HAREON SOLAR SINGAPORE PRIVATE LIMITED,SINGAPORE V. DCIT INT. TAXATION CIRCLE-2(1)(1), NEW DELHI

SA 237/DEL/2024

AI Insights

The case involves M/s Hareon Solar Singapore Private Limited, which filed a stay application against the Deputy Commissioner of Income Tax, International Taxation Circle-2(1), New Delhi, seeking to halt the recovery of an outstanding demand of \\u20b919,04,420 for the assessment year 2020-21. The demand arose from the addition of long-term capital gains derived from the transfer of equity shares and compulsorily convertible debentures. The assessee argued that the tax liability was incorrectly computed by the Assessing Officer, prompting a rectification application under Section 154 of the Income Tax Act. However, the tribunal dismissed the stay application due to the assessee's failure to appear at multiple hearings and the lack of a crystallized demand, as the rectification application was still pending.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 38106 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Others
• Pronouncement Date: 04-10-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 04-10-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 16-07-2024
• Laws Referred To: Section 154 of the Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR; SENIOR
• Keywords: Application of stay
• Section: 154

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI FRIDAY FRIDAY FRIDAY FRIDAY BENCH BENCH BENCH BENCH- - - -D D D D : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE BEFORE BEFORE BEFORE SHRI SAKTIJIT DEY, SHRI SAKTIJIT DEY, SHRI SAKTIJIT DEY, SHRI SAKTIJIT DEY, VICE VICE VICE VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT AND AND AND AND SHRI S. RIFAUR RAHMAN SHRI S. RIFAUR RAHMAN SHRI S. RIFAUR RAHMAN SHRI S. RIFAUR RAHMAN , , , , ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER Stay Application No. Stay Application No. Stay Application No. Stay Application No.237 237 237 237/Del/2024 /Del/2024 /Del/2024 /Del/2024 (In ITA No.2226 (In ITA No.2226 (In ITA No.2226 (In ITA No.2226/Del/2024) /Del/2024) /Del/2024) /Del/2024) Assessment Yea Assessment Yea Assessment Yea Assessment Year r r r : 2020 : 2020 : 2020 : 2020- - - -21 21 21 21 M/s Hareon Solar Singapore M/s Hareon Solar Singapore M/s Hareon Solar Singapore M/s Hareon Solar Singapore Private Limited, Private Limited, Private Limited, Private Limited, 38 Beach Road, #29 38 Beach Road, #29 38 Beach Road, #29 38 Beach Road, #29- - - -11 11 11 11 South Beach Tower, Singapore. South Beach Tower, Singapore. South Beach Tower, Singapore. South Beach Tower, Singapore. PAN : AAECH4843B. PAN : AAECH4843B. PAN : AAECH4843B. PAN : AAECH4843B. Vs. Vs. Vs. Vs. Deputy Commissioner of Deputy Commissioner of Deputy Commissioner of Deputy Commissioner of Income Tax, Income Tax, Income Tax, Income Tax, International Taxation Circle International Taxation Circle International Taxation Circle International Taxation Circle- - - -2(1)(1), 2(1)(1), 2(1)(1), 2(1)(1), New Delhi. New Delhi. New Delhi. New Delhi. (Appellant) (Respondent) Appellant by : None. Respondent by : Shri Sanjay Kumar, Senior DR. Date of hearing : 0 0 0 04.10 4.10 4.10 4.10.2024 .2024 .2024 .2024 Date of pronouncement : 0 0 0 04 4 4 4. . . .10 10 10 10.2024 .2024 .2024 .2024 ORDER ORDER ORDER ORDER Per Saktijit Dey, Vice Per Saktijit Dey, Vice Per Saktijit Dey, Vice Per Saktijit Dey, Vice President President President President : : : : Captioned application has been filed by the assessee seeking stay on the recovery of outstanding demand of `19,04,420/- for the assessment year 2020-21. 2. At the outset, we must observe, the stay application was first listed for hearing on 26th July, 2024. However, none appeared on behalf of the assessee. Subsequently, when the matter was listed for hearing on 30th August, 2024, 13th September, 2024 and finally today, i.e., 4th October, 2024, despite repeated notices being issued through RPAD/email, the assessee has failed to appear on a single occasion. These facts show complete lack of interest on the part of the assessee to pursue the present application. It also reveals lack of urgency on the part of the assessee and also the fact that there is no apparent or anticipated threat of the recovery of the demand. Therefore, we are of the view that no useful purpose would be served in keeping the present application pending and granting further opportunity to the assessee. Accordingly, we proceed to dispose of the application ex-parte Stay – 237/Del/2024 2 qua the assessee with the assistance of learned DR and based on material on record. 3. On a perusal of the stay application filed by the assessee, it is observed that a demand was created due to addition of long term capital gain derived from transfer of equity shares and compulsorily convertible debentures. In the stay application, the assessee has submitted that since the Assessing Officer has computed incorrect tax liability, the assessee had moved an application for rectification under Section 154 of the Act. The aforesaid fact indicates that the actual demand is yet to be crystallized. In any case of the matter, the assessee has failed to establish that it has a strong prima-facie case and balance of convenience in its favour which requires stay on recovery of outstanding demand. Thus, the present application filed by the assessee, being devoid of any merit, is hereby dismissed. 4. In the result, the stay application of the assessee is dismissed. Above decision was pronounced in the open Court on 4th October, 2024 on conclusion of hearing. Sd/- Sd/- ( ( ( (S. RIFAUR RAHMAN S. RIFAUR RAHMAN S. RIFAUR RAHMAN S. RIFAUR RAHMAN) ) ) ) (SAKTIJIT DEY (SAKTIJIT DEY (SAKTIJIT DEY (SAKTIJIT DEY) ) ) ) ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER VICE VICE VICE VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT VK. Copy forwarded to: - 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT Assistant Registrar "