Shenzhen Shandong Nuclear Power ... vs Assessee

ी मक ु ु ल कुमार ावत, या यक सद य एवं ी एन.एस. सैनी, लेखा सद य के सम% BEFORE SHRI MUKUL Kr. SHRAWAT, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER Stay Petition No.120/Ahd/2014 IN ITA No. 1050/Ahd/2014 [Asstt. Year: 2009-10]

Shenzhen Shandong Nuclear DCIT (International Taxation)-II Power Construction Co. Ltd. Vs Ahmedabad. C/o. Hinesh R. Doshi & Co. Nd Floor, Shriram Bhuvan 772, Tilak Road Opp: Best Office, Dadar T.T. Mumbai 400 014.

PAN : AAMCS 1163 P

अपीलाथ'/ (Applicant) )*यथ'/ (Respondent)

Assessee(s) by : Ms.Urvashi Shodan, AR Revenue by : Shri Roopchand, Sr.DR

सन ु वाई क तार ख/ Dateof Hearing : 20/02/2015 घोषणा क तार ख / Date of Pronouncement: 27/02/2015

आदे श/O R D E R

PER MUKUL Kr. SHRAWAT, JUDICIAL MEMBER:

Through this Stay Petition dated 17.12.2014, the Petitioner has requested for stay of the outstanding demand as under:

1. Assessment Year : 2009-10

2. Date of filing the : 10/04/2014 appeal and ITA No. ITA No.1050/Ahd/2014

3. From the demand : Tax Demand : Rs.2,89,60,540 give break-up Interest : Rs.1,71,39,060/-

Total : Rs.4,60,99,600/- SP No.120 of 2014 2

4. (a) Amount already : NIL (Rs.1,56,02,944/- TDS credit paid not given) (b) Amount : Rs.4,60,99,600/- outstanding (c) Amount which : The whole tax demand including is not disputed interest is disputed. out of (b) above.

5. (a) Details of Stay : Yes, Application was made to DDIT, Application made to International Taxation-II, the Revenue Ahmedabad vide letter dated Authorities, ITO/CIT/ 25/3/2014(copy enclosed). IAC

2. In recent past, we have passed an interim stay order dated 23.1.2015, wherein we have directed as under:

"4. Heard both the sides. Our attention has been drawn on a certificate vide Form No.l6A about the deduction of tax at source u/s.203 dated 30th April, 2009 issued by the deductor, M/s. Vedanta Aluminium Ltd. giving the details of the amount paid and respective TDS deducted Rs. 1,56,02,944/-. Considering this evidence on record, we hereby direct the Revenue Authorities to verify the details of this certificate issued on Form No.16A and thereupon give the credit of the TDS amount against the outstanding demand as per law. Thereafter, the Revenue Department is also directed to furnish the correct position of the outstanding demand against this assessee arising from the order of Deputy Director of Income Tax, (International Taxation-II), Ahmedabad order passed u/s.143 r.w.s. 144C(1) of IT Act dated 11.2.2014. We have been informed that in this regard a rectification application u/s.154 of IT Act for A.Y. 2009-10 was moved before Deputy Director of Income Tax (International Taxation-II) Ahmedabad dated 18th March, 2014 along with evidence on Form 16A but that application is still pending. It is expected from the Revenue Department to comply with these directions by 20th of February, 2015 and meanwhile it is hereby directed not to press for the recovery of the outstanding demand. No coercive action shall be taken till the next date of hearing, fixed for 20th of February, 2015 for the final disposal of this Stay Petition, order duly pronounced in the Court."

3. In the light of the above background, we have heard both the sides.

SP No.120 of 2014 3 4. We have been informed from the side of the Revenue department that no such information, as directed is available presently. On the other hand, from the side of the applicant, two foreign nationals have also appeared and pleaded that the applicant is passing through great financial difficulties as well as apprehend coercive action from the side of the Revenue department. Therefore, they have expressed that they have an apprehension of some strict legal action due to recovery pressure, generally happens in the month of March.

5. We have heard both the sides and considered facts, as narrated in the stay petition. Our attention has been drawn on the position of the TDS collected as per Form No.16A issued by the deductor, viz. Vedanta Aluminum Ltd. amounting to Rs.1,56,02,944/-. Our attention has also been drawn to the petition dated 19.3.2014 filed by the assessee to DIT (International Taxation), Raipur, Camp Office at Ahmedabad wherein it was pleaded that there were refunds for Asstt.Years 2010-11, 2011-12 and 2012-13 of substantial amount, which could have always been adjusted against the present outstanding demand. The applicant has also moved an application under section 154 of the Income Tax Act for certain rectification, which is stated to be pending for disposal. Thus, considering overall circumstances, we are of the view to grant stay to this petitioner for a period of six months or till finalization of the order of the Tribunal, whichever shall prevail first. Since, we are granting stay to the assessee, in the fitness of the circumstances, it is reasonable to grant an out-of-turn early hearing. After having consultation with both the sides, now, this appeal shall be heard on 18th June, 2015. This date is pronounced in the open court and duly noted by both the sides. Meanwhile, the Revenue department can grant necessary adjustments as mentioned hereinabove, and in case of any wrong statement from the side of the applicant, can again come to this Tribunal with the correct facts about the rebate of tax, as claimed by the applicant.

SP No.120 of 2014 4 6. Resultantly, the stay is granted for six months or till the disposal of this appeal, whichever date shall prevail first, and the stay petition is hereby allowed.

Order pronounced in the Court on Friday the 20th February, 2015 at Ahmedabad.

Sd/- Sd/- ( N.S. SAINI) (MUKUL KR. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER