Case Law Details
AXA France Vie Vs ACIT (ITAT Delhi)
It is evident, the demand in dispute is as a result of disallowance made under section 40(a)(ia) of the Act due to alleged non-compliance with the provisions of section 194D of the Act. It is the claim of the assessee that the provision contained under section 194D is not applicable to the reinsurance commission. The acceptability or otherwise of the aforesaid contention of the assessee has to be tested when the issue is heard on merits at the time of hearing of the appeal. However, after careful examination of the ratio laid down in various judicial precedents cited before us by learned counsel for the assessee, we are of the prima facie view that the issue in dispute appears to be covered in favour of the assessee by a number of judicial precedents. Therefore, we are inclined to grant expeditious hearing of the corresponding appeal of the assessee. Accordingly, with the consent of both the parties, Registry is directed to fix the appeal for hearing on 28.04.2022. Paper-books, if any, shall be filed by the parties sufficiently ahead of the date of hearing of the appeal, in accordance with the extant rules. Since, the date of hearing of the appeal is announced in the open court in presence of both the parties, issuance of separate notice for hearing to the parties is dispensed with.
As regards the impugned demand, the Assessing Officer may pursue the assessee for paying a part of the demand. However, no coercive action shall be taken by the Assessing Officer for recovery of the demand till the date of hearing of the appeal, i.e., 28.04.2022. It is made clear, in case of any unnecessary adjournment being sought by the assessee, the interim protection granted to the assessee will be vacated and the assessee will also lose the benefit of early hearing of appeal.
FULL TEXT OF THE ORDER OF ITAT DELHI
Captioned application has been filed by the assessee seeking stay on realization of outstanding demand quantified at Rs.6,29,73,067/- pertaining to assessment year 2018-19.
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