NANDU ATMARAM WAJEKAR,PANVEL RAIGAD DISTRICT V. ACIT CIRCLE PANVEL, PANVEL RAIGAD

SA 4/PUN/2025

AI Insights

The case involves Nandu Atmaram Wajekar, the assessee, who filed a Stay Application with the Income Tax Appellate Tribunal, Pune, against an outstanding tax demand of Rs.19,33,92,608 for the assessment year 2017-18. The demand arose after the assessee's declaration under the Income Declaration Scheme (IDS) 2016 was rejected due to non-payment of tax, leading to a reassessment that treated the declared amount as unexplained money under sections 69A and 115BBE of the Income Tax Act, 1961. The assessee contested the high tax rate applied and the calculation of interest under sections 234A and 234B. The department opposed the stay, suggesting further payment was necessary.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471203 (ITAT-PUNE)
• Appeal Type: Stay Application
• Pronouncement Date: 10-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND DESAI
• Assessee Lawyers: BHARAT SHAH
• Keywords: Application of stay
• Section: 69A; 234B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER SA No.4/PUN/2025 Arising out of ITA No.66/PUN/2025 Assessment year : 2017-18 Nandu Atmaram Wajekar C 001 Plot No.257, Shree Mahalaxmi Rupali Cinema Road, Panvel – 410206 Vs. ACIT, Circle Panvel PAN: AADPW9879Q (Applicant) (Respondent) Assessee by : Shri Bharat Shah Department by : Shri Arvind Desai Date of hearing : 07-02-2025 Date of pronouncement : 10-02-2025 O R D E R PER R. K. PANDA, VP : The assessee through this Stay Application requests the Tribunal to grant stay on the realization of the outstanding demand of Rs.19,33,92,608/-. 2. The Ld. Counsel for the assessee referring to the Stay Application submitted that the assessee has declared certain sum under the IDS 2016 which was rejected by the department due to non-payment of tax. Subsequently, the Assessing Officer reopened the assessment and treated the amount declared under IDS 2016 as unexplained money and made addition of Rs.11,61,10,650/- u/s 69A r.w.s. 115BBE of the Income Tax Act, 1961. While explaining the merit of the case, the 2 SA No.4/PUN/2025 Ld. Counsel for the assessee submitted that the Assessing Officer has taxed such income @ 60% as against 30%. Referring to various decisions, he submitted that the assessee has a prima facie case in his favour. 3. He further submitted that the total tax liability includes interest u/s 234A of Rs.5,01,38,516/- and u/s interest 234B of Rs.5,36,20,160/-. Further interest u/s 234A has been calculated wrongly. He submitted that against the total outstanding demand which includes interest of about Rs10.40 crores, the assessee has already paid an amount of Rs.3.55 crores which is more than 20% of the disputed tax liability. He accordingly submitted that full stay of the outstanding demand should be granted. He submitted that the department is pressing very hard and the assessee is not in a position to pay the huge outstanding tax demand. He also requested for an out of turn hearing. 4. The Ld. DR on the other hand strongly opposed the Stay Application filed by the assessee and submitted that the assessee should be directed to pay some more amount. 5. We have heard the rival contentions made by both sides and perused the record. Considering the facts of the case, in our opinion, it is not a fit case for granting absolute stay of the outstanding demand. However, considering the fact that the assessee has already paid an amount of Rs.3.55 crores against the total outstanding demand of Rs.19.34 crores, we direct the assessee to pay a further 3 SA No.4/PUN/2025 amount of Rs.32 lakh on or before 20.02.2025 and the balance amount is stayed for a period of six months or till the disposal of the appeal whichever is earlier. Further, the request of the Ld. Counsel for the assessee for out of turn hearing is accepted and the appeal is fixed for hearing on 24.02.2025. No separate notice of hearing shall be sent and this order itself will be deemed to be the service of notice to both the sides. 6. In the result, the Stay Application filed by the assessee is allowed in the above terms. Order pronounced in the open Court on 10th February, 2025. Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 10th February, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune 4 SA No.4/PUN/2025 S.No. Details Date Initials Designation 1 Draft dictated on 07.02.2025 Sr. PS/PS 2 Draft placed before author 10.02.2025 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order "