SKILLNET SOLUTIONS INDIA PRIVATE LIMITED ,MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3(3)(1), MUMBAI

SA 96/MUM/2024

AI Insights

The case involves Skillnet Solutions India Private Limited, which filed an application seeking a stay on the recovery of an outstanding demand of Rs.1,09,08,482 for the assessment year 2021-22. The primary contention was the validity of the assessment order, which was allegedly passed beyond the prescribed period of limitation. The assessee cited various High Court decisions supporting their claim. Additionally, they proposed adjusting 20% of the outstanding demand against a refund due from A.Y. 2010-11, which the Departmental Representative agreed to. The Tribunal, after considering the submissions and the balance of convenience, partially allowed the stay application.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473743 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 30 day(s)
• Appeal Type: Others
• Pronouncement Date: 29-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: H
• Next Hearing Date: 29-11-2024
• Assessment Year: 2021-2022
• Appeal Filed On: 30-09-2024
• Other Referred Cases: CIT vs. Roca Bathrooms Products Private Limited, Shelf Drilling Ron Tappmeyer Limited vs. Asst. CIT & Ors., PayPal Payments Private Ltd. vs. Asst. CIT & Ors.
• Laws Referred To: CIT vs. Roca Bathrooms Products Private Limited [2022] 445 ITR 537 (Mad.), Shelf Drilling Ron Tappmeyer Limited vs. Asst. CIT & Ors. 487 ITR 161 (Bom), PayPal Payments Private Ltd. vs. Asst. CIT & Ors.
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MONIKA H. PANDE
• Keywords: Application of stay

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VP AND MS. PADMAVATHY S, AM SA No. 96/Mum/2024 (Arising out of ITA No. 5016/Mum/2024) (Assessment Year: 2021-22) Skillnet Solutions India Private Limited 817, Raheja Chambers, Free Press Journal Road, Nairman Point, Mumbai-400 093 Vs. Dy. CIT, Circle 3(3)(1) Aayakar Bhavan, M K Road, Mumbai-400 020 PAN/GIR No. AAFCS 3362 P (Applicant) : (Respondent) Applicant by : Shri Jitendra Singh Respondent by : Ms. Monika H. Pande Date of Hearing : 29.11.2024 Date of Pronouncement : 29.11.2024 O R D E R Per Saktijit Dey, VP: The captioned application has been filed by the assessee, seeking stay on recovery of outstanding demand of Rs.1,09,08,482/-, pertaining to assessment year (A.Y.) 2021-22. 2. While seeking stay, ld. Counsel appearing for the assessee submitted that one of the issues relates to validity of the assessment order passed beyond the prescribed period of limitation. He submitted, the issue is squarely covered by various decisions of different Hon’ble High Courts, such as CIT vs. Roca Bathrooms Products Private Limited [2022] 445 ITR 537 (Mad.), Shelf Drilling Ron Tappmeyer Limited vs. Asst. CIT & Ors. 487 ITR 161 (Bom) and various other decisions of Hon'ble Jurisdictional 2 SA No. 96/Mum/2024 (A.Y. 2021-22) Skillnet Solutions India Private Limited vs. Dy. CIT High Court and Hon’ble Delhi High Court. He further drew our attention to judgment dated 13.08.2024 of Hon'ble Jurisdictional High Court in Writ Petition (L) No. 30944 of 2023, relating to PayPal Payments Private Ltd. vs. Asst. CIT & Ors., wherein, while considering identical issue the Hon'ble Jurisdictional High Court has granted absolute stay. Thus, he submitted, the recovery of the demand may be stayed. Without prejudice, he submitted, in A.Y. 2010-11, the Assessing Officer (AO) has computed refund due of Rs.40,23,687/-, which assessee is yet to receive. On instructions, he submitted that 20% of the outstanding demand relating to the current year can be adjusted out of the refund due for A.Y. 2010-11 and balance demand can be stayed. 3. In response, the learned Departmental Representative ('ld. DR' for short) submitted, A.O. may be directed to adjust 20% of the outstanding demand out of the refund due. 4. We have heard the parties. After considering the submissions of the parties, prima facie case and balance of convenience, we are inclined to grant conditional stay by directing the A.O. to adjust 20% of the demand out of the crystalized refund of Rs.40,33,687/-, pertaining to A.Y. 2010-11. Subject to such adjustment, recovery of the balance outstanding demand shall remain stayed for a period of 180 days from the date of this order, or till the disposal of the corresponding appeal, whichever is earlier. We are further informed that the appeal is already posted for hearing on 07.01.2025. Hence, the parties are directed to complete the prehearing formalities, if any. 3 SA No. 96/Mum/2024 (A.Y. 2021-22) Skillnet Solutions India Private Limited vs. Dy. CIT 5. In the result, the stay application stands partly allowed in the terms indicated above. Order pronounced in the open court on 29.11.2024 Sd/- Sd/- (Padmavathy S) (Saktijit Dey) Accountant Member Vice President Mumbai; Dated : 29.11.2024 Roshani, Sr. PS Copy of the Order forwarded to : 1. The Applicant 2. The Respondent 3. The CIT(A) 4. CIT - concerned 5. DR, ITAT, Mumbai 6. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai "