Income Tax Appellate Tribunal - Ahmedabad
Mohan B Agrawal, Ahmedabad vs Dcit, Circle-4(2), Ahmedabad on 21 June, 2019
आयकर अपील य अ धकरण, अहमदाबाद यायपीठ 'A' अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL "A" BENCH, AHMEDABAD BEFORE SHRI A. D. JAIN, VICE PRESIDENT & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER Stay Petition No. 95/Ahd/2019-AY 2013-14 ( in I.T.A. No. 1009/Ahd/2019-AY 2013-14) Mohan B Agrawal बनाम/ Deputy Commissioner 4 t h Floor, Shoppers Plaza- of Income Tax, Vs. II, C G Road, Ahmedabad Circle-4(2),
- 380009 Ahmedabad थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. : AAOPA4030C (अपीलाथ /Appellant) .. ( यथ / Respondent) अपीलाथ ओर से /Appellant by : Shri Hardik Vora, A.R. यथ क ओर से / Shri L. P. Jain, Sr. D.R. Respondent by :
सन ु वाई क तार ख / Date of 21/06/2019 Hearing घोषणा क तार ख /Date of 21/06/2019 Pronouncement आदे श/O R D E R PER PRADIP KUMAR KEDIA - AM:
By this stay application dated 12/06/2019, the assessee seeks stay of outstanding demand of Rs.69,92,530/- which includes demand of Rs.34,26,380/- towards interest under s.234A, 234B & 234C of the Income Tax Act, 1961 (hereinafter referred to as "the Act").
2. The learned AR for the assessee at the outset contended that demand was raised as a result of addition by invoking provisions of Section 2(22)(e) of the Act for certain transactions with concerns where substantial interest of the shareholders S . P . N o . 9 5 / Ah d / 1 9 [ M o h a n B A g r a w a l vs. DC IT] A.Y. 2013-14 - 2 -
exists. It was submitted that the provisions of Section 2(22)(e) of the Act has been wrongly applied ignoring the vital fact that lending of money is substantial part of business and company and the case of the assessee is covered by exception provided in sub-clause (2) of section 2(22)(e) of the Act. The learned AR thus submitted that assesse has prima facie case on merits and thus has a good case to succeed in appeal. To support its plea on prima facie case, the learned AR further referred to the decision rendered by the ITAT in its own case for AY 2015-16 where the identical issue was claimed to be adjudicated favourably. The learned AR next contended that the poor liquidity position of the company does not permit it to lock funds with Income Tax Department as it will hamper its working capital for carrying on business.
3. The learned DR on the other hand, strongly opposed the stay application filed by the assessee. The learned DR submitted that the assessee has paid only Rs.17.50 Lakhs as against the demand of Rs.87.42 Lakhs and which is not sufficient at all for favourable consideration of the stay application.
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 convenience, such as, prima-facie case of the assessee on merits as argued, the financial position pleaded by the assessee, we are of the considered view that mitigating circumstances exist in the present case to grant stay of outstanding demands. We thus entertain the stay of recovery of outstanding demand for a period of six months or till the disposal of the appeal of the assessee by the Tribunal, whichever is earlier. The Registry is directed to fix the assessee's appeal in ITA No.1009/Ahd/2019 for AY 2013-14 for out of turn hearing on 19th August, 2019. The parties shall be informed suitably by Registry about the date of hearing. The parties will file all the requisite documents, such as, paper-book etc. well in advance for expeditious disposal of appeal.
5. The stay granted is also subject to the condition that the assessee shall fully co-operate in speedy disposal of the appeal and will not seek any adjournment on S . P . N o . 9 5 / Ah d / 1 9 [ M o h a n B A g r a w a l vs. DC IT] A.Y. 2013-14 - 3 -
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 of out of turn hearing of the appeal in the event of failure to comply with the directions set out hereinabove.
6. In the result, the stay petition stands allowed.
This Order pronounced in Open Court on 21/06/2018
Sd/- Sd/-
(A. D. JAIN ) (PRADIP KUMAR KEDIA)
VICE PRESIDENT ACCOUNTANT MEMBER
Ahmedabad: Dated 21/06/2018
True Copy
S. K. SINHA
आदे श क त ल प अ े षत / Copy of Order Forwarded to:-
1. राज व / Revenue
2. आवेदक / Assessee
3. संबं*धत आयकर आयु,त / Concerned CIT
4. आयकर आयु,त- अपील / CIT (A)
5. 0वभागीय 3त3न*ध, आयकर अपील य अ*धकरण, अहमदाबाद / DR, ITAT, Ahmedabad
6. गाड9 फाइल / Guard file.
By order/आदे श से, उप/सहायक पंजीकार आयकर अपील य अ*धकरण, अहमदाबाद ।