M/S. QUESS CORP LIMITED,BANGALORE V. DCIT, CENTRAL CIRCLE-2(1), BENGALURU

SA 144/BANG/2025

AI Insights

The case involves M/s. Quess Corp Limited, which filed a stay petition under section 253(7) of the Income Tax Act, 1961, seeking an extension of stay on an outstanding demand of Rs.112,98,12,504 for the assessment year 2019-20. The Tribunal had previously granted a stay on 2.2.2024, conditional on the payment of 20% of the outstanding demand, which the assessee complied with. The stay was extended multiple times due to delays in the disposal of the appeal, which were not attributed to the assessee. The Departmental Representative did not object to the extension of the stay, acknowledging the payment made by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791710 (ITAT-BANGALORE)
• Duration Of Justice: 8 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 12-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2019-2020
• Appeal Filed On: 04-12-2025
• Other Referred Cases: Roca Bathroom Pvt. Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N. BAUSAMY
• Assessee Lawyers: MAHIMA GAUD
• Keywords: Extension of stay
• Section: 154

Judgement Text

"SP No.144/Bang/2025 M/s. Quess Corp Limited, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “C’’ BENCH: BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER SP No.144/Bang/2025 (Arising out of ITA No.942/Bang/2023) Assessment Year: 2019-20 M/s. Quess Corp Limited Quess Tower, Sky Walk Avenue 32/4, Hosur Road Roopena Agrahara Bommanahalli Bangalore 560 068 PAN NO : AABCI7601M Vs. DCIT Central Circle 2(1) Bengaluru APPELLANT RESPONDENT Appellant by : Ms. Mahima Gaud, A.R. Respondent by : Sri N. Bausamy, D.R. Date of Hearing : 12.12.2025 Date of Pronouncement : 12.12.2025 O R D E R PER KESHAV DUBEY, JUDICIAL MEMBER: This stay petition u/s 253(7) of the Income Tax Act, 1961 (in short “the Act”) filed by the assessee company seeking extension of stay of outstanding demand amounting to Rs.112,98,12,504/- for the assessment year 2019-20. 2. The ld. Counsel appearing for the assessee submitted that the Tribunal originally the granted the stay on 2.2.2024 in SP No.5/Bang/2024 for a period of 6 months or till the disposal of appeal, whichever is earlier on the condition that the assessee shall pay 20% of the outstanding demand of Rs.141,22,65,630/- on or before 29.2.2024. However, on 8.2.2024, the CPC adjusted the entire refund for assessment year 2023-24 of Rs.135,49,20,070/- with the Printed from counselvise.com SP No.144/Bang/2025 M/s. Quess Corp Limited, Bangalore Page 2 of 4 outstanding demand of the year under consideration and hence extra amount of Rs.107,24,66,944/- was also adjusted with the outstanding demand whereas this Hon’ble ITAT in ITA No.5/Bang/2024 (supra) had directed to pay only 20% of 141,22,65,630/- i.e. Rs. 28,24,53,126/-. Thereafter, the ld. DCIT Circle 2(1), Bengaluru passed an order u/s 154 of the Act for the assessment year 2019-20 on 18.3.2024 thereby granting balance amounting to Rs.107,24,66,944/- as refund by holding Rs.28,24,53,126/- as total tax payable. 2.1 The ld. A.R. of the assessee also submitted that this Tribunal in SP No.45/Bang/2024 vide order dated 9.8.2024 had been pleased to grant extension of stay for a period of 6 months from the date of the order or till the disposal of the appeal, whichever is earlier as non-disposal of appeal was not attributable to the assessee. 2.2 Further, this Tribunal vide SP No.4/Bang/2025 vide order dated 9.6.2025 had further extended the stay already granted on 9.8.2024 for a further period of 6 months from the date of order or till the disposal of appeal, whichever is earlier by holding that the department is taking time to complete the appeals in view of the pendency of Roca Bathroom Pvt. Ltd. case before the Hon’ble Supreme Court. 2.3 The ld. A.R. further pointed out that the case of the assessee for the year under consideration is neither covered under the Roca Bathroom Pvt. Ltd. (supra) nor it is a case of DIN issues, however, the Tribunal in the previous order of stay had inadvertently observed to be a case covered under the Roca Bathroom Pvt. Ltd. (supra). Lastly, the ld. A.R. submitted that non-disposal of the appeal is not attributable to the assessee and there is no change in the facts and circumstances of the case since the original order of stay dated Printed from counselvise.com SP No.144/Bang/2025 M/s. Quess Corp Limited, Bangalore Page 3 of 4 02/02/2024 was passed and accordingly prayed that the extension of stay may be granted as the assessee had already paid 20% of the outstanding demand as per the order of this Tribunal. 3. The ld. D.R. on the other hand, fairly conceded that since 20% of the outstanding demand had already been paid by the assessee, he has no objection whatsoever if the stay granted is further extended for a period of 6 months or till the disposal of the appeal, whichever is earlier. 4. We have heard the rival submissions and perused the materials available on record. From the submissions made by the ld. A.R., it is clear that the assessee had already paid 20% of the outstanding demand amounting to Rs.28,24,53,126/-. Further, it is also clear that the delay in disposal of the appeal is not attributable to the assessee the appeal fixed on 23.6.2025 was adjourned to 3.9.2025 at the request of the ld. D.R. supported by the ld. ASG and on 3.9.2025 this bench of the Tribunal did not function and accordingly the appeal was adjourned to 1.12.2025 and on 1.12.2025 since the bench again did not function, finally, the case was adjourned to 24.2.2026. 4.1 Further, we also take a note of the fact that there is no change in the facts and circumstances of the case since the original grant of the stay. As observed by this Tribunal vide SP No.5/Bang/2024 dated 2.2.2024, in this case high pitch assessment had been framed and the assessee is having prima facie case on the issue of various additions made by the AO in the assessment order and accordingly granted the stay on the condition that the assessee shall pay 20% of outstanding demand of Rs.141,22,65,630/- on or before 29.2.2024. As 20% of the outstanding demand is already adjusted against the refund and the delay in disposal of the appeal is not Printed from counselvise.com SP No.144/Bang/2025 M/s. Quess Corp Limited, Bangalore Page 4 of 4 attributable the assessee, in view of the above facts, the assessee deserves extension of stay and accordingly we grant extension of stay for a further period of 6 months from the date of this order or till the disposal of appeal, whichever is earlier. 5. In the result, the stay petition filed by the assessee is allowed. Order pronounced in the open court on 12th Dec, 2025 Sd/- (Waseem Ahmed) Accountant Member Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated 12th Dec, 2025. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. Printed from counselvise.com "