LI & FUNG (INDIA) PRIVATE LIMITED,NEW DELHI V. DCIT, CIRCLE-13(1), DELHI

SA 328/DEL/2024

AI Insights

The case involves Li & Fung (India) Private Limited, which filed a Stay Application against the Deputy Commissioner of Income Tax, Circle-13(1), Delhi, seeking a stay on the recovery of an outstanding demand of Rs.4,22,07,965/-. The demand was related to the assessment year 2020-21 and was contested on grounds of being barred by limitation under section 153 of the Income Tax Act, referencing a decision by the Hon'ble Madras High Court in CIT vs. Roca Bathroom Products Pvt. Ltd. The Department of Revenue had filed a Special Leave Petition (SLP) before the Supreme Court challenging this High Court decision, which influenced the Tribunal's decision to grant a temporary stay on the demand.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26187 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 04-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2020-2021
• Other Referred Cases: CIT vs. Roca Bathroom Products Pvt. Ltd. (WA No.1609 & 1610 of 2021)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHARM VEER SINGH
• Assessee Lawyers: NEERAJ JAIN
• Keywords: Application of stay
• Section: 154; 153

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘I’ NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER S.A. No. 328/Del/2024 [Arising out of ITA No. 3819/Del/2024] Assessment Year: 2020-21 Li & Fung (India) Private Limited, 202-206 Tolstoy House, Connaught Place S.O. Connaught Place, New Delhi-110001. PAN:AAACL1663M Vs. DCIT, Circle-13(1), Delhi. (Appellant) (Respondent) O R D E R PER MANISH AGARWAL, AM: This present Stay Application is filed by the assessee seeking stay of recovery of outstanding demand of Rs.4,22,07,965/- (including interest) which according to the assessee was reduced to 3,41,24,168/- in terms of the order passed u/s 154 of the Act for Asst. Year 2020-21. The Ld. Counsel for the assessee submit that the assessee has challenged the validity of the assessment order passed by the Assessing Officer as barred by limitation in Assessee by Neeraj Jain, Adv. Mansha Balla, CA, Ramit Katyal, CA and Manish Kanth, Adv. Department by Shri Dharm Veer Singh, CIT-DR and Shri Sourabh Anand, Sr. DR Date of hearing 04.03.2025 Date of pronouncement 04.03.2025 2 SA No.328/Del/2024 terms of the provisions of section 153 of the Act. For this reliance was placed on the decisions of the Hon’ble Madras High Court in the case of CIT vs. Roca Bathroom Products Pvt. Ltd. (WA No.1609 & 1610 of 2021). Thus, he prayed that the order so passed is bad in law and is unsustainable in the eyes of law. Therefore, it is a fit case for granting the stay on the outstanding demand. 2. On the other hand, the Ld. CIT-DR submitted that the Revenue has filed SLP before the Hon’ble Supreme Court challenging the ruling of the Hon’ble Madras High Court in the case of Roca Bathroom Products Pvt. Ltd. (supra) wherein the Hon’ble Supreme Court though did not stayed the rulings of the Roca Bathroom Products Pvt. Ltd. (supra), however, directed that such ruling shall not be cited as a precedent in any other subsequent matters till further orders by the Hon’ble Supreme Court. He, therefore, prayed for adjournment in the matter till the order of the Hon’ble Supreme Court. 3. Since, in this case, the Revenue is seeking adjournment on the regular hearing. In view of the above facts, the Stay Petition is being decided. As the appeal of the assessee could not be decided in view of the directions of Hon’ble Supreme Court, therefore, the demand of the assessee is stayed for a period of 180 days or upto the date of order of the Hon’ble Supreme Court whichever is earlier. However, the assessee is at liberty to file the fresh application for extension of the Stay in case the judgement of the Hon’ble Supreme Court in case of Roca Bathroom Products Pvt. Ltd. (supra) is not delivered within 180 days. 3 SA No.328/Del/2024 4. As a result, the outstanding demand of Rs. 4,22,07,956/- is outstanding demand in the case of the assessee is stayed. The stay petition is allowed. Order pronounced in the open Court on 04/03/2025. Sd/- Sd/- (MAHAVIR SINGH) (MANISH AGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 06/03/2025. PK/Sr. Ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "