PRABHAKAR MADA,HYDERABAD V. ITO(INT TAXN)-1, HYDERABAD

SA 9/HYD/2026

AI Insights

Prabhakar Mada, the assessee, filed an application for a stay on the recovery of an outstanding tax demand of Rs.86,35,640, which included interest under section 234A. The demand arose from a final assessment order passed by the Income Tax Officer (International Taxation)-1, Hyderabad, who assessed the assessee's income at Rs.79,51,736 after objections were partially upheld by the Dispute Resolution Panel. The assessee contested the jurisdiction of the ITO (International Taxation) and the assessment status as a Non-Resident Indian, which he argued led to an exorbitant tax liability. The Tribunal, considering the financial constraints of the assessee and the circumstances of the case, decided to expedite the hearing of the appeal rather than grant a stay on the recovery of the demand.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 843322 (ITAT-HYDERABAD)
• Duration Of Justice: 18 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 06-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2020-2021
• Appeal Filed On: 17-02-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SACHIN KUMAR
• Assessee Lawyers: D V ANJANEYULU
• Keywords: Application of stay
• Section: 147; 2

Judgement Text

" आयकर अपीलीय अिधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘B’ Bench, Hyderabad Before Shri Manjunatha G., Accountant Member and Shri Ravish Sood, Judicial Member S.A.No.9/Hyd/2026 (In आ.अपी.सं /ITA No.429/Hyd/2026) (िनधाŊरण वषŊ/Assessment Year:2020-21) Prabhakar Mada, Hyderabad. PAN: BDAPM4650G Vs. Income Tax Officer (International Taxation)-1, Hyderabad. (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Shri D V Anjaneyulu, CA राज̾ व Ȫारा/Revenue by: Dr. Sachin Kumar, Sr. AR सुनवाई की तारीख/Date of Hearing: 06/03/2026 घोषणा की तारीख/Date of Pronouncement: 06/03/2026 आदेश / ORDER PER. RAVISH SOOD, J.M: The assessee has filed the present application which in turn arises from the ITA No.429/Hyd/2026 seeking stay on the recovery of the outstanding amount of Rs.86,35,637/-. 2. Succinctly stated, a draft assessment order in the case of the assessee was passed by the Assessing Officer (“AO”) vide his order under section 147 r.w.s 144C(13) of the Income Tax Act, 1961 (for short, “the Act”), dated 28/01/2026, wherein the income of the assessee was Printed from counselvise.com 2 SA No. 09/Hyd/2026 Prabhakar Mada vs. ITO (Int. Txn)-1 proposed to be assessed under section 144C(1) of the Act at Rs.94,40,736/-. 3. The assessee filed his objections against the draft assessment order before the Dispute Resolution Panel-1, Bangalore (for short, “Ld. DRP”). The Ld. DRP vide its order under section 144C(5) of the Act, dated 27/12/2025 directed the AO to delete the addition made under section 69A of the Act to the extent of Rs.14,89,000/-. 4. Thereafter, the AO vide his final assessment order passed under section under section 147 r.w.s 144C(13) of the Act, dated 28/01/2026 determined the income of the assessee at Rs.79,51,736/-. 5. Aggrieved, the assessee carried the matter in appeal before the Tribunal in ITA No.429/Hyd/2026 on 13/02/2026, which is pending for adjudication as on date. 6. The assessee applicant has filed the present application seeking stay on the recovery of the outstanding demand of Rs.86,35,640/- (including interest under section 234A of Rs.46,32,335/-). 7. Shri D.V. Anjaneyulu, Learned Authorized Representative (for short. “Ld. AR”) for the assessee, at the threshold of hearing of the stay application, submitted that the assessee who is a resident had wrongly been assessed in the status of Non-Resident Indian (NRI) and saddled with exorbitant liability towards tax/interest. Elaborating on his Printed from counselvise.com 3 SA No. 09/Hyd/2026 Prabhakar Mada vs. ITO (Int. Txn)-1 contention, the Ld.AR submitted that the claim of the assessee regarding the validity of the jurisdiction assumed by the AO, i.e., ITO (International Taxation)-1, Hyderabad to frame the impugned assessment had not been addressed by the authorities below. The Ld.AR further submitted that though the assessee being a person of limited financial means is not in a position to deposit the exorbitant amount of Rs.86.35 lakhs raised in his case, but the Department is pressing hard for the recovery of the outstanding demand. Therefore, it was submitted that the demand raised in the case of the assessee in all fairness and in the interest of justice be stayed. 8. Per contra, Dr. Sachin Kumar, Learned Senior Departmental Representative (for short, “Ld. Sr-DR”) objected to the seeking of the stay o the recovery of the outstanding demand by the assessee applicant. 9. We have given a thoughtful consideration to the stay application filed by the assessee applicant in the backdrop of the contentions advanced by the Learned Authorized Representatives of both parties. 10. Shri D.V. Anjaneyulu, Ld.AR, on being asked regarding the deposit of 20% of the tax/interest liability, submitted that due to financial constraints the assessee applicant is not in a position to deposit the said amount. Printed from counselvise.com 4 SA No. 09/Hyd/2026 Prabhakar Mada vs. ITO (Int. Txn)-1 11. Considering the totality of the facts involved in the present case before us, we are of the considered view that in the interest of justice and fairness, the hearing of the appeal of the assessee be taken up on an early hearing basis. Accordingly, we though reject the application filed by the assessee seeking stay on the recovery of the outstanding demand of Rs.86.35 lakhs in terms of our aforesaid deliberations, but direct the Registry to fix the appeal on 23/03/2026 (first on Board). Ordered accordingly. 12. Resultantly, the application filed by the assessee is disposed of in terms of our aforesaid observations. Order pronounced in the open court on 06th March, 2026. Sd/- (MANJUNATHA G.) ACCOUNTANT MEMBER Sd/- (RAVISH SOOD) JUDICIAL MEMBER Hyderabad, Dated 06th March, 2026. OKK / SPS Printed from counselvise.com 5 SA No. 09/Hyd/2026 Prabhakar Mada vs. ITO (Int. Txn)-1 Copy to: S.No Addresses 1 Prabhakar Mada, Anjaneyulu & Co#30, Bhagyalakshmi Nagar Colony, Gandhi Nagar, Hyderabad-500080. 2 Income Tax Officer, (International Taxation)-1, Hyderabad. 3 The Pr. CIT, (International Taxation), Hyderabad 4 The DR, ITAT Hyderabad Benches 5 Guard File By Order Sr. Private Secretary, ITAT, Hyderabad. Printed from counselvise.com KAMALA KUMAR ORUGANTI Digitally signed by KAMALA KUMAR ORUGANTI Date: 2026.03.06 16:56:54 +05'30' "