Income Tax Appellate Tribunal - Jaipur
Virendra Singh Bhadauria, Jaipur vs Pr. Cit-3, , Jaipur on 4 March, 2021
vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj
IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES 'B' JAIPUR
Jh lanhi xkslkbZ] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k
BEFORE: SHRI SANDEEP GOSIAN, JM & SHRI VIKRAM SINGH YADAV, AM
S.A. No. 01/JP/2021
(Arising in vk;dj vihy la-@ITA No. 255/JP/2020
fu/kZkj.k o"kZ@Assessment Year : 2015-16.
Shri Virendra Singh Bhadauria, cuke Pr.C.I.T.-3,
71, Mansa Nagar, Sirsi Road (Sirsi Vs. Jaipur.
Mod), Jaipur.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN No. AAEPB 0767 F
vihykFkhZ@Appellant izR;FkhZ@Respondent
fu/kZkfjrh dh vksj ls@Assessee by : Smt. Datyani Pandey (Adv) &
Shri S.D. Pandey (CA)
jktLo dh vksj ls@ Revenue by : Smt. Savita Bundas (CIT-DR)
lquokbZ dh rkjh[k@ Date of Hearing : 24/02/2021
?kks"k.kk dh rkjh[k@ Date of Pronouncement : 04/03/2021
vkns'k@ ORDER
PER: SANDEEP GOSAIN, J.M. The present stay application has been filed by the assessee for seeking stay.
2. The hearing of the stay application was concluded trough video conference in view of the prevailing situation of Covid-19 Pandemic.
3. The brief facts of the case are that the assessee has preferred appeal before us against the order of ld. Pr.CIT passed U/s 263 of the Income Tax Act, 1961 (in short, the Act) and the said appeal has already been heard on 2 SA No. 01/JP/2021 Virendra Singh Bhadauria Vs Pr.CIT 10/02/2021. However, now the assessee has filed the present stay application for seeking stay in respect of other proceedings pending before the revenue authorities. The details of which are reproduced below:
S. No. Proceedings Pending before
1. 2nd round of Assessment Assessing Officer-
proceedings (after set aside by Faceless
Pr.CIT-3, Jaipur)- two notices
received dated 12/2/2021 and
15/2/2021
2. Penalty proceedings u/s 271(1)(c) Show cause notice
in original assessment. issued by Assessing
Officer.
4. The ld. AR appearing on behalf of the assessee has submitted that the assessee had sold his residential property at Lucknow namely 2/4 Vinay Khand, Gomti Nagar, Lucknow for Rs. 1,70,20,600/- on 05/04/2014 and purchased new residential property at Sector 86, Princess park, Faridabad to live with his family comfortably within the stipulated period. His family consists of his wife, two major sons namely Avadhesh Kumar Singh Bhadauria and Brijesh Kumar Singh and their respective families. The assessee was under bonafide belief that the two sons and his wife Smt. Sarla Devi will live in two premises with suitable arrangement of living together. Therefore, the assessee took steps to purchase two flats at one place. At the time, two flats were available namely K-702 and A-605 in two adjacent towers of premises known as Princess Park, Sector 86, Faridabad which he purchased 3 SA No. 01/JP/2021 Virendra Singh Bhadauria Vs Pr.CIT and claimed the deduction u/s 54F of the Act. During the AY 2015-16 the A.O. made additions on account of long term capital gain of Rs. 6239484/- and created a huge demand of Rs. 17,34,470/-.
5. The ld. AR has further submitted that the assessee preferred appeal before ld. CIT(A) for the original assessment order and the same is pending as on date. Last notice dated 04/01/2021 has been replied to on the portal. The ld. Pr.CIT-3, Jaipur had also initiated proceedings U/s 263 of the Act and passed order on 16/03/2020, setting aside the original assessment proceedings. The assessee had preferred appeal before this Bench against the order passed by the ld. Pr.CIT-3, Jaipur and the last date of hearing of the appeal was 10/02/2021.
6. The ld AR has further submitted that the ld. CIT(A)'s order against the original assessment proceedings is pending and notice dated 04/01/2021 has been received and replied. The second round of assessment proceedings are also pending and notices dated 12/02/2021 and 15/02/2021 have been received by the assessee. Penalty proceedings U/s 271(1)(c) of the Act for the original assessment have also been initiated by the A.O. Lastly it was submitted that till the order of this Bench is passed in ITA No. 255/JP/2020 till the time, the other proceedings which are enumerated above and are pending before the revenue authorities may be stayed as various other proceedings consecutively would result in multiple orders and in multiple litigations. 4 SA No. 01/JP/2021
Virendra Singh Bhadauria Vs Pr.CIT
7. On the other hand, the ld. DR has strongly resisted the prayer of the assessee and submitted that all other proceedings pending before the revenue authorities as mentioned above are independent proceedings, therefore, they may not be stayed as no prejudice is going to be caused to the assessee.
8. We have heard the rival contentions of both the parties and perused the material placed on record. From the record, we noticed that first of all, the moot question before us which requires consideration is as to whether the bench has powers to grant stay with regard to other proceedings pending before the revenue authorities. In this respect, our attention was drawn towards Section 254(2A) of the Act which reads as under:
"Provided that the Appellate Tribunal may, after considering the merits of the application made by the assessee, pass an order of stay in any proceedings relating to an appeal filed under sub section (1) of Section 253, for a period not exceeding one hundred and eighty days from the date of such order (subject to the condition that the assessee deposits not less than twenty percent of the amount of tax, interest, fee, penalty, or any other sum payable under the provisions of this Act, or furnishes security of equal amount in respect thereof) and the Appellate Tribunal shall dispose of the appeal within the said period of stay specified in that order"
As per the above provisions, this Bench after considering the merits of the application made by the assessee may pass an order of stay in any proceedings relating to an appeal filed under sub-section (1) of Section 253 of the Act and as per the decision of Hon'ble Delhi High Court in the case of CIT 5 SA No. 01/JP/2021 Virendra Singh Bhadauria Vs Pr.CIT Vs Income Tax Appellate Tribunal (2013) 31 taxmann.com 369 (Delhi), it has categorically been held that the Tribunal is competent U/s 254(2A) of the Act to grant stay with regard to proceedings pending before the revenue authorities if they are relating to the appeal which has been filed under sub-section (1) of Section 253 of the Act. Further the Coordinate bench of the ITAT Delhi Benches in the case of Oracle India (P) Ltd. Vs Addl.CIT (2017) 88 taxmann.com 241 (Delhi-Trib) has categorically held that the Tribunal has power to stay penalty proceedings pending disposal of appeal as being incidental or ancillary to its appellate jurisdiction. The Hon'ble Supreme Court in the case of ITO Vs M.K. Mohammed Kunhi (1969) 71 ITR 815 (SC) has held that Tribunal's power in dealing with appeals are of widest amplitude and is identical with powers of an appellate court under Civil Procedure Code, therefore, the Tribunal has power to grant stay as incidental or ancillary to its appellate orders. The Coordinate Bench of Bangalore ITAT in the case of Karnataka Golf Association Vs Director of Income Tax (2004) 90 ITD 749 (Bang.) has also held that the Tribunal may invoke inherent power of staying assessment proceedings in most exceptional cases, if such assessment proceeding frustrates entire purpose of appeal pending before Tribunal.
Therefore, keeping in view the above judicial decisions and the principles laid down therein, we conclude that the Tribunal is competent U/s 254 of the Act 6 SA No. 01/JP/2021 Virendra Singh Bhadauria Vs Pr.CIT to grant stay in any proceedings relating to an appeal filed and pending before the Tribunal.
9. Now the next question which arises before us is to consider as to whether in the facts of the present case, the assessee is entitled for grant of stay with regard to other proceedings pending before Revenue. However, after going through the facts of the present case, we found that the present appeal has been filed by the assessee against the order U/s 263 of the Act and is pending before us and in which the arguments have already been heard on 10/02/2021. As far as other proceedings are concerned, they are at preliminary stage before the A.O. and we are of the view that the rights of the assessee would not be prejudiced in case the injunction is not granted and no irreparable loss or injury would be suffered by the assessee. Because, in case, the present appeal pending before us is allowed then in that eventuality the related proceedings pending before the different authorities would automatically become infructuous and in case, the appeal pending before us is dismissed then in that eventuality, all the proceedings pending before different authorities would be decided in accordance with law. Therefore, we see no prima facie reasons to grant stay with regard to the proceedings pending before different revenue authorities as enumerated above, therefore, the present stay application filed by the assessee is dismissed. 7 SA No. 01/JP/2021
Virendra Singh Bhadauria Vs Pr.CIT
10. Considering the peculiar facts and circumstances of the present case and since the arguments in the present case has already been heard and matter is pending within the exclusive domain of the Bench for pronouncement of the order. Therefore, we dismiss the stay application. However, considering the peculiar circumstances, we direct the revenue authorities not to initiate any coercive methods against the assessee till the main present appeal in ITA No. 255/JP/2020 is disposed off by us. We order accordingly.
Order pronounced in the open court on 04/03/2021.
Sd/- Sd/-
¼foØe flag ;kno½ ¼lanhi xkslkbZ½
(VIKRAM SINGH YADAV) (SANDEEP GOSIAN)
ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member
Tk;iqj@Jaipur
fnukad@Dated:- 04/03/2021.
*Ranjan
vkns'k dh izfrfyfi vxzsf'kr@Copy of the order forwarded to:
1. vihykFkhZ@The Appellant- Shri Virendra Singh Bhadauria, Jaipur.
2. izR;FkhZ@ The Respondent-The Pr.C.I.T.-3, Jaipur.
3. vk;dj vk;qDr@ CIT
4. vk;dj vk;qDr@ CIT(A)
5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur
6. xkMZ QkbZy@ Guard File {SA No. 01/JP/2021} vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar