9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (1) TMI 651 - AT - Income TaxStay Application - Arithmetic adjustment of 5% - Computing deduction u/s. 10A - the contention of the assessee that arithmetic adjustment has to be made as provided in statutory provisions merits consideration - Likewise while computing the deduction u/s. 10A of the Income-tax Act 1961 the factors which are reduced from the export turnover need to be reduced from the total turnover also - Therefore the assessee has a prim facie case for grant of stay of recovery of the outstanding amount - Accordingly the recovery of the outstanding amount of Rs.2, 64, 54, 812 is hereby stayed subject to the condition that the assessee shall pay a sum of Rs.20 lakhs every month towards the outstanding amount - The first instalment of Rs.20 lakhs shall be deposited on or before 7.2.2011. Likewise the other instalments shall be deposited on or before 7th day of every English calendar month till the disposal of the appeal- If the assessee fails to deposit any one of the monthly instalment the stay shall stand automatically vacated without any further reference to this Tribunal - the Stay Application of the assessee is allowed.
Issues: Stay of recovery of outstanding tax amount, computation of tax liability under section 92C, deduction u/s. 10A, instalment payment for outstanding amount.
The judgment by the Appellate Tribunal ITAT Hyderabad, delivered by Shri N.R.S. Ganesan and Shri Akber Basha, considered a Stay Application filed by the assessee seeking to halt the recovery of an outstanding amount of Rs.2,64,54,812. The assessee argued that under section 92C of the Income-tax Act, 1961, an arithmetic adjustment would significantly reduce the tax liability. The representative highlighted the necessity of +/- 5% adjustments and contended that certain expenses deducted from export turnover should also be deducted from total turnover for computing deduction u/s. 10A. The Tribunal acknowledged the merit in the assessee's contentions, granting a stay on the recovery subject to the condition that the assessee pays Rs.20 lakhs monthly towards the outstanding amount, with the first instalment due by a specified date and subsequent instalments by the 7th day of each month. Failure to deposit any monthly instalment would automatically vacate the stay without further reference to the Tribunal. The learned DR suggested the assessee could deposit the outstanding amount in instalments, which was considered by the Tribunal. The Tribunal found the assessee's argument regarding the necessity of arithmetic adjustments under statutory provisions and the requirement to deduct certain expenses from both export and total turnover for calculating deduction u/s. 10A to be valid. Consequently, the Tribunal granted the stay on recovery of the outstanding amount of Rs.2,64,54,812, with the assessee required to make monthly payments of Rs.20 lakhs, failing which the stay would be automatically vacated. The Tribunal emphasized the need for the first instalment to be paid by a specified date and subsequent instalments by the 7th day of each month until the appeal's disposal. In conclusion, the Appellate Tribunal ITAT Hyderabad, through the judgment delivered by Shri N.R.S. Ganesan and Shri Akber Basha, allowed the Stay Application of the assessee, providing detailed instructions for the payment of the outstanding amount in monthly instalments to maintain the stay on recovery.
|
