Shri. Maruti Infrastructure Developers, Pune V. Deputy Commissioner of Income-tax, Circle - 14, Pune

SA 3/PUN/2019

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0561 (ITAT-PUNE)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 24-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Application of stay; Bad and doubtful debts
• Section: 43B; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / SA NO . 3 /PUN/201 9 (ARISING OUT OF ITA NO . 1 928 /PUN/201 8 ) / ASSESSMENT YEAR : 20 1 3 - 14 SHRI MARUTI INFRASTRUCTURE DEVELOPERS, OFFICE NO. 507, 5 TH FLOOR, LUNKAD SKY VISTA, VIMAN NAGAR, PUNE 411014 PAN : ABNFS0599Q ....... / APP LICANT / V S. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1 4, PUNE / RESPONDENT ASSESSEE BY : S MT. DEEPA KHARE REVENUE BY : SHRI RAJESH GAWALI / DATE OF HEARING : 01 - 02 - 2019 / DATE OF PRONOUNCEMENT : 01 - 02 - 2019 / ORDER PER VIKAS AWASTHY, JM : THIS STAY APPLICATION HAS BEEN FILED BY THE ASSESSEE FOR RECOVERY OF OUTSTANDING DEMAND RS.3,31,04,537/ - (INCLUDING INTEREST) ARISING IN ASSESSMENT YEAR 20 13 - 14. 2 SA NO.3/PUN/2019, A.Y. 2013 - 14 2. SMT. DEEPA KHARE APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS A PARTNERSHIP FIRM AND IS ENGAGED IN THE BUSINESS OF ERECTION, COMMISSIONING AND INSTALLATION OF WINDMILLS. THE BUSINESS OF ASSESSEE IS IN FINANCIAL DISTRESS ON ACCOUNT OF HUGE RECURRING LOSSES. IN SCRUTINY ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER DISALLOWED RS.4,20,15,321/ - U/S. 43B OF THE ACT AND RS.7,63,50,876/ - BAD DEBTS WERE DISALLOWED . CONSEQUENTLY, THERE WAS A TAX DEMAND OF RS. 6,06,64,647/ - AND INTEREST AMOUNT ING TO RS.2,75,97,232/ - WAS ALSO CHARGED. THE ASSESSEE HAS ALREADY PAID RS.4,75,64,303/ - . THE TOTAL AMOUNT OUTSTANDING AS ON TODAY IS RS.3,31,04,537/ - . THE LD. COUNSEL SUBMITTED THAT THE ASSESSEE HAS PAID MORE THAN 50% OF THE TOTAL OUTSTANDING DEMAND AN D MORE THAN 75% OF THE TAX COMPONENT. THE ASSESSEE HAS PRIMA - FACIE GOOD CASE IN ITS FAVOUR. 3. ON THE OTHER HAND SHRI RAJESH GAWALI REPRESENTING THE DEPARTMENT VEHEMENTLY OPPOSED THE STAY APPLICATION AND PRAYED THAT THE ASSESSEE SHOULD PAY AT LEAST ENT IRE TAX COMPONENT OF THE TOTAL OUTSTANDING AMOUNT. 4. BOTH SIDES HEARD. THE ASSESSEE HAS PRAYED FOR STAY OF RECOVERY OF OUTSTANDING DEMAND RS.3,31,04,537/ - . A PERUSAL OF THE STAY APPLICATION REVEAL THAT THE TOTAL OUTSTANDING TAX LIABILITY AFTER THE COMPLETION OF ASSESSMENT WAS RS.88,261,879/ - (T AX RS.6,06,64,647/ - AND I NTEREST RS.2,75,97,232/ - ). THE ASSESSEE HAS ALREADY PAID RS.4,75,64,303/ - . THIS FACT HAS NOT BEEN DISPUTED BY THE DEPARTMENT. THE ASSE SSEE HAS ALREADY PAID SUBSTANTIAL PART OF TAX COMPONENT AND MORE THAN 50% OF THE TOTAL DEMAND. THE RECOVERY OF REMAINING OUTSTANDING DEMAND IS STAYED SUBJECT TO FOLLOWING CONDITIONS : 3 SA NO.3/PUN/2019, A.Y. 2013 - 14 (I). THAT THE ASSESSEE SHALL NOT SEEK FRIVOLOUS ADJOURNMENT S . IF THE A SSESSEE DESIRES TO FILE A PAPER BOOK, THEN THE SAME SHOULD BE SUBMITTED IN ACCORDANCE WITH ITAT RULES BEFORE THE DATE OF HEARING OF APPEAL. (II). IN CASE OF BREACH OF ANY OF THE ABOVE CONDITIONS, THE STAY GRANTED SHALL AUTOMATICALLY GET VACATED AND THE ASSESSEE SHALL ALSO LOOSE THE BENEFIT OF EARLY HEARING OF APPEAL. 5. SUBJECT TO THE FULFILLMENT OF ABOVE CONDITIONS, THE BALANCE OUTSTANDING DEMAND IS STAYED FOR A PERIOD OF 180 DAYS FROM THE DATE OF THIS ORDER OR TILL THE DISPOSAL OF APPEAL, W HICHEVER IS EARLIER. 6. THE APPEAL IS FIXED FOR HEARING ON 20 - 03 - 2019. SINCE, THE DATE OF HEARING HAS BEEN PRONOUNCED IN OPEN COURT, THE ISSUANCE OF SEPARATE NOTICE OF HEARING OF THE APPEAL TO THE PARTIES IS DISPENSED WITH. 7. IN THE RESULT, THE STAY APPLICATION FILED BY ASSESSEE IS ALLOWED IN THE TERMS AFORESAID ORDER PRONOUNCED IN OPEN COURT AFTER HEARING OF THE STAY APPLICATION ON FRIDAY, THE 1 ST DAY OF FEBRUARY, 2019 . SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 1 ST FEBRUARY, 201 9 . RK 4 SA NO.3/PUN/2019, A.Y. 2013 - 14 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 7, PUNE 4. THE PR. COMMISSIONER OF INCOME TAX - 6, PUNE 5. , , , / DR, ITAT, A BENCH, PUNE. 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE