M/s Fulcurm Fund Services India Pvt Ltd , Bangalore V. Income TAX Officer Ward-3(1)(1), Bangalore

SA 34/BANG/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6148 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 1 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: 2012-2013
• Appeal Filed On: 30-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Recovery proceedings
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER A ND SHRI LALIET KUMAR, JUDICIAL MEMBER S.P. NO.34/BANG/2019 (IN ITA NO. 2 521/ BANG/201 7 ) ASSESSMENT YEAR : 20 1 2 - 1 3 M/S. FULCRUM FUND SERVICES (INDIA) PVT. LTD., FLAT 102, ARADHANA APARTMENTS, SRINIVAGILU, 2 ND MAIN ROAD, S T BED LAYOUT, KORAMANGALA, BANGALORE 560 047. PAN: AABCF1230B VS. THE INCOME-TAX OFFICER, WARD 3 (1) (1), BANGALORE. APPELLANT RESPONDENT ASSESSEE BY : SHRI SHARATH RAO, CA REVENUE BY : SHRI R.N. SIDDAPPAJI, ADDL. CIT (DR) DATE OF HEARING : 0 8 . 0 2 .201 9 DATE OF PRONOUNCEMENT : 08 . 0 2 .201 9 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER; THIS STAY PETITION IS FILED BY THE ASSESSEE SEEKING STAY OF OUTSTANDING DEMAND OF RS. 65,42,600/- FOR ASSESSMENT YEAR 2012- 13. 2. IN COURSE OF HEARING, IT WAS SUBMITTED BY LD. AR OF ASSESSEE THAT AS PER THE APPEAL EFFECT ORDER PASSED BY THE AO ON 18.01.2018 AFTER GIVING EFFECT TO THE ORDER OF CIT (A), COPY AVAILABLE ON PAGE NO. 19 OF THE STAY PETITION, THERE IS OUTSTANDING DEMAND OF RS. 88,20,080/- AND THIS D EMAND INCLUDES INTEREST U/S. 234B OF RS. 40,97,942/- AND INTEREST U/S. 234C OF RS. 23,298/-. THEREAFTER HE SUBMITTED THAT ON PAGES 16 TO 18 OF S TAY PETITION IS THE COPY OF BANK STATEMENTS EVIDENCING RECOVERY OF TAX. THEREA FTER HE DRAWN OUR ATTENTION TO THE WORKING OF THE PRESENT OUTSTANDING DEMAND SUBMITTED AND PLACED ON RECORD AND HE POINTED OUT THAT AFTER THIS DEMAND OF RS. 88,20,080/- AS PER THE APPEAL EFFECT ORDER PASSED B Y THE AO, THE AO HAS RECOVERED AN AMOUNT OF RS. 46,78,367/- BY ATTACHING THE BANK ACCOUNTS OF THE ASSESSEE AND AS A RESULT, THE OUTSTANDING DEMAN D REMAINED AT RS. 41,41,717/- TO WHICH THE AO HAS ADDED FURTHER DEMAN D OF INTEREST U/S. 220(2) OF RS. 24,00,883/- AND IN THIS MANNER, THE P RESENT OUTSTANDING DEMAND OF RS. 65,42,600/- HAS BEEN WORKED OUT. HE SUBMITTED THAT SINCE S.P. NO. 34/BANG/2019 (IN ITA NO. 2521/BANG/2017) PAGE 2 OF 3 THE TOTAL OUTSTANDING TAX DEMAND HAS ALREADY BEEN P AID BY THE ASSESSEE AND OUTSTANDING DEMAND IS ONLY IN RESPECT OF INTERE ST, STAY SHOULD BE GRANTED TO THE ASSESSEE AND AO SHOULD ALSO BE DIREC TED TO RELEASE THE ATTACHMENT OF ASSESSEES BANK ACCOUNTS. THE LD. DR OF REVENUE STRONGLY OPPOSED GRANTING OF STAY AND RELEASE OF THE ATTACHM ENT OF THE ASSESSEES BANK ACCOUNTS. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IN VI EW OF THIS FACTUAL POSITION AS DISCUSSED ABOVE AS PER WHICH, THE ASSESSEE HAS A LREADY MADE FULL PAYMENT OF THE DISPUTED TAX DEMAND AND THE OUTSTAND ING DEMAND IS ONLY IN RESPECT OF INTEREST U/S. 234B, 234C AND 220(2), IN OUR CONSIDERED OPINION, THIS IS A FIT CASE FOR GRANTING OF STAY. HENCE WE G RANT STAY FOR A PERIOD OF THREE MONTHS FROM THE DATE OF THIS ORDER OR TILL TH E DISPOSAL OF THE APPEAL WHICHEVER IS EARLIER. SINCE WE GRANT STAY OF THE D ISPUTED OUTSTANDING DEMAND, THERE IS NO PURPOSE OF CONTINUING THE ATTAC HMENT OF THE ASSESSEES BANK ACCOUNTS AND THEREFORE, WE DIRECT THE AO TO RE LEASE THE ATTACHMENTS OF ASSESSEES BANK ACCOUNTS IMMEDIATELY ON RECEIPT OF THIS ORDER. THE HEARING OF THIS APPEAL IS FIXED ON 12.06.2019 BUT S INCE WE HAVE GRANTED STAY, HEARING IS PREPONED TO 04.03.2019. SINCE THE DATE OF HEARING IS PRONOUNCED IN THE OPEN COURT, NO SEPARATE NOTICE OF HEARING IS REQUIRED TO BE ISSUED. WE WANT TO MAKE IT CLEAR THAT THE ASSES SEE SHOULD NOT SEEK ANY ADJOURNMENT IN THE COURSE OF HEARING OF THE APPEAL WITHOUT ANY JUSTIFIABLE REASONS AND IF THE ASSESSEE DOES SO, THEN THE STAY GRANTED BY THIS ORDER SHALL STAND VACATED AUTOMATICALLY. 4. IN THE RESULT, THE STAY PETITION FILED BY THE AS SESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE OF H EARING ON CONCLUSION OF THE HEARING. SD/- SD/- (LALIET KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 8 TH FEBRUARY, 2019. /MS/ S.P. NO. 34/BANG/2019 (IN ITA NO. 2521/BANG/2017) PAGE 3 OF 3 COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.