Bangalore Development Authority , Bangalore V. Additional Commissioner of Income Tax Exemptions Range , Bangalore

SA 5/BANG/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6189 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 30 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: 02-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V CHANDRASHEKAR
• Section: 143(3); 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER S.P. NO.5/BANG/2019 (IN ITA NO.1104/BANG/2017) (ASSESSMENT YEAR : 2012-13) M/S. BANGALORE DEVELOPMENT AUTHORITY, T. CHOWDAIAH ROAD, KUMARAPARK WEST, BANGALORE 560 020 . PETITIONER. VS. ADDITIONAL COMMISSIONER OF INCOME TAX (EXEMPTION RANGE), BANGALORE. .. RESPONDENT. PETITIONER BY : SHRI V. CHANDRASHEKAR, ADVOCATE. RESPONDENT BY : SHRI R. N. SIDDAPPAJI, ADDL. JCIT DATE OF HEARING : 11.01.2019. DATE OF PRONOUNCEMENT : 11.01.2019. O R D E R PER SHRI JASON P BOAZ, AM : THIS STAY PETITION BY THE ASSESSEE IS IN RESPECT OF ASSESSEES APPEAL IN ITA NO.1104/BANG/2017 FOR ASSESSMENT YEAR 2012-13. 2 S.P. NO.5/BANG/2019 (IN ITA NO.1104/BANG/2017) 2. BRIEFLY, THE FACTS OF THE CASE ARE AS UNDER: 2.1 THE ASSESSEE FILED ITS RETURN OF INCOME FOR ASSESSMENT YEAR 2012-13 ON 29.09.2012. THE CASE WAS TAKEN UP FOR SCRUTINY AND THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT), WHEREIN THE ASSESSEES INCOME WAS DETERMINED AT RS.315,87,94,869/-; THEREBY RAISING A DEMAND OF RS.82,48,90,228/- (INCLUDING INTEREST OF RS.21,82,62,888/- CHARGED UNDER SECTION 234B OF THE ACT). SUBSEQUENTLY, THE DEMAND TO THE EXTENT OF RS.72,49,58,980/- WAS ADJUSTED AGAINST THE AFORESAID DEMAND RAISED BY WAY OF ADJUSTMENT OF REFUNDS AND PAYMENT OF TAXES, THEREBY LEADING TO BALANCE OF RS.9,99,97,000/- AS THE OUTSTANDING TAX PAYABLE. 3. BEFORE US, THE ASSESSEE HAS SUBMITTED THAT THE ASSESSING OFFICER (AO) IS PRESSING FOR PAYMENT OF THE BALANCE DEMAND AND HAS ISSUED NOTICE UNDER SECTION 226(3) OF THE ACT TO THE ASSESSEES BANKER I.E., CANARA BANK, BDA ANNEXE, BANGALORE, VIDE LETTER DATED 24.10.2018 FOR PAYMENT OF THE BALANCE OUTSTANDING OF RS.9,99,97,000/- FOR THE 3 S.P. NO.5/BANG/2019 (IN ITA NO.1104/BANG/2017) IMPUGNED ASSESSMENT YEAR. THE ASSESSEE HAS FURTHER FILED LETTER DATED 27.10.2018 REQUESTING THE AO TO WITHDRAW THE ATTACHMENT BY REVOKING THE NOTICE ISSUED U/S 226(3) OF THE ACT WHICH HAS BEEN WITHDRAWN BY THE AO VIDE LETTER DATED 02.11.2018. 4. THE LEARNED AR SUBMITS THAT THE ASSESSEE HAS A GOOD CASE ON MERITS AND IS HOPEFUL OF GETTING FAVOURABLE ORDERS IN THE APPEAL PENDING BEFORE THE TRIBUNAL FOR THE ASSESSMENT YEAR 2012-13. IT IS FURTHER STATED THAT OUT OF THE TOTAL DEMAND PAYABLE AMOUNTING TO RS.82,48,90,228/- (INCLUDING INTEREST OF RS.21.82 CRORES), THE ASSESSEE HAS SO FAR PAID RS.72,49,58,980/- WHICH IS MORE THAN 100% OF THE TAX DEMAND EXCLUDING INTEREST AND ONLY AN AMOUNT OF RS.9,99,97,000/- THAT IS OUTSTANDING IS PAYABLE TOWARDS THE INTEREST CHARGED UNDER SECTION 234B AMOUNTING TO RS.21,82 CRORES (APPROX.). IT IS PLEADED THAT SINCE THE ENTIRE TAX DEMAND HAS BEEN PAID BY THE ASSESSEE, THE PAYMENT OF FURTHER TAXES WILL HIT THE DAY-TO-DAY FINANCES OF THE ORGANIZATION AS THE ASSESSEE IS FACING SERIOUS FINANCIAL CONSTRAINTS AND HAS PENDING UNPAID BILLS AMOUNTING TO RS.600 4 S.P. NO.5/BANG/2019 (IN ITA NO.1104/BANG/2017) CRORES. IN VIEW OF THE ABOVE, IT IS PLEADED THAT THE TRIBUNAL MAY BE PLEASED TO GRANT STAY ON RECOVERY OF THE OUTSTANDING DEMAND OF RS.9,99,00,000/- TILL DISPOSAL OF THE APPEAL. 5. THE LEARNED DR OPPOSED THE ASSESSEES PLEA FOR GRANT OF STAY ON THE RECOVERY OF THE OUTSTANDING DEMAND. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED AND CONSIDERED THE MATERIAL ON RECORD. AS PER THE DETAILS ON RECORD, ADMITTEDLY, OUT OF THE TOTAL DEMAND OF RS.82,48,90,228/- (INCLUDING INTEREST OF RS.21.82 CRORES), THE ASSESSEE HAS SO FAR PAID RS.72,49,58,980/- WHICH IS MORE THAN THE ACTUAL TAX PAYABLE OF RS.60,66,27,340/- (EXCLUDING INTEREST CHARGED). TAKING INTO ACCOUNT THE FACTS AND CIRCUMSTANCES OF THE CASE, THE FACT THAT ASSESSEE HAS ALREADY MADE GOOD MORE THAN 80% OF THE TOTAL DEMAND RAISED FOR ASSESSMENT YEAR 2012-13, THE FINANCIAL CONDITION OF THE ASSESSEE AND THE BALANCE OF CONVENIENCE, WE ARE OF THE CONSIDERED VIEW THAT THIS IS A FIT CASE FOR GRANT OF STAY ON RECOVERY OF THE OUTSTANDING DEMAND FOR THIS YEAR AND ACCORDINGLY GRANT OF STAY ON RECOVERY OF 5 S.P. NO.5/BANG/2019 (IN ITA NO.1104/BANG/2017) DEMAND FOR A PERIOD OF 6 MONTHS COMMENCING FROM TODAY I.E., 11.01.2019 OR DISPOSAL OF APPEAL WHICHEVER IS EARLIER. 7. SINCE THE CASE IF FIXED FOR HEARING ON 23.01.2019 AND DATE HAS BEEN ANNOUNCED IN OPEN COURT IN THE PRESENT OF BOTH PARTIES, NO SEPARATE NOTICE FOR HEARING WILL BE ISSUED. 8. IN THE RESULT, THE STAY PETITION FILED BY THE ASSESSEE IS ALLOWED AS INDICATED ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 11.01.2019. SD/- (N. V. VASUDEVAN) VICE PRESIDENT SD/- (JASON P BOAZ) ACCOUNTANT MEMBER BANGALORE, DT. 11.01.2019. /NS/* 6 S.P. NO.5/BANG/2019 (IN ITA NO.1104/BANG/2017) COPY TO : 1 APPELLANT 4 CIT(A) 2 RESPONDENT 5 DR. ITAT, BANGALORE 3 CIT 6 GUARD FILE ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL BANGALORE.