EMERSON PROCESS MANAGEMENT (INDIA) PRIVATE LTD.(SUCCESSOR PENTAIR VALVES & CONTROLS INDIA PVT. LTD.),MUMBAI V. .THE DY.CIT, CIRCLE-2(2)(1), VADODARA

SA 25/AHD/2024

AI Insights

The case involves Emerson Process Management (India) Private Limited, which sought an extension of stay on outstanding tax demands for four assessment years. The Tribunal had previously granted a stay, which was nearing expiration. The assessee argued that the delay in adjudication was due to the Department's adjournments and not their fault. The Department did not contest the facts but opposed the extension of stay. The Tribunal considered the payments already made by the assessee and the reasons for the delays in hearings, ultimately deciding to extend the stay.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472247 (ITAT-AHMEDABAD)
• Appeal Type: Stay Application
• Pronouncement Date: 20-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Other Referred Cases: Shelf JT Drilling J.T. Angel Limited and Others
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: S.N. SOPARKAR; .; PARIN SHAH
• Keywords: Application of stay; Extension of stay
• Section: 153

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद Ɋायपीठ ‘डी’ अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD ] ] BEFORE MRS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND MS. SUCHITRA R. KAMBLE, JUDICIAL MEMBER Stay Application Nos. 25 to 28/Ahd/2024 (in ITA Nos. 1022/Ahd/2016, 2359/Ahd/2017, 139/Ahd/2019 & 70/Ahd/2020 respectively) Assessment Years : 2011-12, 2013-14, 2014-15 & 2015-16 respectively Emerson Process Management (India) Private Limited, (Successor-in-interest for erstwhile Pentair Valves & Controls India Pvt Ltd), Delphi, B-Wing, 6th Floor, Orchard Avenue, Hiranandani Business Park, Powai, Mumbai-400076, Maharashtra V/s. The Dy. Commissioner of Income-tax, Circle-2(1)(2), Baroda PAN No. AAACK 8809 L (Applicant) .. (Respondent) Assessee by : Shri S. N. Soparkar, Sr. Adv., & Shri Parin Shah, A.R. Revenue by : Shri Rignesh Das, Sr DR सुनवाई की तारीख/Date of Hearing : 20/12/2024 घोषणा की तारीख /Date of Pronouncement : 20/12/2024 आदेश/O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER: By these Stay Applications, the assessee is seeking further extension of stay of outstanding demand already granted by the Tribunal for the relevant four years as under:- AY Outstanding Demand (Rs.) 2011-12 9,62,08,289/- 2013-14 2,46,02,786/- 2014-15 6,84,28,400/- 2015-16 11,64,84,043/- 2. The learned Counsel for the assessee, at the outset, pointed out that the last order extending stay was passed in Stay Application Nos. 06 to 09/Ahd/2024 SP Nos. 25to28/Ahd/2024 Emerson Process Management (I) Pvt Ltd Vs. DCIT AY : 2011-12, 2013-14, 2014-15 & 2015-16 - 2 - vide order dated 14th June, 2024. It has also been pointed out by him that the stay so granted was for a period of 180 days, which is getting over by now. He submitted that there is no change in facts and circumstances now in which the stay was granted earlier to the assessee. He contended that the delay in adjudication of the appeals, since last order granting stay on 17th November 2023, is not attributable to the assessee as the appeals were either not heard on account of non-functioning of the Bench or due to the adjournment sought by the ld. DR as is evident from the record. He pointed out from the stay applications filed before us that after the grant of stay on 17th November 2023, the matter came up for hearing on several occasions when, except two occasions where the bench was not functional, in all other instances, adjournments were sought by the Department only. The details of the same, as mentioned in its stay applications, are as under:- Sr. No. Date of Hearing Status of Hearing 46 5 Dec 2023 Bench was not functioning. Next hearing scheduled on 28 December 2023 47 28 Dec 2023 Bench was not functioning. Next hearing scheduled on 4 January 2024 48 4th Jan 2024 Adjournment sought by the ld. DR. Next hearing scheduled on 14 February 2024 49 14th Feb 2024 Adjournment sought by the ld. DR. Next hearing scheduled on 18 March 2024 50 18th Mar 2024 Adjournment sought by the ld. DR. Next hearing scheduled on 25 April 2024 51 25th Apr 2024 Adjournment sought by the ld. DR. Next hearing scheduled on 12 June 2024 52 12th Jun 2024 Adjournment sought by the Learned Department Representative. Next hearing scheduled on 30 July 2024 53 30th Jul 2024 Adjournment sought by the Learned Department Representative. Next hearing scheduled on 04 September 2024. 54 4th Sep 2024 Adjournment sought by the Learned Department Representative. Next hearing scheduled on 09 December 2024. 3. The ld. Counsel for the assessee, therefore, contended that the delay in hearing and disposal of the corresponding appeals of the assessee is not SP Nos. 25to28/Ahd/2024 Emerson Process Management (I) Pvt Ltd Vs. DCIT AY : 2011-12, 2013-14, 2014-15 & 2015-16 - 3 - attributable to the assessee. The ld. Counsel for the assessee also submitted that the assessee had already paid more than 50% of the demand as originally raised on account of tax and interest for the all the four years under consideration . He, therefore, prayed for a further extension of stay. 4. The ld. DR, though was unable to controvert the fact pointed out by the ld. Counsel for the assessee that it was the Department on whose behest the appeal was being adjourned time and again, he however opposed the grant of extension of stay. 5. We have heard the arguments of both the sides and also perused the relevant material available on record. We have noted that the assessee has already paid more than 50% of the demand as originally raised on account of tax and interest. Moreover, we also observe that the delay in hearing and disposal of the corresponding appeals of the assessee is not attributable to the assessee. We have noted from the order-sheet entry of hearing in the appeals that the Department had been seeking adjournments on the ground that one of the additional grounds raised by the assessee before us, of the order passed being barred by limitation considering the interplay of the provisions of Section 153 and 144C of the Act, is pending before the Hon’ble Apex Court in appeal against order passed by the Hon’ble Bombay High Court in the case of Shelf JT Drilling J.T. Angel Limited and Others, vide order dated 04.08.2023. That, in the said case, the Hon’ble Supreme Court has passed an interim order directing not to cite the aforesaid judgement of the Hon’ble Bombay High Court as a precedent in any orders until further orders. The Department is seeking adjournment on the ground that, since the assessee is insisting implementation of the above order, the hearing in the appeal may be adjourned till the decision of the Hon’ble Supreme Court. 6. Considering the fact as noted above that the assessee has already deposited 50% of the outstanding demand and the appeals are/cannot be heard on account SP Nos. 25to28/Ahd/2024 Emerson Process Management (I) Pvt Ltd Vs. DCIT AY : 2011-12, 2013-14, 2014-15 & 2015-16 - 4 - of the interim stay granted by the Hon’ble Supreme Court against the implementation of the ratio of the decision of Hon’ble Bombay High Court in the case of Shelf JT Drilling J.T. Angel Limited and Others (supra), on which the assessee seeks to place reliance, the assessee cannot be faulted for the adjournment of hearing of the appeals. 7. In view of the above, we consider the case of the assessee as a fit case to further extend the stay of outstanding demand already granted by the Tribunal for all the four years under consideration for a further period of 180 days or till the date of disposal of the corresponding appeals, whichever is earlier. 8. In the result, these four Stay Applications filed by the assessee are allowed. Order pronounced in the open Court on 20/12/2024 at Ahmedabad. Sd/- Sd/- Sd/- Sd/- (ANNAPURNA GUPTA) (SUCHITRA R. KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad, Dated 20/12/2024 Tanmay, Sr. P.S. TRUE COPY आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "