M/s Vodafone Essar Ltd., Mumbai V. Addl. CIT, Chandigarh

MA 18/CHANDI/2011

• Counselvise Citation: [2011] 123 COUNSELVISE.COM (IT) 6324 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 13-05-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 03-05-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL
• Assessee Lawyers: SAURABH KAPOOR
• Keywords: Application of stay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI D.K.SRIVASTAVA, ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA, JUDICIAL MEMBER M.A. NO. 18/CHD/2011 STAY APPLICATION NO. 6/CHD/2011 (IN ITA NO.216/CHD/2011) ASSESSMENT YEAR: 2006-07 M/S VODAFONE ESSAR LTD VS. THE ADDL. CIT, VODAFONE HOUSE, RANGE-I, CHANDIGARH MUMBAI PAN NO. AAACHJ5332B (APPLICANT) (RESPONDENT) APPELLANT BY : SHRI SALIL KAPOOR & SHRI SAURABH KAPOOR RESPONDENT BY: SHRI S.K.MITTAL ORDER PER SUSHMA CHOWLA, JM THE APPLICANT HAS FILED THE PRESENT APPLICATION SEE KING AMENDMENT / MODIFICATION IN THE ORDER PASSED BY THE TRIBUNAL IN STAY APPLICATION NO. 6/CHD/2011 DATED 7.4.2011. 2. THE TRIBUNAL VIDE PARA 9 OF ITS ORDER DATED 7.4. 2011 HAD GRANTED STAY OF THE DEMAND, SUBJECT TO FULFILLMENT OF CERTAIN CONDITIONS. IN ADDITION TO PAYMENT OF RS. 30 CRORE S OUT OF WHICH RS. 10 CRORES WAS ALREADY PAID BY THE ASSESSEE ON T HE DATE OF HEARING OF THE SAID APPLICATION, DIRECTIONS WERE GI VEN TO THE ASSESSEE TO NOT WITHDRAW ANY AMOUNT UP TO RS. 80 CR ORES LYING IN HIS BANK ACCOUNT, TILL THE DISPOSAL OF THE APPEAL, EXCE PT RS. 10 CRORES TO BE PAID BY 10 TH OF APRIL, 2011 AND ANOTHER RS. 10 CRORES TO BE PAI D BY 30 TH APRIL, 2011. AT THE TIME OF HEARING OF THE STAY AP PLICATION, 2 THE LD. AR FOR THE APPLICANT WAS ASKED TO STATE N ATURE OF SECURITY THAT APPLICANT WOULD OFFER TO PROTECT THE INTEREST OF REVENUE TO THE EXTENT OF THE DEMAND SOUGHT TO BE STAYED. IN REPLY , THE LD. COUNSEL FOR THE APPLICANT OFFERED THE SECURITY IN THE FORM OF INVESTMENTS WITH ITS SUBSIDIARIES. THE CONDITION AS PER PARA 9 (III) OF THE SAID ORDER DATED 7.4.2011 WAS IMPOSED UPON THE APPLICANT TO PLEDGE THE INVESTMENT WITH ITS SUBSIDIARIES AS SECURITY EQUAL TO THE BALANCE DEMAND STAYED, WITH THE ASSESSING OFFICER. THE SAI D CONDITIONS WERE IMPOSED IN CONSULTATION WITH THE COUNSELS OF B OTH THE PARTIES APPEARING BEFORE US. 3. NOW, THE APPLICANT HAS FILED THE PRESENT APPLICA TION THAT CONDITION IN PARA 9(III) OF THE ORDER DATED 7.4.201 1 IS NOT CAPABLE OF BEING ACTED UPON AS THE SAID INVESTMENT WITH ITS SU BSIDIARIES ARE PLEDGED WITH THE BANKERS OF THE APPLICANT THEREFORE THE SAME ARE NOT AVAILABLE FOR BEING PLEDGED WITH THE ASSESSING OFFI CER. THE LD. AR APPEARING FOR THE APPLICANT SUBMITTED THAT SECURITY TO THE SATISFACTION OF THE ASSESSING OFFICER SHALL BE FURN ISHED BY THE APPLICANT IN RESPECT OF THE BALANCE DEMAND DUE. BO TH THE COUNSELS FOR THE RESPECTIVE PARTIES AGREED TO THE AFORESAID PROPOSAL OF FURNISHING SECURITY BY THE APPLICANT TO THE SATISFA CTION OF THE ASSESSING OFFICER. IN VIEW THEREOF, THE APPLICANT N OW SEEKS AMENDMENT / MODIFICATION OF THE CONDITION IMPOSED V IDE CLAUSE (III) OF PARA 9 OF THE SAID ORDER DATED 7.4.2011. 5. CONSIDERING THE AFORESAID CIRCUMSTANCES AND ALSO OBSERVATIONS CONTAINED IN THE INTERIM ORDER DATED 7.4.2011 (SUPR A), WE FIND IT EXPEDIENT TO MODIFY PARA 9 (III) IN WHICH DIRECTION WERE GIVEN AS UNDER:- 3 III) THAT THE APPLICANT SHALL PLEDGE THE INVESTMENT WITH ITS SUBSIDIARIES, AS SECURITY EQUAL TO THE BALANCE DEMAND STAYED, WITH THE ASSESSING OFFICER; THE SAID DIRECTION SHALL BE REPLACED WITH THE FOLLO WING DIRECTION:- III) THE APPLICANT SHALL FURNISH SECURITY TO THE SATISFACTION OF THE ASSESSING OFFICER FOR THE BALANCE DEMAND I.E. AFTER GIVING CREDIT OF RS. 30 CRORES PAID BY THE APPLICANT AND RS. 60 CRORES KEPT ASIDE BY THE APPLICANT; HOWEVER, ALL OTHER CONDITIONS IMPOSED VIDE ORDER DA TED 7.4.2011 SHALL REMAIN IN FORCE. 6. THE ABOVE DECISION WAS PRONOUNCED IN THE OPEN CO URT IN THE PRESENCE OF BOTH THE PARTIES ON 13.5.2011. SD/- SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 13 TH MAY, 2011 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH