KANDI FRIENDS EDUCATIONAL TRUST,ROPAR V. .DEPUTY COMMISSION OF INCOME TAX, CL. 1, EXEMPTION, CHANDIGARH

SA 40/CHANDI/2024

AI Insights

The case involves two Stay Applications filed by Kandi Friends Educational Trust against the demand raised by the Assessing Officer (AO) pursuant to the assessment orders for the Assessment Years 2014-15 and 2015-16. The demands were based on various disallowances/adjustments made to the returned income. The assessee argued that they had a strong prima facie case likely to succeed on merit before the Tribunal and requested a stay on the remaining demand. The Department of Revenue contended that the assessee had only deposited a fraction of the outstanding demand and requested a higher pre-deposit. The Tribunal considered the submissions and the amounts already deposited by the assessee and granted the stay with specific conditions regarding the adjustment of refunds and the non-adjustment of further refunds beyond the specified amount.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107812 (ITAT-CHANDIGARH)
• Appeal Type: Stay Application
• Pronouncement Date: 18-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: ASHOK GOYAL; C.A
• Keywords: TDS; Application of stay

Judgement Text

"आयकर अपीलीय अिधकरण,च᭛डीगढ़ ᭠यायपीठ “ए” , च᭛डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: PHYSCAL MODE ŵी िवŢम िसंह यादव, लेखा सद˟ एवं ŵी परेश म. जोशी, Ɋाियक सद˟ BEFORE: SHRI. VIKRAM SINGH YADAV, AM & SHRI. PARESH M. JOSHI, JM STAY APPLICATION Nos. 39 & 40/Chd/2024 (आयकर अपील सं./ ITA Nos. 797 & 798/Chd/2024) िनधाᭅरण वषᭅ / Assessment Years : 2014-15 & 2015-16 Kandi Friends Educational Trust Bhaddal Campus, Village Bhaddal, Ropar, Miranpur, S.O. Rupanagar बनाम The DCIT Circle 1 Exemption, Chandigarh ˕ायी लेखा सं./PAN NO: AAATK2935N अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरती कᳱ ओर से/Assessee by : Shri Ashok Goyal, C.A राज᭭व कᳱ ओर से/ Revenue by : Shri Vivek Vardhan, JCIT, Sr. DR सुनवाई कᳱ तारीख/Date of Hearing : 18/12/2024 उदघोषणा कᳱ तारीख/Date of Pronouncement : 18/12/2024 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : These are two Stay Applications filed by the Assessee in respect of demand raised by the AO pursuant to assessment order passed under section 143(3) dt. 23/12/2016 for A.Y. 2014-15 and dt. 26/12/2017 for A.Y. 2015-16. 2. It was submitted that for A.Y. 2014-15, pursuant to order passed by the ld CIT(A), the AO has passed the appeal effect order dt. 03/10/2024 wherein the revised total income has been determined at Rs. 5,23,74,106/- and total tax and interest payable after credit for TDS amounting to Rs 22,96,498/- has been determined at Rs. 2,89,41,285/- and out of that, the assessee has already deposited a sum of Rs. 7,28,600/- on 03/03/2017 and Rs. 25,00,000/- on 21/02/2017 totaling to Rs. 32,28,600/-. Similarly, for A.Y. 2015-16, it was submitted that the AO has determined the tax demand as per Section 156 amounting to 4,56,10,550/- and against that, the assessee has already deposited a sum of Rs. 1,24,820/- on 18/04/2018, Rs. 4,28,103/- on 18/04/2018, Rs. 9,00,000/- on 2 30/04/2018 and another sum of Rs. 82,00,000/- on 30/04/2018 totaling to a sum of Rs. 96,52,923/-. It was submitted that the demand has been raised on various disallowances/adjustment made to the returned income and assessee believes that it has a strong prima facie case and likely to succeed on merit before the Tribunal and it was accordingly submitted that the assessee is ready to argue the matter on merits of the case and the remaining may be stayed for a period of six months or till the disposal of the appeal whichever is earlier. 3. The Ld. DR is heard who could not controvert the factual position regarding the quantum of demand raised and the subsequent payment deposited by the assessee at the same time it was submitted that as against total outstanding demand for both the assessment years totaling to Rs 7,45,51,835/-, the assessee has only deposited a sum of Rs 1,28,81,523/- which comes to 17.27% of outstanding demand. It was submitted that the assessee be directed to deposit atleast 20% of the outstanding demand and given the quantum of tax demand involved, the matter may be heard on priority in order to arrive at the finality on the issue involved. 6. In his rejoinder, the ld AR submitted that the Revenue is already in the process of adjusting refund for the other assessment years against the aforesaid demand and where the Bench so direct, the assessee has no objection where the refunds for other assessment years are adjusted to cover the shortfall of 20% of the outstanding demand, however, necessary directions may be issued not to adjust any further refunds and take any other coercive/recovery steps against the assessee. It was further submitted that the matter is already listed for hearing on 13/01/2025 and the assessee is ready to argue the matter. 7. We have heard the rival contention and perused the material available on the record. It is noted that as against the demand of Rs. 2,89,41,285/- pertaining to A.Y. 2014-15 the assessee has already deposited a sum of Rs. 32,28,600/- and for A.Y. 2015-16, as against the demand of Rs. 4,56,10,550/- the 3 assessee has already deposited a sum of Rs. 96,52,923/- and considering the submissions made by both the parties, we hereby direct that the Assessing officer can adjust an amount of Rs. 20,00,000/- from the amount of refunds due to the assessee for other assessment years, thereby fulfilling the statutory condition of pre-deposit of 20% of the outstanding demand prior to the grant of stay. We further grant stay against the recovery of the remaining outstanding demand for both the Assessment Years for a period of 180 days or disposal of these appeals whichever occurs earlier with caveat that assessee shall not seek any undue adjournment when the appeals are listed for hearing failing which the stay granted shall be deemed to have been vacated. The Assessing officer is also directed not to take any other coercive steps including adjustment of refunds over and above Rs 20,00,000/- against the outstanding demand during the said period. The matter is already listed for hearing on 13/01/2025, the assessee is directed to file necessary paperbook, if any atleast one week prior to date of hearing. 8. In the result, Stay Applications filed by the Assessee are allowed in light of aforesaid directions. Order pronounced in the open Court on 18/12/2024. Sd/- Sd/- परेश म. जोशी िवŢम िसंह यादव (PARESH M. JOSHI) ( VIKRAM SINGH YADAV) Ɋाियक सद˟ / JUDICIAL MEMBER लेखा सद˟/ ACCOUNTANT MEMBER AG आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : 1. अपीलाथᱮ/ The Appellant 2. ᮧ᭜यथᱮ/ The Respondent 3. आयकर आयुᲦ/ CIT 4. आयकर आयुᲦ (अपील)/ The CIT(A) 5. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 6. गाडᭅ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "