DILIP JAWAHARLAL VARYANI,PUNE V. DCIT CIRCLE-8, PUNE

SA 11/PUN/2025

AI Insights

The case involves Dilip Jawaharlal Varyani, a civil contractor, who appealed to the Income Tax Appellate Tribunal against the decision of the CIT(A) which dismissed his appeal concerning an inflated tax demand. The original assessment by the Assessing Officer included significant additions to the assessee's income, which the assessee contested. The Tribunal considered the payments already made by the assessee towards the tax demand and the impact of the bank account attachment on his business activities. The Tribunal found merit in the assessee's request for a stay on the tax demand and the lifting of the bank account attachment, citing the substantial payments already made and the prima facie case in favor of the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474213 (ITAT-PUNE)
• Appeal Type: Stay Application
• Pronouncement Date: 04-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARISH BIST
• Assessee Lawyers: SHARAD A VAZE
• Keywords: Application of stay
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER SA No.11/PUN/2025 Arising out of ITA No.643/PUN/2025 Assessment year : 2011-12 Dilip Jawaharlal Varyani S No 9/2B, CTS No.905, Vaibhav Vihar, Near Vikram Vihar, Pimpri, Pune – 411017 Vs. DCIT, Circle 8, Pune PAN: ACAPV0521H (Applicant) (Respondent) Assessee by : Shri Sharad A Vaze Department by : Shri Harish Bist, Addl. CIT Date of hearing : 04-04-2025 Date of pronouncement : 04-04-2025 O R D E R PER R. K. PANDA, VP : The assessee through this Stay Application requests the Tribunal to stay on the realization of the outstanding demand of Rs.1,22,15,400/- and also to direct the Assessing Officer to vacate the attachment on the bank account maintained by the assessee with Kotak Mahindra Bank. 2. The Ld. Counsel for the assessee while explaining the reasons for stay submitted that the assessee is a civil contractor and had undertaken contract work from the Municipal Corporation relating to laying of water pipelines. He filed his return of income on 30.09.2011 declaring total income of Rs.93,19,313/- and the 2 SA No.11/PUN/2025 Assessing Officer completed the assessment u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) wherein he made addition of Rs.1,41,38,625/- on account of inflation of labour expenses and Rs.1,50,50,000/- u/s 68 of the Act. Against this high pitch assessment, the assessee preferred an appeal before the Ld. CIT(A) who dismissed the appeal filed by the assessee. He submitted that as against the total demand of Rs.1,22,15,400/- the assessee has already paid an amount of Rs.31,76,522/- on various dates and an amount of Rs.16,50,910/- has been adjusted out of refunds for assessment years 2016-17, 2018-19, 2020-21 and 2021-22. The Ld. Counsel for the assessee filed the following chart and submitted that the assessee has made the payment of Rs.48,27,432/- against the total demand of Rs.1,22,15,400/- which is almost 40% of the total tax demand: “Payment by assessee: Sr Date Paid BSR Code Challan No Amount Rs 1 22/04/2014 6910333 51399 2,33,000 2 27/05/2014 6910333 50748 2,33,000 3 04/07/2014 6910333 51053 2,33,000 4 28/07/2014 6910333 54112 2,33,000 5 11/09/2014 6910333 53215 2,33,000 6 21/09/2014 6910333 40293 6,04,000 7 27/10/2014 6910333 50920 2,33,000 8 17/02/2024 0002271 34223 1,32,120 9 24/12/2024 0002271 36802 1,23,760 10 24/03/2025 Direct debit by Bank 9,18,642 Total Rs 31,76,522 3 SA No.11/PUN/2025 Payment by adjustment of refund. Sr AY DIN Ack No Amount Rs 1 2016-17 CIN 000432918041762904 4,06,750 2 2018-19 2013201110021390181T 9,82,950 3 2020-21 CPC/2021/A3/1676684295 1,46,650 4 2021-22 2013201110021390181T 1,14,560 Total Rs 16,50,910 Total Payment Rs.48,27,432/- against demand of Rs.1,22,15,400/-” 3. He submitted that the Assessing Officer in the meantime has frozen the bank account of the assessee maintained with Kotak Mahindra Bank which has paralyzed the business activities of the assessee. He submitted that the assessee has a strong prima facie case in his favour. He accordingly submitted that since the assessee has paid about 40% of the outstanding demand and has a strong prima facie case in his favour, therefore, full stay should be granted to the assessee for the balance amount and attachment on the bank account be lifted. He also requested for an out of turn hearing of the appeal. 4. The Ld. DR on the other hand while opposing the Stay Application filed by the assessee submitted that the assessee should be directed to pay some more amount. 5. We have heard the rival contentions made by both sides and perused the record. We find the assessee has made payment of Rs.48,27,432/- against the total demand of Rs.1,22,15,400/- which is about 40% of the total tax demand. Since the assessee has paid more than 20% of the total outstanding demand as per the CBDT 4 SA No.11/PUN/2025 circular, therefore, we stay the realization of the balance outstanding demand for a period of six months from today or till the disposal of the appeal whichever is earlier. The Assessing Officer is directed to vacate the attachment on the bank account of the assessee forthwith. Further, the request of the Ld. Counsel for the assessee for out of turn hearing is also accepted and the appeal is fixed for hearing on 17.04.2025 which was announced in the open Court. It was also announced that no separate notice of hearing shall be sent and this order itself will be deemed to be the service of notice to both the sides for which both the parties agreed. 6. In the result, the Stay Application filed by the assessee is allowed in the above terms. Order pronounced in the open Court on 4th April, 2025. Sd/- Sd/- (VINAY BHAMORE) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 4th April, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune 5 SA No.11/PUN/2025 S.No. Details Date Initials Designation 1 Draft dictated on 04.04.2025 Sr. PS/PS 2 Draft placed before author 04.04.2025 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order "