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Income Tax Appellate Tribunal, DELHI BENCH: ‘FRIDAY’, NEW DELHI
Before: SHRI BHAVNESH SAINI & SHRI O.P. KANT
This application for a stay on recovery of the demand filed by the assessee is arising out of the ITA No. 5774/Del./2014 for assessment year 2009-10. This application was listed earlier on 20/07/2018 and the Tribunal after hearing the parties in the order pronounced on 20/07/2018, directed the Department to 2 S.A. No.516/Del./2018 compute the quantum of brought forward losses and determine the resultant outstanding demand payable by the assessee. The relevant direction of the Tribunal is reproduced as under:
“5. We have heard the rival submissions qua the issue raised in the impugned stay application and also perused the relevant material referred to before us. First of all, it is an undisputed fact that in the present case stay was granted by the Tribunal on the outstanding demand which has been extended from time to time. On last date of hearing, due to unavoidable circumstances the counsel could not appear and hence this Tribunal has vacated this stay and accordingly fresh stay application has been filed and has been contested on merits before us. Apart from other issues raised in the present appeal, we find that one of the major issues relates to set-off of brought forward losses in the present assessment year which is to the tune of Rs. 6.51 crores. This issue has been raised before the Tribunal in the present appeal vide ground No. 2.4. Under these facts and circumstances, we direct the AO to verify the assessee’s claim of brought forward losses after giving effect to the earlier appellate orders; and if such loses are quantified, then ostensibly it will result into reducing the substantial demand. Ld. AO should give his remand report within 30 days from the date of this order and assessee is also directed to cooperate with the AO to provide all the relevant details, work out the appeal effect alongwith the appellate order so as to assist the AO in the quantification of losses. In the meantime the entire outstanding demand shall be stayed. List this stay application on 27th August, 2018, which is a date fixed for appeal of the assessee.”
Before us, the learned DR has filed remand report signed by the Assessing Officer, wherein after giving benefit of the set-off of carry forward losses of ₹ 9,44,17,936/-, the demand payable by the assessee has been worked out to ₹ 4,53,58,400/-. The learned Assessing Officer in his report has submitted that refund of ₹ 4,07,33,490/- has already been adjusted against the said demand and now the balance amount of ₹ 46,24,910/- is payable by the assessee.
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The learned counsel of the assessee has submitted that out of the payable amount of ₹ 4,53,58,400/- demand of ₹ 4,07,33,490/- has already been adjusted and the remaining amount is approximately 10% of the outstanding demand. The ₹ learned counsel further submitted that additions of 1,87,96,240/- has been made on account of AMP expenses which is highly disputable and the assessee is likely to get relief on this account. The learned counsel submitted that any additional payment at this stage would render the valuable right of the appeal nugatory and meaningless and would cause hardship to the assessee and accordingly submitted that outstanding demand of ₹ 46,24,910/- might kindly be stayed.
On the contrary, the learned DR submitted that the stay was earlier vacated due to the delay in disposal was attributable to the assessee and therefore the assessee might be asked to pay the balance outstanding demand. 5. We have heard rival submission of the parties and perused the material on record. We find that amount of ₹ 4,07,33,490/- has already been recovered by way of adjustment of the refund out of the total demand of ₹ 4,53,58,400/- and now only demand of ₹ 46,24,910/- is outstanding from the assessee in the assessment year under consideration. In view of the substantial amount already recovered, without giving any comment on the merit of the case, we stay the outstanding demand for a period of six months or till the disposal of the appeal, whichever is earlier, subject to the condition that the assessee shall cooperate in the disposal of the appeal and will not seek adjournment without any sufficient and adequate reasons.
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In result, the Stay Petition of the assessee is allowed with aforesaid directions. Order pronounced in the open court on 14th February, 2020.