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2020 (9) TMI 906 - AT - Income TaxStay petition - authorised representative submitted that assessee did not have any assets available with it for furnishing of the security and therefore same cannot be given - HELD THAT:- Total net worth of the company is invested in government dues. The main reason of the negative net worth of the company is apparent from the balance sheet of 2017 wherein cumulatively assessee has written of the investment in subsidiaries of ₹ 1772 crores. Along with the audited accounts, the financial statement or audited financial statements of subsidiaries were not provided. But, according to the words of the assessee, total investment in the subsidiary of ₹ 1772 crores is worthless. Without having the financials of the subsidiary company and mainly the loss arising on account of writing of the permanent diminution in the value of the investment in the subsidiaries of the company of ₹ 1772 crores, it cannot be measured whether the assessee has anything to pay to the government of India towards this tax dues. In this situation, as per the order of the coordinate bench dated first of January 2020, the interest of the revenue is grossly hampered if the assessee is granted further stay of demand, despite assessee paying further ₹ 5 crores towards the outstanding dues. In view of the above situation, it is not even worth mentioning state of affairs of the assessee and further litigations shown to us by the learned authorised representative for extension of the stay. Even assuming while denying, the assertions made by the learned authorised representative that assessee has a strong prima facie case, we are not inclined to grant further stay of the above demand advocate the stay already granted forthwith. It is further to note that subsequent to the order of the coordinate bench dated first of January 2020, of all these financial affairs were not brought to the notice of the coordinate bench either by the assessee or by the revenue. Therefore on looking at the overall compactus of the fact of the issue involved in the appeal, the financial status of the company appellant petitioner, the present status of the working of the company, known disclosure of the financial statements of the subsidiaries whose investments have been written of, known provision of the names of the present directors, we are not in a position to extend the stay. Further so far as the interest of the revenue is concerned it is our prime and foremost duty to safeguard it when the stay is granted. Subsequent statement of affairs presented before us do not show that we are in any way be keeping the interest of the revenue safeguarded. Despite declining the stay on the merits of the issue but we are extending the Stay till 31st August, 2020, only for Covid-19 reasons.
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