MEDEX INDIA PRIVATE LIMITED,NEW DELHI V. ITO,WARD-6(1), DELHI

SA 526/DEL/2024

AI Insights

The case involves Medex India Private Ltd., which filed stay applications against the Income Tax Officer, Ward-6(1), New Delhi, concerning demands for the assessment years 2020-21 and 2021-22. The assessee's bank accounts were seized by the Department, leading to an interim stay granted by the Hon'ble High Court. The main contention was regarding the addition of a sum of Rs.1,08,00,761 as a contingent liability, which was not claimed as a deduction in the return of income. The tribunal considered the deposit of 20% of the demand and the merits of the case, deciding in favor of the assessee.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474558 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2020-2021
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SIDDHARTH BHIMSINGH MEENA
• Assessee Lawyers: SACHIT JOLLY; ABHYUDAYA SHANKAR BAJPAI
• Keywords: Application of stay
• Section: 143(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER Stay Applications No.526 & 527/Del/2024 (ITAs No.4834 & 4835/Del/2024) Assessment Years: 2020-21 & 2021-22 Medex India Private Ltd., DD-36, Kalkaji, New Delhi – 110 019. PAN: AAACM9017E Vs ITO, Ward-6(1), New Delhi. (Applicant) (Respondent) Assessee by : Shri Sachit Jolly, Sr. Advocate; & Shri Abhyudaya Shankar Bajpai, Adv. Revenue by : Shri Siddharth Bhimsingh Meena, Sr. DR Date of Hearing : 20.12.2024 Date of Pronouncement : 31.12.2024 ORDER PER ANUBHAV SHARMA, JM: The Stay Applications in hand have been filed for the stay of demand for the AY 2020-21 and 2021-22. 2. On hearing both the sides, it comes up from the argument of the ld. Sr. Counsel that the assessee’s bank accounts were seized by the Department for which the assessee had approached the Hon’ble High Court and, by order dated 09.12.2024 in WP(C) 16858/2024, the Hon’ble High Court had granted an interim stay with regard to AY 2020-21 and 2021-22 and gave the assessee an SAs No.526 & 527/Del/2024 2 opportunity to approach the Tribunal for seeking the remedy of stay. The ld. Sr. Counsel Mr. Jolly has submitted that already 20% of the outstanding demand stand deposited as a condition for stay granted at the stage of first appellate authority. It was also submitted that on merits the assessee has a good case as the CPC by the impugned intimation u/s 143(1) of the Income-tax Act, 1961 has added back a sum of Rs.1,08,00,761/- on the ground that Tax Audit Report inadvertently reflects this amount as contingent liability, but, in fact, no deduction of this amount was claimed by the assessee in the return of income. The ld. Sr. Counsel has also pointed out there were further attachment against the impugned demands. 3. The ld. DR has not contested the aforesaid facts. However, he relied the order of the ld. tax authorities below submitting that the assessee has no case on merits. 4. Giving thoughtful consideration to the aforesaid, we are of the considered view that the interest of Revenue is sufficiently secured by deposit of 20% of the impugned demand for the respective years. The assertion that no deduction for this disputed amount was claimed in the return of income also brings out a good case of the assessee. Thus, we are of the considered view that there is no justification to allow Department for further recovery against the impugned claim of the Department for the assessment years 2020-21 and 2021-22. SAs No.526 & 527/Del/2024 3 5. Consequently, the stay applications are allowed. The further demands for respective years is stayed for 180 days or disposal of appeals whichever is earlier. Consequences to follow as per the directions above. Further, Registry is directed to fix the corresponding appeal for hearing on 29.01.2025. There shall be no separate notice. Order pronounced in the open court on 31.12.2024. Sd/- Sd/- (NAVEEN CHANDRA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 31st December, 2024. dk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi "