Sama Janardhan Reddy, Hyderabad vs Assessee
- CitationITA No.1313/Hyd/2014) : Assessment year 2009-10
Ratio decidendi
The rule this decision rests on
The Tribunal may grant a stay of the balance of an outstanding tax demand, pending disposal of the assessee's appeal, on the assessee's payment of a part of the demand, where the demand consists substantially of interest and the part-payment offered is found fair and reasonable in the circumstances; and in exercising that discretion it may direct the Assessing Officer to lift the attachment of the assessee's rental income as a condition of, or precursor to, the assessee making that part-payment.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Stay Application No.7/Hyd/2015 (in ITA No.1313/Hyd/2014) : Assessment year 2009-10
Shri Sama Janardhan Reddy, V/s. Income Tax Officer Ward 9(1), Hyderabad Hyderabad
(PAN - BJEPS 6092 N)
(Applicant) (Respondent)
Applicant by : Shri S.Rama Rao
Respondent by : Shri Rajat Mitra DR Date of Hearing 2.3.2015 Date of Pronouncement 2.3.2015
ORDER
Per P.M.Jagtap, Accountant Member :
By this Application, assessee is seeking stay of outstanding demand of Rs.24,28,104 for assessment year 2009-10.
2. We have heard the arguments of both the sides and also perused the relevant material on record. As submitted by the learned counsel for the assessee, the amount of outstanding demand has arisen as a result of addition made by the Assessing Officer under S.69 and further enhancement made by the learned CIT(A). As further submitted by the learned counsel for the assessee, the department has already issued notices under S.226(3) of the Act attaching the immovable properties of the assessee as well as the rental income receivable by him. He has submitted that if the attachment in respect of at least the rental income is vacated/lifted, the assessee is ready to pay 20% of the outstanding demand by 20th of March, 2015. Although the Learned 2 SA No.7/Hyd/2015 (in ITA No.1313/Hyd/2014) Shri Sama Janardhan Reddy, Hyderabad
Departmental Representative has insisted that the assessee should be made to pay at least 50% of the outstanding demand, we are of the view that the outstanding demand, being comprised of interest amounting to Rs.10.26 lakhs, it would be fair and reasonable to accept the offer of the assessee to pay 20% of the total outstanding demand, for grant of stay of the balance of the outstanding demand. Accordingly, we direct the Assessing Officer to vacate/lift the attachment in respect of the rental income of the assessee immediately. Thereafter, the assessee shall pay 20% of the total outstanding demand by 20th of March, 2015, and subject to the said payment, balance outstanding demand for assessment year 2009- 10 is directed to be kept in abeyance for a period of six months or till the disposal of the appeal of the assessee, viz. ITA No.1313/Hyd/2014, which is already fixed for hearing on 6.4.2015.
4. In the result, stay application of the assessee is allowed in terms indicated above.
Order pronounced in the court at the conclusion of hearing on 2nd March, 2015 Sd/-
(Asha Vijayaraghavan) (P.M.Jagtap) Judicial Member Accountant Member
Dt/- 2nd March, 2015
Copy forwarded to:
1. Shri Sama Janardhan Reddy, H. No.5-2-413 Sahebnagar Kalan, Vanasthalipuram, Hyderabad
2. Income Tax Officer Ward 9(1), Hyderabad
3. Commissioner of Income-tax(Appeals) VI, Mumbai
4. Commissioner of Income-tax V, Hyderabad
5. Departmental Representative, ITAT, Hyderabad.
B.V.S
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