ACIT CIR 9(3)(1), MUMBAI V. DHL LOGISTICS P.LTD, MUMBAI

MA 153/MUM/2019

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 5277 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-06-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 06-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MATHUR AGRAWAL
• Assessee Lawyers: CHAITANYA ANJARIA
• Keywords: Application of stay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH K, MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER MA NO.153/M/2019 (ARISING OUT OF SA NO.13/M/2015) ASSESSMENT YEAR: 2010-11 ACIT, CIRCLE 9(3)(1), MUMBAI VS. M/S. DHL LOGISTICS P. LTD., 201A SILVER UTOPIA, CARDINAL GRACIAS RD., CHAKALA ANDHERI (E), MAHARASHTRA 400 059 PAN: AAACM6824H (APPELLANT) (RE SPONDENT) PRESENT FOR: ASSESSEE BY : SHRI CHAITANYA ANJARIA, A.R. REVENUE BY : SHRI MATHUR AGRAWAL, D.R. DATE OF HEARING : 03.05.2019 DATE OF PRONOUNCEMENT : 25.06.2019 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: BY VIRTUE OF THIS MISCELLANEOUS APPLICATION, REVEN UE SEEKS THE VACATION OF STAY ON RECOVERY OF DEMAND IN VIEW OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF AS IAN RESURFACING OF ROAD AGENCY PVT. LTD. & ORS. VS. CEN TRAL BUREAU OF INVESTIGATION, IN CRIMINAL APPEAL NO.1375-1376/2 013 & ORS. 2. THE LD. D.R. SUBMITTED BEFORE THE BENCH THAT THE HON'BLE TRIBUNAL DOES NOT HAVE THE JURISDICTION TO EXTEND T HE STAY BEYOND A PERIOD OF 6 MONTHS BY PLACING HEAVY RELIAN CE ON THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF AS IAN RESURFACING OF ROAD AGENCY PVT. LTD. & ORS. (SUPRA) . THE LD. D.R. SUBMITTED THAT EVEN IF THE APPEAL OF THE ASSES SEE IS NOT DISPOSED OF THAT TOO FOR THE REASONS NOT ATTRIBUTED TO THE MA NO.153/M/2019 M/S. DHL LOGISTICS P. LTD. 2 ASSESSEE EVEN THEN THE OUTSTANDING DEMAND OF INCOM E TAX CAN NOT BE STAY BY THE HONBLE TRIBUNAL BEYOND A PERIO D OF SIX MONTHS. THE LD. D.R. THEREFORE, PRAYED THAT THE SA ID STAY MAY KINDLY BE VACATED FORTHWITH SO THAT THE RECOVERY CO ULD BE MADE. 3. THE LD. A.R., ON THE OTHER HAND, STRESSED UPON T HE POINT THAT THE HON'BLE TRIBUNAL HAS JURISDICTION TO EXTEN D THE STAY FOR A PERIOD OF SIX MONTHS EVERY TIME AFTER CONSIDERING THE MERITS OF THE CASE. THE LD. A.R. SUBMITTED THAT THE DECISION RELIED UPON BY THE REVENUE IN THE CASE OF ASIAN RESURFACING OF ROAD AGENCY PVT. LTD. & ORS. (SUPRA) HAS BEEN CONSIDERED BY THE JURISDICTIONAL HIGH COURT IN THE CASE OF ORACLE FIN ANCIAL SERVICES SOFTWARE LTD. VS. DCIT, W.P. NO.542/2019 DATED 28.0 2.2019 WHEREIN THE HONBLE HIGH COURT HAS REJECTED ARGUMEN TS OF THE REVENUE THAT STAY OF RECOVERY CAN NOT BE EXTENDED B EYOND A PERIOD OF SIX MONTHS. THE LD. A.R., THEREFORE PRAY ED THAT THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE MAY BE DISMISSED. 4. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD, WE OBSERVE THAT THE TRIBUNAL HAS GRANTED TH E STAY OF DEMAND AND THEREAFTER THE EXTENSIONS WERE ALSO GRA NTED FROM TIME TO TIME EXTENDING THE PERIOD OF STAY FOR SIX M ONTHS EVERY TIME. AFTER PERUSING THE DECISION OF THE HONBLE S UPREME COURT WE OBSERVE THAT THE SAID DECISION WAS RENDERED IN T HE CONTEXTS OF CRIMINAL PROCEEDINGS AND NOT APPLICABLE TO THE I NCOME TAX MATTERS. MOREOVER, THE SAID DECISION OF THE APEX C OURT HAS BEEN CONSIDERED BY THE JURISDICTIONAL HIGH COURT IN THE CASE OF ORACLE FINANCIAL SERVICES SOFTWARE LTD. (SUPRA) AND HELD T HAT THE ARGUMENTS OF REVENUE THAT PERIOD OF STAY CAN NOT BE EXTENDED MA NO.153/M/2019 M/S. DHL LOGISTICS P. LTD. 3 BEYOND OF SIX MONTHS WERE REJECTED . EVEN CO-ORDI NATE BENCH OF THE TRIBUNAL IN THE CASE OF DCIT VS. PIRAMAL ENTERP RISE LTD. IN MA NO.143/M/2019 DATED 15.03.2019 CONSIDERED THE ID ENTICAL ISSUE AND HELD THAT THE TRIBUNAL HAS THE JURISDICTI ON TO EXTEND THE STAY BEYOND A PERIOD OF SIX MONTHS AFTER CONSID ERING THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF AS IAN RESURFACING OF ROAD AGENCY PVT. LTD. & ORS. (SUPRA) . WE ACCORDINGLY HOLD THAT THE MA FILED BY THE DEPARTMEN T HAS NO MERITS AND IS ACCORDINGLY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25.06.2019. SD/- SD/- (C.N. PRASAD) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 25.06.2019. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY /ASSTT. REGISTRAR, ITAT, MUMBAI.