DELOITTE CONSULTING INDIA P. LTD , v. DCIT 2(2) ,, Income Tax Appellate Tribunal, Judgment, Law, casemine.com

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Case Number

SA 52/Mum-2011

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Smart Summary

Presiding Officer:

R.S. Syal, AM

Parties Involved:

Background:

The present case involves a stay application filed by the assessee seeking a stay on the demand amounting to ₹58,19,389, which includes interest calculated under Sections 234B and 234C of the Income Tax Act, for the assessment year 2002-2003. The total demand raised against the assessee is ₹83,48,354, which includes the aforementioned interest.

Facts:

The assessee has already made a payment of ₹25,28,965 towards the total demand of ₹83,48,354.
The remaining demand for which the stay is sought is ₹58,19,389.
The learned Counsel for the assessee requested that the remaining demand be stayed until the final disposal of the appeal.
The Departmental Representative opposed the grant of the stay application.

Arguments:

For the Assessee:

The Counsel argued that the substantial payment already made demonstrates the assessee's commitment to comply with the tax obligations and that the remaining demand should be stayed to prevent undue hardship until the appeal is resolved.

For the Department:

The Departmental Representative contended against the granting of the stay, although specific arguments were not detailed in the notes.

Decision:

The stay application was reviewed and, in light of the circumstances presented, it was decided to allow the stay application as requested by the assessee.

Outcome:

The demand of ₹58,19,389 is stayed until the final disposal of the appeal.

Significance:

This decision highlights the court's recognition of the need to balance the interests of tax compliance with the potential financial burden on the assessee, particularly when a substantial portion of the demand has already been settled.

Next Steps:

Await the final resolution of the appeal concerning the assessment year 2002-2003.
Monitor any further developments or requirements from the court regarding the case.

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DELOITTE CONSULTING INDIA P. LTD , v. DCIT 2(2) ,

Per R.S.Syal, AM : By means of this present stay application the assessee seeks to get the stay of demand amounting to Rs.58,19,389 inclusive of interests u/ss. 234B and 234C of the Act, for the assessment year 2002-2003 till the final disposal of the appeal.

2. The learned Counsel for the assessee stated that the assessee has already paid a sum of Rs.25,28,965, out of the total demand of Rs83,48,354 inclusive of interest. It was argued that the assessee has a good case before the tribunal on merits. He, therefore, prayed that the remaining demand of Rs.58,19,389 be stayed till the final disposal of the appeal. On the other hand, the learned Departmental Representative opposed to the grant of stay.

3. We have heard the rival submissions and perused the relevant material on record. After considering the entire conspectus of the facts and keeping in view the financial position of the assessee as stated by the learned A.R., we find that out of total demand of Rs.83,48,354 inclusive of interest, the assessee has already paid a sum of Rs.25,28,965 and the balance outstanding is Rs.58,19,389. By such payment, the interest of the Revenue is protected. We, therefore, deem it appropriate to grant the stay of remaining demand till the disposal of the appeal or SA No.52/Mum/2011 M/s.Deloitte Consulting India Private Limited. a period of 180 days from the date of this order, whichever is earlier subject to the further payment of Rs.5,00,000 on or before 11th March, 2011. It has been brought to our notice that the case is coming up for hearing on 24.03.2011. This stay is subject to the condition that the assessee shall file an undertaking before the AO to the effect that it shall not alienate any of its immovable properties till the disposal of the present appeal. Further the assessee will not seek adjournment without just cause. In case any of the above conditions are not complied with, the case will be de-listed from the priority list and come up for hearing in the normal course. With these observations and subject to the above terms and conditions, the stay application of the assessee gets disposed off accordingly.

4. In the result, the stay application is allowed in above terms. Order pronounced on this 04th day of March, 2011. Sd/- Sd/- (R.S.Padvekar) (R.S.Syal) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai : 04th March, 2011. Devdas* Copy to :

1. The Applicant.

2. The Respondent.

3. The CIT concerned

4. The CIT(A) XXXII, Mumbai.

5. The DR/ITAT, Mumbai.

6. Guard File. TRUE COPY. By Order ` Assistant Registrar, ITAT, Mumbai.

DELOITTE CONSULTING INDIA P. LTD , v. DCIT 2(2) ,

Presiding Officer:

Parties Involved:

Background:

Facts:

Arguments:

For the Assessee:

For the Department:

Decision:

Outcome:

Significance:

Next Steps:

DELOITTE CONSULTING INDIA P. LTD , v. DCIT 2(2) ,

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