Income Tax Appellate Tribunal - Mumbai
Surya Treasure Island P.Ltd, M.P. vs Dcit 6(1)(1), Mumbai on 3 November, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCHES "E", MUMBAI
Before Shri P K Bansal, Vice President &
Shri Pawan Singh, Judicial Member
SA No. 487/Mum/2017
(Arising out of ITA No.6981/Mum/2016
For Assessment Year 2009-10)
Surya Treasure Island Pvt. Ltd. The DCIT 6(1)(1),
Treasure Island, 6th Floor, Mumbai
11, Tukoganj, Main Road, Vs.
M G Road, Indore,
Madhya Pradesh
PAN AADCB1463E
(Applicant) (Respondent)
Applicant By : Shri Rakesh Mohan
Respondent By : Ms. N Hemalatha
Date of Hearing :03.11.2017. Date of Pronouncement : 03.11.2017
ORDER
Per P K Bansal, Vice - President:
By the aforesaid stay application, the assessee seeks for stay of outstanding demand of ` 17,97,38,569/-
2. The assessee is engaged in the business as builder and developer. Before us, the learned AR contended that the total demand raised is ` 18,06,93,560/-, which includes income tax ` 10,29,32,402/- and interest of ` 7,77,61,160/- against which the assessee has paid a sum of ` 9,54,991/-. The assessee submitted its return of income on 30.09.2009 declaring income 2 SA No.487/Mum/2017 Surya Treasure Island Private Limited of ` 64,25,940/-, which was processed u/s. 143(1). Subsequently, the assessment was re-opened by issuing notice u/s. 148. The notice so issued does not show the reason to believe by the Assessing Officer that the income of the assessee escaped assessment. Subsequently, the assessment was completed on income of ` 30,67,25,940/- making an addition of ` 30,03,00,000 u/s. 68 of the Income tax Act. It was submitted by the AR that the assessee has prima facie case both legally and on merits pending for disposal before this Tribunal. The assessee does not have liquid funds and that is a case of high pitched assessment. The assessee is not in a position to make the payment. The net worth of the company as on 31.03.2009 was ` 46,53,00,000/- against which a demand of ` 18,06,93,560/- has been raised, which had a far reaching consequence on the business of the assessee.
3. The learned DR, on the other hand, vehemently contended that the addition made u/s. 68 has already been confirmed by the CIT(A) and if the demand is stayed, it will be against the interest of the Revenue. Thus, the stay of demand may not be granted.
4. We heard the rival submissions and have carefully gone through the same along with the orders of the authorities below. In our opinion, the assessee has a prima facie case and it is a case of high pitched assessment. The income has been assessed more than fifty times of the returned income. 3 SA No.487/Mum/2017
Surya Treasure Island Private Limited The assessee could not adduce evidence that it does not have liquid sources. We, therefore, keeping in view the facts of the case and the issue involved in the appeal, feel it appropriate to fix the appeal out of turn on priority basis. The learned DR did not object for fixing the appeal for early hearing and also assured this Tribunal that the department will not take any coercive action on the assessee till the date of next hearing. We accordingly dismiss the stay application filed by the assessee and allow priority hearing to the assessee. The Assistant Registrar is directed to fix the impugned appeal out of turn on priority basis on 20th November 2017. Both the parties were informed of the date fixed for hearing in the open court. We also direct the department not to take any coercive action till 20th November 2017. In case, the Revenue seeks adjournment on the date fixed for hearing, the assessee can move an application before this Tribunal for revival of stay.
5. In the result, the stay application filed by the assessee is dismissed subject to the above conditions.
Order pronounced in the open court on 3rd day of November, 2017.
Sd/- Sd/-
(Pawan Singh) (P K Bansal)
JUDICIAL MEMBER VICE-PRESIDENT
Mumbai; Dated: 3rd November, 2017
SA
4
SA No.487/Mum/2017
Surya Treasure Island Private Limited
Copy of the Order forwarded to :
1. The Appellant.
2. The Respondent.
3. The CIT(A),Mumbai
4. The CIT
5. DR, 'E' Bench, ITAT, Mumbai
BY ORDER,
#True Copy #
Assistant Registrar
Income Tax Appellate Tribunal, Mumbai