DSN Malleswara Rao, , Guntur V. The Income Tax Officer, Ward-2(3), Guntur

SA 15/VIZ/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4000 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 24-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Keywords: Application of stay
• Section: 56(2)(vii)(b)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER S.P .NO. 1 5 /VIZ/ 201 8 (ARISING OUT OF I.T.A.NO. 5 3 8 /VIZ/201 8 ) ( /ASSESSMENT YEAR: 201 4 - 1 5 ) D.S.N.MALLESWARA RAO PROP.VENKATESWARA POULTRIES MADDURU ROAD AMARAVATHI ROAD GUNTUR [ PAN : A ESPD7008P ] INCOME TAX OFFICER WARD - 2(3) GUNTUR ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI G.V.N.HARI , AR / RESPONDENT BY : S MT.SUMAN MALIK, DR / DATE OF HEARING : 30 . 11 .201 8 / DATE OF PRONOUNCEMENT : 30 . 11 .201 8 / O R D E R PER D.S. SUNDER SINGH , ACCOUNTANT MEMBER : IN THIS CASE, THE ASSESSEE FILED RETURN OF INCOME ADMITTING TOTAL INCOME OF RS.3,39,420/ - AND THE ASSESSMENT WAS COMPLETED BY MAKING ADDITION OF RS.62,69,286/ - U/S 56(2)(VII)(B) OF INCOME TAX ACT, 1961 2 S.P. NO . 1 5 /VIZ/201 8 D.S.N.MALLESWARA RAO, GUNTUR (HEREINAFTER CALLED AS ACT) REPRESENTING THE DIFFERE NCE BETWEEN THE PURCHASE VALUE AND STAMP DUTY OF IMMOVABLE PROPERTY WHICH RESULTED IN A DEMAND OF RS.22,99,600/ - . THE ASSESSEE MOVED APPLICATION REQUESTING FOR GRANT OF STAY OF THE DEMAND. 2. DURING THE HEARING, THE LD.AR ARGUED THAT THE IMPUGNED PROPE RTY WHICH WAS SOLD TO THE ASSESSEE WAS IN LEGAL DISPUTE AND IT WAS SETTLED BY ARBITRATION AS PER THE AWARD GIVEN BY THE ARBITRATION AUTHORITY. THEREFORE, ARGUED THAT THE PROPERTY DOES NOT FIT FOR ADOPTING THE MARKET VALUE AND THE CONSIDERATION PAID BY TH E ASSESSEE REQUIRED TO BE TREATED AS MARKET VALUE AND SUBMITTED THAT AS PER THE FACTS AND LAW, THE ASSESSEE IS HAVING FAIR CHANCES TO SUCCEED IN APPEAL. THEREFORE, REQUESTED TO GRANT THE STAY OF DEMAND. 3. ON THE OTHER HAND, THE LD.DR VEHEMENTLY OPPOS ED THE GRANT OF STAY. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. IN THIS CASE, AGAINST THE RETURNED INCOME OF RS.3,39,420/ - , THE ASSESSEES INCOME WAS ASSESSED AT RS.66,08,706/ - . IN THE ASSESSMENT ORDER, THE ASSESSING O FFICER (AO) MADE THE ADDITION U/S 3 S.P. NO . 1 5 /VIZ/201 8 D.S.N.MALLESWARA RAO, GUNTUR 56(2)(VII)(B) OF THE ACT AND THE IMPUGNED PROPERTY WAS IN LEGAL DISPUTE. FOR A QUERY FROM THE BENCH, THE LD.AR SUBMITTED THAT THE ASSESSEE HAS AGREED TO PAY 50% OF THE DEMAND EXCLUDING THE INTEREST WHICH WORKS OUT TO RS.9 ,00,000/ - ( I.E. EXCLUDING INTEREST, THE OUTSTANDING DEMAND WOULD BE RS.18,00,000/ - AND 50% OF WHICH WORKS OUT TO RS.9,00,000/ - ), IN 3 EQUAL MONTHLY INSTALLMENTS FROM THE MONTH OF DECEMBER. AFTER CONSIDERING THE FACTS AND MERITS OF THE CASE AND SUBMISSIONS OF BOTH THE PARTIES, WE ARE OF THE VIEW THAT THIS IS A FIT CASE TO GRANT STAY OF DEMAND. ACCORDINGLY, WE GRANT THE STAY FOR 3 MONTHS SUBJECT TO PAYMENT OF RS.9,00,000/ - IN 3 EQUAL MONTHLY INSTALLMENTS COMMENCING FROM 10.12.1018. IN CASE, THE ASSESSEE DE FAULTS THE PAYMENT OF INSTALLMENTS, THE STAY GRANTED TO THE ASSESSEE STANDS WITHDRAWN AND THE DEPARTMENT IS FREE TO ENFORCE THE DEMAND AS PER LAW. ACCORDINGLY, THE STAY APPLICATION OF THE ASSESSEE IS ALLOWED. 5 . IN THE RESULT, STAY APPLICATION OF THE ASS ESSEE IS ALLOWED. 4 S.P. NO . 1 5 /VIZ/201 8 D.S.N.MALLESWARA RAO, GUNTUR O RDER PRONOUNCED IN THE OPEN COURT ON 30 TH NOVEMBER 20 1 8 . SD/ - SD/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 30.11. 201 8 L. RAMA, SPS /COPY OF THE ORDER FORWARDED TO: - 1. / THE APPELLANT D.S.N. MALLESWARA RAO, PROP.VENKATESWARA POULTRIES, MADDURU ROAD, AMARAVATHI ROAD, GUNTUR 2 . / THE RESPONDENT INCOME TAX OFFICER, WARD - 2(3), GUNTUR 3. PR. COMMISSIONER OF INCOME TAX, GUNTUR . 4. COMMISSIONER OF INCOME TAX (APPEALS) - 1, GUNTUR 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM