Income Tax Appellate Tribunal - Mumbai
Sahil Shah Trading P. Trust , vs Assessee on 14 December, 2012
IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH, "E",
MUMBAI
BEFORE SHRI D. MANMOHAN, VICE PRESIENT (MZ) AND
SHRI RAJENDRA SINGH, ACCOUNTANT MEMBER
SA No: 353/Mum/2012
Arising out of : ITA No.2446/Mum/12
Assessment Year : 2008-09
Salil Shah Family Pvt. Trust Income tax Officer (IT) 2(1)
10th Flr. G-Block, The IL&FS Mumbai.
Financial Centre
Bandra (E) Vs.
Mumbai-400 051.
PAN No.: AAFTS 9295 Q
(Applicant) (Respondent)
Applicant by : Shri Mayur Kisnadwala
Respondent by : Shri Mohit Jain
Date of hearing : 14.12.2012
Date of Pronouncement : 14.12.2012
ORDER
Per RAJENDRA SINGH (AM).
This stay application has been filed by the assessee requesting for stay of demand for the assessment year 2008-09. The demand had arisen pursuant to the assessment made for the said year in which the capital gain declared by the assessee from sale and purchase of shares had been treated by the AO as business income. It had resulted into tax demand of Rs.1,29,09,484/- and interest of Rs.55,84,170/-. The 2 SA No.353/M/12 Arising out of ITA No.2446/M/12 A.Y:08-09 assessee had paid 50% of demand including interest of Rs.92,46,827/- and has requested for stay of the balance demand.
2. The ld. AR for the assessee at the time of hearing of the petition submitted that there were several decisions of the Tribunal in which in identical situation income from sale and purchase of shares has been accepted as capital gain. It was pointed out that in case of Shri Salil Sevantilal Shah the trustee of the assessee trust the vide order dated 7.9.2010 in ITA No.3229/M/2009 has accepted the claim of the trustee for purchase and sale of shares was investment activity and accordingly capital gain declared was upheld. It was also submitted that the funds of the assessee stayed invested and bank balance as on 14.12.2012 was only Rs.3,31,891/- and therefore, the assessee will face hardship if it is coerced to pay the disputed amount. The ld. AR also submitted that the assessee was willing to pay further amount of Rs.18.00 lacs if the demand was stayed and appeal was taken up for early hearing. The ld. Departmental Representative had no serious objection in the matter in case the assessee paid some further demand.
3. Considering the facts and circumstances of the case, we stay the demand for a period of six months or till the disposal of the appeal whichever comes earlier subject to payment of Rs.18.00 lacs by the 3 SA No.353/M/12 Arising out of ITA No.2446/M/12 A.Y:08-09 assessee by 15.01.2013. The appeal will be fixed for early hearing on 28.01.2013. In case the assessee seeks adjournment on the date of hearing, the stay granted shall automatically be vacated.
4. In the result the stay application of the assessee is allowed on the terms indicated above.
Order pronounced in the open court on 14.12.2012 Sd/- Sd/-
(D. MANMOHAN) ( RAJENDRA SINGH )
VIDE PRESIDENT ACCOUNTANT MEMBER
Mumbai, Dated: 14.12. 2012.
Jv.
Copy to: The Applicant
The Respondent
The CIT, Concerned, Mumbai
The CIT(A) Concerned, Mumbai
The DR " " Bench
True Copy
By Order
Dy/Asstt. Registrar, ITAT, Mumbai.