Income Tax Appellate Tribunal - Amritsar
Shri Narotam Singh, Mansa vs Income Tax Officer Ward -1(4), Mansa on 15 October, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
AMRITSAR BENCH, AMRITSAR
BEFORE SH. N.K.SAINI, ACCOUNTANT MEMBER AND
SH. N.K.CHOUDHRY, JUDICIAL MEMBER
Stay Application No.15(Asr)/2019
(Arising out of ITA No.306(Asr)/2019)
Assessment Year:2012-13
Sh. Tarlochan Singh Vs. Income Tax Officer
C/o G.S. Chahal & Associates Ward-1(4), Mansa.
Backside Gaushalla, Mansa
[PAN:DNDPS 2922G]
(Appellant) (Respondent)
Stay Application No.16(Asr)/2019
(Arising out of ITA No.307(Asr)/2019)
Assessment Year:2012-13
Sh. Narotam Singh Vs. Income Tax Officer
C/o G.S.Chahal & Associates Ward-1(4), Mansa.
Backside Gaushalla, Mansa
[PAN:CLEPS7008F]
(Appellant) (Respondent)
Appellant by: Sh. P.N. Arora &
Sh. Evandeep Singh (Ld. Advs.)
Respondent by: Sh. Charan Dass (Ld. DR)
Date of hearing: 15.10.2019
Date of pronouncement: 15.10 2019
ORDER
PER N.K.CHOUDHRY, JM:
This order shall dispose of both the Stay Applications captioned above filed by the assessees namely Sh. Tarlochan Singh & Sh. Narotam Singh for stay of demand of Rs. 1,59,83,616/- and 1,28,99,765/- respectively.
2 SA Nos. 15 & 16/Asr/20192. Both the cases are based on the same facts and circumstances, therefore, for the brevity, the facts of Stay Application No.15/Asr/2019 have been taken into consideration and result of the same shall also apply mutatis mutandis to Stay Application No.16/Asr/ 2019.
3. The brief facts of the case are that during the assessment year under consideration, the assessee became a partner in the firm M/s. G.S. Chahal and Associates, dealing with the real estate and introduced capital by way of transfer of his ancestor land and the value of transfer to the capital account of the firm has been shown in the balance sheet. As the land transferred to the firm situated within the Municipal Limit of Mansa, therefore, entire land was considered as capital assets and the capital gain was assessed to the tune of Rs.3,87,03,600/- u/s 45 of the Income Tax Act, 1961 (hereinafter called as 'the Act') by the Assessing Officer .
4. On appeal, the Ld. CIT(A) affirmed the capital gain assessed by the Assessing Officer vide its order dated 26.02.2019. Consequently, the demand of Rs.1,83,37, 765/- was raised against the applicant/assessee, out of which the assessee has already paid Rs.23,54,149/- and as on today total outstanding demand of Rs.1,59,83,616/- exists, against which the assessee applicant/ assessee has filed the instant Stay Application.
5. At the time of argument, the Ld. A R has submitted that the land on which capital gain has been assessed still exists in the name of assessee as no valid and legal transfer has been made by way of registered sale deed in the name of firm namely G.S. Chahal & Associates of which the assessee is a partner, therefore, the liability of capital gain cannot be fastened upon the assessee in absence of valid and legal transfer of land and hence the assessee has prima facie a good case to be succeed. As the assessee has already deposited approximately 13% of the outstanding amount, therefore balance of convenience also lies in his favour and if the outstanding demand is not stayed then the assessee shall suffer irreparable losses as the department is adamant 3 SA Nos. 15 & 16/Asr/2019 to take coercive actions. The Asseeee further undertake to appear on each and every date of hearing and to give full assistance in adjudication of the appeal.
6. On the contrary, the ld. DR refuted the claim of the assessee and submitted that the addition has been made and affirmed by two Revenue Authorities on the basis of the judgments of the Apex Court and law applicable thereto the facts of the case. As the amount of Govt. Exchequer is involved therefore, the assessee is not entitled for any grant of Stay.
7. We have given our thoughtful consideration to the facts and circumstances of the case and rival submissions of the parties and realize that the issues raised by the assessee prima facie issue appears to be debatable. However we observe that in the instant case, total outstanding amount was Rs.1,83,37,765/- and out of which the assessee has already paid Rs.23,54,149/- and as on today the outstanding amount exist is Rs.1,59,83,616/- only and the assessee has offered to deposit Rs. 15 Lakhs more on or before 31st Oct 2019, hence considering the peculiar facts and circumstances, as the assessee has already deposited approximately 13% of the total outstanding demand and further undertake to pay Rs. 15 Lakhs on or before 31st Oct 2019 and in that eventualities the amount paid would be around 20% of the total outstanding amount, therefore at this stage we are not adverting to the merit of the case as the appeal i.e., ITA No.306/Asr/2019 filed by the assessee against the order dated 26.02/2019 passed by the Ld. CIT(A), Bathinda is also fixed for 4th November, 2019 for adjudication, therefore we are inclined to stay the balance outstanding demand for the period of 06 months or till disposal of the appeal, whichever is earlier. Consequently the revenue department is directed not to take any coercive action against the Asseeee qua outstanding demand for the said period. Suffice to say, the assessee shall appear as and when would be required for adjudication of appeal and in any case shall not be entitled any adjournment except on exceptionally unavoidable circumstance(s) beyond his control and in case of delay if any is to be caused on un-justiciable ground(s) by the Asseeee and non-payment of agreed amount i.e. 15 Lakhs on or before 31st Oct, 2019, the stay shall entail the vacation automatically.
4 SA Nos. 15 & 16/Asr/20198. Resultantly Stay application No.15/Asr/2019 filed by the Assessee stands partly allowed.
Stay Application No.16/Asr/2019
9. In this case, the total demand was Rs.1,51,99,765/- and the assessee has already paid amount of Rs.23,00,000/- which is approximately 15% of the outstanding amount and the this fact is not refuted by the Ld. DR. Considering the peculiar facts and circumstances as the assessee has agreed to pay Rs.10 lacs more, on or upto 31st October 2019, we are inclined to stay the balance outstanding demand for the period of 06months or till disposal of the appeals, whichever is earlier, consequently the revenue department is directed not to take any coercive action against the Asseeee qua balance outstanding demand for the said period. Suffice to say, the assessee shall appear as and when would be required for adjudication of appeal and in any case shall not be entitled for any adjournment except on exceptionally unavoidable circumstances beyond his control and in case of delay if any is to be caused on un-justiciable ground(s) by the Asseeee and non-payment of agreed amount i.e. Rs 10 Lakhs on or before 31st Oct 2019, the stay shall entail the vacation automatically.
10. In the result, the Stay Application No.16/Asr/2019 stands partly allowed.
Order pronounced in the open Court on 15.10.2019.
Sd/- Sd/-
(N.K.SAINI) (N.K.CHOUDHRY)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 15.10.2019
/PK/ Ps.
Copy of the order forwarded to:
1. The Appellant
2. The Respondent
3. The CIT
4. Then CIT(Appeals)
5. SR DR, I.T.A.T. Amritsar
6. Guard File
True Copy
By Order