DCIT, CHENNAI V. M/S ABAN SINGAPORE PTE LIMITED , HYDERABAD

MA 92/CHNY/2023

AI Insights

The case involves a Miscellaneous Application by the Revenue against an interim stay order that prevented the recovery of an outstanding demand from the assessee, M/s.Aban Singapore Pte Ltd., for the Assessment Year 2019-20. The interim order was initially granted to stay the recovery for three months or until the final disposal of the appeal, whichever was earlier. The Revenue contended that the assessee did not meet the pre-condition for the grant of stay by failing to deposit 20% of the demanded amount and misrepresented facts regarding the adjustment of a refund from a subsequent assessment year. However, the Tribunal found the Revenue's application to be infructuous as the interim order had merged with the final order allowing the assessee's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107396 (ITAT-CHENNAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-02-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: VINOD SUTHAR; VIRTUAL

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ \u0001यायपीठ, चे\tई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0001ी एबी टी. वक , \u000bाियक सद\u0011 एवं एवं एवं एवं \u0001ी मनोज क ुमार अ\u0019वाल, लेखा सद\u0007 क े सम\u001d BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER Miscellaneous Application No.92/Chny/2023 (in IT (TP) A No.38/Chny/2022) िनधा\u000eरण वष\u000e/Assessment Year: 2019-20 The DCIT/ JCIT (OSD), International Taxation, Circle-1(1), Chennai. v. M/s.Aban Singapore Pte Ltd., C/o P. Murali & Co., Chartered Accountants, 6-3-655/2/3, Somajiguda, Hyderabad-500 082. [PAN: AAQCA 2845 Q] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) Department by : Ms. Anitha, Addl.CIT Assessee by : Mr. Vinod Suthar, CA (Virtual) सुनवाईक\u001cतारीख/Date of Hearing : 31.01.2025 घोषणाक\u001cतारीख /Date of Pronouncement : 05.02.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is a Miscellaneous Application preferred by the Revenue against the interim-order dated 15.02.2023 passed in Stay Petition No.7/Chny/2023 preferred by the assessee in IT (TP) A No.38/Chny/2022 for AY 2019-20. 2. The main grievance of the Revenue is against the interim injunction passed by the Tribunal dated 15.02.2023, staying the recovery of the MA No.92/Chny/2023 [AY 2019-20] M/s.Aban Singapore Pte Ltd. :: 2 :: outstanding demand for a period of three months [from the date of pronouncement of the impugned interim order] or till the final disposal of the appeal whichever is earlier. The Tribunal further directed the AO to adjust 50% of the refund due to the assessee in the AY 2022-23 to meet out the minimum requirement for granting stay; and directed listing of the appeal for hearing on 13.03.2023. By way of this Miscellaneous Application, the Revenue wants to bring to our notice that the assessee didn’t satisfy the pre-condition for grant of stay by depositing 20% of the demand raised to the tune of Rs.19,29,54,782/-, by pointing out that the assessee misdirected/misrepresnted the Tribunal by requesting adjustment of 50% of the refund due for AY 2022-23, which the Tribunal directed, without realizing that ITR-VI filed by the assessee for AY 2022- 23 has not been processed u/s.143(1A) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘) by the CPC. Therefore, according to Revenue the direction of Tribunal to adjust 50% of the purported refund amount of Rs.19,67,91,380/- due to the assessee in the AY 2022-23 was an attempt to hoodwink the Tribunal and by doing so, the assessee obtained stay without satisfying the condition to deposit 20% of the demand. Therefore, the Revenue has prayed for the recall of the stay order passed on 15.02.2023 by filing this MA on 18.04.2023. MA No.92/Chny/2023 [AY 2019-20] M/s.Aban Singapore Pte Ltd. :: 3 :: 3. Per contra, the Ld.AR of the assessee pointed out that the Miscellaneous Application against the stay order dated 15.02.2023 has become infructuous since it has merged into the final order passed by the Tribunal in IT (TP) A No.38/Chny/2022 dated 20.07.2023 allowing the appeal of the assessee. Therefore, he prayed for dismissal of the Miscellaneous Application preferred by the Revenue. 4. Having heard both the parties, first of all, we note that the stay order passed by this Tribunal on 15.02.2023 has merged finally into the appeal order passed in IT (TP) A No.38/Chny/2022 dated 20.07.2023 and therefore, the ibid Miscellaneous Application preferred by the Revenue is infructuous since the interim order has merged with the final order of the Tribunal dated 20.07.2023 and therefore the interim-order dated 15.02.2023 does not exist in the eyes of law after 20.07.2023. Therefore, the Miscellaneous Application preferred by the Revenue is found to be infructuous and so dismissed. 5. In the result, Miscellaneous Application filed by the Revenue is dismissed. Order pronounced on the 05th day of February, 2025, in Chennai. Sd/- (मनोज क ुमार अ\u0019वाल) (MANOJ KUMAR AGGARWAL) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER MA No.92/Chny/2023 [AY 2019-20] M/s.Aban Singapore Pte Ltd. :: 4 :: चे\tई/Chennai, !दनांक/Dated: 05th February, 2025. TLN, Sr.PS आदेश क\u001c \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ\f/Appellant 2. \r\u000eथ\f/Respondent 3. आयकरआयु\u0014/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\rितिनिध/DR 5. गाड\u001dफाईल/GF "