TOUCHSTONE FINE JEWELLERY,MUMBAI V. ITO WARD 33(1)(1), MUMBAI

SA 12/MUM/2026

AI Insights

The case involves Touchstone Fine Jewellery, which filed stay applications concerning the outstanding tax demands for the assessment years 2022-23 and 2023-24. The demands were raised following assessments under section 143(3) of the Income Tax Act, which were contested by the assessee through appeals. The Tribunal considered the applications based on the compliance with the deposit requirement under the first proviso to Section 254(2A) of the Act, which mandates a minimum deposit of 20% of the disputed amount for a stay on the demand collection. The Tribunal's decision to grant the stay was based on the assessee's adherence to this requirement and the lack of contest from the Revenue.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 836048 (ITAT-MUMBAI)
• Duration Of Justice: 20 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 10-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2023-2024
• Appeal Filed On: 21-01-2026
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Application of stay
• Section: 143(3); 11

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH MUMBAI BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER SA No. 11 and 12/MUM/2026 (Arising out of ITA Nos. 9052 and 9053/MUM/2025) Assessment Years: 2022-23 and 2023-24 Touchstone Fine Jewellery A-301, Mangalya Building, Off. Marol Maroshi Road, Andheri (E), Mumbai-400059. (PAN : AAIFT2033J) Vs. Income Tax Officer Ward 33(1)(1), Mumbai. (Assessee) (Respondent) Present for: Assessee : Shri R.S. Khandelwal and Shri Aakash Kumar, CA Revenue : Shri Pravin Salunkhe, Sr. DR Date of Hearing : 30.01.2026 Date of Pronouncement : 10.02.2026 O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: Assessee has moved captioned stay applications for the two assessment years, viz. AY 2022-23 and AY 2023-24 arising out of appeals filed by it before the Tribunal, for the respective years. Through these stay applications, assessee seeks stay of demand remaining outstanding for the two years under consideration, details of which is awaited below. Sr. No. Asst. Year Section Date of Demand Demand Amount Interest Amount Original Demand 1. 2022-23 143(3) 29.03.2024 1,10,62,137 25,97,118 1,36,59,255 2. 2023-24 143(3) 17.03.2025 49,47,610 13,00,122 62,18,147 Total 1,59,20,190 34,41,411 1,98,77,402 Printed from counselvise.com SA Nos.11 & 12/Mum/2026 Touchstone Fine Jewellery AY 2022-23 & 2023-24 2 2. Facts of the case are that petitioner filed its return of income for AY 2022-23 on 01.10.2022, reporting total income at Rs.6,31,33,700/-. Ld. Assessing Officer finalized the assessment under section 143(3) r.w.s 144B of the Act on 29.03.2024, determining total income at Rs.8,07,75,743/- and thereby raised a demand of Rs.1,36,59,255/-. Petitioner preferred an appeal to the ld. CIT(A) against the said order which has been disposed off against the assessee vide his order dated 10.12.2025. Petitioner then preferred its appeal before the Tribunal on 24.12.2025 which is not fixed for hearing yet. 3. Assessee deposited Rs.27,32,000/- against the outstanding demand for AY 2022-23 vide challan no. 26836 dated 16.04.2025. Copy of this challan is placed on record. Assessee also deposited another amount of Rs.3,00,000/- on 12.01.2026 vide challan no. 04916. Thus, in total assessee deposited Rs.30,32,000/- against the outstanding demand for AY-2022-23 which comes to more than 20% of the total outstanding demand for the year under consideration. This payment made by the assessee is in compliance with the first proviso to Section 254(2A) of the Act. The said proviso requires that the assessee shall deposit not less than 20% of the amount of tax, interest, fee, penalty or any other sum payable under the provisions of this Act or furnish security of equal amount in respect thereof. According to the said section read along with the first proviso, Tribunal may after considering the merits of the application made by the assessee, pass an order of stay for a period not exceeding 180 days from the date of such order, once the required compliance is met by the assessee. Printed from counselvise.com SA Nos.11 & 12/Mum/2026 Touchstone Fine Jewellery AY 2022-23 & 2023-24 3 4. Before us, learned counsel for the assessee submitted that an application was moved before the Ld. Assessing Officer for granting of stay on the recovery of the balance amount outstanding but was rejected and required the assessee to make the full payment of the demand. 5. In the given set of facts and considering the provisions of the Act as enumerated above, we find that the assessee has duly complied with the requirements of depositing not less than 20% of the outstanding demand payable by it which is corroborated by the receipted copy of challan, placed on record. This factual position is not controverted by the Revenue. Accordingly, we grant the stay on collection of outstanding demand by the Revenue for a period of 180 days or till the date of disposal of the relevant appeal, whichever period expires earlier. We make it clear that the assessee shall not seek adjournment on the dates of hearing, failing which the present stay order shall be subjected to review by the Bench hearing the appeal. Accordingly, stay application for AY 2022-23 is allowed. 6. Similar factual position exists in respect of stay application for AY 2023-24 wherein also the assessee has deposited an amount of Rs.12,45,000/- against the outstanding demand vide challan no. 03421 dated 11.04.2025 which is 20% of the total demand payable by the assessee. Copy of the said challan is placed on record. Accordingly, for this assessment year also, on similar factual matrix, we grant stay from collection of the outstanding demand for a period of 180 days or till the date of the disposal of the appeal, whichever period expires earlier. For this year also, we make it clear that assessee shall not seek adjournment, failing which the present stay Printed from counselvise.com SA Nos.11 & 12/Mum/2026 Touchstone Fine Jewellery AY 2022-23 & 2023-24 4 order shall be subjected to review by the Bench hearing the appeal. Accordingly, said stay application for AY 2023-24 is also allowed. 7. In the result, stay applications for both the assessment years are allowed. Order is pronounced in the open court on 10 February, 2026. Sd/- Sd/- (Beena Pillai) (Girish Agrawal) Judicial Member Accountant Member Dated: 10 February, 2026. MP, Sr.P.S. Copy to : 1. The Assessee 2. The Respondent 3. DR, ITAT, Mumbai 4. 5. Guard File CIT BY ORDER, (Dy./Asstt.Registrar) ITAT, Mumbai Printed from counselvise.com "