Income Tax Appellate Tribunal - Ahmedabad
Parimal Somnathbhai Pandit, Ahmedabad vs Ito, Ward-3(2)(4), Ahmedabad on 1 July, 2019
आयकर अपील य अ धकरण, अहमदाबाद यायपीठ - अहमदाबाद ।
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD - BENCH 'SMC'
BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER
AND
SHRI WASEEM AHMED, ACCOUNTANT MEMBER
Stay Petition No.103/Ahd/2019
IN
आयकर अपील सं./ ITA No.272/Ahd/2019
नधारण वष/Asstt. Year: 2015-2016
Parimal Somnathbhai Pandit, Vs. Income Tax Officer,
6, Firstchoice Association, Ward-3(2)(4),
B/h. Indusctotherm Factory, Ahmedabad.
South Bopal,
Ahmedabad-380058.
PAN : AHUPP1322R
अपीलाथ / (Appellant) यथ / (Respondent)
Assessee by : Ms. Arti N. Shah, A.R
Revenue by : Ms. Sonia Kumar, Sr.DR
सुनवाई क तार ख/Date of Hearing : 28/06/2019
घोषणा क तार ख /Date of Pronouncement: 01/07/2019
आदेश /O R D E R
PER WASEEM AHMED, ACCOUNTANT MEMBER:
The assessee in this petition is seeking a stay on the recovery of the outstanding demand amounting to Rs. 1,99,801/- only comprises of tax and interest only.
2. The assessee in the present is an individual and engaged in providing legal consultancy.
SP No.103/Ahd/2019In ITA No.272/Ahd/2019 A.Y. 2015-16 2
3. The Ld. AR in the stay petition has submitted as under:
1. The Applicant is an Individual and regularly assessed to Income tax officer, Ward-
3(2)(4),Ahmedabad at PAN No.AHUPP 1322 R.
2. The return of income for A.Y. 2015-16 was filed u/s.139 on 30.03.2017 declaring total income at Rs.1,59,0007-. The assessment had been finalized u/s.143(3) by the Assessing Officer assessing the total income at Rs. 13,73,300 /-. While finalizing the assessment the Assessing Officer had made addition amounting to Rs. 12,14,3 007-u/s. 56(2)(vii) towards the difference between the Stamp duty Valuation and amount of consideration and treated the same as Tncome from other Sources'. The said addition being highly disputable, the applicant had filed appeal before the Commissioner of Income Tax(Appeals)-3, Ahmedabad on 18.01.2018 and Commissioner of Income Tax(Appeals)-3,Ahmedabad had confirmed the addition. Being aggrieved by the CIT(A)'s Order, the applicant has filed appeal before Hon'ble ITAT "SMC"Bench,Ahmedabad on 25.02.2019 and the same is pending as on date.
3. Meanwhile, the Assessing Officer has raised demand of Rs.3,71,0307- vide notice dated 27.12.2017 and in response to that notice the appellant had paid 20% (Rs.75000) of total demand on 16-02-2018, as per the partial modification of Instruction No. 1914 dated 21.03.1996, vide dated 29th February 2016 and 31 st July, 2017 and submitted an application dated 22.02.2018 requesting for stay of balance demand. The copy of said notice dated 27.12.2017 and the reply dated 22.02.2018 along with Tax paid Challan are enclosed here with as Annexure -A, B &C. After that the applicant had received notice dated 27.01.2019 from the State Bank of India and 21.02.2019 from the HDFC Bank as the Assessing officer had attached the said bank accounts and recovered the amounts of Rs.71,3 03 from the SB A/c of State Bank of India and Rs.24,926 from SB A/c of HDFC Bank .The Copy of notices of bank attachment are attached herewith as Annexure- D & E.
4. The Applicant had also filed the stay application on 05.03.2019 before the Pr.Commissioner of Income Tax-3,Ahmedabad for Stay of demand till the matter is decided by the Hon'ble I.T.A.T. The Pr.Commissioner of Income Tax- 3,Ahmedabad has vide order dated 17.06.2019 rejected the said stay application. The Copy of stay application dated 05.03.2019 and rejection order from the Pr.CIT-3 are enclosed herewith as Annexure- F & G.
5. The Applicant submits that the required information in the prescribed proforma in Appendix-X(e) is enclosed herewith marked ANNEXURE- H . In the said Appendix, demand outstanding is shown at Rs. 1,99,801 /-
6. Under the circumstances, the Applicant prays that the Hon'ble .Income Tax Appellate Tribunal may be pleased to grant relief as under:
SP No.103/Ahd/2019In ITA No.272/Ahd/2019 A.Y. 2015-16 3
(a) Stay of demand of Rs. 1,99,801 /- and removal of bank attachment till the appeal of the Applicant is decided by the Hon'ble Income Tax Appellate Tribunal.
(b) Grant the interim relief to the Applicant by directing the Assessing Officer not take any coercive and harsh action for enforcing the recovery of demand.
4. On the other hand, the ld. DR opposed granting the blanket stay for the recovery of outstanding demand.
5. We have heard the rival contentions of both the parties and perused the materials available on record. Having regard to the payment of tax for Rs. 1,71,229.00 which is equivalent to 70% of the demand of tax (after ignoring the element of interest) as discussed above, we are of the view that the case deserves for the stay of balance outstanding demand after making a further payment of tax for Rs. 20,000.00 only on or before 15-07-2019.
5.1 We also note that there will be sufficient payment of tax after the further payment of Rs. 20,000.00 towards the tax. Accordingly, we direct the Revenue to release the bank account/ accounts from the attachment of the assessee.
5.2 However, we grant the stay subject to the condition that the assessee shall not alienate his immovable properties, if any, without the prior consent of the Administrative Commissioner of Income Tax having jurisdiction over this case in order to protect the interest of the revenue till the arrears are discharged for the assessment year 2015-16.
5.3 Accordingly, we direct that the said outstanding demand be kept in abeyance till the disposal of the appeal by the Tribunal or for a period of 6 months whichever is earlier. We also direct the registry to fix the appeal of the assessee for hearing out of turn on 6th August 2019. It is also important to SP No.103/Ahd/2019 In ITA No.272/Ahd/2019 A.Y. 2015-16 4 note that the assessee shall not seek any adjournment of the case on the date of hearing and if he does so, the bench hearing the appeal of the assessee will be at liberty to revoke this order granting a stay of recovery of the outstanding demand. Thus, the stay petition filed by the assessee is allowed in terms of above.
6. In the result, the Stay Petition filed by the assessee is allowed.
Order pronounced in the Court on 01/07/2019 at Ahmedabad.
-Sd- -Sd- (MAHAVIR PRASAD) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER manish Ahmedabad; Dated 01/07/2019