AI Insights
Jubilant FoodWorks Limited filed a stay application (SA No. 331/Del/2025) related to an outstanding tax demand for the assessment year 2017-18, amounting to Rs. 70,79,29,347. This application was linked to a previous appeal (ITA No. 4997/Del/2024) and a prior stay order (SA No. 523/Del/2024) granted by the ITAT on 31.12.2024. The main issues in the appeal included the Adjusted Marketing Promotion (AMP) expenses and franchise fees, which were argued to be consistent with previous years' rulings favorable to the assessee. The Tribunal noted that the assessee had not caused any delays in the proceedings and that the factual matrix had not changed since the last stay was granted. Consequently, the Tribunal decided to extend the stay on the recovery of the outstanding demand.
Appeal details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 669230 (ITAT-DELHI)
Assessee PAN
Bench
Appeal Number
Appellant
Respondent
Appeal Type
Stay Application
Pronouncement Date
27-06-2025
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
I
Assessment Year
2017-2018
Judgement Text
"1 SA No. 331/Del/2025 (In ITA No. 4997/Del/2024) Jubilant FoodworksLimited , Noida v. ACIT, Circle5(1)(1), Noida A.Y: 2017-18 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘I’: NEW DELHI) BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER SA No. 331/Del/2025 (In ITA no. 4997/Del/2024) Assessment Year: 2017-18 Jubilant FoodWorks Limited Plot No. 1A, Sector-16A, Noida, Gautam Buddha Nagar- 201301, U.P. v. ACIT, Circle 5(1)(1) , NOIDA U.P. PAN No: AABCD1821C APPLICANT RESPONDENT Assessed by : Shri K. M. Gupta, Adv.&Shri Kshitij Bansal, Adv. Revenue by : Shri Dheeraj Kumar Jain, Sr. DR Date of Hearing :27.06.2025 Date of Pronouncement :27.06.2025 ORDER PER RAMIT KOCHAR, AM: The assessee has filed this stay application in SA No. 331/Del/2025 which has arisen from ITA no. 4997/Del/2024 for assessment year 2017-18, seeking extension of stay on recovery of the outstanding demand to the tune of Rs. 70,79,29,347/-. It is the say of the ld. Counsel for the assessee that the Tribunalgranted stay on recovery of the entire outstanding demand vide stay order dated 31.12.2024in SA No. 523/Del/2024arising out ofappeal in ITA no. 4997/Del/2024 for assessment year 2017-18,by holding that the assessee has prima-facie case for grant of stay on recovery of the outstanding demand . 2 SA No. 331/Del/2025 (In ITA No. 4997/Del/2024) Jubilant FoodworksLimited , Noida v. ACIT, Circle5(1)(1), Noida A.Y: 2017-18 The ld. Counsel has filed copy of aforesaid stay order dated 31.12.2024 which is placed on record in file.It was submitted that appeal of the assessee for assessment year 2018-19 is now heard by the Division Bench on 22.04.2025 , and orders are awaited. It was submitted that the major issue of AMP in appeal of the assessee for ay: 2018-19 is common in the impugned assessment year. It is claimed that the other issue of franchise fee is covered in favour of the assessee by earlier year orders of the ITAT. It was submitted that after grant of stay on 31.12.2024, the appeal came up for hearing before Division Bench of ITAT from time to time, and on none of the occasions it was adjourned due to fault of the assessee or at the request of the assessee. Our attention was drawn to the order sheet entries of the hearings before DB w.r.t. ITA no. 4997/Del/2025. It was submitted that since factual matrix and circumstances have remained the same, prayer swere made that stay on recovery of outstanding demand be extended. Thus it was submitted that no fault can be attributed to the assessee, and prayers were made to grant extension ofstay on recovery of the entire outstanding demand. 2. Ld. Sr. DR submitted that the assessee may be asked to deposit entire outstanding. 3. After hearing both the parties we are inclined to extend the stay on the recovery of the outstanding demandfor a further period of 180 days or till disposal of the corresponding appeal , which ever is earlier , as the factual circumstances and matrix as were before the Tribunal for grant of stay on recovery of outstanding demandby holding that the assessee has made prima facie case for grant of stay on recovery of outstanding demand vide orders dated 31.12.2024 in SA No. 523/Del/2024 arising out of ITA no. 4997/Del/2024 for assessment year 2017-18, remains the same. The ld. SR DR could not point to any change in factual circumstances since the grant of stay by ITAT vide orders dated 31.12.2024 which could call for our intervention by taking divergent view, and rather 3 SA No. 331/Del/2025 (In ITA No. 4997/Del/2024) Jubilant FoodworksLimited , Noida v. ACIT, Circle5(1)(1), Noida A.Y: 2017-18 now appeal of the assessee for ay:2018-19 is heard by DB and orders are awaited , as well no fault can be attributed to the assessee in delaying adjudication of appeal for the impugned assessment year, thus, we are inclined to extend the stay on recovery of the outstanding demand for A.Y. 2017-18 for a further period of 180 days or till disposal of the corresponding appeal, whichever is earlier. We clarify that we have not commented on the merits of the issue’s in the appeal. We further direct that the assessee will not seek un-necessary adjournments before the Bench , and shall co-operate in early disposal of the appeal. We order accordingly. 4. In the result, stay application in SA No. 331/Del/2025 arising out of ITA No. 4997/Del/2024 for assessment year 2017-18is allowed in the manner as indicated in this order. Order pronounced in the open court on 27th June, 2025. Sd/- Sd/- (SUDHIR PAREEK) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 30.06.2025. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DRP 5. DR 6. Guard File Asst. Registrar, ITAT, New Delhi "
