Income Tax Appellate Tribunal - Chennai
Virtusa Consulting Services Private ... vs Dcit Large Taxpayerunit Circle-1, ... on 5 August, 2022
आयकर अपील य अ धकरण, 'डी' याय पीठ, चे नई
IN THE INCOME TAX APPELLATE TRIBUNAL , 'D' BENCH, CHENNAI
ी वी.दग
ु ा राव, या यक सद य एवं ी जी.मंजुनाथ, लेखा सद य के सम%
BEFORE SHRI V.DURGA RAO, JUDICIAL MEMBER
AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER
Stay P etition No.50/Chny/2022
[In IT(TP )A No.25/Chny/2020]
( नधारणवष / Assessm ent Year: 2009-10)
M/s. Virtusa Consulting Services Pvt.Ltd Vs The Deputy Commissioner of
[Earlier known as Polaris Consulting & Services Ltd. Income Tax,
prior to amalgamation and prior to that as Polaris Large Tax Payer Unit Circle-1,
Financial Technology Ltd.]
34, Foundation, IT Highway, Chennai-34
Navallur Chennai-600 103.
PAN: AACCV 6797L
( ाथ क /Petitioner) ( यथ /Respondent)
ाथ क क ओरसे/ Petitioner by : Mr. Prashant Meharchandani,
Advocate
यथ क ओरसे/Respondent by : Mr.Sajit Kumar, JCIT
सुनवाई क तार ख/Dat e o f hear ing : 05.08.2022
घोषणा क तार ख /Date of P r on ou n ce m ent : 05.08.2022
आदे श / O R D E R
PER G. MANJUNATHA, AM:
The assessee has filed present stay application seeking extension of stay from recovery of outstanding disputed demand of Rs.30,32,96,568/ - for the assessment year 2009-
10.
2. The learned AR for the assessee submitted that vide order dated 03.12.2021, the Tribunal had granted extension of stay for the period of three months. However, the appeal of the assessee, could not be disposed off by the Tribunal. 2 S.P No. 50 /Chny/2022 Therefore, in the interest of justice, stay already granted by this Tribunal may be extended, till the disposal of appeal by the Tribunal on the same terms & conditions as prescribed in earlier stay order.
3. The learned DR strongly opposed stay application filed by the assessee and argued that as per the provisions of section 254(2A) of the Act, the Tribunal does not have any power to grant stay beyond period of 365 days, even if, delay in disposal of appeal is not attributable to the assessee.
4. We have heard both the parties and considered stay application filed by the assessee for extension of stay granted by the Tribunal vide its order dated 11.02.2022. We find that the Tribunal has granted stay from time to time after satisfying that the assessee has made out prima-facie case on merits and also balance of convenience in its favour. Further, the assessee had also deposited 20% amount towards disputed demand which is evident from the fact that the Department has adjusted refund due to the assessee for the assessment year 2016-17 to the demand for the assessment year 2009-10 which 3 S.P No. 50 /Chny/2022 is almost 40% of disputed demand. Further, appeal filed by the assessee could not be disposed off by the Tribunal, because appeal has been adjourned time and again on the request of the learned DR present for the Revenue on the ground that the Department has filed petition before the Hon'ble President, ITAT., for transfer of appeal to another Bench and the Bench has considered request of the learned DR and adjourned the case from time to time. From the above, it is very clear that delay in disposal of appeal is not on account of adjournment sought by the assessee, but for the Department. Therefore, we are of the considered view that it is a fit case for grant extension of stay for a period of three months, because the assessee has already satisfied conditions prescribed for granting stay for outstanding demand and has also deposited more than prescribed amount for granting stay. Insofar as arguments of the learned DR that the Tribunal does not have power to grant stay beyond the period of 365 days, we find that Hon'ble Supreme Court had considered the issue in light of provisions of Section 254(2A) of the Income Tax Act, 1961, in the case of DCIT Vs M/s. Pepsi Food India Ltd. in Civil Appeal 4 S.P No. 50 /Chny/2022 No.1106 of 2021 dated 06.04.2021 and held that when delay in disposal of appeal is not attributable to the assessee, then the Tribunal can grant stay beyond 365 days. Therefore, we reject arguments of the learned DR present for the Revenue. Hence, we grant extension of stay of recovery of outstanding demand for a period of three months or till the disposal of appeal by the Tribunal, whichever is earlier. The appeal filed by the assessee shall come up for hearing on 22.09.2022 for which no separate notice of hearing shall be issued to both the parties.
5. In the result, stay application filed by the assessee is disposed off on the above terms.
Order pronounced in the open court on 5th August, 2022 Sd/- Sd/-
( वी.दग
ु ा राव) (जी.मंजुनाथ)
(V.Durga Rao) (G.Manjunatha)
या यक सद य /Judicial Member लेखा सद य / Accountant Member
चे नई/Chennai,
"दनांक/Dated 5th August, 2022
DS
आ दे श क त&ल'प अ*े'षत/Copy to:
1. Appellant 2. Respondent 3. आ यकर आ यु+त (अपील)/CIT(A)
4. आ यकर आ यु+त/CIT 5. 'वभागीय त न1ध/DR 6. गाड फाईल/GF.