2022 (9) TMI 1664 - AT - Income Tax

Seeking stay on recovery of outstanding demand - HELD THAT - We are of the view that the assessee deserves conditional stay. Further keeping in view the submission of assessee we direct the AO to adjust refund of Rs. 39 crores stated to be due to the assessee towards recovery of a part of the demand raised for the impugned assessment year. Subject to such adjustment as directed recovery of the balance outstanding demand shall remain stayed for a period of 180 days from the date of this order or till the disposal of the corresponding appeal of the assessee whichever is earlier. Further accepting assessee s prayer we direct the Registry to fix the corresponding appeal for hearing on 14.11.2022 on an out of turn basis.

Summary

The Appellate Tribunal (ITAT Delhi), per JM Saktijit Dey, granted a conditional stay on the recovery of an outstanding demand of Rs. 277.07 crores for AY 2018-19, filed by the assessee. The assessee contended "duplication in the addition made by the Assessing Officer" and alleged that the AO's order was "deficient" and failed to implement the Dispute Resolution Panel's directions, rendering the demand "unsustainable." The assessee also claimed a refund of Rs. 39 crores, which was directed to be adjusted against the demand.The Tribunal held that merits of disputed additions would be examined at appeal hearing but found the assessee "deserves conditional stay." Accordingly, the AO was directed to adjust the Rs. 39 crore refund against the demand, and recovery of the balance was stayed for 180 days or until disposal of the appeal, whichever is earlier. The appeal was scheduled for hearing on 14.11.2022 on an out-of-turn basis. The Tribunal warned that adjournment requests without compelling reasons risk "vacation of stay."In sum, the stay application was "partly allowed," balancing the assessee's refund adjustment and stay of recovery pending appeal resolution.