Income Tax Appellate Tribunal - Chandigarh
M/S Q C Residential Pvt. Ltd., Mohali vs Dcit, Mohali on 3 May, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
CHANDIGARH BENCHES, CHANDIGARH
BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER &
Dr. B.R.R. KUMAR, ACCOUNTANT MEMBER
Stay Application No. 01/Chd/2017
(ITA No. 94/Chd/2017)
Assessment Year: 2007-08
M/s Quark Media House India Vs. The DCIT, C-6(1),
Pvt Ltd (Now Known as QC Mohali
Residential Private Limited)
A-45, Phase VIIIB, Industrial Area,
Mohali, Punjab
PAN No. AAACQ0535F
&
Stay Application No. 09/Chd/2018
(ITA No. 421/Chd/2017)
Assessment Year: 2011-12
M/s Q.C. Residential Vs. The DCIT, C-6(1),
Pvt Ltd (Formerly Known as Mohali
Quark Medial House India Pvt Ltd.)
A-45, Phase VIIIB, Industrial Area,
Mohali, Punjab
PAN No. AAACQ0535F
(Appellant) (Respondent)
Appellant By : Sh. Raman Aggarwal, C.A.
Respondent By : Sh. J.S.Kahlon, Sr.DR
Date of hearing : 13.04.2018
Date of Pronouncement : 03.05.2018
ORDER
Per Sanjay Garg, Judicial Member:
The captioned are the applications moved by the assessee seeking Stay against the recovery of tax demand relating to assessment year 2007- 08 and assessment year 2011-12.
Stay App.1/Chd/2017 & 9/Chd/2018 Quark Media House India P. Ltd. (Now QC Residential Pvt Ltd. 2
2. So far as the application of assessment year 2007-08 is concerned, this Tribunal vide order dated 8.3.2017 had made the following observations while hearing the case and granting interim stay to the assessee.
"The appeal by the assessee is fixed for hearing on 8.3.2017. No DR is present today. The appeal is adjourned on the request of the Ld. DR to 17.5.2017.
2. The Ld. Counsel for the assessee pointed out that assessee filed return of income at Rs. 3,61,239/-, however, the Assessing officer assessed the total income at Rs. 7,50,23,250/-. He has explained that it is a high pitched assessment which resulted into a demand of Rs.3,64,60,579/-, out of which Revenue has already adjusted a sum of Rs. 1,12,69,826- which was refund due to the assessee for earlier years. It is stated that in earlier years point in issue have already been decided in favour of the assessee. Considering these facts, we find that there is a prima facie case in favour of the assessee.
3. In this view of the matter the Stay Application is adjourned to 17.5.2017 on the day appeal is fixed. In the meantime, the demand shall remain stayed till the next date of hearing. Copy of order be supplied to both parties."
3. Today, Ld. Counsel for the assessee has submitted that apart from the prima-facie case in favour of the assessee, the balance of convenience also lies in favour of the assessee as the assessee company is running into losses and it need funds for its stability.
Stay App.1/Chd/2017 & 9/Chd/2018 Quark Media House India P. Ltd. (Now QC Residential Pvt Ltd. 3
4. The Ld. DR could not point out any change in circumstances till date. In view of the above, the Stay granted vide order dated 8.3.2017 is hereby confirmed and shall be valid for a period of 6 months from the date of this order till the disposal of the appeal whichever is earlier. H owever, it is made clear that the assessee will cooperate and will not contribute to any unnecessary adjournments of the hearing of the appeals, in default of which, the Department will be at liberty to seek vacation of Stay.
5. Now coming to the assessment year 2011-12, the Ld. Counsel has submitted a chart to show that the assessee had returned an income of Rs. 6.05 lacs and paid the due taxes. However, in the Transfer Pricing adjustments, the income was assessed at Rs. 12.45 crores with the additional tax liability of Rs. 3.19 cores. The assessee had already paid 89.61% of the outstanding tax demand. In appeal before the Ld. CIT(A), though the CIT(A) granted some relief to the assessee on working capital adjustments but while giving effect to the order of the CIT(A), the Assessing officer instead enhanced the income of the assessee to Rs. 16.99 crores. The Ld. Counsel has submitted that even after the enhancement of income by the Assessing officer, the 55.37% of the total demand already stood paid by the assessee. It has been further submitted that even otherwise prima-facie, all the issues involved are covered in favour of the assessee by other decisions. Further, the Ld. Counsel has also explained about the financial constraints of the assessee company.
Stay App.1/Chd/2017 & 9/Chd/2018 Quark Media House India P. Ltd. (Now QC Residential Pvt Ltd. 4
6. Considering the above submissions, we find that the prima-facie case and balance of convenience lies in favour of the assessee. Even the assessee has already paid about 55% of the tax demand. In view of this, further recovering of the tax demand is stayed for a period of 6 months from the date of this order till the disposal of the appeal, whichever is earlier. The account, if any, of the assessee that has been freezed or attached by the Department, be henceforth released. It is directed that the assessee will cooperate and will not contribute to any unnecessar y adjournments of the hearing of the appeals, in default of which, the Department will be at liberty to seek vacation of Stay.
Our observations made above, shall have no bearing effect on the merits of the case.
6. Subject to the above observations, the applications of the assessee is treated as allowed.
Order pronounced in the Open Court.
Sd/- Sd/-
(B.R.R. KUMAR ) (SANJAY GARG)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated : 03.05.2018
Rkk
Copy to:
1. The Appellant
2. The Respondent
3. The CIT
4. The CIT(A)
5. The DR