AI Insights
The case involves Whirlpool of India Ltd., the appellant, seeking an extension of stay on the recovery of an outstanding demand related to the Assessment Year 2017-18. The demand arose from additions made towards Research and Development Expenditure and provisions for fair value loss on financial instruments, which were not disputed. The Tribunal had previously granted stays and extensions, noting the appellant's compliance with the terms. The hearing of the related appeal was delayed due to non-functioning of the Tribunal bench, which the appellant argued was not attributable to them. The Tribunal, acknowledging the delays were not the fault of the appellant, granted the extension of stay.
Appeal details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 30516 (ITAT-DELHI)
Assessee PAN
Bench
Appeal Number
Appellant
Respondent
Appeal Type
Stay Application
Pronouncement Date
07-03-2025
Appeal Filed By
Assessee
Order Result
Partly Allowed
Bench Allotted
I
Assessment Year
2017-2018
Judgement Text
"1 SA no. 138/Del/2025 (In ITA no. 1307/Del/2022) A.Y. 2017-18 1 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘I’: NEW DELHI) BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT, AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER SA No.: 138/Del/2025 (Arising Out of ITA No.: 1307/Del/2022) (Assessment Year: 2017-18) Whirlpool of India Ltd. Plot no. 40, Whirlpool House, Sector-44, Gurgaon-122002, Haryana v. Asstt. Commissioner of Income Tax, Circle-10(1), New Delhi. PAN No: AAACW 1336 L APPELLANT RESPONDENT Assesseeby : Shri Neeraj Jain, Adv.; & Ms. Mansa Bhalla, CA Revenue by : Shri Rajesh Kumar Dhanishtha, Sr. DR Date of Hearing : 07.03.2025 Date of Pronouncement : 07.03.2025 ORDER PER RAMIT KOCHAR, AM: This stay application bearing SA no. 138/Del/2025, arising out of ITA no. 1307/Del/2022 for A.Y. 2017-18, has been filed by the assessee seeking extension of stay on recovery of outstanding demand for A.Y. 2017-18. 2 SA no. 138/Del/2025 (In ITA no. 1307/Del/2022) A.Y. 2017-18 2 2. The learned counsel for the assessee submitted that the stay on recovery of outstanding demand was earlier granted by the Tribunal, Delhi Bench, Delhi, vide order dated 10.06.2022(SA No. 161/Del/2022) for a period of 180 days or till disposal of the appeal whichever is earlier, on the terms and conditions as are mentioned in the said stay order. One of the condition for grant of stay on recovery of outstanding demand was that the demand of Rs. 57,88,084/- arising out of additions to the tune of Rs. 50,93,000/- towards Research and Development Expenditure and Rs. 49,00,000/- towards provision for fair value loss on financial instruments, as per assessee’s own admission , they are not in dispute before the Tribunal, must be paid forthwith by the assessee. The stayon recovery of outstanding demand was further extended by the Tribunal from time to time , vide orders dated 10.02.2023(SA No. 70/Del/2023); 01.09.2023(SA No.328/Del/2022) ; 08.03.2024(SA No. 77/Del/2024); and 27.09.2024(SA No. 358/Del/2024). While granting extension of stay on recovery of outstanding demand as aforesaid , Tribunal has recorded that the assessee has duly complied with the terms and conditions of the stay. It is the say of the learned counsel for the assessee that after the grant of the last stay on 27.09.2024 the hearing of the appeal was fixed before Division Bench on 3.10.2024 but no hearing could take place due to non-functioning of the Bench and the appeal was adjourned to 18.12.2024. Again on 18.12.2024 , the Bench did not function, and the hearing was adjourned to 19.02.2025. It is further the say of ld. Counsel for the assessee that 3 SA no. 138/Del/2025 (In ITA no. 1307/Del/2022) A.Y. 2017-18 3 again on 19.02.2025, the appeal was adjourned to 08.04.2025 as the Bench did not function on 19.02.2025. It is the say of the learned counsel for the assesseethat the delay in disposal of the appeal is not attributable to any fault on the part of the assessee. The ld. Counsel for the assessee stated before the Bench that the assessee had duly complied with the terms and condition of the stay on recovery of the outstanding demand granted earlier by the Tribunal vide order dated 10.06.2022, which stay on recovery of outstanding demand was further extended by the Tribunal on the same terms and conditions. Thus, it was prayed that the stay on recovery of outstanding demand be further extended on the same terms and conditions. 3. Learned Sr. DR could not controvert the factual position. 4. After hearing both the parties, we have observed that there is no fault on the part of the assessee in non-disposal of the appeal in ITA no. 1307/Del/2022, since the grant of the extension of stay by Tribunal vide orders dated 27.09.2024. Thus, we are inclined to extend the stay on recovery of the outstanding demand for A.Y. 2017-18 for a further period of 180 days or till the disposal of the appeal, whichever is earlier, on the same terms and conditions as were stipulated by the Tribunal vide orders dated 10.06.2022 , which stay on recovery of outstanding demand was extended from time to time by the Tribunal on the same terms and conditions. Further, that the assessee will fully co-operate in speedy disposal of the appeal by ITAT, and the assessee will not seek any un- 4 SA no. 138/Del/2025 (In ITA no. 1307/Del/2022) A.Y. 2017-18 4 necessary adjournments before the Tribunal in the appellate proceedings in ITA No. 1307/Del/2022 for assessment year 2017- 18. On breach of aforesaid conditions, the stay shall stand vacated . The appeal of the assessee in ITA no. 1307/Del/2022 for assessment year 2017-18is now coming up for hearing before “I” Bench, Delhi on 08.04.2025. The terms and condition of the extension of the stay of demand as above were announced by Division Bench during the course of hearing of stay application in open Court. We once again clarify that we have not commented on the merits of the issues arising in the appeal. We order accordingly. 5. In the result, Stay Application filed by the assessee is partly allowed in the manner as indicated above. Order pronounced in the open courton7th March, 2025. Sd/- Sd/- (MAHAVIR SINGH) (RAMIT KOCHAR) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 11/03/2025. *MPV* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 5 SA no. 138/Del/2025 (In ITA no. 1307/Del/2022) A.Y. 2017-18 5 4. DRP 5. DR Asst. Registrar, ITAT, New Delhi "
