THE JUTE CORPORATION OF INDIA LTD.,KOLKATA V. D.C.I.T., CIRCLE 1.2, KOLKATA, KOLKATA

SA 3/KOL/2025

AI Insights

The case involves The Jute Corporation of India Ltd., which filed a stay petition against a penalty demand of Rs. 23,30,508/- related to the assessment year 2011-12. The penalty was initially imposed following a scrutiny assessment and was confirmed by the CIT(A). The assessee appealed to the Income Tax Appellate Tribunal, arguing that the balance of convenience favored a stay as the appeal against the penalty was likely to succeed. The Tribunal considered the provisions of section 254(2A) of the Income Tax Act and decided to grant a stay on the condition that the assessee pays 20% of the demand.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46783 (ITAT-KOLKATA)
• Appeal Type: Stay Application
• Pronouncement Date: 26-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Application of stay
• Section: 143(3); 143(2); 271(1)(c); 139(1); 274

Judgement Text

"आयकर अपीलीय अधिकरण कोलकाता 'सी' पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘C’ BENCH, KOLKATA श्री प्रदीप क ुमार चौबे, न्याधयक सदस्य एवं श्री राक ेश धमश्रा, लेखा सदस्य क े समक्ष Before SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER S.A. No.: 3/KOL/2025 In I.T.A. No.: 659/KOL/2022 Assessment Year: 2011-12 The Jute Corporation of India Ltd. Vs. DCIT, Circle-1(2), Kolkata (Appellant) (Respondent) PAN: AABCT8820B Appearances: Assessee represented by : Hiran Das, AR. Department represented by : Sailen Samadder, Addl. CIT, Sr. DR Date of concluding the hearing : February 21st, 2025 Date of pronouncing the order : February 26th, 2025 ORDER PER BENCH: The assessee has filed the present Stay Petition SA No. 3/KOL/2025 in ITA No. 659/KOL/2022 dated 10.02.2025 requesting for stay of demand of Rs. 23,30,508/- arising on account of the order u/s 271(1)(c) of the Income Tax Act, 1961 along with an affidavit. Page | 2 S.A. No: 3/KOL/2025 The Jute Corporation of India Ltd. 2. Brief facts of the case are that the return of income for the A.Y. 2011-12 was originally filed on 27.09.2011 under section 139(1) of the Act. The said return was selected for scrutiny through CASS under section 143(2) of the Act and the assessment order was passed under section 143(3) of the Act along with the show cause notice for penalty under section 274 r.w.s. section 271(1)(c) of the Act on 29/09/2021. Subsequently, the order for penalty under section 271(1)(c) of the Act was passed on 14.01.2022. Being aggrieved with the penalty order, the preferred an appeal before the Ld. CIT(A) on 25.01.2022. The appeal against the order under section 143(3) r.w.s. 254 r.w.s. 144B of the Act dated 29.09.2021 was filed on 07.10.2024 of the Act. The appeal against the penalty order was dismissed and the penalty was confirmed vide order dated 02.09.2022 of the Ld. CIT(A) while the appeal against the assessment order is still pending before the Ld. CIT(A). The assessee filed an appeal before the Hon’ble Tribunal vide ITA 659/Kolkata/2022 on 18/11/2022. It is submitted that the balance of convenience is in favour of the assessee and all the additions/disallowances made in the impugned penalty order dated 14/01/2022 would be fully deleted when the said appeal is finally heard and disposed of by the Hon'ble Tribunal. It is stated that any collection of impugned demand will be a forceful and unnecessary exercise and against the provisions of law and the assessee has requested to stay the operation of the said impugned assessment order including the demand of penalty raised in pursuant thereto and also keep the whole of the said disputed demand of penalty in abeyance till the disposal of the said appeal by the Hon'ble Tribunal. The assessee has also mentioned that it is a fit case where the stay should be granted. 3. We have heard the rival contentions and examined the facts of the case. As regards the request for setting aside the order dated Page | 3 S.A. No: 3/KOL/2025 The Jute Corporation of India Ltd. 02.09.2022 of the Ld. CIT(A), the same cannot be decided while considering the stay petition as the assessee has filed an appeal against the same before the Hon'ble Tribunal which is pending. Further, as regards the stay of demand till the appeal of the assessee is decided by the Tribunal, the relevant provisions of the first proviso to section 254(2A) were brought to the notice of the Ld. AR and the Bench enquired whether the assessee was willing to pay 20% of the outstanding demand for which the Ld. AR expressed his inability to do so. Therefore, the stay petition is allowed subject to the following conditions: (i) The assessee shall pay 20% of the outstanding demand of Rs. 23,30,508/- (i.e. Rs. 4,66,102/-) within a period of one month. (ii) Subject to the payment of the demand as at (i), the rest of the demand shall be stayed for a period of 180 days or till the disposal of the appeal, whichever is earlier. (iii) No adjournment shall be sought by the assessee in the appeal before the Tribunal unless it is absolutely necessary on account of any exigency or unavoidable circumstances. 4. In the result, the Stay Application filed by the assessee is allowed as above. Order pronounced in the open Court on 26th February, 2025. Sd/- Sd/- [Pradip Kumar Choubey] [Rakesh Mishra] Judicial Member Accountant Member Dated: 26.02.2025 Bidhan (P.S.) Page | 4 S.A. No: 3/KOL/2025 The Jute Corporation of India Ltd. Copy of the order forwarded to: 1. The Jute Corporation of India Ltd., 7th Floor, Hudco Building, 15N, Nellie Sengupta Sarani, Kolkata, West Bengal, 700087. 2. The Jute Corporation of India Ltd. Contributory Provident Fund, 15N, Nellie Sengupta Sarani, New Market S.O., Kolkata, West Bengal, 700087. 3. DCIT, Circle-1(2), Kolkata 4. Addl./JCIT(A)-Jodhpur 5. Assessment Unit, Income Tax Department, Kolkata. 6. CIT(A)- 7. CIT- 8. CIT(DR), Kolkata Benches, Kolkata. 9. Guard File. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata "