ORBIT TRANSPORTERS REGD. BADAL,CHANDIGARH V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2, BATHINDA, BATHINDA

SA 8/ASR/2025

AI Insights

The case involves Orbit Transporters Regd., a partnership firm that ceased to exist after being taken over by M/s Orbit Aviation Pvt. Ltd. The firm was assessed for the year 2012-13, resulting in a tax demand due to estimated profits from bus operations, which were also recorded by the successor company. The firm contested the double taxation and sought a stay on the tax demand, citing financial difficulties and the non-existence of the partnership firm. The Tribunal heard the stay application and decided to grant a partial stay on the tax demand pending the appeal's resolution.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 848563 (ITAT-AMRITSAR)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 25-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Amritsar
• Assessment Year: 2012-2013
• Appeal Filed On: 01-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Application of stay
• Section: 147; 144; 2

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR (PHYSICAL HEARING) BEFORE DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER AND SH. UDAYAN DASGUPTA, JUDICIAL MEMBER Stay Application No. 8/Asr/2025 (Arising out of I.T.A. No. 606/Asr/2025) Assessment Year: 2012-13 Orbit Transporters Regd., M/s Orbit Transporters Regd. Badal, C/o M/s Orbit Aviation Pvt. Ltd., 1st Floor, Metro Plaza, SCO 54-55, Sector-9D, Chandigarh 160009 [PAN: AAAFO 2209F] (Appellant) Vs. Deputy Commissioner of Income Tax, Circle-2, Bathinda (Respondent) Appellant by Respondent by : : Sh. Ashwani Kumar, C. A. Sh. Charan Dass, Sr. D. R. Date of Hearing Date of Pronouncement : : 20.03.2026 25.03.2026 ORDER Per Udayan Dasgupta, J.M.: This stay application is filed by the assessee on 01.11.2025 as per provisions of section 254 (2A) of the Income Tax Act, 1961 which is in connection with the Income Tax Appeal pending for hearing before the Hon’ble Bench for the Assessment Year: 2012-13 in I.T.A. No. 606/Asr/2025. Printed from counselvise.com 2 S. A. No. 8/Asr/2025 Assessment Year: 2012-13 2. In course of hearing, the ld. AR of the assessee submitted that the assessment in this case has been completed vide order dated 29.10.2019 u/s 144 r.w.s 147 with a tax demand of Rs. 42.64 lakhs (including interest), which has resulted from an addition of Rs. 49.82 lakhs on account of estimated profits determined and tax has been imposed under the provisions of the Act. 3. The ld. AR further submitted that the Appellant was a Partnership Firm and was engaged in the business of running/plying of buses in the state of Punjab. With effect from 01.04.2010, the business of the Appellant Firm was taken over b y M/s Orbit Aviation Pvt Ltd whereby all the assets and liabilities of the Appellant Firm were taken over by it virtue of a deed of settlement executed on 01.04.2010 against which the partners of the Appellant Firm were allotted shares in M/s Orbit Aviation Pvt Ltd. Consequently, the said Firm ceased to exist and all the bank accounts and the transactions therein that were held in the name of the Partnership Firm were duly reflected/ recorded henceforth in the books of M/s Orbit Aviation Pvt Ltd. Thus, technically, during the assessment year 2012-13, the said firm does not exist. During the said assessment year, there were receipts amounting to Rs. 2.82 crores arising out of plying of buses, which were deposited in the bank account, which was originally in the name of the Appellant Firm Printed from counselvise.com 3 S. A. No. 8/Asr/2025 Assessment Year: 2012-13 4. The ld. AR further submitted that the said income has already been accounted for in the books of account of the Private Ltd. Company M/s Orbit Aviation Pvt. Ltd. and estimated profit on the said receipts has also been estimated in the hands of this partnership firm which has already ceased to exist. As such, his contention is that the same income has been assessed in both the hands against which this appeal is preferred and the ld. first appellate authority has dismissed the appeal without any adjudication on merits in absence of any response to various notices issued in course of appellate proceedings, the notice being not received by the assessee. 5. Now, this appeal is pending before the Hon’ble Tribunal which is filed on 5th Aug., 2025 which is not yet fixed for hearing. 6. It has been further submitted that the assessee has not made any deposit against outstanding demand which is fully disputed. As such, he prayed for full stay of the outstanding demand till disposal of the appeal by the Hon’ble Tribunal on the ground that since the appellate firm is no more in existence and has been taken over by Orbit Aviation Pvt. Ltd, the firm does not have any resources to deposit the outstanding demand and has cited financial crisis as one of the reasons seeking stay. 7. The ld. D.R. present in court has submitted that the assessee be directed to pay at least 20% (twenty percentage) of the total outstanding demand as per proviso of sub- section (2A) of section 254 of the Act. Printed from counselvise.com 4 S. A. No. 8/Asr/2025 Assessment Year: 2012-13 8. We have heard the parties and considered the materials on record and the stay application filed before us and at this stage we are not in a position to verify or determine the authenticity or the veracity of the statement made by the ld. counsel of the assessee in the court regarding the issues that the same receipts has been considered in the hands of the Orbit Aviation Pvt. Ltd. as well as in the hands of the Partnership Firm, which has resulted in double taxation. 9. However, we accept the submission of the ld. AR of the assessee on good faith at face value. Pending the disposal of this appeal, we direct the assessee to pay 10% (ten percentage) of the total outstanding taxes demand which is 10% of Rs.42.64 lakhs. 10. As such, the assessee is directed to pay the amount of Rs. 4,27,000/- in two equal installment, first installment to be paid by 15th April, 2026 and the second installment by 30th April, 2026 and the balance outstanding demand of Rs. 38,37,710/- shall be stayed till 31st July, 2026 or till the date of disposal of the appeal whichever earlier. Printed from counselvise.com 5 S. A. No. 8/Asr/2025 Assessment Year: 2012-13 11. In the result, the stay application of the assessee is allowed as per above direction with the condition that the assessee will not pray for adjournment on the date fixed for hearing of the appeal. Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 25.03.2026 Sd/- Sd/- (Dr. Dipak P. Ripote) (Udayan Dasgupta) Accountant Member Judicial Member *GP/Sr.PS* Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The CIT concerned (4) The Sr. DR, I.T.A.T True Copy By Order Printed from counselvise.com "