Income Tax Appellate Tribunal - Cochin
M/S.Ksr Alankar Hotels & Resorts P. Ltd, vs Assessee on 15 May, 2015
IN THE INCOME TAX APPELLATE TRIBUNAL
COCHIN BENCH, COCHIN
BEFORE S/SHRI V.DURGA RAO, JM and B.R.BASKARAN, AM
S.P. Nos. 27&28/Coch/2015
(Arising out of I .T.A. No.170/Coch/2015
Assessment Year : 2010-11
M/s. K.S.R. Alankar Hotels & Vs. The Additional Commissioner of
Resorts (P) Ltd., Income-tax, Range-1, Kochi.
Kaniyampuzha Road,
Vytilla,
Ernakulam.
[PAN: AADCK 1488J]
(Assessee-Appellant) (Revenue-Respondent)
Assessee by Shri R.Krishna Iyer, CA
Revenue by Shri K.K. John, Sr. DR
Date of hearing 15/05/2015
Date of pronouncement 15/05/2015
ORDER
Per B.R.BASKARAN, Accountant Member:
The assessee has filed these two Stay Petitions seeking stay of outstanding demand raised by way of penalties levied under sections 271D and 271E of the I.T. Act for the assessment year 2010-11.
2. The Ld. Counsel appearing for the assessee submitted that the assessee had received loans by way of cash and also repaid them by way of cash and hence, the impugned penalties have been levied. The Ld. Counsel for the 2 S.P. Nos.27&28/Coch//2015 assessee submitted that the assessee had received/repaid loans from/to the Directors of the company and they have been received in the normal course of business. He further submitted that the loans received from the Directors are not considered as deposits under the provisions of the Companies Act. He further submitted that the assessee was maintaining regular books of account and the Assessing officer has not doubted the genuineness of the deposits. Accordingly, he submitted that the assessee has got fair chance of getting relief in the appeals filed before the Tribunal. Accordingly, he prayed that the entire demand may be stayed.
3. On the contrary, the Ld. DR submitted that the genuineness of the loans cannot be a ground to exonerate the assessee from the penalty provisions prescribed under sections 271D and 271E of the Act. Accordingly, he opposed the Stay Petitions filed by the assessee.
4. Having heard the rival contentions, we are of the view that the balance of convenience is in favour of granting partial stay to the assessee. Accordingly, we direct the assessee to pay a sum of Rs. 2.5 lakhs in each of the appeal, i.e., the aggregate amount of Rs. 5.00 lakhs, in two monthly instalments and the first instalment shall be paid on or before 30-05-2015 and the second intalment shall be paid on or before 30-06-2015. Subject to the payment of the above amounts, the balance portion of demand shall be stayed for a period of six months from 3 S.P. Nos.27&28/Coch//2015 the date of this order or till the date of disposal of appeal, whichever period expires earlier.
7. The registry is directed to post the appeal for hearing in the normal course. It is made clear to the assessee that it should not seek adjournment on the date of hearing, failing which the present stay order shall be reviewed by the division bench hearing the appeals.
8. In the result, the stay application filed by the assessee is partly allowed.
Pronounced accordingly in the open court on 15-05-2015.
sd/- sd/- (V. DURGA RAO) (B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Place: Kochi Dated: 15th May, 2015 GJ Copy to:
1. M/s. K.S.R. Alankar Hotels & Resorts (P) Ltd., Kaniyampuzha Road, Vytilla, Ernakulam.
2. The Addl. Commissioner of Income-tax, Range-1, Kochi.
3. The Commissioner of Income-tax(Appeals)-II, Kochi.
5. The Commissioner of Income-tax, Kochi.
6. D.R., I.T.A.T., Cochin Bench, Cochin.
7. Guard File.
By Order (ASSISTANT REGISTRAR) I.T.A.T., Cochin