Shri Dnyandeo Ninu Patil, Akola V. Commissioner of Income Tax -I, Nagpur

SA 3/NAG/2012

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3185 (ITAT-NAGPUR)
• Duration Of Justice: 6 year(s) 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 07-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C G K NAIR
• Assessee Lawyers: S C THAKAR; C J THAKAR
• Keywords: Application of stay
• Section: 14A; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER S.A.NO.03/NAG/2012 (ARISING OUT OF ITA NO.103/NAG/2011) (ASSESSMENT YEAR: 2008-09) SHRI DYANDEO NINU PATIL, C/O. ELITE UDYOG, COMMISSIONER OF INCOME TAX, NAGPUR. NEAR RADHA KISAN CINEMA, MURTIZAPUR ROAD, AKOLA. PAN: ADPPP0651A VS (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI C.J. THAKAR & S.C. THAKAR RESPONDENT BY: SHRI C.G.K. NAIR DATE OF HEARING: 29.6.2012 DATE OF PRONOUNCEMENT: 29.6.2012 O R D E R PER B. RAMAKOTAIAH, A.M. THIS IS ASSESSEES APPLICATION FOR STAY OF DEMAND C ONSEQUENT TO THE ORDER U/S 263 BY THE CIT-1, NAGPUR IN WHICH HE DIRECTED T HE ASSESSING OFFICER TO MAKE DISALLOWANCE U/S 14A TO ANEXTENT OF RS. 20,37, 440/-. A DEMAND OF RS. 10,30,651/- WAS DISPUTED OUT OF WHICH ASSESSEE ALRE ADY PAID RS. 2,57,663/-. 2. IT WAS A SUBMISSION THAT THE INTEREST CLAIM MADE BY THE ASSESSEE WAS RESTRICTED AS INCOME FROM M/S. DNV REALITY FIRM WAS CONSIDERED EXEMPT AND THAT THE RESTRICTION SHOULD HAVE BEEN TO THE EXTENT OF RS. 5,97,353/- AND NOT THE ENTIRE INTEREST AMOUNT PAID TO BANK, WHICH WAS UTILIZED IN THE BUSINESS. IT WAS ALSO FURTHER SUBMITTED THAT ASSESSEE WAS NOT A PARTNER IN M/S. ELITE PROMOTERS AND BUILDERS AND DID NOT RECEIVE ANY EXEM PTED INCOME SO AS TO DISALLOW AMOUNT U/S 14A. IT WAS FURTHER SUBMITTED THAT ASSESSEE HAS SUFFERED LOSS OF RS. 33 LAKHS DURING THE CURRENT YEAR AND HI S FUNDS OF RS. 5.93 CRORES WAS BLOCKED IN LITIGATION AND IT WAS REQUESTED THAT THE DEMAND MAY BE STAYED. 2 3. THE LEARNED DR HOWEVER RELIED ON THE ORDERS OF THE CIT TO SUPPORT THE DISALLOWANCE MADE AND OBJECTED TO THE STAY PETITION . 4. WE HAVE CONSIDERED THE ISSUE AND AFTER HEARING THE RIVAL SUBMISSIONS, WE ARE OF THE OPINION THAT THIS IS A F IT CASE FOR STAY OF DEMAND WHICH WAS DISPUTED. ACCORDINGLY WE STAY THE BALANCE DEMAND DISPUTED FOR A PERIOD OF SIX MONTHS OR DISPOSAL OF APPEAL PREFERRE D AGAINST THE ORDER UNDER SECTION 263, WHICHEVER IS EARLIER. THE REGISTRY IS DIRECTED TO POT THE CASE ON 20.07.2012. SINCE THE DATE IS ANNOUNCED IN THE OPE N COURT, ISSUANCE OF NOTICE TO RESPECTIVE PARTIES IS DISPENSED WITH. THE ASSES SING OFFICER IS DIRECTED NOT TO TAKE ANY COERCIVE ACTION TO RECOVER THE AMOUNT TILL THE STAY IS VACATED. 5. IN THE RESULT, THE STAY APPLICATION FILED BY THE AS SESSEE IS TREATED ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29.06.20 12 SD/- SD/- (D. MANMOHAN) (B. RAMAKOTAIAH) VICE-PRESIDENT ACCOUNTANT MEMBER DATED 29.06.2012 OKK COPY TO: 1. SHRI DNYANDEO NINU PATIL, AKOLA 2. CIT-1, NAGPUR. 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR CONCERNED. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR