PRAKASH COTTON MILLS PVT LTD,MUMBAI V. DY CIT, CIRCLE 8(2)(1), MUMBAI

SA 114/MUM/2025

AI Insights

The case involves Prakash Cotton Mills Pvt. Ltd., which filed a stay application against a substantial tax demand of Rs. 58,01,68,204 for the Assessment Year 2012-13, as per an assessment order by the National Faceless Assessment Centre (NFAC), Delhi. The assessee argued that the attachment of their bank account was disrupting daily business activities. The Tribunal considered the payments already made by the assessee, which amounted to Rs. 11.50 Crores, and found it sufficient to grant a stay on the remaining demand. The Tribunal also scheduled a future hearing for the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 773620 (ITAT-MUMBAI)
• Duration Of Justice: 6 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 09-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 03-09-2025
• Laws Referred To: Section 254(2A) of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.A. DHYANI; DR
• Assessee Lawyers: TANZIL R. PADVEKAR; AR; ATTACHING
• Keywords: Application of stay

Judgement Text

" | | | | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | | | | IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI SANDEEP SINGH KARHAIL, HON’BLE JUDICIAL MEMBER S.A. No. 114/Mum/2025 I.T.A. No. 2639/Mum/2025 Assessment Year: 2012-13 Prakash Cotton Mills Pvt. Ltd. 1st Floor, Apsara Cinema Building Bhadkamkar Marg Grand Road (E) Mumbai - 400007 [PAN: AAACP0550H] Vs DCIT, Circle – 8(2)(1), Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Tanzil R. Padvekar, A/R Revenue by : Shri R.A. Dhyani, CIT D/R सुनवाई की तारीख/Date of Hearing : 09/09/2025 घोषणा की तारीख/Date of Pronouncement : 09/09/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: With this application for stay demand, the assessee prays for stay of demand arising out of the assessment order dated 31/03/2022 by NFAC, Delhi, pertaining to AY 2012-13. 2. The demand arising out of the impugned assessment order is to the tune of Rs. 58,01,68,204/-. 3. Before us, the ld. Counsel for the assessee stated that the Officer has stayed the operation of the bank account of the assessee by attaching the same which is hampering the day to day business of the assessee. The ld. Counsel further pointed out that it has paid total demand at Rs. 11.50 Crores which come to around 19.82% of the total demand marginally less than 20% which is prescribed in the first proviso to Section 254(2A) of the Act. The ld. Counsel pleaded that the bank account so attached must be released and the balance demand may be stayed. Printed from counselvise.com S.A. No. 114/Mum/2025 2 4. We have carefully considered the contentions of the ld. Counsel. We find that Rs. 1,50,00,000/- was paid vide challan dated 04/03/2025 and Rs.10,10,33,559/- has been paid vide challan dated 04/09/2025. Since the impugned payment meets the condition laid down in the first proviso to Section 254(2A) of the Act, the balance of the demand is stayed for a period of 180 days or till the disposal of the appeal, whichever is earlier and the AO is directed to release the bank accounts of the assessee so that the assessee can do its business. The Registry is directed to list this appeal for hearing on 18/09/2025, which date is in the knowledge of both the parties. 5. In the result, the stay application is allowed. Order pronounced in the Court on 9th September, 2025 at Mumbai. Sd/- Sd/- (SANDEEP SINGH KARHAIL) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 09/09/2025 * * * *SC SrPs SC SrPs SC SrPs SC SrPs आदेश की \u0014ितिलिप अ\u0019ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014 थ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai Printed from counselvise.com "