Sama Srinivasa Reddy, Hyderabad vs Assessee

Sama Srinivasa Reddy, Hyderabad vs. Dy. Director of Income-tax (Exemptions), Hyderabad. PAN - ASAPS 6729A (Applicant) (Respondent)

Assessee by : Shri S. Rama Rao Revenue by : Shri Rajat Mitra

Date of hearing 20-02-2015 Date of pronouncement 20-02-2015

ORDER PER SAKTIJIT DEY, J.M.:

Assessee has filed this stay application seeking stay recovery of outstanding demand of Rs. 8,41,186 pertaining to AY 2009-10.

2. Ld. AR submitted before us that assessee is deriving income from business as well as from house property. It was submitted, AO completed assessment ex-parte u/s 144 of the Act by determining the total income at Rs. 32,82,960 as against returned income of Rs. 7,09,060. He submitted, while doing so, AO treated cash deposits in the bank account amounting to Rs. 25,73,902 as unexplained income of assessee. Ld. AR submitted that CIT(A) granted partial relief as a result of which the demand was partially reduced and at present the outstanding is to the tune of Rs. 8,41,186. Ld. AR submitted that assessee is having a strong prima-facie case as addition has been made without properly appreciating the facts and evidences. Ld. AR submitted that at present the financial position of assessee also does not permit him to pay the outstanding demand. Ld. AR further 2 S.A. No. 06/Hyd/2015 Sama Srinivasa Reddy

submitted, the situation has also been made worse by attachment notice issued by AO attaching the rental income. He, therefore, prayed for grant of absolute stay.

3. The ld. DR, on the other hand, opposed grant of absolute stay and submitted that assessee may be directed to pay 25% of the outstanding demand.

4. We have considered the submissions of the parties and perused the materials on record. After examining the prima-facie case and balance of convenience, we are not in favour of grant of absolute stay to assessee. However, we grant conditional stay by directing assessee to pay an amount of Rs. 2.25 lakh on or before 15 th of March, 2015. Subject to payment of aforesaid amount, balance outstanding demand will remain stayed for a period of six months or till the disposal of the appeal, whichever is earlier. For facilitating the payment of the aforesaid amount, as directed, we direct AO to immediately withdraw the attachment notice issued to Reliance Trans Connect in so far as it relates to present assessee. We make it clear that in the event of assessee failing to pay the amount as directed, the stay order will automatically be vacated and the entire outstanding demand will be liable for recover from assessee.

6. In the result, stay application is partly allowed.

Pronounced in the open court on 20/02/15 upon conclusion of hearing.

Sd/- Sd/- (P.M. JAGTAP) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated: 20 th February, 2015 3 S.A. No. 06/Hyd/2015 Sama Srinivasa Reddy

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Copy to:- 1) Sri Sama Srinivasa Reddy, H.No. 5-2-413/38,

Sahebnagar Kalan, Vanasthalipuram, Hyderabad.

2) ITO, Ward - 9(1), Hyderabad.

3) The CIT(A)-VI, Hyderabad 4) CIT-VI, Hyderabad 5) The Departmental Representative, I.T.A.T., Hyd.