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Income Tax Appellate Tribunal - Delhi

Dev Milk Foods Pvt Limited, New Delhi vs Acit Special Range-3, New Delhi on 23 August, 2019

                      In the Income-Tax Appellate Tribunal,
                         Delhi Bench '(Friday)', New Delhi

                 Before : Shri R.K. Panda, Accountant Member And
                        Ms. Suchitra Kamble, Judicial Member

                               S.A. No. 869 /Del/2019
                            (in ITA No.6767/Del/2019)
                             Assessment Year: 2015-16

      Dev Milk Foods Pvt. Ltd., F-26/124,           vs. ACIT, Special Range-3
      Sector-7, Rohini, New Delhi.                      New Delhi
      PAN- AACCD2586M
      (Appellant)                                         (Respondent)

                   Appellant by         Sh. Kapil Goel, Advocate
                   Respondent by        Ms. Naina Soin Kapil, Sr. DR

                    Date of Hearing                      23.08.2019
                    Date of Pronouncement                23.08.2019

                                         ORDER
Per Suchitra Kamble, J.M.:

This Stay Application is filed in respect of total outstanding demand of Rs. 1,60,64,920/-.

2. The Ld. AR submitted that the assessee has paid 20% of demand i.e. Rs. 46,50,130 and also department has adjusted refund for A.Y. 2016-17, 2017-18 and 2018-19 of Rs.15,94,082/-. The Ld. AR submitted that the assessee has a prime facie case for granting stay. The Ld. AR submitted that CBDT vide Instruction No. 5/2016 dated 14.07.2016 mentioned that while proposing to take up 'Complete Scrutiny' in a case which was originally earmarked for 'Limited Scrutiny', the Assessing Officer shall be required to form a reasonable view that there is possibility of under assessment of income if the case is not examined under 'Complete Scrutiny'. Further the Board clarified that while forming the SA No. 869/Del/2019 2 reasonable view, the Assessing Officer would ensure that there exists credible material or information available on record for forming such view; the view should not be based on mere suspicion, conjecture or unreliable source; and there must be a direct nexus between the available material and formation of such view. The Ld. AR submitted that all these factors are missing in assessee's case. Thus, the Ld. AR submitted that Stay of the outstanding demand may be granted as well as early hearing may also be granted.

3. The Ld. DR opposed the Stay Application vehemently.

4. We have heard both the parties and perused the material available on record. The assessee has already paid more than 40% of the outstanding demand. Prima facie, the Ld. AR made out a case for granting stay as well as early hearing. Therefore, we are granting Stay for three months or till the disposal of the appeals whichever is earlier. The Ld. AR also made out a good case for early hearing. Therefore, we are directing the registry to place the appeal for hearing on 24/09/2019. We would also like to make it clear that on the fixed date of hearing of the appeal, the assessee will not seek any adjournment for any reason, if any adjournment is sought by the assessee the Stay granted will automatically stand vacated. Registry is directed accordingly. Dasti.

5. In result, Stay Application is allowed.

Order pronounced in open Court on this 23rd day of August, 2019 Sd/- Sd/-

        (R.K. Panda)                                           (Suchitra Kamble)
        Accountant Member                                        Judicial member


Dated: 23.08.2019
*aks*
Copy of order forwarded to:
(1)     The appellant                        (2)   The respondent
(3)     Commissioner                         (4)   CIT(A)
(5)     Departmental Representative          (6)   Guard File
                                                                                          By order
                                                               SA No. 869/Del/2019       3


                                                                         Assistant Registrar
                                                              Income Tax Appellate Tribunal
                                                                   Delhi Benches, New Delhi



Date of dictation

Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the fair order is placed for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar Date of dispatch of the Order