Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 730 - HC - Income TaxStay application - Stay on outstanding demand u/s 254(2A) of the Act – Held that:- In KEC International Limited vs. B.R. Balkrishana [2001 (3) TMI 32 - BOMBAY High Court] court has laid down guidelines for disposal of stay application under the Act - the order of stay must record/set out briefly the case of the assessee and also look at the questions involved in the appeal and the amount required to be deposited considering the issue in appeal - The Tribunal has after considering Section 10 of the Act has prima face accepted the assessee's contention that income of Rs.442 Crores attributable to dividend, mutual fund and long terms capital gain would not be assessed to tax as it is not includable in income chargeable to tax - Section 10 and 11 of the Act are not mutually exclusive - It is the character/ nature of income that is to be excluded from total income u/s 10 of the Act - at this stage a complete stay on the tax attributable to income excluded u/s 10 of the Act is unexceptionable. The Tribunal has not followed the parameter laid down KEC International Limited vs. B.R. Balkrishana [2001 (3) TMI 32 - BOMBAY High Court] - A prima facie case does not mean mere disputing the liability to pay the tax - It would necessarily mean a strong arguable case - This could only be established by respondent assessee if it is pointed out why and how no tax would be payable on Rs.44 Crores – there was no mention of the reason even prima facie in the order of the Tribunal - there has been no application of mind even prima facie in respect of the dispute as regards payment of Rs.44 lacs as tax by the respondent-assessee – the order proceeds to grant a stay of recovery of Rs.290 crores on the ground that for a major part of outstanding demand, the assessee has a good prima facie case – the appeal is scheduled for hearing, thus, no need for interference – but if it is adjourned, then the assessee is required to submit 50% of the amount – Decided partly in favour of Revenue.
|