Shri. A.S.Chinmai , Hassan V. Deputy Commissioner of Income Tax Circle-1 , Hassan

SA 281/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6215 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 28-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANANDA
• Assessee Lawyers: B SHARATH
• Section: 143(3); 133A; 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B BEFORE SHRI JASON P BOAZ, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER S.P. NO.281/BANG/2018 (IN ITA NO.3434/BANG/2018) (ASSESSMENT YEAR : 2013-14) SHRI. A. S. CHINMAI, PROP. M/S. SRI KANAKA JEWELLERS, HASSAN. . PETITIONER. VS. DY COMMISSIONER OF INCOME TAX, CIRCLE 1, BANGALORE. .. RESPONDENT. PETITIONER BY : SHRI B. SHARATH, ADVOCATE. RESPONDENT BY : SHRI ANANDA, ADDL. CIT DATE OF HEARING : 25.01.2019. DATE OF PRONOUNCEMENT : 25.01.2019. O R D E R PER SHRI JASON P BOAZ, AM : THIS STAY PETITION BY THE ASSESSEE IS IN RESPECT OF ASSESSEES APPEAL IN ITA NO.3434/BANG/2018 FOR ASSESSMENT YEAR 2013-14. 2. BRIEFLY, THE FACTS OF THE CASE ARE AS UNDER: 2 S.P. NO.281/BANG/2018 (IN ITA NO.34334/BANG/2018) 2.1 THE ASSESSEE FILED ITS RETURN OF INCOME FOR ASSESSMENT YEAR 2013-14 ON 15.11.2013 DECLARING TOTAL INCOME OF RS.28,74,680/-. A SURVEY UNDER SECTION 133A OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) WAS CONDUCTED IN THIS CASE ON 02.02.2013. THE CASE WAS TAKEN UP FOR SCRUTINY AND THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE ACT WHEREIN THE ASSESSEES INCOME WAS DETERMINED AT RS.78,74,680/-; THEREBY RAISING A DEMAND OF RS.21,85,760/- (INCLUDING INTEREST OF RS.6,56,419/- CHARGED UNDER SECTION 234A, 234B AND 234C OF THE ACT). SUBSEQUENTLY, THE DEMAND WAS INCREASED TO THE EXTENT OF RS.43,56,442/- DUE TO ENHANCEMENT OF THE ASSESSEES TOTAL INCOME TO RS.1,12,07,680/- IN VIEW OF ORDER OF CIT(A). THE ASSESSEE THEN MADE PAYMENTS OF TAX OF RS.22,09,840/-; WHEREBY AN AMOUNT OF RS.21,46,592/- WAS THE OUTSTANDING TAX PAYABLE OF OUT OF THE TOTAL DEMAND OF RS.43,56,442/-; WHICH INCLUDED INTEREST CHARGED UNDER SECTION 234A, 234B AND 234C OF THE ACT. 3. BEFORE US, THE LEARNED AR OF ASSESSEE HAS SUBMITTED THAT IT HAS SO FAR PAID TAXES AMOUNTING TO RS.22,09,840/- WHICH IS MORE THAN 50% OF THE 3 S.P. NO.281/BANG/2018 (IN ITA NO.34334/BANG/2018) TOTAL DEMAND OF RS.43,56,442/-; WHICH INCLUDES INTEREST CHARGED. IT IS SUBMITTED THAT THE AO IS PRESSING FOR PAYMENT OF THE BALANCE DEMAND AND THE ASSESSEE FEARS THAT COERCIVE STEPS WOULD FOLLOW. IT IS SUBMITTED THAT THE ASSESSEE HAS A GOOD CHANCE OF GETTING FAVOURABLE ORDERS ON THE ISSUES RAISED ON MERITS IN ITS APPEAL AND THE UNJUSTIFIED DEMAND WOULD BE SUBSTANTIALLY REDUCED. IT IS PLEADED THAT SINCE MORE THAN 50% OF THE ENTIRE TAX DEMAND HAS BEEN PAID BY THE ASSESSEE, THE PAYMENT OF FURTHER TAXES WILL HIT THE DAY-TO-DAY FINANCES OF THE BUSINESS AS THE ASSESSEE IS FACING SERIOUS FINANCIAL CONSTRAINTS. IN VIEW OF THE ABOVE, IT IS PLEADED THAT THE TRIBUNAL MAY BE PLEASED TO GRANT STAY ON RECOVERY OF THE OUTSTANDING DEMAND OF RS.22,09,840/- TILL DISPOSAL OF THE APPEAL. 4. THE LEARNED DR OPPOSED THE ASSESSEES PLEA FOR GRANT OF STAY ON THE RECOVERY OF THE OUTSTANDING DEMAND. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED AND CONSIDERED THE MATERIAL ON RECORD. AS PER THE DETAILS ON RECORD, ADMITTEDLY, OUT OF THE TOTAL OUTSTANDING DEMAND OF RS.43,56,442/- (INCLUDING INTEREST 4 S.P. NO.281/BANG/2018 (IN ITA NO.34334/BANG/2018) CHARGED UNDER SECTION 234A, 234B AND 234C OF THE ACT), THE ASSESSEE HAS SO FAR PAID RS.22,09,840/- WHICH IS MORE THAN 50% OF THE TOTAL TAX PAYABLE. TAKING INTO ACCOUNT THE FACTS AND CIRCUMSTANCES OF THE CASE, THE FACT THAT ASSESSEE HAS ALREADY MADE GOOD MORE THAN 50% OF THE TOTAL DEMAND RAISED FOR ASSESSMENT YEAR 2013-14, THE FINANCIAL CONDITION OF THE ASSESSEE AND THE BALANCE OF CONVENIENCE, WE ARE OF THE CONSIDERED VIEW THAT THIS IS A FIT CASE FOR GRANT OF STAY ON RECOVERY OF THE OUTSTANDING DEMAND FOR THIS YEAR AND ACCORDINGLY GRANT OF STAY ON RECOVERY OF DEMAND FOR A PERIOD OF 6 MONTHS COMMENCING FROM TODAY I.E., 25.01.2019 OR DISPOSAL OF APPEAL WHICHEVER IS EARLIER. 6. THE APPEAL ITA NO.3434/BANG/2018 IN THIS CASE IS FIXED FOR HEARING ON 11.03.2019. SINCE THE DATE OF HEARING HAS BEEN ANNOUNCED IN OPEN COURT IN THE PRESENCE OF BOTH PARTIES, NO SEPARATE NOTICES FOR HEARING WILL BE ISSUED. 7. IN THE RESULT, THE STAY PETITION FILED BY THE ASSESSEE IS ALLOWED AS INDICATED ABOVE. 5 S.P. NO.281/BANG/2018 (IN ITA NO.34334/BANG/2018) ORDER PRONOUNCED IN THE OPEN COURT ON 25.01.2019. SD/- (LALIET KUMAR) JUDICIAL MEMBER SD/- (JASON P BOAZ) ACCOUNTANT MEMBER BANGALORE, DT. 25.01.2019. /NS/* COPY TO : 1 APPELLANT 4 CIT(A) 2 RESPONDENT 5 DR. ITAT, BANGALORE 3 CI T 6 GUA R D FILE ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL BANGALORE. 6 S.P. NO.281/BANG/2018 (IN ITA NO.34334/BANG/2018)