RI-BHOI ISPAT & ROLLING MILLS,BYRNIHAT V. ITO, WARD- BYRNIHAT, BYRNIHAT

SA 11/GTY/2024

AI Insights

The case involves RI-BHOI Ispat & Rolling Mills, the appellant, who filed a stay petition against a tax demand of Rs. 1,87,08,690, which included a tax of Rs. 1,11,79,646 and interest of Rs. 75,29,044 for the assessment year 2018-19. The appellant argued that due to a business recession and financial constraints, including a shutdown of their unit and cash losses, they were unable to pay the demanded amount. The tribunal considered the financial difficulties presented by the appellant, including partial payments already made, and decided to grant a stay on the condition that a bank guarantee for the remaining amount be provided.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46722 (ITAT-GUWAHATI)
• Appeal Type: Stay Application
• Pronouncement Date: 05-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS; Application of stay

Judgement Text

"आयकर अपीलीय अधिकरण गुवाहाटी पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL GUWAHATI BENCH AT KOLKATA [वर्ुुअल कोटु] [Virtual Court] श्री मनमोहन दास, न्याधयक सदस्य एवं श्री राक ेश धमश्रा, लेखा सदस्य क े समक्ष Before SHRI MANOMOHAN DAS, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER S.A. No.: 11/GTY/2024 In I.T.A. No.: 241/GTY/2024 Assessment Year: 2018-19 RI-BHOI Ispat & Rolling Mills Vs. ACIT, Faceless Unit (Appellant) (Respondent) PAN: AALFR5078E Appearances: Assessee represented by : Devraj Sahu, Adv. Department represented by : Kausik Ray, JCIT Date of concluding the hearing : January 31st, 2025 Date of pronouncing the order : February 5th, 2025 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: The assessee has filed the present Stay Petition SA No. 11/GTY/2024 in ITA No. 241/GTY/2024 dated 22.11.2024 requesting for stay of demand of Rs. 1,87,08,690/- which comprises tax of Rs. 1,11,79,646/- and interest of Rs. 75,29,044/-. Along with the petition, the assessee has also filed an application stating the reasons for seeking stay which are as under: Page | 2 S.A. No.: 11/GTY/2024 In I.T.A. No.: 241/GTY/2024 Assessment Year: 2018-19 RI-BHOI Ispat & Rolling Mills. “The assessee is a manufacturer of MS Ingot. Due to recent business recession, the applicant face acute financial constraints during the material period. Recently, the unit of the applicant was shut down due to administrative reasons for a period of two months and sustained cash losses during the material period. The assessee is not in a position to deposit any money as it is facing acute financial crisis and present is running deficit of funds. The assessee may be dispensed with the amount of tax of Rs. 1,11,79,646/- + interest Rs.75,29,044/- as demanded by the Assessing officer dated 21.03.2023 passed by the Assessing officer u/s. 156 of the IT Act, 1961.” 2. It was informed that the assessee has already deposited a sum of Rs. 5,00,000/- (+) Rs. 8,04,230/- as TDS as mentioned in the stay application. In the petition filed, the assessee has also requested that the appeal may be fixed for hearing out of turn and/or such other relief be granted as is deemed fit and proper in the ends of justice. During the course of hearing, it was also informed by the ld. Counsel for the assessee that another amount of Rs. 5,00,000/- has also been paid recently. Thus, the assessee has paid approximately Rs. 18,04,230/-. 3. The Ld. DR brought our attention to page 45 of the assessment order and page 55 of the paper book filed by the assessee and requested that the addition was justified for the reasons mentioned. The assessee submitted that no show cause notice has been issued by the GST Department and the addition has been made on account of mere presumption. 4. We have heard the rival contentions and examined the facts of the case. When enquired as to whether the assessee was prepared to furnish the bank guarantee, the Ld. AR replied in the affirmative. The total tax demand raised was Rs. 1,24,83,876/- and interest of Rs. 75,29,044/- was added making the total demand of Rs. 2,00,12,920/- and the assessee claims to have paid a sum of Rs. 13,04,230/- by way of advance tax and pre-deposit of the remaining amount and another Page | 3 S.A. No.: 11/GTY/2024 In I.T.A. No.: 241/GTY/2024 Assessment Year: 2018-19 RI-BHOI Ispat & Rolling Mills. sum of Rs. 5,00,000/- is also stated to have been paid recently, thereby making the total payment of Rs. 18,04,230/- and the balance outstanding demand works out to Rs. 19,20,690/-. 20% of the amount payable works out to Rs. 40,02,584/-. The assessee claims to have paid a sum of Rs. 18,04,230/-. Thus, in view of the petition filed, the stay is granted subject to the furnishing of bank guarantee for the balance amount remaining unpaid so as to make up the total payment @ 20% of the tax, interest payable and subject to the conditions as under: (i) The assessee shall pay not less than 20% of the tax, interest payable within a period of one month or furnish security of equal amount in respect thereof excluding the amount already paid. (ii) Subject to the payment of the demand as at (i), the rest of the demand shall be stayed for a period of 180 days or till the disposal of the appeal, whichever is earlier. (iii) No adjournment shall be sought by the assessee in the appeal before the Tribunal unless it is absolutely necessary on account of any exigency or unavoidable circumstances. 4. In the result, the Stay Application filed by the assessee is allowed as above. Order pronounced on 5th February, 2025 under Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- [Manomohan Das] [Rakesh Mishra] Judicial Member Accountant Member Dated: 05.02.2025 Bidhan (P.S.) Page | 4 S.A. No.: 11/GTY/2024 In I.T.A. No.: 241/GTY/2024 Assessment Year: 2018-19 RI-BHOI Ispat & Rolling Mills. Copy of the order forwarded to: 1. RI-BHOI Ispat & Rolling Mills, 13th Mile, Tamulkuchi, Meghalaya, 793101. 2. ACIT, Faceless Unit. 3. CIT(A)- 4. CIT- 5. CIT(DR), Guwahati Benches, Guwahati. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata "