Shri Ranjitsingh B. Bath, RAJKOT-GUJARAT V. The Dy.Commr. of Income Tax, Cen. Cir.-1(4), Ahmedabad

SA 1/RJT/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6485 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 04-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 19-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Application of stay
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ SP NO. 1/RJT/2016 (IN ITA NO.355/RJT/2016) / ASSESSMENT YEAR: 2013-14 SHRI RANJITSINGH BAKHTAWARSINGH BTH, PLOT NO.46. SECTOR-8, GANDHIDHAM PAN : AALPB1899D VS. DCIT, CENTRAL CIRCLE-1(4), AHMEDABAD [ / (APPELLANT) / (RESPONDENT) APPELLANT BY: SHRI KALPESH DOSHI, A.R RESPONDENT BY : SHRI YOGESH PANDEY, CIT-DR / DATE OF HEARING : 13/01/2017 / DATE OF PRONOUNCEMENT: 16 /01/2017 / O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER: THE PRESENT STAY APPLICATION ARISING OUT OF ITA NO. 355/RJT/2016 FOR ASST. YEAR 2013-14, IS DIRECTED AT THE INSTANCE OF ASSESSEE FOR GRANT OF STAY OF THE OUTSTANDING DEMAND AMOUNTING TO RS.26,3 8,750/- 2. THE LD. COUNSEL FOR THE ASSESSEE PLACED ON RECOR D THE DETAILS OF RETURN OF INCOME, ADDITION MADE BY LD. AO, ASSESSE D INCOME DEMAND RAISED AND ORDER OF LD.CIT(A). THE LD. COUNSEL SUBM ITTED THAT ASSESSEE IS ENGAGED IN THE BUSINESS OF TRANSPORT CONTRACTOR. AD DITION OF RS.85,10,750/- WAS MADE U/S 69 OF THE I.T ACT, 1961 BY LD. AO WHILE FRAMING THE ASSESSMENT YEAR U/S. 143(3) OF THE INCO ME TAX ACT (HEREIN AFTER REFERRED AS THE ACT). THE INCOME ASSESSED IS 5.5 TIMES MORE THAN THE RETURNED INCOME AND AS SUCH LD. AO HAS FRAMED H IGH PITCHED SP NO. 1/RJT/2016 AY : 2013-14 - 2 ASSESSMENT. THE LD. COUNCIL ALSO INVITED OUR ATTENT ION TO THE CBDT CIRCULAR DATED 21/08/1961 WITH REGARD TO THE CASES WHEREIN I F INCOME DETERMINED ON ASSESSMENT IS SUBSTANTIALLY HIGHER, THAN, IN SUC H CASES COLLECTION OF TAX AND DISPUTE SHOULD BE HELD IN ABEYANCE TILL THE DECISION OF APPEALS, PROVIDED THAT THERE IS NO LAPSE ON THE PART OF ASS ESSEE FOR APPEAL. THE LD. COUNSEL ALSO SUBMITTED THAT ASSESSEE IS FACING FINA NCIAL PROBLEM DUE TO FAMILY DISPUTE GIVING LOW BUSINESS RETURN AND PRACT ICALLY NOT POSSIBLE TO PAY SUCH HUGE PENDING DEMAND. LD. COUNSEL PRAYED FO R GRANTING OF STAY OF DEMAND TILL THE DISPOSAL OF APPEAL AND ALSO AGREED TO PAY SOME MORE AMOUNT AGAINST THE OUTSTANDING DEMAND. 3. ON THE OTHER HAND, LD. DR CONTENDED THAT BOTH TH E AUTHORITIES HAVE RECORDED A CONCRETE FINDING OF THE FACT AND THEREFO RE, DISCRETION OF GRANTING STAY SHOULD NOT BE EXERCISED IN FAVOUR OF THE ASSESSEE. 4. ON DUE CONSIDERATION OF THE FACTS AND CIRCUMSTA NCES AND ALSO WITH REGARD TO THE FACT THAT INCOME ASSESSED IS 5.5 TIME S OF THE RETURNED INCOME, WE ARE OF THE VIEW THAT ASSESSEE HAS A PRIM A FACIE CASE ON MERIT. THEREFORE WE ARE INCLINED TO STAY THE RECOVE RY OF OUTSTANDING DEMAND DURING THE PENDENCY OF THIS APPEAL. THIS STA Y APPLICATION IS ALLOWED SUBJECT TO THE FOLLOWING CONDITIONS. 1) THE RECOVERY OF THE DEMAND SHALL REMAIN STAYED F OR A PERIOD OF 180 DAYS OR TILL THE DISPOSAL OF THE APPEAL WHICHEVER E VENT OCCURS FIRST. 2) THE ASSESSEE SHALL PAY FURTHER SUM OF RS,3,42,00 0/- OVER AND ABOVE THAT ALREADY PAID OF RS.6.5 LAKHS ON OR BEFOR E 06/02/2017. 3) THE ASSESSEE SHALL NOT SEEK ADJOURNMENT UNLESS U NAVOIDABLE CIRCUMSTANCES WARRANT SO. 4) THE ASSESSEE SHALL SUBMIT ALL PAPERS BOOKS ETC. BEFORE THE DATE OF HEARING OF APPEAL. SP NO. 1/RJT/2016 AY : 2013-14 - 3 5. THE REGISTRY IS DIRECTED TO FIX THE APPEAL OUT O F TURN ON 8 TH MARCH, 2017. 6. IN THE RESULT STAY PETITION IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 16 /01/2017 AT AHMEDABAD. SD/- SD/- (S.S. GODARA) JUDICIAL MEMBER (MANISH BORAD) ACCOUNTANT MEMBER TRUE COPY AHMEDABAD; DATED, 16 /01/2017 BT** / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. !'!#$ % / CONCERNED CIT 4. % ) ( / THE CIT(A)- 5. () #$ , #$+ , ,-. /DR,ITAT, AHMEDABAD, 6. )/0 1 / GUARD FILE. / BY ORDER, TRUE COPY 2 !, (ASSTT. REGISTRAR) #$+ ITAT, RAJKOT