Case Law Details
It is observed that when the appeals of the assessee challenging the imposition of penalty were pending before the ld. CIT(A) and the prayer of the assessee for stay of outstanding demand on account of the said penalty was rejected by the revenue authorities, the assessee had moved writ petitions before the Hon’ble Bombay High Court and vide two separate orders passed on 13th January 2013, their lordships granted the stay of outstanding demand subject to the payment of Rs. 50,00,000/- for each of the two years after considering all the submissions made on behalf of the assessee which have now been reiterated before us in support of the present stay applications. The said stay was granted by the Hon’ble Bombay High Court till the disposal of the penalty appeals by ld. CIT(A) and since the ld. CIT(A) has already disposed of the said appeals, the balance outstanding demand is being sought to be stayed by the assessee by the present stay applications. Although the ld. Counsel for the assessee has submitted that a sum of Rs. 50,00,000/- has already been paid by the assessee against the penalty imposed for each of the two years under consideration, it is pertinent to note that the same has been paid as per directions of the Hon’ble Bombay High Court and not voluntarily by the assessee. The ld. Counsel for the assessee no doubt has made an attempt to show that the assessee has a good prima-facie case to succeed on merit in its appeal filed before the Tribunal. However this matter can be decided finally only after hearing both the sides while disposing of the appeals of the assessee by the Tribunal. Moreover, the financial position of the assessee is very sound as agreed even by its ld. Counsel and any further recovery of the outstanding demand on account of penalty is not going to cause any genuine hardship to the assessee. At the same time, government also needs liquid funds to manage its day to day affairs. Having regard to all these facts & circumstances, we are of the view that the stay of outstanding demand for both the years can justifiably be granted subject to a further payment of Rs. 50,00,000/-by the assessee against the penalty imposed for each of the two years under consideration. Accordingly, we direct the assessee to deposit a further sum of Rs. 50,00,000/- against the outstanding demand for each of the two years by 10/02/2014. Subject to the said payment, the balance outstanding demand for both the years under consideration is stayed for a period of six months or till the disposal of the assessee’s appeals by the Tribunal, whichever is earlier. The registry is directed to fix the said appeals of the assessee for hearing of out of turn on 13.02.2014 as announced in the open court and taken note by the learned Representatives of both the sides.
INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI
BEFORE SHRI P.M. JAGTAP, AM AND SHRI VIVEK VARMA, JM
S.A. No.332 /Mum/2013 – (Arising out of ITA No. 7650/Mum/2013)
Assessment Year 2004-05
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