SAB DEVELOPERS PRIVATE LIMITED,CHANDIGARH V. INCOME TAX OFFICER, WARD-5(1), CHANDIGARH, CHANDIGARH

SA 23/CHANDI/2025

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The case involves SAB Developers Pvt. Ltd., which sought a stay on an outstanding tax demand related to a transaction involving shares of M/s Bharatnet Technology Ltd. The Income Tax Officer (ITO) assessed the transaction as a deemed gift under section 56(vi)(a) of the Income Tax Act, which was applicable from June 1, 2010. However, the shares were acquired on May 10, 2010, before the provision came into effect. The Tribunal found the assessee's argument prima-facie valid, leading to the decision to stay the demand pending the appeal's outcome.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774205 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 10-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 09-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Assessee Lawyers: ASHWANI KUMAR
• Keywords: Gift; Application of stay

Judgement Text

"आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ S.A.No. 23/CHD/2025 in ITA No. 1071/CHD/2025 Ǔनधा[रण वष[ / Assessment Year: 2011-12 SAB Developers Pvt. Ltd., SCO 49-50, Sector 26, Chandigarh. Vs The ITO, Ward – 5(1), Chandigarh. èथायी लेखा सं./PAN NO: AAKCS6537P अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Assessee by : Shri Ashwani Kumar, CA Revenue by : Dr. Ranjit Kaur, Addl. CIT Sr.DR Date of Hearing : 10.09.2025 Date of Pronouncement : 10.09.2025 PHYSICAL HEARING O R D E R PER RAJ PAL YADAV, VP By way of the present Stay Application, the assessee seeks stay of the outstanding demand amounting to Rs.57,24,270/-. 2. The ld. counsel for the assessee has submitted that assessee had acquired the shares of M/s Bharatnet Technology Ltd. on 10.05.2010. The AO was of the view that the deemed gift u/s 56(vi)(a) of the Income Tax Act deserves to be assessed in the hands of the assessee. The ld. counsel for the assessee has pointed out that the provision of alleged deemed gift came into existence on 01.06.2010 and therefore, not applicable in the case of the Printed from counselvise.com SA-23/CHD/2025 in ITA 1071/CHD/2025 A.Y. 2011-12 2 assessee. The assessee has already paid a sum of Rs.14,32,000/- which is more than 25% of the tax component. Thus, considering the prima-facie arguable case in favour of the assessee, we allow the present Stay Application and stay the outstanding demand on the following terms : a) This demand will remain stayed for a period of 180 days or till the disposal of the appeal, whichever event occurs first; b) The assessee will not seek adjournment unless unavoidable circumstances warrant so. The assessee will file Paper Books etc. well in advance. 3. The Registry is directed to list the appeal for hearing on 15.10.2025. 4. In the result, Stay Application is allowed. Order pronounced on 10th September,2025. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (RAJ PAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. Concerned CIT 4. The CIT(A) 5. DR, ITAT, Chandigarh. Assistant Registrar Printed from counselvise.com "