M/s Hotel Woodside, Mangalore V. Asst.C.I.T., circle-1(1), Mangaluru

SA 75/BANG/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6175 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 22-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T CHANDRASEKHAR
• Assessee Lawyers: V SRINIVASAN
• Keywords: Recovery proceedings; Extension of stay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, BENGALURU BEFORE SHRI JASON P BOAZ, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER SP NO.75/BANG/2019 (IN ITA NO.1270/BANG/2016) (ASSESSMENT YEAR: 2006-07) HOTEL WOODSIDE, C/O. MOHTISHAM COMPLEXES P. LTD., 6 TH FLOOR, EMPIRE MALL, M.G.ROAD, MANGALORE. PAN:AAAFH 8517 P VS. PETITIONER ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE 1(1), MANGALORE. RESPONDENT PETITIONER BY : SHRI V.SRINIVASAN, ADVOCATE. RESPONDENT BY : SHRI T.CHANDRASEKHAR, ADDL.CIT DATE OF HEARING : 01/03/2019 DATE OF PRONOUNCEMENT: 01/03/2019 O R D E R PER PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED THE STAY PETITION IN ITA NO.127/BANG/2016 SEEKING EXTENSION OF STAY GRANTED BY THE TRIBUNAL VIDE ORDER DATED 03/09/2018 IN SP NO.03/09/2018. 2. BRIEF FACTS OF THE CASE ARE THAT THE CASE WAS POSTED FOR HEARING BEFORE THE CIRCUIT BENCH OF TRIBUNAL AT MANGALORE ON 02/02/2017 AND THE CASE WAS HEARD AND RESERVED FOR ORDERS. SUBSEQUENTLY, IT WAS RELEASED AND LISTED FOR FRESH HEARING. SP NO. 75/BANG/2019 PAGE 2 OF 3 SINCE THERE IS ATTACHMENT BY THE REVENUE ON RENTAL RECEIVABLES, THE ASSESSEE HAS NO FUNDS TO MAKE OUTSTANDING DEMAND AND EARLIER THE ASSESSEE HAS FILED STAY PETITION BEFORE THE TRIBUNAL IN SP NO.214/BANG/2018 WHERE THE STAY WAS GRANTED FOR A PERIOD OF SIX MONTHS FROM THE DATE OF THE STAY PETITION ORDER. THE LEARNED AR SUBMITTED THAT THE STAY IS EXPIRING ON 02/03/2019 AND THE REVENUE INITIATED RECOVERY PROCEEDINGS AND PRAYED FOR EXTENSION OF STAY AND THE ASSESSEE HAS PAID MORE THAN 50% OF THE DISPUTED DEMAND AND IS PASSING THROUGH FINANCIAL HARDSHIP IN RESPECT OF PAYMENT OF REMAINING OUTSTANDING TAX AND NON-DISPOSAL OF THE APPEAL BY THE TRIBUNAL IS NOT ATTRIBUTABLE TO THE ASSESSEE. 3. WE HEARD RIVAL SUBMISSIONS AND PERUSED MATERIAL ON RECORD. IT IS A CLEAR CASE THAT THE APPEAL WAS RELEASED AND POSTED FOR HEARING AFRESH. THE DELAY IN DISPOSAL OF APPEAL IS NOT ATTRIBUTABLE TO THE ASSESSEE. THEREFORE, THE TRIBUNAL HAS POWER TO EXTENT THE PERIOD OF STAY BEYOND TIME LIMIT LAID DOWN UNDER THE PROVISIONS OF SECTION 254(2A) OF THE INCOME-TAX ACT,1961 ['THE ACT' FOR SHORT]. OUR VIEW IS SUPPORTED BY THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF PEPSI FOODS (P) LTD. VS. ACIT (376 ITR 87)(DEL) WHICH WAS ALSO FOLLOWED BY THE CO-ORDINATE BENCH OF TRIBUNAL IN THE CASE OF M/S.SAP LABS (I) P. LTD., VS. ACIT (67 TAXMANN.COM 78). SP NO. 75/BANG/2019 PAGE 3 OF 3 THEREFORE, CONSIDERING THE FACTS AND CIRCUMSTANCES AND ALSO THE POSTING OF APPEAL FOR FRESH HEARING, WE ARE OF THE CONSIDERED OPINION THAT THE STAY CAN BE EXTENDED. ACCORDINGLY, WE EXTEND THE STAY OF RECOVERY OF OUTSTANDING DEMAND FOR A PERIOD OF 6 MONTHS OR TILL DISPOSAL OF THE APPEAL BY THE TRIBUNAL, WHICHEVER IS EARLIER. 4. IN THE RESULT, THE STAY PETITION IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST MARCH, 2019. SD/- SD/- (JASON P BOAZ) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE : BENGALURU D A T E : 04/03/2019. SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A)- 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL BANGALORE