PREM SINGH,CHAMBA V. ACIT CIRCLE PALAMPUR, PALAMPUR

SA 36/CHANDI/2025

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The case involves Shri Prem Singh, who sold a residential property and claimed benefits under Section 54/54F of the Income Tax Act for reinvesting the proceeds into another residential property and land. The Assessing Officer (AO) rejected this claim, leading to a substantial tax demand. The Tribunal considered the stay applications for the outstanding demands of Rs. 18,51,18,810 for the year 2015-16 and Rs. 64,24,834 for 2017-18. The Tribunal noted that the assessee had already paid more than 20% of the demanded tax and that the appeals were scheduled for arguments. Given these circumstances, the Tribunal decided to stay the demands, emphasizing the need for the assessee to submit all necessary papers in advance and not seek adjournments unless unavoidable.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 778153 (ITAT-CHANDIGARH)
• Duration Of Justice: 19 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 08-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 19-09-2025
• Laws Referred To: Section 54, Section 54F
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Assessee Lawyers: AJAY JAIN; LOVESH BANSAL
• Keywords: Application of stay

Judgement Text

"आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ S.A.No. 35 /CHD/2025 in ITA No. 946/CHD/2025 Ǔनधा[रण वष[ / Assessment Year: 2015-16 Shri Prem Singh, The Palace, Chamba, (H.P.). Vs The DCIT, Circle, Palampur (HP). èथायी लेखा सं./PAN NO: AAMPR8876P अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent & आयकर अपील सं./ S.A.No. 36 /CHD/2025 in ITA No. 947/CHD/2025 Ǔनधा[रण वष[ / Assessment Year: 2017-18 Shri Prem Singh, The Palace, Chamba, (H.P.). Vs The ACIT, Circle, Palampur (HP). èथायी लेखा सं./PAN NO: AAMPR8876P अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Assessee by : Shri Ajay Jain,CA & Shri Lovesh Bansal,CA Revenue by : Dr. Ranjit Kaur, Addl. CIT Sr.DR Date of Hearing : 07.10.2025 Date of Pronouncement : 08.10.2025 PHYSICAL HEARING O R D E R PER RAJ PAL YADAV, VP The present two Stay Applications are directed at the instance of the assessee for grant of ad-interim stay of the Printed from counselvise.com SA-35 & 36/CHD/2025 in ITA 946 & 947/CHD/2025 A.Y. 2015-16 & 2017-18 2 outstanding demand amounting to Rs.18,51,18,810/- in assessment year 2015-16 and Rs.64,24,834/- in assessment year 2017-18. 2. The brief facts of the case, according to the assessee are that assessee has sold residential house in village Kodathi measuring 17 Acre 31 Guntas. He has claimed benefit of Section 54/54F of the Act on account of utilization of the sale proceeds in purchase of a residential house as well as land. This claim of the assessee has been rejected by the AO. He has raised a demand of Rs.17,52,04,010/- and calculated interest on this demand of Rs.4,49,70,225/-. Out of this total demand, assessee has already paid Rs.3,50,55,425/- in assessment year 2015-16 and Rs.36,85,000/- in assessment year 2017-18. Thus, assessee has already paid more than 20% of the tax demand raised by the AO. 3. With the assistance of the ld. Representative, we have gone through the record carefully. It has been brought to our notice that appeals are already stated to be listed for arguments on 13.11.2025. The assessee has already paid more than 20% of the tax demand. The issue, whether assessee is entitled for benefit of Section 54/54F of the Act is Printed from counselvise.com SA-35 & 36/CHD/2025 in ITA 946 & 947/CHD/2025 A.Y. 2015-16 & 2017-18 3 a debatable issue but assessee has prima-facie arguable case on merit. Therefore, we deem it appropriate to stay the outstanding demand, subject to following conditions : a) That the demand will remain stayed for a period of 180 days or till the disposal of the appeal, whichever event occurs first; b) The assessee would submit all necessary papers before seven days in advance of the scheduled date which is stated to be fixed on 13.11.2025. c) The assessee will not seek adjournment unless unavoidable circumstances warranted so. 4. Since the appeals are already listed for arguments, therefore, no fresh notice would be served upon the parties. 5. In the result, Stay Applications are allowed. Order pronounced on 08th October,2025. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (RAJ PAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. Concerned CIT 4. The CIT(A) 5. DR, ITAT, Chandigarh. Assistant Registrar Printed from counselvise.com "