Income Tax Appellate Tribunal - Pune
Rahul Cables Pvt.Ltd,, Pune vs Pr. Commissioner Of Income Tax -3,, Pune on 9 March, 2018
आयकर अऩीऱीय अधधकरण "बी" न्यायऩीठ ऩण
ु े में ।
IN THE INCOME TAX APPELLATE TRIBUNAL "B" BENCH, PUNE
श्री डी. करुणाकरा राव, ऱेखा सदस्य, एवं श्री ववकास अवस्थी, न्याययक सदस्य के समक्ष ।
BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM
रोक आवेदन सं. / SA Nos.12 to 14/PUN/2018
(Arising out of ITA Nos1168 to 1170/PUN/2017)
यनधाारण वषा / Assessment Years : 2009-10 to 2011-12
Rahul Cables Pvt. Ltd.,
Office No. 114-115, 1st Floor,
East Wing, Arora Tower,
M.G. Road, Pune-411001
PAN : AABCR4218B
.......अऩीऱाथी / Applicant
बनाम/Vs.
Pr. Commissioner of Income Tax-3,
Pune
......प्रत्यथी / Respondent
Assessee by : Shri S.N. Doshi
Revenue by : Dr. Vivek Aggarwal
सन
ु वाई की तारीख / Date of Hearing : 09-03-2018
घोषणा की तारीख / Date of Pronouncement : 09-03-2018
आदे श / ORDER
PER VIKAS AWASTHY, JM :
These applications have been filed by the assessee with a prayer to stay of recovery of outstanding demand arising out of assessment orders passed u/s. 143(3) r.w.s. 263 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") for the assessment years 2009-10 to 2011-12. 2
SA Nos.12 to 14/PUN/2018, A.Ys. 2009-10 to 2011-12
2. Shri S.N. Doshi appearing on behalf of the assessee submitted that assessments were reopened in assessment years 2009-10, 2010-11 and 2011-12 on account of purchases made by assessee from alleged Hawala dealers. The Assessing Officer in assessment order passed u/s. 143(3) r.w.s. 147 of the Act made addition of 20% of the total such purchases. The assessee paid entire tax demand arising out of reassessment proceedings in all the three assessment years. Thereafter, the Commissioner of Income Tax invoked the provisions of section 263 and made addition of entire purchases made from alleged Hawala dealers. 2.1 The ld. AR contended that the assessee has prima-facie good case in its favour and the balance of convenience is also in favour of the assessee. The assessee has already paid 100% tax demand arising from reassessment proceedings. The additional demand has been created by Assessing Officer while giving effect to the revisional order of Commissioner of Income Tax. The additional demand created in the impugned assessment years is as under :
Assessment Year Amount
2009-10 Rs.2,12,50,130/-
2010-11 Rs.1,09,87,160/-
2011-12 Rs.60,28,480/-
Total Rs.3,82,65,770/-
2.2 The ld. AR further informed that the appeals of assessee arising from order of Commissioner of Income Tax passed u/s. 263 for the impugned assessment years in ITA Nos. 1168 to 1170/PUN/2017 are listed for hearing before Tribunal on 24-04-2018.
3
SA Nos.12 to 14/PUN/2018, A.Ys. 2009-10 to 2011-12
3. Dr. Vivek Aggarwal representing the Department vehemently opposed the stay applications filed by assessee. The ld. DR submitted that during reassessment proceedings the Assessing Officer after giving specific findings that the purchases made by assessee are bogus purchases from notified Hawala dealers has made addition of only 20% of such purchases. The Commissioner of Income Tax in revisional proceedings has rightly made addition of the entire bogus purchases. The ld. DR prayed for dismissing the stay applications filed by assessee.
4. We have heard the submissions made by representatives of rival sides. The Commissioner of Income Tax in proceedings u/s. 263 has made additions of the entire purchases arising from Hawala transactions. The assessee is already in appeal against the order of Commissioner of Income Tax passed u/s. 263 in all the three assessment years i.e. assessment years 2009-10, 2010-11 and 2011-12. The additional demand has been created in proceedings giving effect to the order of Commissioner of Income Tax by Assessing Officer. Prima-facie we find some merits in the submissions of ld. AR of assessee.
5. Taking into consideration entire facts, we deem it appropriate to stay the recovery of outstanding demand arising in all the three assessment years subject to following conditions :
(i). The assessee shall deposit a sum of Rs.40 lakhs in four equal monthly installments in the following manner :
(a). Rs.10 lakhs shall be paid by assessee on or before 25-03-2018.4
SA Nos.12 to 14/PUN/2018, A.Ys. 2009-10 to 2011-12
(b). Rs.10 lakhs shall be paid by assessee on or before 20-04-2018.
(c). Rs.10 lakhs shall be paid by assessee on or before 20-05-2018.
(d). Rs.10 lakhs shall be paid by assessee on or before 20-06-2018.
The first (a) and third (c) installments shall be deposited towards tax demand for assessment year 2009-10. The assessee shall deposit Rs.5,00,000/- each for assessment year 2010-11 and 2011-12 from second (b) and fourth (d) installments.
(ii). The assessee shall produce proof of deposit of installments on the date of hearing of appeal.
(iii). That the assessee shall not seek frivolous adjournments. If the assessee desires to file a paper book, then the same should be submitted in accordance with ITAT Rules before the date of hearing of appeals.
(iv). That an early hearing is hereby granted and the appeal is directed to be fixed for hearing on 24-04-2018. Since, the date of hearing is informed to both the parties, issuance of separate notice of hearing to the parties is dispensed with.
(v). In case of breach of any of the above conditions, the stay granted shall automatically get vacated and the assessee shall also loose the benefit of early hearing of appeal. 5
SA Nos.12 to 14/PUN/2018, A.Ys. 2009-10 to 2011-12
6. Subject to compliance of above conditions, the recovery of balance outstanding demand is stayed for a period of 180 days from the date of this order or till the disposal of appeals, whichever is earlier.
7. In the result, stay applications filed by assessee are allowed in the terms aforesaid Order pronounced in open Court after hearing of the Stay Application on Friday, the 09th day of March, 2018.
Sd/- Sd/-
(डी. करुणाकरा राव/D. Karunakara Rao) (ववकास अवस्थी / Vikas Awasthy)
ऱेखा सदस्य / ACCOUNTANT MEMBER न्याययक सदस्य / JUDICIAL MEMBER
ऩुणे / Pune; ददनाांक / Dated : 09th March, 2018. RK आदे श की प्रयिलऱवऩ अग्रेवषि / Copy of the Order forwarded to :
1. अऩीऱाथी / The Appellant.
2. प्रत्यथी / The Respondent.
3. Pr. Commissioner of Income Tax-3, Pune
4. ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, "बी" बेंच, ऩुणे / DR, ITAT, "B" Bench, Pune.
5. गाडड फ़ाइऱ / Guard File.
//सत्यावऩत प्रयत // True Copy// आदे शानस ु ार / BY ORDER, यनजी सधचव / Private Secretary, आयकर अऩीऱीय अधधकरण, ऩुणे / ITAT, Pune