NYATI ENGINEERS AND CONSULTANTS PRIVATE LIMITED,PUNE V. ACIT CENTRAL CIRCLE 2(3), PUNE (AFTER CHANGE FROM OLD ACIT CENTRAL CIRCLE 2(1) AO), PUNE

SA 2/PUN/2025

AI Insights

Nyati Engineers and Consultants Pvt. Ltd. filed a Stay Application with the Income Tax Appellate Tribunal Pune Bench, seeking relief from an outstanding tax demand of Rs.19,87,03,550 for the assessment year 2020-21. The demand arose after the Assessing Officer disallowed a claim for depreciation on intangible assets amounting to Rs.83,75,00,000, which was upheld by the CIT(A). The assessee argued that the demand would severely impact its liquidity, despite having already paid over 20% of the total tax demand. The Departmental Representative opposed the stay, suggesting further payment was necessary. The Tribunal, considering the circumstances, granted a conditional stay and scheduled an expedited hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24552 (ITAT-PUNE)
• Appeal Type: Stay Application
• Pronouncement Date: 31-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMNATH P MURKUNDE
• Assessee Lawyers: RAJAN VORA
• Keywords: Depreciation; Application of stay

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.2/PUN/2025 Arising out of ITA No.96/PUN/2025 Assessment year : 2020-21 Nyati Engineers and Consultants Pvt. Ltd. 6th Floor, Nyati Unitree, Nagar Road, Yerawada, Pune – 411006 Vs. ACIT, Central Circle 2(1), Pune PAN: AAGCN3959G (Applicant) (Respondent) Assessee by : Shri Rajan Vora Department by : Shri Ramnath P Murkunde Date of hearing : 31-01-2025 Date of pronouncement : 31-01-2025 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.19,87,03,550/-. 2. The Ld. Counsel for the assessee while explaining the stay application submitted that the assessee has filed the return of income on 29.01.2021 declaring total income at Rs.40,76,93,590/- after claiming deduction of depreciation on the intangible assets which were acquired amounting to Rs.83,75,00,000/-. The Assessing Officer disallowed the claim of the assessee which was upheld by the Ld. CIT(A). The Ld. Counsel for the assessee while explaining the merit of the 2 SA No.2/PUN/2025 case relied on a series of decisions and submitted that the assessee has a prima facie case in its favour. So far as the balance of convenience is concerned, the Ld. Counsel for the assessee submitted that the Assessing Officer has raised huge demand which the assessee is not in a position to pay since the payment of such huge amount will adversely affect the liquidity position of the assessee company. Further, the assessee has already paid an amount of Rs.5,10,79,800/- out of the total tax demand of Rs.24,97,83,346/- (which includes interest of Rs.5,06,47,560/-) which is more than 20% of such demand. He accordingly submitted that the stay may be granted on the balance outstanding demand. He also requested for an out of turn hearing. 3. The Ld. DR on the other hand while opposing the Stay Application submitted that the assessee should be directed to pay some more amount. 4. After hearing both the sides, we are of the considered opinion that it is not a fit case for granting absolute stay on the balance outstanding demand. On being confronted, the Ld. Counsel for the assessee agreed to pay a further amount of Rs.2 crore in two installments of Rs.1 crore each. We, therefore, direct the assessee to pay the first installment of Rs.1 crore on or before 10.02.2025 and the second installment of Rs.1 crore on or before 28.02.2025. Subject to the payment of the above amount, the request of the Ld. Counsel for the assessee for an out of turn hearing is accepted and accordingly the appeal is fixed for hearing on 03.03.2025 3 SA No.2/PUN/2025 which was announced in the open Court. It was further announced that no separate notice of hearing shall be sent to which both the parties agreed. 5. In the result, the Stay Application filed by the assessee is allowed in the above terms. Order pronounced in the open Court on 31st January, 2025. Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 31st January, 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.2/PUN/2025 S.No. Details Date Initials Designation 1 Draft dictated on 31.01.2025 Sr. PS/PS 2 Draft placed before author 31.01.2025 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 "