Northen Coalfields Limited, V. Assistant Commissioner Of Income Tax,

SA 8/JAB/2015

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1135 (ITAT-JABALPUR)
• Duration Of Justice: 4 year(s) 3 month(s) 16 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 11-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHISHEK SHUKLA
• Assessee Lawyers: C S AGARWAL; H S SRIVASTAVA
• Keywords: Application of stay

Judgement Text

SA NO. 8/JAB/15 ARISING OUT OF ITA NO29/JAB/2015 ASSESSMENT YEAR 2011-12 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR [CORAM: I C SUDHIR JM AND PRAMOD KUMAR AM] SA NO. 8/JAB/15 ARISING OUT OF ITA NO29/JAB/2014 ASSESSMENT YEAR 2011-12 NORTHERN COALFIELDS LIMITED .APPELLANT SINGARAULI MP [PAN: AABCN 4884H] VS. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 2(1), JABALPUR .RESPONDENT APPEARANCES BY: C S AGARWAL AND H S SRIVASTAVA, FOR THE APPELLANT ABHISHEK SHUKLA FOR THE RESPONDENT O R D E R PER PRAMOD KUMAR: 1. BY WAY OF THIS STAY APPLICATION, THE ASSESSEE AP PLICANT A STAY ON COLLECTION AND RECOVERY OF THE AMOUNT OF RS 746.86 CRORES, IN RESPECT OF THE ASSESSMENT YEAR 2011-12, WHICH IS IMPUGNED IN APPEA L FOR THIS TRIBUNAL. THE TOTAL DEMAND RAISED ON THE ASSESSEE WAS RS 910.9 CR ORES OUT OF WHICH THE ASSESSEE HAS ALREADY PAID RS 164.14 CRORES, AND THE BALANCE AMOUNT OF RS 746.86 REMAINS OUTSTANDING AS ON NOW. HOWEVER, ENTI RE DEMAND SO RAISED BY THE ASSESSING OFFICER, WHICH IS SUBSTANTIALLY CONFI RMED BY THE CIT(A), IS NOW CHALLENGED IN APPEAL BEFORE THE TRIBUNAL. 2. THE ASSESSEE BEFORE US, A SUBSIDIARY OF COAL IND IA LIMITED, IS A PUBLIC SECTOR UNDERTAKING. THE ENTIRE SHAREHOLDING OF THE COMPANY IS HELD, DIRECTLY OR THROUGH COAL INDIA LIMITED, BY THE GOVERNMENT OF IN DIA. DURING THE COURSE OF THE SA NO. 8/JAB/15 ARISING OUT OF ITA NO29/JAB/2015 ASSESSMENT YEAR 2011-12 PAGE 2 OF 4 ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER HAS, INTER ALIA, DISALLOWED A SUM OF RS 2,51,238.06 LAKHS OUT OF OBR EXPENSES, RS 1,2 97.32 LAKHS OUT OF EDUCATION EXPENSES , RS 425.33 LAKHS OUT OF COMMUNITY DEVELOP MENT EXPENSES, RS 953.41 LAKHS OUT OF MISCELLANEOUS WELFARE EXPENSES AND RS 1,550.13 LAKHS OUT OF CMPDIL EXPENSES. OUT OF THESE DISALLOWANCES, LEARNE D CIT(A) HAS CONFIRMED THE DISALLOWANCES IN RESPECT OF THE OBR EXPENSES (RS 2. 51,238.06 LAKHS) AND CMPDIL EXPENSES (RS 1,550.13 LAKHS). ON BOTH OF THE SE DISALLOWANCES, THE ASSESSEE IS IN APPEAL BEFORE US. LEARNED COUNSEL F OR THE ASSESSEE CONTENDS THAT THESE DISALLOWANCES ARE CONTRARY TO THE ACCEPTED PA ST HISTORY OF THE CASE AND THE MATTER IS COVERED, IN FAVOUR OF THE ASSESSEE, BY DE CISIONS OF THIS TRIBUNAL IN ASSESSEES OWN CASE. IT IS POINTED OUT THAT THOUGH IN SOME OF THE IMMEDIATELY PRECEDING ASSESSMENT YEARS, THE ASSESSING OFFICER A S ALSO THE CIT(A) HAS DEVIATED FROM ACCEPTED PAST HISTORY OF THE CASE, TH E RELATED APPEALS HAVE ALREADY BEEN HEARD BY THE TRIBUNAL, AND THE ORDERS THEREON HAVE BEEN RESERVED. IN THESE CIRCUMSTANCES, ACCORDING TO THE LEARNED CO UNSEL, IT IS A FIT CASE FOR GRANT OF STAY ON COLLECTION/ RECOVERY OF THE DEMAND TILL THE APPEAL FILED BY THE ASSESSEE IS DISPOSED OF. IT IS ALSO POINTED OUT THA T APART FROM THE ASSESSEE HAVING A STRONG PRIMA FACIE CASE, THE ASSESSEE COMPANY IS A GOVERNMENT COMPANY AND THERE CANNOT BE ANY PREJUDICE TO THE LEGITIMATE INT ERESTS OF THE REVENUE BEING PREJUDICED BY THE GRANT OF STAY. 3. LEARNED DEPARTMENTAL REPRESENTATIVE VEHEMENTLY O PPOSES THE STAY PETITION. HE SUBMITS THAT LEARNED CIT(A) HAS, IN A VERY DETAILED AND ELABORATE ORDER DEALING WITH ALL FACETS OF THE ARGUMENTS RAIS ED BY THE ASSESSEE, HAS CONFIRMED THE DISPUTED DEMANDS. IT IS SUBMITTED TH AT NOW THAT THE DEMAND RAISED BY THE ASSESSING OFFICER HAS ALREADY BEEN AP PROVED IN A THOROUGH JUDICIAL SCRUTINY BY THE FIRST APPELLATE AUTHORITY, THERE C ANNOT BE ANY GOOD REASONS FOR GRANT OF STAY AT THIS STAGE. WITHOUT PREJUDICE TO T HIS LINE OF ARGUMENTS, LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE STRENGTH OF LET TER DATED 11 TH FEBRUARY 2015 FROM THE ASSESSING OFFICER, PRAYS THAT HEARING ON THIS STAY APPLICATION BE DEFERRED AS THE MATTER IS REQUIRED TO EXAMINED AT T HE LEVEL OF THE CCIT AND AS SA NO. 8/JAB/15 ARISING OUT OF ITA NO29/JAB/2015 ASSESSMENT YEAR 2011-12 PAGE 3 OF 4 THE APPEAL MAY BE PREFERRED BY THE ASSESSING OFFICE R AGAINST THE RELIEF GIVEN BY THE CIT(A). 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF T HE APPLICABLE LEGAL POSITION. 5. WHILE WE REFRAIN FROM MAKING ANY OBSERVATIONS ON THE MERITS OF THE CASE, SUFFICE TO SAY THAT THE ASSESSEE HAS AN ARGUABLE CA SE ON MERITS IN APPEAL AND THAT THE BALANCE OF CONVENIENCE IS IN FAVOUR OF THE STAY BEING GRANTED IN THIS CASE. THE HEARING FOR IDENTICAL DISALLOWANCES IN RESPECT OF THE IMMEDIATELY PRECEDING ASSESSMENT YEARS HAS BEEN CONCLUDED TODAY, AND, IN SUCH A SITUATION, IT IS ONLY APPROPRIATE THAT THE STAY ON COLLECTION/ RECOVERY IS GRANTED IN RESPECT OF IMPUGNED DEMANDS RAISED IN THIS RESPECT. NO COERCI VE ACTION WILL BE TAKEN AGAINST THE ASSESSEE IN RESPECT OF THE IMPUGNED DEM ANDS. THIS STAY, HOWEVER, WILL BE VALID FOR 6 MONTHS FROM THE DATE ON WHICH H EARING ON STAY PETITION IS CONCLUDED, I.E. 11 TH FEBRUARY 2015, OR TILL DISPOSAL OF THE APPEAL, WHIC HEVER IS EARLIER, AND WILL BE SUBJECT TO THE CONDITION THAT THE ASSESSEE FULLY COOPERATES IN EXPEDITIOUS DISPOSAL OF APPEAL. 6. WE FURTHER DIRECT THE DEPARTMENTAL REPRESENTATIV E TO CONVEY THESE DIRECTIONS TO THE FIELD AUTHORITIES IMMEDIATELY. 7. IN THE RESULT, THE STAY APPLICATION IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 11 TH FEBRUARY, 2015. SD/- SD/- I C SUDHIR PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED: THE 11TH DAY OF FEBRUARY, 2015 SA NO. 8/JAB/15 ARISING OUT OF ITA NO29/JAB/2015 ASSESSMENT YEAR 2011-12 PAGE 4 OF 4 COPIES TO : (1) THE APPELLANT (2) THE RESPON DENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ETC INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR