DCIT,Circle Int. Tax 2(2)(2), New Delhi V. Plutus Financials Private Limited, Mauritius

MA 445/DEL/2022

AI Insights

The case revolves around a miscellaneous application filed by the Department of Income Tax, seeking to recall a stay order issued by the Income Tax Appellate Tribunal (ITAT) in favor of the assessee, Plutus Financials Pvt. Ltd. The stay was granted on the grounds that the assessee was eligible for a stay on recovery of demand despite not paying 20% of the disputed demand, which the Department contended was against the statute of the first proviso to section 254(2A) of the Income Tax Act, 1961. The Tribunal, however, found that the Department's application did not point out any apparent mistake in the record that would warrant a recall of the stay order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 112937 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-02-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 19-01-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 20-12-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 254(2)

Judgement Text

1 MA No. 445/Del/2022 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER M.A. No. 445/Del/2022 [ In SA No. 258/DEL/2022] [ In ITA No. 1806/DEL/2022]____ [Assessment Year: 2017-18 DCIT, Circle-2(2)(2), International Taxation, New Delhi. Vs Plutus Financials Pvt. Ltd. C/0 Apex Fund & Corporate Services Ltd., Lot 15A3, 1 st Floor Cyber City, Ebene Mauritius-72201 PAN: AAICP5714H APPLICANT RESPONDENT Assessee represented by Shri Ajay Vohra, Sr. Adv. Department represented by Shri Sanjay Kumar, Sr. DR Date of hearing 20.01.2023 Date of pronouncement 17.02.2023 O R D E R PER KUL BHARAT, JM: This miscellaneous application purporting to be u/s 254(2) of the Income-tax Act, 1961, hereinafter referred to as the “Act” has been preferred by the Department for recalling of the Tribunal’s order dated 30.08.2022 passed in S.A. No. 258/Del/2022, on the following ground: “Whether on the facts and circumstances of the case, the Hon’ble ITAT has erred in holding that the assessee is eligible for stay for recovery of demand, even if the assessee has not paid 20% of the disputed demand, which is against the statute of first proviso to section 254(2A) of the Income Tax Act, 1961.” 2. Learned DR reiterated the submissions as made in the misc. application and submitted that the Tribunal erred in granting stay of the outstanding demand, when the 2 MA No. 445/Del/2022 assessee had not paid even 20% of the disputed demand. He prayed to vacate the stay order. 3. On the other hand, learned counsel for the assessee opposed the submissions. 4. Heard the parties and gone through the material available on record. It seems that the Department under the guise of misc. application seeks review of the Tribunal’s order which is outside the purview of Section 254(2) of the Act. No mistake, much less apparent on record has been pointed out by the learned DR so as to take a contrary view. We do not see any force in the misc. application moved by the Department and the same is hereby dismissed. 5. Department’s misc. application stands dismissed. Order pronounced in open court on 17 th February, 2023. Sd/- Sd/- ( NARENDRA KUMAR BILLAIYA) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI