlier. As such, the application for stay filed by the assessee is disposed off as per the terms mentioned above. 6.3 It is further directed that the assessee shall appear before the tribunal on the date fixed for hearing of the appeal for proper disposal of the same and shall not seek any adjournment 6.4 It is further directed that the assessee shall deposit the amount and furnish the bank gurantee within seven days from the date of communication of this stay Printed from counselvise.com SA No.6/Asr/2025 (Arising out of in I.T.A. No.574/Asr/2025) Assessment Year: 2017-18 4 order. The disputed amount STAYED vide this stay order is Rs.1,02,73,863/- only, subject to fulfilment of above terms and conditions. 7. In the result, the stay application is allowed in the terms indicate above. Order pronounced on 10.11.2025 under Rule 34(4) of the Income Tax Appellate Tribunal Rules 1963. Sd/- Sd/- (Dr. M. L. Meena) (Udayan Das Gupta) Accountant Member Judicial Member AKV Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By Order Printed from counselvise.com "