M/S SHREE PALSIDDHA CONSTRUCTION, V. A.C.I.T, .AKOLA Cir, Akola

SA 1/NAG/2016

• Counselvise Citation: [2014] 117 COUNSELVISE.COM (IT) 8871 (ITAT-NAGPUR)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 23-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 22-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Application of stay

Judgement Text

1 STAY APPLN. NO. 01/NAG/2016 IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR. BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. STAY APPLICATION NO. 01/NAG/2016 ARISING OUT OF I.T.A. NO. 306/NAG/2015 ASSESSMENT YEAR : 2012 - 13. M/S SHREE PALSIDDHA CONSTRUCTION, ASSTT. COMMISSIONER OF INCOME - TAX, MAIN ROAD, SAKHARKHEDA, VS. AKOLA CIRCLE, AKOLA. TAL. SINDHKHED RAJA, DIST. BULDHANA. PAN ABLFS 9009H. (APP LICANT ) (RESPONDENT) APP LICANT BY : SHRI MAHAVIR ATAL. RESPONDENT : SHRI NARENDRA KANE. DATE OF HEARING : 05 - 02 - 2016 DATE OF PRONOUNCEMENT : 2 6 T H FEBRUARY, 2016. O R D E R PER MUKUL K. SHRAWAT, J.M. THIS STAY PETITION WAS FILED ON 22 ND JANUARY, 2016 AND THE POSITION OF THE OUTSTANDING TAX DEMAND WAS STATED TO BE AS UNDER : 1 ASSESSMENT YEAR(S) INVOLVED : 2012 - 13 2 DATE OF FILING OF APPEAL BEFORE THE TRIBUNAL AND ITS NUMBER, IF KNOWN : 01.12.2015 3 FROM THE DEMAND GIVE BREAK UP : 1,59,54,030/ - TAX : 1,17,30,905/ - INTEREST : 42,23,124/ - PENALTY : FINE : OTHERS : 2 STAY APPLN. NO. 01/NAG/2016 4 (A) AMOUNT ALREADY PAID (B) AMOUNT OUTSTANDING (C) AMOUNT WHICH IS NOT DISPUTED OUT OF (B) : : : 10,00,000/ - 1,49,54,030/ - NIL 5 (A) DETAILS OF APPLICATION FOR STAY MADE TO THE REVENUE AUTHORITIES : 6 1. A.O. : PARTIAL STAY GRANTED 2. JC.I.T. : NO ORDER PASSED TILL DATE 2. FROM THE SIDE OF THE APPLICANT LEARNED A.R. MR. MAHAVIR ATAL APPEARED AND AT THE OUTSET INFORMED THAT INSTEAD OF RS.10 LAKHS THE ASSESSEE HAD NOW PAID A SUM OF RS.25 LAKHS AS PER THE FOLLOWING DETAILS OF THE CHALLANS: SR. NO. DATE OF P AYMENT NAME OF BANK CHALLAN NO. AMO U NT 1 20/01/2016 SBI CK83887159 1,00,000/ - 2 2 7 /01/2016 SBI CK8 4227306 2 ,00,000/ 3 2 9 /01/2016 SBI CK8 4372520 3 ,00,000/ 4 3 0/01/2016 SBI CK8 4438912 4 ,00,000/ 5 02/11/2015 SBI CK 77906928 5 ,00,000/ 6 02/11/2015 SBI CK 77907346 5 ,00,000/ 7 18 /11/2015 SBI CK 79050703 5 ,00,000/ TOTAL 25,00,000/ - LEARNED A.R. HAS ALSO PLEADED THAT THE APPLICANT HAS RAISED LEGAL ISSUE AND HOPEFUL TO GET THE RELIEF IN THE QUANTUM APPEAL. LEARNED A.R. HAS DRAWN OUR ATTENTION ON THE FINANCIAL POSITION OF THE ASSESSEE AND PLEADED THAT THE ASSESSEE IS FACING EXTREME HARDSHIP BECAUSE A HUGE AMOUNT IS RECEIVABLE FROM VARIOUS GOVERNMENT DEPARTMENTS. LEARN ED A.R. HAS FILED LIST OF FEW GOVERNMENT DEPARTMENTS AS UNDER : 3 STAY APPLN. NO. 01/NAG/2016 PAYMENTS RECEIVABLE FROM DEPARTMENTS SR. NO. DEPARTMENT AMOUNT 1 PMGSY BULDANA 2,05,00,000/ - 2 PWD WASHIM 40,00,000/ - 3 PWD JALNA 85 ,00,000/ 4 PWD BULDANA 5 0,00,000/ TOTAL 3,80,00,000/ - 3. ON THE OTHER HAND, FROM THE SIDE OF THE REVENUE, LEARNED D.R. MR. NARENDRA KANE APPEARED AND OBJECTED THE STAY PETITION MAINLY ON THE GROUND THAT ONE OF THE PARTNER HAS MADE A STATEMENT BEFORE THE REVENUE AUTHORITIES AND AGREED TO PAY AN INSTALMENT OF RS.10 LAKHS PER MONTH UPTO MAY,2016. THE REVENUE DEPARTMENT HAS AGREED TO GRANT 50% OF THE TOTAL DEMAND SUBJECT TO THE FULFILMENT OF THE CONDITION OF LIQUIDATION OF THE REST OF THE DEMAND BY THE ASSESSEE. THEREFORE, LEARNED D.R. HAS PLEADE D THAT ONCE THE ASSESSEE HAS HIMSELF MADE A PROPOSAL OF PAYMENT OF RS.10 LAKHS PER MONTH, THEREFORE, THIS STAY PETITION IS NOT JUSTIFIED. 4. WE HAVE HEARD BOTH THE SIDES. THE ADMITTED FACTUAL POSITION IS THAT A RETURN OF INCOME WAS FILED DECLARING RS.2,17, 12,060/ - , HOWEVER, A HIGH - PITCHED ASSESSMENT WAS COMPLETED ON THE TOTAL INCOME OF RS.6,000,17,630/ - . TAX ON THE ASSESSED INCOME WAS DEMANDED AT RS.1,17,30,905 PLUS INTEREST THEREUPON. THE PRESENT POSITION OF THE TAX ALREADY PAID IS AS PER THE CHALLANS PL ACED IN THE COMPILATION AMOUNTED TO RS.25 LAKHS. THE MAIN GRIEVANCE OF THE APPLICANT IS THAT BEING A CIVIL CONTR A CTOR HE HAS EXECUTED THE CONTRACT WORK OF CERTAIN GOVERNMENT DEPARTMENTS, AS LISTED ABOVE. HOWEVER, A HUGE AMOUNT IS 4 STAY APPLN. NO. 01/NAG/2016 OUTSTANDING. DUE TO THE SA ID REASON THE ASSESSEE IS HAVING NO LIQUID FUNDS. AS FAR AS THE LEGAL ISSUE AS RAISED IN THE QUANTUM APPEAL IS CONCERNED, ALTHOUGH PRIMA FACIE IT CAN BE A N ARGUABLE CASE BUT THE SAME SHALL BE DECIDED ON HEARING THE MERITS , HENCE NO COMMENT CAN BE MADE AT THIS STAGE. AFTER CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE CONSCIENTIOUS VIEW THAT THIS ASSESSEE DESERVES FOR THE STAY AGAINST THE RECOVERY OF THE OUTSTANDING DEMAND. WE HEREBY GRANT THE STAY SUBJECT TO THE FOLLOWING CONDITIONS : 1) THAT THE ASSESSEE IS HEREBY DIRECTED TO PAY A SUM OF RS.5 LAKHS BY 29 TH OF FEBRUARY, 2016 AND PRODUCE THE CHALLANS. 2) THAT SUBJECT TO THE FULFILMENT OF THE ABOVE CONDITION, THE BALANCE OUTSTANDING DEMAND IS STAYED TILL THE DISPOSAL OF THI S APPEAL OR THE EXPIRY OF SIX MONTHS FROM THE DATE OF THIS STAY ORDER, WHICHEVER IS EARLIER. 3) THAT AN EARLY HEARING IS HEREBY GRANTED. THEREFORE, THE QUANTUM APPEAL (ITA NO. 306/NAG/2015) SHALL BE FIXED FOR HE A RING ON 15 TH OF MARCH, 2016. THIS DATE OF HEARING IS DULY PRONOUNCED IN THE OPEN COURT FOR WHICH BOTH THE PARTIES HAVE AGREED. NO SEPARATE NOTICE OF HEARING IS, THEREFORE, REQUIRED TO BE ISSUED BY THE REGISTRY SINCE THE DATE OF HEARING IS NOW COMMUNICATED TO BOTH THE SIDES. 4) THAT THE APPLICANT IS ADVISED NOT TO SEEK FRIVOLOUS ADJOURNMENT. 5) THAT I F A PAPER BOOK IS DESIRED TO BE FILED BY THE APPLICANT, THEN THE SAME SHOULD BE SUBMITTED WELL IN ADVANCE AS PRESCRIBED IN ITAT RULES. 6) THAT IN CASE OF BREACH OF ANY OF THE ABOVE CONDITIONS, THE STAY SHALL AUTOMATICALLY GET VACATED UNLESS OTHERWISE DIRECTED. 5 STAY APPLN. NO. 01/NAG/2016 5. IN THE RESULT, THIS STAY PETITION IS HEREBY ALLOWED AS PER THE DIRECTIONS SUPRA. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 6 T H DAY OF FEBRUARY, 2016. S D / - S D / - (SHAMIM YAHYA) (MUKUL K. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER NAGPUR, DATED: 2 6 T H FEBRUARY, 2016. COPY FORWARDED TO : 1. M/S SHREE PALSIDDHA CONSTRUCTION, MAIN ROAD, SAKHARKHEDA, TAL. SINDHKHED RAJA, DIST. BULDHANA. 2. A.C.I.T., AKOLA CIRCLE, AKOLA. 3. COMMISSIONER OF INCOME - TAX - ,NAGPUR. 4. CIT(APPEALS) - I, NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY BY ORDER WAKODE. ASSISTANT REGISTRAR, ITAT, NAGPUR