SHUBHAM TRADING COMPANY,NIZAMABAD V. ITO., WARD-1, NIZAMABAD

SA 19/HYD/2025

AI Insights

The case involves Shubham Trading Company, which filed a stay application against the collection of an outstanding demand of Rs.13,52,090 for the assessment year 2012-2013. The company had initially filed a return declaring a total income of Rs.5,24,860. Following reassessment proceedings initiated under Section 148 of the Income Tax Act, discrepancies in VAT and CST payments led to an additional assessment of income. The company contested this in the CIT(A), which sustained the additions, and subsequently appealed to the Income Tax Appellate Tribunal. The Tribunal, while dismissing the stay application, has expedited the hearing of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705567 (ITAT-HYDERABAD)
• Appeal Type: Stay Application
• Pronouncement Date: 04-07-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SACHIN KUMAR
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Reassessment proceedings; Recovery proceedings; Application of stay
• Section: 147; 148; 143(3); 133(6)

Judgement Text

" 1 S.A.No.19/Hyd./2025 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “B” BENCH: HYDERABAD BEFORE SHRI MANJUNATHA G, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER Stay Application No.19/Hyd./2025 Arising out of ITA.No.840/Hyd./2025 - Assessment Year 2012-2013 Shubham Trading Company, NIZAMABAD PIN – 503 002. PAN ABHFS9306F vs. The Income Tax Officer, Ward-1, NIZAMABAD. (Applicant) (Respondent) For Assessee : CA, P Murali Mohan Rao For Revenue : Dr. Sachin Kumar, Sr. AR Date of Hearing : 04.07.2025 Date of Pronouncement : 04.07.2025 ORDER PER MANJUNATHA G. : By this stay application SA.No.19/Hyd./2025, the assessee seeks stay of collection of outstanding demand of Rs.13,52,090/-. 2. CA. P. Murali Mohan Rao, Learned Counsel for the Assessee, submitted that, the Appellant for the AY 2012- 13, filed return of income electronically on 29.09.2012 declaring a total income of Rs.5,24,860/- under normal 2 S.A.No.19/Hyd./2025 provision of the Act. In response to notice u/sec.148 of the Act, the assessee filed return of income on 09.07.2019 admitting total income Rs.5,24,860/-. 2.1. Based on information received from the Commercial Tax Officer, Bodhan Circle, Nizamabad, the Assessing Officer issued a notice under Section 133(6) of the Income Tax Act for verification of VAT and CST payments amounting to Rs.18,55,246/. Subsequently, the Assessing Officer initiated reassessment proceedings for the relevant assessment year by issuing a notice under Section 148 of the Act. In response, the appellant furnished the return of income on 09.07.2019 admitting total income Rs.5,24,860/- The appellant submitted that, the Audit Report along with its enclosures, ledgers of VAT/CST payments, bank statements, and VAT/CST challans evidencing that the payments made were genuine. The Assessing Officer also sought a certificate from the appellant's banker confirming VAT/CST payments to the extent of Rs.10,28,016/-. However, for the remaining amount, a discrepancy arose due to an error by the Sales Tax Consultant. Thereafter, the 3 S.A.No.19/Hyd./2025 Assessing Officer completed the reassessment under Section 143(3) read with Section 147 of the Income Tax Act on 30.12.2019, disallowing the balance amount of Rs.8,27,230/- and accordingly assessed the total income of the assessee at Rs.13,52,090/-. In appeal before the learned CIT(A), the learned CIT(A) sustained the addition made by the Assessing Officer. Aggrieved by the order of the learned CIT(A), the assessee filed an appeal ITA.No.840/Hyd./2025 before the Tribunal which is pending for disposal. Learned Counsel for the Assessee submitted that, the assessee has been facing huge financial difficulty and a tight liquidity position and, therefore, unable to make any payment of taxes. He, therefore, pleaded for grant stay of recovery of demand till the appeal of the assessee is decided by the Tribunal and to restrain the Department from taking any coercive steps for recovery of tax, interest and penalty leviable for the impugned assessment year. In the alternative, the Learned Counsel for the Assessee submitted that, an early hearing may be granted in the interest of justice. 4 S.A.No.19/Hyd./2025 3. Dr. Sachin Kumar, Learned Sr. AR for the Revenue, on the other hand, strongly opposed for stay of collection of outstanding demand. However, not objected for early hearing of the appeal. 4. We have heard both the parties, perused the material on record and the orders of the authorities below. Considering the facts and circumstances of the case, we reject the stay application filed by the assessee. However, we are inclined to grant an early hearing of the case and direct the Registry to list the appeal for hearing on 15.07.2025. The Department is directed not to take any coercive steps till the date of hearing of the appeal. Since the date of hearing of the appeal is announced in the open Court, no notice will go to the parties. Accordingly, the stay application of the assessee is disposed of. 5. In the result, stay application of the assessee is dismissed. 5 S.A.No.19/Hyd./2025 Order pronounced in the open Court on 04.07.2025. Sd/- Sd/- [RAVISH SOOD] [MANJUNATHA G] JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated 04th July, 2025 VBP Copy to 1. Shubham Trading Company, NIZAMABAD – 503 002. C/o. P. Murali & Co. Chartered Accountants, 6-3- 655/1/3, Somajiguda, Hyderabad - 500 082. 2. The Income Tax Officer, Ward-1, NIZAMABAD. 3. The Pr. CIT, Hyderabad. 4. The DR, ITAT “B” Bench, Hyderabad. 5. Guard File. //By Order// //True Copy// "