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Income Tax Appellate Tribunal - Mumbai

Tata Autocomp Systems Ltd , vs Assessee on 16 March, 2012

                 IN THE INCOME TAX APPELLATE TRIBUNAL
                        MUMBAI BENCH 'E' MUMBAI

         BEFORE SHRI B.R. MITTAL (JUDICIAL MEMBER) AND
             SHRI P.M. JAGTAP (ACCOUNTANT MEMBER)

                          S.A. No. 119/Mum/2012
                  (Arising out of ITA No. 7354/M/2011_
                         Assessment Year-2007-08
 M/s. Tata Autocomp Systems Ltd.,           The ACIT, Circle 2(3),
Bombay House,                               Mumbai
24, Homi Mody Street, Fort,
Mumbai-400 001                        Vs.

PAN-AAACT 1848E
           (Appellant)                                (Respondent)

                             Appellant by: Shri R. Murlidhar
                            Respondent by: Shri D.S. Sunder Singh

Date of Hearing :16.03.2012
Date of pronouncement:16.03.2012

                                  ORDER

PER B.R. MITTAL, JM :

By this Stay application, assessee has prayed to stay the outstanding demand of Rs. 3.21 crores for assessment year 2007-08.

2. At the time of hearing, Ld. AR submitted that entire demand has arisen on account of grant of interest free loan by assessee to its associated enterprises on account of commercial expediency. Ld. AR submitted that amount has been added on notional basis and if the said addition is deleted, no tax liability will accrue. Ld. AR further submitted that refund of Rs. 4.17 crores approximately is due to assessee on account of assessment year 2010- 11 and assessment year 2011-12. He submitted that if stay is not granted, there will be hardship to assessee.

3. On the other hand, Ld. Departmental Representative submitted that assessment for assessment year 2010-11 and 2011-12 are in process and therefore no refund can be said to have become due to assessee as pointed out. He further submitted that if stay is to be granted, assessee be directed to pay atleast 50% of outstanding amount.

4. Considering the facts of the case and submissions of Ld. Representatives of parties, we are of the considered view that it will be fit and proper that assessee has to pay Rs. One crore on or before 31.3.2012 and thereafter the appeal be heard out of turn. Therefore, we direct that stay is granted to assessee subject to condition that assessee will deposit Rs. One crore on or before 31.3.2012 and the appeal be listed out of turn for hearing on 16.4.2012 before 'E' Bench.

5. We may state if assessee take adjournment on the date fixed for, stay shall stand vacated automatically. Since the above date was given in the presence of both representatives, it was made clear that no separate notice for the date of hearing i.e. on 16.4.2012 will be issued.

6. In the result, Stay application of assessee is allowed subject to above condition.

Order pronounced in the Open Court at the time of hearing on 16th March, 2012 Sd/- Sd/-

       (P.M. JAGTAP)                                   (B.R. MITTAL )
     Accountant Member                                Judicial Member

Mumbai, Dated 16th March, 2012
Rj
                           3                          S.A.No. 119/M/2012




Copy to :
1. The Appellant
2. The Respondent
3. The CIT-concerned
4. The CIT(A)-concerned
5. The DR 'E' Bench
True Copy

                                          By Order

                              Asstt. Registrar, I.T.A.T, Mumbai