Income Tax Appellate Tribunal - Pune
Abhijit Despande Pandit Automotive ... vs Deputy Commissioner Of Income-Tax, ... on 12 October, 2018
आयकर अपील
य अ धकरण "बी" यायपीठ पण
ु े म ।
IN THE INCOME TAX APPELLATE TRIBUNAL "B" BENCH, PUNE
सु ी सष
ु मा चावला, या यक सद य, एवं ी डी. क"णाकरा राव , लेखा सद य, के सम$।
BEFORE MS. SUSHMA CHOWLA, JM AND SHRI D. KARUNAKARA RAO, AM
S.A. No.93/PUN/2018
(Arising out of ITA No.492/PUN/2018)
नधा&रण वष& / Assessment Year : 2010-11
Abhijit Deshpande,
C/o. Pandit Automotive Pvt. Ltd.
City S. No.1073, Plot No.425,
Sub Plot No. 9,
Bhosale Mystiqa Apt.
Shivajinagar, Bhamburba,
Pune-411 016
PAN : ABAPD7711J
........... आवेदक/Applicant
बनाम / V/s.
The Deputy Commissioner of Income Tax,
Circle-4, Pune.
......... यथ / Respondent
Assessee by : Shri Kishor Phadke
Revenue by : Shri Sudhendu Das
सन
ु वाई क तार ख / Date of Hearing : 12.10.2018
घोषणा क तार ख / Date of Pronouncement : 12.10.2018
आदे श / ORDER
PER D. KARUNAKARA RAO, AM :
The assessee filed this stay application No.93/PUN/2018 and the same relates to the assessee's appeal being ITA No.492/PUN/2018 for the assessment year 2010-11.
2SA No. 93/PUN/2018
A.Y.2010-11
2. The assessee, in the stay application, has informed that the total tax demand is around Rs.65,31,130/- out of which, the assessee paid sum of Rs.4,97,814/- leaving collectible outstanding demand of Rs.60,33,316/-.
3. Before us, Ld. Counsel for the assessee submitted that this is case where coercive steps were taken by the Revenue Authority and the notice u/s.226(3) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') was already issued for recovery of demand on the accounts with State Bank of India, Bank of Maharashtra and Bank of India. Giving other backgrounds facts of the case, Ld. Counsel for the assessee submitted that the assessee is a partner of various firms/companies which engaged in the business of automotives, sale of petrol etc.
4. In the re-assessment proceedings, the Assessing Officer made addition of Rs.1,02,38,142/- invoking the provisions of section 2(22)(e) of the Act. The CIT(A) confirmed the said addition and therefore, the assessee filed appeal against the order of CIT(A) before the Tribunal. Explaining the financial difficulties of the assessee, Ld. Counsel for the assessee submitted that the assessee is in financial problem and therefore, the demand could not be paid and the assessee is not in a position to pay the outstanding tax demand. The Assessing Officer initiated the coercive steps and those steps have caused operational difficulties to the assessee. Therefore, the assessee filed the present stay application. Ld. Counsel for the assessee submitted that the assessee-company is in loss. Ld. A.R. also mentioned in stay application that assessee filed application before Hon'ble NCLT, Mumbai Bench too. It is mentioned that liquidation process has also began vide order dated 09.08.2018. Submitting the weak financial position and on the capacity to pay, Ld. Counsel seeks the grant of early hearing. Before us, Ld. 3 SA No. 93/PUN/2018 A.Y.2010-11 Counsel for the assessee offers to pay maximum sum of Rs.5,00,000/- in two installments.
5. Per contra, Ld. DR for the Revenue submitted for immediate payment of entire outstanding demand of Rs.60,33,316/-.
6. On hearing both the parties, we find this is case where the assessee- company suffers from the financial problem. Therefore, process of liquidation has already began vide order dated 09.08.2018 before the Hon'ble NCLT. We also noticed that the Assessing Officer already initiated coercive action and are not fructified as much as Assessing Officer desires. Further, it is the case of the assessee where the assessee seeks the grant of early hearing of appeal. Assessee offers to make the payment of Rs.5,00,000/- only in two installment. On hearing both the parties and after considering all the above said facts, we are of the opinion that this is a fit case for staying outstanding demand and grant of early hearing too subject to the following conditions:
i) The assessee shall pay Rs.5,00,000/- in two installments.
Sum of Rs.2,00,000/- shall be paid by assessee on or before 30.10.2018 and the balance amount of Rs.3,00,000/- shall be paid by assessee on or before 30.11.2018.
ii) Assessee shall furnish the proof of amount deposited to the Government Exchequer within two week from the date of deposit with the Office Registry.
iii) Recovery of remaining amount shall remain stayed for a period of 180 days from the date of this order or till disposal of appeal, whichever is earlier.
iv) The assessee/A.R. shall not seek frivolous adjournments or delay the hearing of appeal without their being bona-fide cause.
v) The assessee, if wishes to file any paper book, shall furnish the same before the date of hearing in accordance with ITAT Rules.
4SA No. 93/PUN/2018
A.Y.2010-11
vi) If the assessee/ AR violate any of the conditions mentioned above, the stay granted shall automatically get vacated and the assessee shall also lose the benefit of early hearing of appeal.
7. Regarding the early hearing, the Registry is directed to list the appeal for hearing on 04.12.2018. Since, the date of hearing has been informed to both sides in open court, issuance of separate notice of hearing is dispensed with.
8. In the result, stay application of assessee is allowed subject to the conditions mentioned above.
Order pronounced in the Open Court on 12th day of October, 2018.
Sd/- Sd/- (सष ु मा चावला / Sushma Chowla ) (डी.क"णाकरा राव/D. Karunakara Rao) या यक सद य /JUDICIAL MEMBER लेखा सद य / ACCOUNTANT MEMBER पण
ु े / Pune; दनांक / Dated : 12th October, 2018.
SB आदे श क( ) त+ल,प अ-े,षत / Copy of the Order forwarded to :
1. अपीलाथ / The Appellant.
2. यथ / The Respondent.
3. The CIT(Appeals)-2, Pune.
4. The Pr. CIT-2, Pune.
5. &वभागीय त न)ध, आयकर अपील य अ)धकरण, "बी" ब,च, पण ु े / DR, ITAT, "B" Bench, Pune.
6. गाड/ फ़ाइल / Guard File.
// True Copy // आदे शानुसार / BY ORDER, नजी स)चव / Private Secretary आयकर अपील य अ)धकरण, पण ु े / ITAT, Pune.