INSTRUMENTATION LABORATORY INDIA PRIVATE LIMITED,NEW DELHI V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 10(1), NEW DELHI

SA 361/DEL/2025

AI Insights

The case involves Instrumentation Laboratory India Pvt. Ltd., which filed a stay application (S.A. No. 361/Del/2025) seeking an extension on the recovery of an outstanding tax demand for the assessment year 2021-22. The original demand arose from an assessment order passed by the Assessing Officer, which was contested by the assessee. The Tribunal had previously granted a stay on the recovery of the demand, subject to a 20% pre-deposit, which the assessee complied with. The Tribunal's decision to extend the stay was influenced by the pending appeal related to a limitation issue and the partial relief granted through a rectification application under Section 154. The Tribunal directed the Assessing Officer to expedite the disposal of any remaining rectification applications.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711607 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2021-2022
• Other Referred Cases: CIT v. M/s Roca Bathroom Products P. Ltd. (WA Nos. 1517 and 1519 of 2021 dated 9.6.2022)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Rectification of order; Application of stay; Extension of stay
• Section: 143(3); 154; 2

Judgement Text

"1 SA No. 361/Del/2025 (In ITA No. 5917/Del/2024) A.Y. 2021-22 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”: NEW DELHI BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER S.A. No. 361/Del/2025 ( In ITA No. 5917/DEL/2024) Asstt. Yr.: 2021-22 Instrumentation Laboratory India Pvt. Ltd., C-5, Near Tata Steel, Okhla Industrial Area, Phase-1, NewDelhi-110020. PAN: AABCI 6557 N v. DCIT, Circle-10(1), New Delhi. APPLICANT RESPONDENT Assessee represented by Ms. Tanya, 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. 361/Del/2025 arising out of ITA no.5917/Del/2024 for assessment year 2021-22, has been filed by the assessee seeking extension of stay on recovery of the outstanding demand of INR 3,41,64,692for A.Y. 2021-22, which had arisen from the assessment order dated 30.10.2024 passed by the ld. Assessing Officer u/s 143(3) read with Section 144C(13) read with Section 144B of the Income-tax Act, 1961 [DIN & Order No. ITBA/AST/S/143(3)/2024-25/1070057676(1)], wherein income assessed was Rs. 11,48,42,631/- against returned income of Rs. 2,61,96,030/-. Notice of demand u/s Printed from counselvise.com 2 SA No. 361/Del/2025 (In ITA No. 5917/Del/2024) A.Y. 2021-22 156 was issued by the AO along with computation of income, both dated 30.10.2024, raising demand of Rs. 3,92,64,690/- . The original stay on recovery of outstanding demand was granted by the Tribunal vide order in SA no. 13/Del/2025 arising out of ITA no. 5917/Del/2024 for assessment year 2021-22, vide order dated 17.01.2025, wherein the Tribunal directed the assessee to deposit 20% of the outstanding demand as pre-deposit stipulated as condition for grant on recovery of the balance outstanding demand. The Tribunal while granting aforesaid stay on recovery of outstanding demand duly observed and noted that the assessee has filed rectification application u/s 154 and if the same is decided in favour of the assessee, the outstanding demand will come down to Rs. 2.54 crores, Thus, based on the strength of the likely favourable outcome of rectification application u/s 154, the assessee deposited Rs. 51,00,000/- as pre-deposit. Now an application for extension of stay on the outstanding demand of Rs. 3,41,64,692/- has been filed by the assessee. 2. It was submitted by the ld. Counsel for the assessee that the Tribunal has granted stay on the recovery of the outstanding demand vide order dated 17.01.2025 in SA No. 13/Del/2025 whereby the recovery of the balance outstanding demand was stayed with direction to the assessee to deposit 20% of the outstanding income tax and interest thereon. It was submitted that the assessee has duly complied with the directions of the Tribunal by depositing INR 51,00,000/- through challan No. 01677 dated 22.01.2025 to the tune of INR 50,50,000/- [CIN 25012200044758UTIB, Axis Bank, Bank reference No. 722671699, BSR Code 6360014]; and vide challan No. 02170 dated 23.01.2025 to the tune of INR 50,000/- [CIN 25012300056248UTIB, Axis Bank, Bank reference No. 722685225, BSR Code 6360014].Thus, it was submitted that the assessee duly complied with Printed from counselvise.com 3 SA No. 361/Del/2025 (In ITA No. 5917/Del/2024) A.Y. 2021-22 the conditions of pre-deposit, as was stipulated by the Tribunal. It was submitted that after the stay was granted on recovery of balance outstanding demand, the appeal came up for hearing before the Bench on as many as three times, and ultimately adjourned sine-die on 26.06.2025 as it involved the limitation issue, based upon the decision of the Hon’ble Madras High Court in the case of CIT v. M/s Roca Bathroom Products P. Ltd. (WA Nos. 1517 and 1519 of 2021 dated 9.6.2022). The appeal against aforesaid judgment is heard by Hon’ble Supreme Court and orders are awaited.It was also brought to our notice that so far as rectification application filed u/s 154 read with Section 143(1) has been now decided by the Revenue vide orders dated 10.06.2025 by deleting additions made to the tune of Rs. 28,82,071/- made u/s 143(1), and income computed u/s 143(1) of Rs. 2,90,78,100/- was reduced to returned income to the tune of Rs. 2,61,96,030/-. Prayer was made to extend stay on recovery of the outstanding demand to the tune of Rs. 3,41,64,692/- for a period of 180 days or till disposal of the appeal. 3. Ld. Sr. DR submitted that the assessee be asked to deposit the entire demand. 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 stay on recovery of the outstanding demand of INR 3,41,64,692/-(subject to outcome of rectification application and deposit of deficit taxes and interest thereon by the assessee if the outcome of rectification application is against the Printed from counselvise.com 4 SA No. 361/Del/2025 (In ITA No. 5917/Del/2024) A.Y. 2021-22 assessee) for a further period of 180 days or till disposal of the assessee whichever is earlier. However, we have observed that while granting stay on recovery of outstanding demand vide orders dated 17.01.2025, the Tribunal has taken into consideration/cognizance pending rectification application u/s 154 wherein it was contemplated that if it is decided in favour of the assessee, the demand will come down to Rs. 2.54 crores against demand of Rs. 3.93 crores. More than six months have passed now since stay on recovery of the outstanding demand was granted by the Tribunal dated 17.01.2025, while only one rectification order dated 10.06.2025 passed by the AO u/s 154 read with Section 143(1) is produced wherein the relief in the deletion of addition to the tune of Rs. 28,82,071/- was granted by the AO. Thus, we direct AO to dispose of Rectification application expeditiously , if any pending with the AO , within 3 weeks from now, and the assessee will accordingly deposit the deficit tax and interest thereon within one week thereafter in the same ratio of 20% of the differential demand raised by the AO consequent to rectification order, as was directed by the Tribunal vide orders dated 17.01.2025 in SA No. 13/Del/2025, if the outcome of the rectification application is found to be un-favorable to the assessee. Scope of Rectification application u/s 154 is limited to mistake apparent from records. This extension of stay on recovery of the outstanding demand will become operational and effective on outcome of rectification application u/s 154 , and consequently deposit of deficit/differential tax and interest thereon by the assessee in case of un-favorable out come of rectification application, as directed by us as above in this order. Needless to say that the assessee will co-operate in early disposal of the appeal (ITA No. 5917/Del/2024) by the Tribunal, and shall not seek un-necessary adjournments. Printed from counselvise.com 5 SA No. 361/Del/2025 (In ITA No. 5917/Del/2024) A.Y. 2021-22 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. Assessee’s stay application in SA No. 361/Del/2025 arising out of ITA no. 5917/Del/2024 for assessment year 2021-22 is partly allowed in the manner as indicated above. Order pronounced, after the hearing was concluded, 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)/DRP 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "