FOUNDATION ONE INFRASTRUCTURES PVT. LTD.,COIMBATORE V. ACIT, CENTRAL CIRCLE-1, COIMBATORE

SA 2/CHNY/2025

AI Insights

The case involves Foundation One Infrastructure Pvt. Ltd., the appellant, seeking a stay on the recovery of outstanding tax demands for the assessment years 2013-14 through 2017-18. The demands were initially assessed and later revised, with some payments made by the appellant. The Income Tax Department had attached several bank accounts of the appellant as part of the recovery process. The appellant, represented by Shri Suraj Nahar, argued that the recovery actions were hindering their business operations. The Department, represented by Ms. R. Anita, opposed the stay, suggesting further payments were necessary. The Tribunal considered the payments already made and the statutory requirement of a minimum payment before granting a stay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 39223 (ITAT-CHENNAI)
• Appeal Type: Stay Application
• Pronouncement Date: 06-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. ANITA LD.
• Assessee Lawyers: SURAJ NAHAR LD
• Keywords: Rectification of order; FORM 26AS

Judgement Text

" आयकर अपीलीय अिधकरण “बी” \u000eा यपीठ चे\u0013ई म\u0016। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI मा ननीय \u0019ी एस. एस. िव ने रिव, \u000eा ियक सद\" एवं मा ननीय \u0019ी मनोज क ुमा र अ'वा ल ,लेखा सद\" क े सम)। BEFORE HON’BLE SHRI S.S. VISWANETHRA RAVI, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. S.A. No.1/Chny/2025 [In ITA No.3148/Chny/2024] (िनधा *रण वष* / Assessment Year: 2013-14) & 2. S.A. No.2/Chny/2025 [In ITA No.3149/Chny/2024] (िनधा *रण वष* / Assessment Year: 2014-15) & 3. S.A. No.3/Chny/2025 [In ITA No.3150/Chny/2024] (िनधा *रण वष* / Assessment Year: 2015-16) & 4. S.A. No.4/Chny/2025 [In ITA No.3151/Chny/2024] (िनधा *रण वष* / Assessment Year: 2016-17) & 5. S.A. No.5/Chny/2025 [In ITA No.3152/Chny/2024] (िनधा *रण वष* / Assessment Year: 2017-18) Foundation One Infrastructure Pvt. Ltd. 4/3. G.D. Street, Race Course, Coimbatore-641 018. बना म/ Vs. ACIT Central Circle-1 Coimbatore. \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No. AABCF-1701-B (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri Suraj Nahar (CA)- Ld. AR थ कीओरसे/Respondent by : Ms. R. Anita (Addl.CIT) - Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 06-01-2025 घोषणा की तारीख /Date of Pronouncement : 06-01-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of these applications for Assessment Years (AY) 2013-14, 2014-15, 2015-16, 2016-17 and 2017-18, the assessee seeks stay of recovery of outstanding demand as stated in the respective petitions. 2. The Ld. AR has tabulated the demand position as under: - N o. AY Demand as per assessment order Revised Demand Amounts paid towards outstanding demand % of outstanding demand balance outstanding demand 1 2013-14 2,07,68, 140 1, 10,38,702/- (DD as per rectification order u/s.154) 26,20,644 23.74 84,18,058 2 2014-15 2,03,35,972 1,75,21,961/- (Demand after giving prepaid taxes credit as per Form 26AS) 36,04,392 20.57 1,39,17,569 3 2015-16 29,91,420 29,91,420 5,98,284 20.00 23,93,136 4 2016-17 1,20,88,580 1,20,88,580 24,17,716 20.00 96,70,864 5 2017-18 3,64,03,736 1,51,57,660/- (Demand as per order giving effect to order of CIT(A) 72,80,747 48.03 78,76,913 Sub total 1,65,21,783 Amounts attached by department from bank accounts 1.From Account No.: 510909010217789 13,300 2.From Account No.: 510909010203649 49,600 3.From Account No.: 510909010118084 28,23,100 4.From Account No.: 510909010155597 1,19,700 5.From Account No.: 510909010221010 9,17,200 39,22,900 T O T A L 2,04,44,683 3,83,53,640 Aggregate demand as paid by the assessee 34.77% The Ld. Sr. DR, referring to the email of AO, confirmed that demand to the extent of 31% has been paid by the assessee on aggregate basis. However, the said computation does not take into account latest payment made by the assessee on 30-12-2024. Nevertheless, the payment is duly evidenced by the copies of payment Challans and Copies of Form 26AS as placed on record. Accordingly, Ld. AR has prayed for stay of recovery of outstanding demand and also prayed for releases of bank accounts as mentioned in the recovery notice. The Ld. AR stated that the assessee is unable to conduct its regular business. The Ld. Sr. DR sought further payment before grant of stay. 3. Considering the facts of the case, the bench is inclined to grant the stay of recovery of remaining demand for all the years since the assessee has already satisfied minimum demand of 20% for each of the assessment years as prescribed by the statute. The recovery of remaining demand is stayed for a period of 180 days or till the disposal of the appeals, whichever is earlier. All the 11 bank accounts of the assessee as mentioned in notice u/s 226(3) dated 19-12-2024 DIN ITBA/COM/F/17/2024-25/1071353657(1) shall be released forthwith. The quantum appeals shall come up for hearing before “B” Bench on 12-02- 2025 wherein every endeavor shall be made for early disposal of the appeals. Both parties informed in the open court. 4. All the applications stands allowed in terms of our above order. Order pronounced in open court on 06th January, 2025. Sd/- Sd/- (S. S. VISWANETHRA RAVI ) (MANOJ KUMAR AGGARWAL) \u000eा ियक सद\" / JUDICIAL MEMBER लेखा सद\" / ACCOUNTANT MEMBER चे3ई Chennai; िदनांक Dated : 06 -01-2025 DS आदेशकीXितिलिपअ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु