Shri Navneet Modi, Ranchi V. DCIT,Circle-2, Ranchi

SA 33/RAN/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9779 (ITAT-RANCHI)
• Duration Of Justice: 30 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 06-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68; 234B; 201; 20

Judgement Text

S.P. NO. 33/R AN/2019 (IN ITA NO . 106/RAN/2019) A.Y. 20 15-2016 SHRI NAVNEET MODI, RANCHI 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA-RANCHI E-COURT, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ) AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER S.P. NO. 33/RAN/2019 (ARISING OUT OF I.T.A. NO. 106/RAN/2019) ASSESSMENT YEAR: 2015-2016 SHRI NAVNEET MODI,................................. ...............................APPLICANT MODI HOUSE, KANKE ROAD, RANCHI-834 008 [PAN: ACTPM 1511 F] -VS.- DEPUTY COMMISSIONER OF INCOME TAX,................. ................RESPONDENT CIRCLE-2, RANCHI APPEARANCES BY: SHRI DINESH PODDAR, ADVOCATE, FOR THE APPLICANT SHRI A.K. MOHANTY, JCIT, SR. D.R. , FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : MARCH 29, 2019 DATE OF PRONOUNCING THE ORDER : MARCH 29, 2019 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ):- BY THIS STAY PETITION, THE ASSESSEE IS SEEKING STA Y OF OUTSTANDING DEMAND OF RS.1,02,44,340/- FOR A.Y. 2015-16. 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LD. COUN SEL FOR THE ASSESSEE HAS SUBMITTED THAT THE IMPUGNED DEMAND HAS ARISEN MAINL Y AS A RESULT OF ADDITION OF RS.2.12 CRORES MADE TO THE TOTAL INCOME OF THE ASSESSEE UNDER SECTION 68 BY TREATING THE SUNDRY CREDITORS AS UNEX PLAINED. HE HAS SUBMITTED THAT THE SAID AMOUNT TO THE EXTENT OF RS. 1.47 CRORES REPRESENTED OPENING BALANCE IN THE ACCOUNTS OF CONC ERNED CREDITORS, WHICH CANNOT BE ADDED TO THE TOTAL INCOME OF THE AS SESSEE UNDER SECTION S.P. NO. 33/R AN/2019 (IN ITA NO . 106/RAN/2019) A.Y. 20 15-2016 SHRI NAVNEET MODI, RANCHI 2 68 FOR THE YEAR UNDER CONSIDERATION. THE ASSESSEE T HUS HAS A GOOD PRIMA FACIE CASE TO SUCCEED ON MERIT IN HIS APPEAL FILED BEFORE THE TRIBUNAL. IT IS ALSO OBSERVED THAT THE DEMAND ORIGINALLY RAISED BY THE ASSESSEE WAS RS.1,28,05,840/- WHICH INCLUDED THE AMOUNT OF INTER EST CHARGED UNDER SECTION 234B TO THE TUNE OF RS.32,03,574/-. THE OUT STANDING DEMAND ON ACCOUNT OF TAX AS ORIGINALLY RAISED THUS WAS RS.96, 02,266/- AND THE ASSESSEE HAS ALREADY PAID A SUM OF RS.30,61,500/-, WHICH IS MORE THAN 30% OF THE OUTSTANDING DEMAND AS ORIGINALLY RAISED. KEEPING IN VIEW ALL THESE FACTS OF THE CASE, WHICH ARE RELEVANT TO ASCE RTAIN THE BALANCE OF CONVENIENCE, WE ARE OF THE VIEW THAT IT IS A FIT CA SE TO GRANT THE STAY OF OUTSTANDING DEMAND. WE ACCORDINGLY DIRECT THAT THE OUTSTANDING DEMAND IN THE CASE OF THE ASSESSEE BE KEPT IN ABEYANCE FOR A PERIOD OF SIX MONTHS OR TILL THE DISPOSAL OF THE CORRESPONDING APPEAL OF THE ASSESSEE BY THE TRIBUNAL, WHICHEVER IS EARLIER. THE REGISTRY IS DIR ECTED TO FIX THE SAID APPEAL BEING ITA NO. 106/RAN/2019 FOR HEARING OUT O F TURN BEFORE THE NEXT TOURING BENCH/E-COURT. 3. IN THE RESULT, THE STAY PETITION OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON MARCH 29, 201 9. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER VICE -PRESIDENT (KZ) KOLKATA, THE 29 TH DAY OF MARCH, 2019 COPIES TO : (1) SHRI NAVNEET MODI, MODI HOUSE, KANKE ROAD, RANCHI-834 008 (2) DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2, RANCHI (3) COMMISSIONER OF INCOME TAX (APPEALS)- , RAN CHI, (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.