SHIMIZU CORPORATION,DELHI, INDIA V. DCIT CIRCLE INT. TAXATION 3(1)(2), NEW DELHI

SA 279/DEL/2025

AI Insights

The case involves Shimizu Corporation, which filed six stay applications seeking an extension on the recovery of an outstanding demand raised by the Revenue for the assessment years 2013-14 to 2018-19. The ITAT had previously granted a stay on the recovery of this demand, conditional upon the pre-deposit of 20% of the outstanding demand through an indemnity bond. The stay was initially granted on 24.05.2024 and extended on 29.11.2024. The assessee complied with the terms by furnishing the required indemnity bond. However, there was a dispute regarding the submission of these bonds to the AO, which was resolved during the hearing. The Tribunal decided to extend the stay, emphasizing the need for the AO to verify the acceptability of the new indemnity bonds.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705255 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 04-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2015-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Application of stay; Extension of stay

Judgement Text

"1 ITA Nos. 277 to 282/Del/2025 (ITA Nos. 1860 to 1865/Del/2024) Shimizu Corporation IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER S.A. Nos. 277 to 282/Del/2025 ( In ITA Nos. 1860 to 1865/DEL/2024) AssttYrs: 2013-14 to 2018-19 Shimizu Corporation, 130, Sarojini Market, New Delhi-110023 PAN- AAJCS 1575 N v. DCIT(International Taxation)- 3(1)(2), New Delhi. APPLICANT RESPONDENT Assessee represented by Shri Ajay Vohra, Sr. Adv.; Shri Tavish Verma, Adv. Department represented by Shri Vikram Singh Charma, Sr. DR Date of hearing 04.07.2025 Date of pronouncement 04.07.2025 O R D E R PER RAMIT KOCHAR, AM: These six stay applications bearing S.A. Nos. 277 to 282/Del/2025 for A.Yrs. 2013-14, 2014-15, 2015-16, 2016-17, 2017-18 & 2018-19 are filed by the assessee seeking extension of stay on the recovery of the aggregate outstanding demand of Rs. 78,92,82,118/-, which have arisen from the ITA Nos. 1860 to 1865/Del/2024, for the impugned assessment years : 2013-14 to 2018-19. 2. It is the say of the Ld. Sr. Counsel for the assessee that the total aggregate demand of Rs. 78,92,82,118/- has been raised by the Revenue for the respective 2 ITA Nos. 277 to 282/Del/2025 (ITA Nos. 1860 to 1865/Del/2024) Shimizu Corporation assessment years:2013-14 to 2018-19. It is the further say of the Ld. Sr. Counsel for the assesseethat the ITAT had initially granted stay on recovery of the outstanding demand for the impugned assessment years vide common order dated 24.05.2024 , for a period of 180 days or disposal of appeals ,which ever is earlier, wherein directions were issued by the Tribunal to pre-deposit 20% of the outstanding demand by way of furnishing of indemnity bond cum undertaking to the satisfaction of the AO, as a condition for grant of stay on recovery of the remaining outstanding demand. The ld. Sr. Counsel for the assessee stated before the Bench that the assessee duly complied with the terms of the stay on recovery of the outstanding demand ,as was stipulated by the Tribunal. It was submitted that stay on recovery of the outstanding demand was further extended by the Tribunal vide common orders dated 29.11.2024, for a period of 180 days or disposal of the appeal, which ever is earlier, on the same terms and conditionsas were stipulated vide grant of original stay order dated 24.05.2024. It is the say of the Ld. Sr. Counsel that the assessee has now duly furnished fresh indemnity bond cum undertaking(s)before the AO ,all dated 9.5.2025. It was submitted that since the grant of last stay order dated 29.11.2024, the appeals of the assessed came up for hearing before the Division Bench , from time to time, and were adjourned either at the request of ld. Departmental Representative and/or the Bench was not functioning on the date of hearing. It was submitted that no fault could be attributable to the assessee for any delay in disposal of the appeals which are pending for adjudication before the Tribunal. Prayers were made to grant extension of stay on recovery of the outstanding demands for all the six impugned assessment years : 2013-14 to 2018-19. 3 ITA Nos. 277 to 282/Del/2025 (ITA Nos. 1860 to 1865/Del/2024) Shimizu Corporation 3. Ld. Sr. DR submitted that the fresh indemnity bond cum undertaking(s) stated to be dated 09.05.2025 had not been furnished by the assessee with the AO, as is reported by the AO vide letter dated 29.05.2025. 4. One set of documents containing copies of fresh indemnity bond cum undertaking(s) ,all dated 09.05.2025 were stated to be handed over by the ld. Sr. Counsel for the assessee to the ld. Sr. DR during the course of hearing.Copies of the indemnity bond cum undertaking dated 09.05.2025 are also filed with ITAT (placed on record in file). 5. Ld. Sr. DR submitted that these copies of indemnity bond cum undertaking are to be verified by the AO as the AO vide letter dated 29.05.2025 has stated that assessee has not furnished any freshindemnity bond cum undertaking(s) in this regard. 6. After hearing both the parties and without commenting on the merit of the issue’s in appeal, we are inclined to extend stay on recovery of the outstanding demand for a further period of 180 days or till disposal of corresponding appeals, whichever is earlier, subject to verification/acceptance by the AO of the said indemnity bond cum undertaking(s)dated 9.5.2025 which are stated to be now furnished by the assessee before the AO, which in any case has to be equivalent to 20% of the outstanding demand as were stipulated as precondition for grant of stay on recovery of the outstanding demand against the assessed, which also shall be verified by the AO. We clarify that the stay will become operational and effective on Department’s being satisfied and acceptability ofthe said fresh indemnity bond cum undertaking(s) dated 09.05.2025 stated to be furnished by assessee before the AO. It will be the responsibility of the assessee to keep the indemnity bond cum 4 ITA Nos. 277 to 282/Del/2025 (ITA Nos. 1860 to 1865/Del/2024) Shimizu Corporation undertaking(s) to be alive and validated during the continuance/operation of the stay on recovery of outstanding demand vide this common order, as it is observed from the copies filed before the ITAT that indemnity bond cum undertaking(s) all dated 09.05.2025are valid till 15.11.2025. Needless to say that the assessee will not seek any un-necessary adjournments, and will cooperate in early disposal of the appeals. We once again clarify and reiterate that we have not commented on merits of the issues arising in the appeal. We order accordingly. 7. Stay applications are allowed in above terms. Order pronounced in open court on 04.07.2025. Sd/- Sd/- (SUDHIR KUMAR ) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 07.07.2025. *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "