DR. REDDYS LABORATORIES LIMITED,HYDERABAD V. ACIT., CIRCLE- 8(1), HYDERABAD

SA 16/HYD/2025

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Dr. Reddy's Laboratories Ltd filed a stay application seeking an extension against the recovery of an outstanding demand, which was initially granted by the Tribunal on 14/02/2025. The stay was set to expire on 15/05/2025. The application for extension was necessitated by delays in the appeal process, which were not caused by the assessee but by the Department's request for adjournments. The Tribunal considered the circumstances, including the payment of a substantial sum by the assessee and the adjustment of a refund against the outstanding demand, and decided to extend the stay for an additional 90 days.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315911 (ITAT-HYDERABAD)
• Appeal Type: Stay Application
• Pronouncement Date: 16-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2020-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SP CHIDAMBARAM
• Keywords: Application of stay

Judgement Text

" SA No 16 of 2025 DR Reddys Laboratories Ltd Page 1 of 4 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ DB-A ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Madhusudan Sawdia, Accountant Member S.A. No.16/Hyd/2025 आ.अपी.सं /ITA No.983/Hyd/2024 (िनधाŊरण वषŊ/Assessment Year: 2020-21) Dr. Reddy’s Laboratories Ltd Hyderabad PAN:AAACD7999Q Vs. ACIT Circle 8(1) Hyderabad (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Advocate SP Chidambaram राज̾ व Ȫारा/Revenue by:: Shri T. Sunil Gowtham, DR सुनवाई की तारीख/Date of hearing: 16/05/2025 घोषणा की तारीख/Pronouncement: 16/05/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President By way of this stay application, the assessee is seeking extension of the stay against the outstanding demand already granted by this Tribunal vide order dated 14/02/2025 in SA No.4/Hyd/2025 for a period of 90 days which has expired on 15/05/2025. SA No 16 of 2025 DR Reddys Laboratories Ltd Page 2 of 4 2. The learned AR of the assessee has submitted that the delay in disposal of the appeal is not attributable to the assessee as on the earlier occasion, the Department has sought adjournment to file a report of the Assessing Officer regarding the service of the order of the DRP requires for adjudication of the issue raised by the assessee in the appeal. Thus, the learned AR has pleaded that the stay against the recovery of the outstanding demand may be extended for a further period of 180 days. He has also pleaded that the hearing of the appeal is now fixed for hearing on 04/06/2025 but due to his personal inconvenience, the hearing may be postponed to 19/06/2025. 3. On the other hand, the learned DR has not disputed the fact that the delay in adjudication of the appeal is not attributable to the assessee. However, he has opposed to the extension of the stay. 4. We have considered the rival submission and carefully perused the relevant record. The Tribunal vide order dated 14/02/2025 granted the stay against the recovery of the outstanding demand for a period of 90 days subject to the payment of 20% of the total demand. It was noted by the Tribunal that the assessee has already paid a sum of Rs.80.00 crores and also considered the request of the assessee that a refund of Rs.11.22 crores issued by the Assessing Officer vide order dated 27/12/2024 may be adjusted against the outstanding demand for SA No 16 of 2025 DR Reddys Laboratories Ltd Page 3 of 4 the year under consideration. Based on this request of the assessee, the Tribunal directed the Assessing Officer to adjust the refund of the said amount of Rs.11.22 crores against the outstanding demand for the year under consideration. We further note that after the grant of stay, the appeal of the assessee was listed for hearing on couple of occasions, but the same was adjourned at the request of the learned DR. Accordingly, we find that the delay in deciding the appeal is not attributable to the assessee and therefore, the assessee has made out a case for extension of the stay already granted by this Tribunal vide order dated 14/02/2025. Hence, we direct the Assessing Officer not to take any coercive action for recovery of the outstanding demand for a further period of 90 days. The appeal of the assessee is now fixed for hearing on 04/06/2025, however, at the request of the learned Counsel for the assessee the hearing is now postponed to 19/06/2025 which has been noted by both the parties and therefore, no separate notice of hearing of appeal is required to be issued to the parties. 5. In the result, stay application filed by the assessee is allowed. Order pronounced in the Open Court on the conclusion of hearing, i.e. on 16th May, 2025. (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 16th May, 2025 Vinodan/sps SA No 16 of 2025 DR Reddys Laboratories Ltd Page 4 of 4 Copy to: S.No Addresses 1 Dr. Reddy’s Laboratories Ltd, 8-2-337 Road No.3 Banjara Hills, Hyderabad 500034 2 ACIT Circle 8(1) Signature Towers, Kondapur, Opp: Botanical Gardens, Hyderabad 500084 3 Pr. CIT - Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "