2019 (10) TMI 646 - AT - Income Tax

Extension of stay - stay of demand for a further period of 180 days from today - Refund adjustment against the demand - HELD THAT - Refund of Rs. 28 crores for AY 2015-16 will be adjusted against the demand of AY 2012-13 as the same could not be done presently for the reason that the refund exists on PAN No. AABCI0605H while the demand exists on PAN No. AAACW1663L in the name of erstwhile company. Hence to resolve this aspect of refund the AO is directed to take necessary action at his end. On this assessee has stated that the assessee has given consent for the same. Accordingly we extend this stay of demand for a further period of 180 days from today for both the years on the following conditions - (i) AO will resolve the issue of refund of Rs. 28 crores pertaining to AY 2015-16 and will grant this refund to the assessee. In turn the assessee will deposit this amount of Rs. 28 crores relating to demand for AY 2012-13 within 7 working days from the date of receipt of the refund. (ii) AO will verify the refund for AY 2004-05 2005-06 and 2007-08 and if there is refund arising out of the above assessment years then the same is to be adjusted against the demand of AY 2013-14. For this the Revenue will inform the Tribunal after verifying how much is the refund for these assessment years pending and Tribunal in turn will require the assessee to give consent for adjustment of the same against the demand of AY 2013-14. (iii) The appeal is already fixed for hearing on 13.05.2019 which will remain the same and both parties will try to argue the matter so that the same can be disposed off quickly. In term of the above the stay is extended for both the years for further 180 days from today i.e. 01.05.2019.

Summary

Issues:
Extension of stay for demand in AY 2012-13 and AY 2013-14, Adjustment of refund against demands, Adjournment of hearings, Compliance with Tribunal's directions.

Extension of Stay for Demand:
The assessee sought an extension of stay for demands amounting to Rs. 53,64,25,715/- in AY 2012-13 and Rs. 61,21,61,170/- in AY 2013-14. The Tribunal had previously granted a stay subject to conditions, including payment of Rs. 15 crores by a specified date and prompt payment of a refund due to the Revenue. The assessee proposed adjusting a refund of Rs. 28 crores against the demands and requested the AO to adjust refunds from previous assessment years against the demand for AY 2013-14.

Adjournment of Hearings:
The counsel for the assessee clarified that adjournments were not sought by the assessee, and hearings were adjourned due to various reasons after the original stay order, leading to delays in the proceedings. The Tribunal considered the status of the demand and actions taken on refund adjustments as per its directions.

Adjustment of Refund Against Demands:
The AO informed the Tribunal that due to different PANs, the refund could not be adjusted against the demand for AY 2013-14, and efforts were made to resolve this issue. The Tribunal directed the AO to resolve the refund issue and adjust the refund against the demand once resolved. The counsel for the assessee consented to the adjustment of the refund against the demand for AY 2012-13.

Compliance with Tribunal's Directions:
The Tribunal extended the stay for a further 180 days, subject to conditions that the AO resolves the refund issue for AY 2015-16, the refund for previous assessment years is verified and adjusted against the demand for AY 2013-14. Both parties were directed to argue the matter for quick disposal, and the stay was extended until 01.05.2019. The Tribunal allowed the stay applications of the assessee based on the compliance with the specified conditions.

In conclusion, the Tribunal granted the extension of stay for the demands in AY 2012-13 and AY 2013-14, emphasizing the need for the AO to resolve refund issues and adjust refunds against the demands as per the Tribunal's directions. The compliance with conditions set by the Tribunal was crucial for the extension of the stay, ensuring the proper adjustment of refunds and expeditious disposal of the matter.