SHRI MANGI KANDOI, JAIPUR V. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3, JAIPUR

SA 30/JPR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3742 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 24-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VARINDER MEHTA
• Assessee Lawyers: S L PODDAR
• Keywords: Application of stay; Reasonable cause
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO ] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM S.A. NOS. 29, 30 & 31/JP/2018 (ARISING OUT OF ITA NOS. 1090, 1091 & 1168/JP/2018) FU/KZKJ.K O'KZ @ ASSESSMENT YEARS : 2011-12, 2012-13 & 2013-14 MANGI LAL KANDOI, D-91, AMBABARI, JHOTWARA ROAD, JAIPUR. CUKE VS. D.C.I.T. CENTRAL CIRCLE-3, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ L A-@ PAN/GIR NO.: ACMPK 6560 B VIHYKFKHZ @ APPELLANT IZR;FKHZ @ RESPONDENT FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI S.L. PODDAR (ADV) JKTLO DH VKSJ LS @ REVENUE BY : SHRI VARINDER MEHTA (CIT). LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 26/10/2018 MN~?KKS'K.KK DH RKJH[ K @ DATE OF PRONOUNCEMENT : 26/10/2018 VKNS'K @ ORDER PER: VIJAY PAL RAO, J.M. BY WAY OF THESE THREE STAY APPLICATIONS, THE ASSESS EE IS SEEKING STAY AGAINST THE OUTSTANDING DEMAND OF RS. 3.33 CRORES A RISING FROM THE ASSESSMENT FRAMED U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) FOR THE A.Y. 2011-12 TO 2013-14. 2. THE LD AR HAS SUBMITTED THAT THE ASSESSING OFFICE R HAS RAISED TOTAL DEMAND OF RS. 6,88,97,583/- FOR ALL THESE THREE YEA RS INCLUSIVE OF INTEREST OF RS. 2,89,46,026/-. THE LD AR HAS, THUS, CONTENDED THAT THE ASSESSEE HAS S.A. NO. 29 TO 31/JP/2018 MANGI LAL KANDOI VS. DCIT 2 ALREADY DEPOSITED MORE THAN 50% OF THE TOTAL OUTSTA NDING DEMAND AND FURTHER THE ASSESSING OFFICER HAS NOT GIVEN THE CRE DIT OF RS. 25.00 LACS SINCE LAST THREE YEARS WITH THE DEPARTMENT AND AN IN TEREST OF ABOUT 20 LACS IS ALSO TO BE ALLOWED AS CREDIT AGAINST THE OUTSTAND ING DEMAND. THUS, AFTER CONSIDERING THE TOTAL AMOUNT OF RS. 45 LACS BEING C REDIT NOT GIVEN BY THE ASSESSING OFFICER, THE BALANCE OUTSTANDING WOULD BE ONLY RS. 2.88 CRORES. THE LD. AR HAS REFERRED TO THE FINANCIAL STATUS OF T HE ASSESSEE AND SUBMITTED THAT THE ASSESSEE HAS PAID PART DEMAND BY TAKING A LOAN OF RS. 2.76 CRORES FROM A.U. FINANCE LIMITED. THUS, WHEN THE ASSESSEE IS FACING FINANCIAL PROBLEM, THEREFORE, THE BALANCE OUTSTANDI NG DEMAND MAY BE STAYED TILL DISPOSAL OF THE APPEALS OF THE ASSESSEE . HE HAS FURTHER CONTENDED THAT THE ASSESSEE HAS A GOOD PRIMA FACIE CASE ON MERIT AND THE ASSESSING OFFICER HAS ALREADY INITIATED THE PROCEED INGS U/S 226 OF THE ACT WHICH IS GOING TO CAUSE AN IRREPARABLE LOSS TO THE A SSESSEE. 3. ON THE OTHER HAND, THE LD CIT-DR HAS OBJECTED TO THE STAY OF DEMAND AND SUBMITTED THAT THE ASSESSEE MAY BE DIREC TED TO PAY THE BALANCE OUTSTANDING AT LEAST IN INSTALLMENTS. 4. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL A S THE RELEVANT MATERIAL ON RECORD AT THE OUTSET WE NOTE THAT FOR TH ESE THREE ASSESSMENT S.A. NO. 29 TO 31/JP/2018 MANGI LAL KANDOI VS. DCIT 3 YEARS, THE TOTAL DEMAND INCLUSIVE OF INTEREST AND T HE PAYMENT MADE BY THE ASSESSEE IS AS UNDER: ASSESSMENT YEAR DISPUTED DEMAND DEMAND DEPOSITED OUTSTANDING DEMAND TAX DEMAND INTEREST DEMAND TOTAL DEMAND 2011 - 12 87,16,886/ - 69,14,678/ - 1,56,31,564/ - 1,43,44,700/ - 10,98,378/ - 2012 - 13 1,94,90,866/ - 1,45,19,633/ - 3,40,10,499/ - 1,20,46,748/ - + (25 LACS) 2,19,63,751/ - 2013 - 14 1,17,43,805/ - 75,11,715/ - 1,92,55,520/ - 90,13,600/ - 1,02,41,920/ - TOTAL 3,99,51,557/ - 2,89,46,026/ - 6,88,97,583/ - 3,54,05,048/ - 3,33,04,049/ - THUS, OUT OF TOTAL DEMAND OF RS. 6,88,97,583/-, THE ASSESSEE HAS ALREADY PAID AN AMOUNT OF RS. 3,54,05,048/-. 4.1 THOUGH, THE LD AR HAS SUBMITTED THAT THERE IS AN OTHER AMOUNT OF RS. 25 LACS AND INTEREST ON THE SAID AMOUNT OF RS. 20.0 0 LACS IS ALSO TO BE GIVEN CREDIT AGAINST THE DEMAND BY THE ASSESSING OF FICER, HOWEVER, EVEN WITHOUT ACCEPTING THE SAID AMOUNT BEING IN DISPUTE WE NOTE THAT THE ASSESSEE HAS ALREADY PAID MORE THAN 50% OF THE TOTA L DEMAND INCLUSIVE OF INTEREST AND FURTHER AS PER THE BALANCE SHEET OF TH E ASSESSEE, THE ASSESSEE HAS TAKEN LOAN OF RS. 2.76 CRORES FROM A.U. FINANCE LIMITED TO MEET THE PAYMENT OF DEMANDS IN QUESTION AND HENCE THE LIQUID ITY FOR PAYMENT OF THE BALANCE DEMAND IS NOT AVAILABLE WITH THE ASSESSE E AS PER THE BALANCE SHEET. HAVING REGARD TO THE FACTS AND CIRCUMSTANCES OF THE CASE WHEN THE ASSESSEE HAS ALREADY PAID MORE THAN 50% OF THE TOTA L DEMAND AND THE FINANCIAL CONDITION OF THE ASSESSEE IS ALSO PRECARI OUS AS THE BALANCE SHEET OF THE ASSESSEE IS HEAVILY DEBT LADEN, ACCORDINGLY WE STAY THE BALANCE S.A. NO. 29 TO 31/JP/2018 MANGI LAL KANDOI VS. DCIT 4 OUTSTANDING DEMAND FOR A PERIOD OF 180 DAYS OR TILL THE DISPOSAL OF THE APPEALS OF THE ASSESSEE WHICHEVER IS EARLIER. THE APP EALS OF THE ASSESSEE ARE ALREADY FIXED FOR HEARING ON 27/11/2018. HOWEVER , WE HAVE MADE IT CLEAR THAT NO SEPARATE NOTICE OF HEARING OF THE APP EALS OF THE ASSESSEE SHALL BE ISSUED AND THE PARTIES HAVE NOTED DOWN THE DATE OF HEARING. WE FURTHER CLARIFY THAT IN CASE THE ASSESSEE SEEKS ADJ OURNMENT OF HEARING WITHOUT ANY REASONABLE CAUSE, THE STAY GRANTED TO TH E ASSESSEE SHALL STAND VACATED. 5. IN THE RESULT, ALL THESE THREE STAY PETITIONS A RE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26/10/2018. SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ @ JAIPUR FNUKAD @ DATED:- 26 TH OCTOBER, 2018. *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- SHRI MANGI LAL KANDOI, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE D.C.I.T., CENTRAL CIRCLE-3, JAIPU R. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (S.A. 29 TO 31/JP/2018) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR