SPS CONSTRUCTION INDIA PRIVATE LIMITED (FORMERLY KNOWN AS S. P. SINGLA CONSTRUCTIONS PVT. LTD.),NEW DELHI V. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, CHANDIGARH, CHANDIGARH

SA 37/CHANDI/2025

AI Insights

The case involves SPS Construction India Pvt. Ltd., which sought an ad-interim stay of the outstanding tax demand for the assessment years 2019-20 and 2023-24. The primary issue was the disallowance of deduction claimed under section 80IA of the Income Tax Act, where the Assessing Officer (AO) added significant amounts to the assessee's income, arguing that the assessee was not an infrastructure developer but a contractor. The Tribunal considered the merits of the stay application, the payments made by the assessee, and the prima-facie arguments presented.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 778170 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 08-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 06-10-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Assessee Lawyers: ASHWANI KUMAR
• Keywords: 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.Nos. 37 & 38 /CHD/2025 in ITA Nos. 1193 & 1197/CHD/2025 Ǔनधा[रण वष[ / A.Y.: 2019-20 & 2023-24 SPS Construction India Pvt.Ltd. (Formerly known as S.P.Singla Constructions Pvt. Ltd.) 10th Floor, Pearls Best Height-1, Netaji Subhash Place, Pitampura, New Delhi. Vs The DCIT, Central Circle-1 Chandigarh . ˕ायी लेखा सं./PAN NO: AAGCS5773B अपीलाथŎ/Appellant ŮȑथŎ/Respondent Assessee by : Shri Ashwani Kumar,CA Revenue by : Dr. Ranjit Kaur, Addl. CIT Sr.DR Date of Hearing : 07.10.2025 Date of Pronouncement : 08.10.2025 PHYSICAL HEARING O R D E R PER RAJ PAL YADAV, VP The present two Stay Applications are directed at the instance of the assessee for grant of ad-interim stay of the outstanding demand. 2. The ld. counsel for the assessee has tabulated the necessary details exhibiting returned income, assessed income, demand raised by the AO, paid by the assessee or adjusted against the refund by the AO and the outstanding demand thereafter. We deem it appropriate to take note of Printed from counselvise.com SA-37 & 38/CHD/2025 in ITA 1193 & 1197/CHD/2025 A.Y. 2019-20 & 2023-24 2 these details submitted in a tabular form which read as under: 3. With the assistance of the ld. Representative, we have gone through the record carefully. A perusal of the record would indicate the major addition made by the AO by making a disallowance of deduction claimed u/s 80IA of the Income Tax Act. This addition in assessment year 2019-20 is of Rs.76,18,45,477/-. The basic reason which weighed with the AO was that assessee is not a developer of infrastructure, rather it has worked as a contractor. There are further disallowances out of purchases made from five parties. As far as disallowance of deduction u/s 80IA is concerned, this issue is common in both the years. In assessment year 2023-24, a sum of Rs.62,19,41,468/- has been added by the AO by making a disallowance u/s 80IA. The proviso to Section 254(2)(A) has a direct bearing on the issue. Therefore, we ParƟculars 2019-20 2023-24 ITAT No. 1193/CHANDI/2025 1197/CHANDI/2025 Stay ApplicaƟon No. SA 37/CHANDI/2025 SA 38/CHANDI/2025 Returned Income 38,01,96,740.00 1,19,90,72,810.00 Assessed Income 1,29,82,80,120.00 1,82,10,14,278.00 Amount of Demand as per Order (Order) 25,01,65,856.00 24,46,09,097.00 Further demand adjusted against refund - 4,94,11,014.00 Total Disputed Demand Paid 5,00,00,000.00 % of Demand Paid 20% 20% Balance Demand 20,01,65,856.00 19,51,98,083.00 Printed from counselvise.com SA-37 & 38/CHD/2025 in ITA 1193 & 1197/CHD/2025 A.Y. 2019-20 & 2023-24 3 deem it appropriate to take note of this proviso, which reads as under : “Provided that the Appellate Tribunal may, after considering the merits of the application made by the assessee, pass an order of stay in any proceedings relating to an appeal filed under sub- section (1) of section 253, for a period not exceeding one hundred and eighty days from the date of such order subject to the condition that the assessee deposits not less than twenty per cent of the amount of tax, interest, fee, penalty, or any other sum payable under the provisions of this Act, or furnishes security of equal amount in respect thereof and the Appellate Tribunal shall dispose of the appeal within the said period of stay specified in that order: 4. A perusal of the above proviso would reveal that if Tribunal is satisfied that outstanding demand deserves to be stayed, then it could stay the outstanding demand but subject to ensuring that appellant has paid more than 20% of the tax demand. The ld. counsel for the assessee has submitted that assessee has already paid the tax more than 20% of the outstanding tax component. It is discernable so from the details extracted supra. The assessee has a prima-facie arguable case on merit, therefore, we deem it appropriate to stay the outstanding demand in both the assessment years subject to the following conditions : a) That the demand will remain stayed for a period of 180 days or till the disposal of the appeal, Printed from counselvise.com SA-37 & 38/CHD/2025 in ITA 1193 & 1197/CHD/2025 A.Y. 2019-20 & 2023-24 4 whichever event occurs first; b) The assessee would submit all necessary papers before seven days in advance of the scheduled date. c) The assessee will not seek adjournment unless unavoidable circumstances warranted so. 4. The Registry is directed to list the appeals for hearing on 01.12.2025. Both the parties are apprised with the scheduled date, therefore, no fresh notice would be issued upon the parties. 5. In the result, Stay Applications are allowed. Order pronounced on 08th October,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 "