NEC CORPORATION INDIA PRIVATE LIMITED,DELHI V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 16(1), DELHI

SA 257/DEL/2025

AI Insights

The case involves NEC Corporation India Pvt. Ltd. seeking an extension of stay on the recovery of an outstanding tax demand of Rs. 1,94,09,183 for the assessment year 2020-21. The original demand was Rs. 4,61,14,912, from which Rs. 2,67,05,729 was adjusted against refunds due to the assessee. The Tribunal had previously granted a stay on recovery, which was recorded in a stay order dated 01.11.2024. The appeal concerning the quantum of the demand was adjourned multiple times, leading to the current application for an extension of the stay. The Tribunal found no fault on the part of the assessee for the delays in the appeal process and thus granted the extension.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 295334 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 25-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2020-2021
• Other Referred Cases: Roca Bathroom Products Limited
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAHIL KUMAR BANSAL
• Assessee Lawyers: NEERAJ JAIN; MANSA BHALLA
• Keywords: Application of stay; Extension of stay
• Section: 2

Judgement Text

"1 SA no. 257/Del/2025 ( In ITA no. 3926/Del/2024) A.Y. 2020-21 NEC Corporation India Pvt. Ltd. v. DCIT IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘H’: NEW DELHI) BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER SA no. 257/Del/2025 (In ITA no. 3926/Del/2024) A.Yr.: 2020-21 NEC Corporation India Pvt. Ltd., A-31, 1st Floor, Lajpat Nagar, Delhi-110024. v. DCIT, Circle-16(1), Delhi. PAN No: AACCN 3496 J APPLICANT RESPONDENT Assesseeby : Shri Neeraj Jain, Adv.; & Ms. Mansa Bhalla, CA Revenue by : Shri Sahil Kumar Bansal, Sr. DR Date of Hearing : 25.04.2025 Date of Pronouncement : 25.04.2025 ORDER PER RAMIT KOCHAR, AM: This stay application in SA nos. 257/Del/2025, arising out of ITA no. 3926/Del/2024 pertaining to assessment year 2020-21, has been filed by the assessee, seeking extension of stay on recovery of outstanding demand of Rs. 1,94,09,183/-. 2 SA no. 257/Del/2025 ( In ITA no. 3926/Del/2024) A.Y. 2020-21 NEC Corporation India Pvt. Ltd. v. DCIT 2. Ld. Counsel for the assessee submitted that 55% of the demand has already been paid by the assessee and it is duly recorded in the stay order dated 01.11.2024 in SA no. 424/Del/2024 of the Tribunal. There was outstanding demand as raised by the AO of Rs. 4,61,14,912/- and the AO adjusted Rs. 2,67,05,729/- against total demand from refunds due to the assessee. The Tribunal granted stay on recovery of outstanding demand vide orders dated 01.11.2024. It was submitted that after the grant of the stay on recovery of outstanding demand by Tribunal vide orders dated 01.11.2024, the corresponding assessee’s appeal in quantum was listed for hearing before the Division Bench on 31.12.2024, when at the request of the Departmentthe hearing was adjourned to 16.01.2025. On 16.01.2025 when the appeal came up for hearing , as the appeal involves limitation issue on the basis of judgment and order of Hon’ble Madras High Court in the case of Roca Bathroom Products Limited , the Bench adjourned the hearing to 29.05.2025. It is submitted by ld. Counsel for the assessee that there is no fault on the part of the assessee for delay in adjudication of the corresponding appeal in quantum. Thus, it was prayed that the stay on recovery of outstanding demand be extended. 3. Learned Sr. DR could not controvert the factual position. 3 SA no. 257/Del/2025 ( In ITA no. 3926/Del/2024) A.Y. 2020-21 NEC Corporation India Pvt. Ltd. v. DCIT 4. After hearing both the parties, we are inclined to extend the stay on recovery of the outstanding demand for A.Y. 2020-21 for a further period of 180 days or till the disposal of the corresponding appeal in ITA No. 3926/Del/2025 for assessment year 2020-21, whichever is earlier, as facts and circumstances since the grant of stay on recovery of outstanding by Tribunal vide orders dated 01.11.2024 has not changed , and no fault can be attributed to the assessee for delay in adjudication of the appeal in quantum. Needless to say that the assessee will co-operate in the early adjudication of appeal and shall not seek any un-necessary adjournments. We order accordingly. Order pronounced in the open court on 25thApril, 2025 in the presence of both the parties. Sd/- Sd/- (MS. MADHUMITA ROY) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29/04/2025. *MPV* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DRP 5. DR 4 SA no. 257/Del/2025 ( In ITA no. 3926/Del/2024) A.Y. 2020-21 NEC Corporation India Pvt. Ltd. v. DCIT 6. Guard File Asst. Registrar, ITAT, New Delhi "