EUI LIMITED,GURUGRAM V. DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, GURUGRAM

SA 359/DEL/2025

AI Insights

The case involves EUI Limited, the applicant, seeking an extension of stay on the recovery of an outstanding tax demand amounting to INR 1,89,94,920, which arose from an assessment order passed by the Deputy/Assistant Commissioner of Income Tax, Gurgaon. The original stay was granted by the Tribunal in January 2025, with a condition for the assessee to deposit INR 40,00,000, which was duly complied with. The appeal related to the assessment order was adjourned sine-die, pending a decision from the Supreme Court on a related matter concerning the limitation of the assessment order's time frame. The Senior Departmental Representative did not object to the extension of the stay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711605 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2022-2023
• Other Referred Cases: CIT v. M/s Roca Bathroom Products Private Ltd.
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Application of stay
• Section: 143(3); 2

Judgement Text

"1 SA No. 359/Del/2025 (In ITA No. 331/Del/2025) A.Y. 2022-23 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER S.A. No. 359/Del/2025 ( In ITA No. 331/DEL/2025) AssttYr: 2022-23 EUI Limited 5th Floor, Tower B, Building No. 6 GIL IT/ITES SEZ, Sector-21 Dundahera, Gurgaon-122001 Haryana PAN- AACCE 8854 F v. Deputy/Assistant Commissioner of Income Tax, Gurgaon. APPLICANT RESPONDENT Assessee represented by Shri Pratik Rath, Adv., Department represented by Ms. Neeju Gupta, Sr. DR Date of hearing 25.07.2025 Date of pronouncement 25.07.2025 O R D E R PER RAMIT KOCHAR, AM: This stay application bearing S.A. no. 359/Del/2025has been filed by the assessee arising out of ITA no. 331/Del/2025 for assessment year 2022-23, seeking extension on stay on the recovery of the outstanding demand of INR 1,89,94,920/-, which has arisen out of the assessment order dated 21.12.2024 [DIN & Order No. ITBA/AST/S/143(3)/2024-25/1071435208(1)] passed by the Ld. DCIT/ACIT, INTERNATIONAL-TAX, Gurgaon u/s 143(3) read with section 144C(13) of the Printed from counselvise.com 2 SA No. 359/Del/2025 (In ITA No. 331/Del/2025) A.Y. 2022-23 Act , read with computation sheet dated 21.12.2024 [DIN & Document No. ITBA/AST/S/622/2024-25/1071435236(1)] and notice of demand dated 21.12.2024 u/s 156 of the Act [DIN & Notice No. ITBA/AST/S/156/2024- 25/1071435230(1). Total demand raised by the AO was Rs. 2,29,94,920/- and the assessee had deposited Rs. 40,00,000/- pursuant to the Tribunal order dated 24.01.2025 in SA No.40/Del/2025 arising out of ITA no. 331/Del/2025 for assessment year 2022-23. 2. It was submitted by the ld. Counsel for the assessee that the stay on recovery of the outstanding demand was originally granted by the Tribunal vide order dated 24.01.2025 in SA No. 40/Del/2025,whereby the Tribunal has considered the contentions of the assessee, and thereafter directed partial stay on the recovery of the outstanding demand amounting to INR 2,29,94,920/- with the condition to deposit INR 40,00,000 by 28.02.2025. It was submitted that the assessee has duly complied with the direction of the Tribunal, and the amount of INR 40,00,000/- (Rs. Forty Lacs) was deposited with the Government Treasury vide challan no. 00127 dated 12.02.2025 [CIN 25021000071146RBIS with RBIS, Bank Reference No. 20250212113158834635 ;BSR Code 6939001](copy placed on record in file). Thus, it was submitted that the assessee duly complied with the conditions of stay so far as pre-deposit is concerned. It was submitted that after grant of the aforesaid Printed from counselvise.com 3 SA No. 359/Del/2025 (In ITA No. 331/Del/2025) A.Y. 2022-23 stay on recovery of the outstanding demand, the appeal of the assessee in ITA no. 331/Del/2025 was to come up for hearing before the Division Bench on 06.3.2025, but the case of the assessee could not be listed by the Registry on 06th March, 2025. Thereafter on 26.03.2025, the appeal of the assessee came up for hearing before the Division Bench, when the same was adjourned sine-die by the Bench as both ld. CIT and AR informed the Bench that the one of the issue raised in the appeal is with respect to ground of limitation of assessment order being time barred keeping in view decision of the Hon’ble Madras High Court in the case of CIT v. M/s Roca Bathroom Products Private Ltd. (WA Nos. 1517 and 1519 of 2021 dated 9.6.2022). Prayer were made to extend the stayon recovery of outstanding demand of Rs. 1,89,94,920/- [ Rs. 2,29,94,920/- - Rs. 40,00,000/- ] for a period of 180 days or till disposal of the appeal. 3. Ld. Sr. DR could not controvert the aforesaid position, and has no objection if the stay on recovery of outstanding demand is extended by the Tribunal. 4. After hearing both the parties and without commenting on the merits of the issues in appeal, as also observing that the appeal filed by the Department against the order of Hon’ble Madras High Court in the case of M/s Roca Bathroom Products P. Ltd. (supra) has now been heard by the Hon’ble Supreme Court, and the judgment/order of Hon’ble Supreme Court is awaited, we hereby extend the Printed from counselvise.com 4 SA No. 359/Del/2025 (In ITA No. 331/Del/2025) A.Y. 2022-23 stay on recovery of the outstanding demand of INR 1,89,94,920 for a further period of 180 days or till disposal of the assessee whichever is earlier, on the same terms and conditions as were imposed by the Division Bench while granting stay on recovery of outstanding demand vide orders dated 24.01.2025. Needless to say that the assessee will co-operate in early disposal of the appeal (ITA No. 331/Del/2025) by the Tribunal, and shall not seek un-necessary adjournments. We once again reiterate and clarify that we have not commented on the merits of the issues arising in the appeal. We order accordingly. 5. Thus, the assessee’s stay application in SA No. 359/Del/2025 arising out of ITA no. 331/Del/2025 for assessment year 2022-23 is partly allowed, in the manner indicated above. Order pronounced after conclusion of the hearing in open court on 25.07.2025. Sd/- Sd/- (SUDHIR KUMAR ) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29.07.2025. *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "