Income Tax Appellate Tribunal - Ahmedabad
Sumukh Synthetics Private Limited,, ... vs M/S. Income Tax Officer, ... on 27 March, 2017
आयकर अपील य अ धकरण, अहमदाबाद यायपीठ, अहमदाबाद ।
IN THE INCOME TAX APPELLATE TRIBUNAL
" D " BENCH, AHMEDABAD
सव ी द प कुमार के डया, लेखा सद य एवं महावीर साद, या यक सद य के सम ।
BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER
And SHRI MAHAVIR PRASAD, JUDICIAL MEMBER
Stay Petition No.89/Ahd/2017 - AY 2012-13
(in आयकर अपील सं./I.T.A. No.1408/Ahd/2016 - AY 2012-13)
Sumukh Synthetics Pvt.Ltd. बनाम/ The ITO,
3007, Third Floor Shree Vs. Ward-2(1)(3)
Mahavir Textile Market Surat
Opp.Bhaktidham Mandir
Nr.Landmark Empire Bldg
Magob, Surat 395 010
थायी ले खा सं . /जीआइआर सं . / PAN/GIR No. : AAICS 2677 N
(अपीलाथ& /Applicant) .. ( 'यथ& / Respondent)
अपीलाथ& ओर से /Appellant by : Shri Dinesh Dwivedi, CA
'यथ& क) ओर से/Respondent by : Shri Vijay Kumar Singh,Sr.DR
ु वाई क) तार ख /
सन Date of Hearing 27/03/2017
घोषणा क) तार ख /Date of Pronounce ment 27/03/2017
आदे श / O R D E R
PER PRADIP KUMAR KEDIA, AM:
By this stay application dated 21/03/2017, the assessee seeks stay of outstanding demand of Rs.52,67,630/- which includes demand of Rs.17,87,070/- towards interest under s.234A, 234B & 234C of the Income Tax Act, 1961 (hereinafter referred to as "the Act").
SP No.89/Ahd/2017(in ITA No.1408/Ahd/2016) Sumukh Synthetics Pvt.Ltd. vs. ITO Asst.Year - 2012-13 -2-
2. The Ld.AR for the assessee at the outset contended that demand raised as a result of addition on account of unexplained share capital and share premium aggregating to Rs.1,51,90,248/- is prima-facie unjustified in view of the fact that substantial amount of receipt on account of the aforesaid transactions have happened in the earlier years and do not relate to the current year. It was thus claimed that assessee has a good case to succeed on merits in its appeal before the ITAT. The Ld.AR further contended that the poor liquidity position of the assessee does not permit it to discharge the onerous tax obligation saddled on it as a result of the aforesaid addition to the total income. The Ld.AR referred to the bank statement and submitted that the financial position is not at all good and the recovery of the outstanding demand will severally affect the business of the assessee. The Ld.AR however added that assessee is willing to pay some reasonable amount against outstanding demand as may be directed by the Tribunal while granting the outstanding demand.
3. The Ld.DR on the other hand, strongly opposed the stay application filed by the assessee. The Ld.DR submitted that the stay of outstanding demand is not justified at all and deserves to be rejected.
4. On careful examination of the rival submissions as well as the material aspects of the case which are relevant to ascertain the balance of SP No.89/Ahd/2017 (in ITA No.1408/Ahd/2016) Sumukh Synthetics Pvt.Ltd. vs. ITO Asst.Year - 2012-13 -3- convenience, such as, prima-facie case of assessee on merits as argued, the financial crises pleaded by the assessee, we are of the view that mitigating circumstances exist in the present case to grant partial stay of outstanding demand. At the same time, we are equally alive to the concern raised by the Revenue. We are of the view that interest of revenue can be balanced by directing additional payment of Rs.5 lakhs over and above Rs.12,16,170/- already paid against the initial demand of Rs.66,68,180/- (including interest Rs.17,87,070/-). The additional amount of Rs.5 lakhs shall be paid by the assessee before the end of March-2017 and proof of payment thereof shall be produced before the Assessing Officer (AO). Subject to the aforesaid, we entertain the stay application and exercise our discretion in favour of the assessee for stay of recovery of balance outstanding demand for a period of six months or till the disposal of appeal of assessee by the Tribunal whichever is earlier. The Registry is directed to fix the assessee's appeal in ITAT No1408/Ahd/2016 for AY 2012-13 for out of turn hearing on 03/05/2017 as announced in the Open Court and informed to the representatives of both the sides No separate notice of hearing would thus be required. The parties will file all the requisite documents, such as, paper-book etc. well in advance for expeditious disposal of appeal.
4.1. The stay granted is also subject to the condition that the assessee will fully co-operate in speedy disposal of the appeal and will not seek SP No.89/Ahd/2017 (in ITA No.1408/Ahd/2016) Sumukh Synthetics Pvt.Ltd. vs. ITO Asst.Year - 2012-13 -4- any adjournment on any grounds whatsoever save and except wholly unavoidable and bonafide circumstance preventing the assessee from participating in appellate proceedings before the Tribunal. The stay granted hereinabove may stand vacated forthwith together with associated benefit out of turn hearing of the appeal in the event of failure to comply with the directions set aside hereinabove.
5. Subject to the compliance of the terms of stay stated hereinabove, the stay petition stands allowed.
Order pronounced in the Open Court on completion of hearing today on 27 / 03 /2017 Sd/- sd/-
(महावीर साद) ( द प कुमार के डया)
या यक सद य ले खा सद य
( MAHAVIR PRASAD ) ( PRADIP KUMAR KEDIA )
JUDICIAL MEMBER ACCOUNTANT MEMBER
Ahmedabad; Dated 27/ 03 /2017
ट .सी.नायर, व. न.स./T.C. NAIR, Sr. PS
आदे श क त ल प अ!े षत/Copy of the Order forwarded to :
1. अपीलाथ& / The Applicant
2. 'यथ& / The Respondent.
3. संब6ं धत आयकर आय8
ु त / Concerned CIT
4. आयकर आय8
ु त(अपील) / The CIT(A)-II, Surat
5. 9वभागीय त न6ध, आयकर अपील य अ6धकरण, अहमदाबाद / DR, ITAT, Ahmedabad
6. गाड फाईल / Guard file.
आदे शानुसार/ BY ORDER, स'या9पत त //True Copy// उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad