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2013 (9) TMI 112 - AT - Income TaxDeduction u/s 80U - Stay of demand order - Held that - assessee is physically handicapped person, suffering from 52% physical disability because as per return of income, he is claiming deduction under section 80-U of the Income Tax Act, 1961. The assessee has also attached a copies of Income Tax returns for the assessment years 2010-2011, 2011-2012 & 2012 -2013 along with the computation of taxable income, which shows that the financial position of the assessee is very weak - it is a fit case for grant of stay of outstanding demand in dispute because the assessee has already paid Rs.15,22,450/- out of total demand in dispute and to meet ends of justice, it is sufficient to grant stay of demand - Decided in favour of assessee.
Issues:
Stay application for outstanding demand of Rs.1,09,68,965/-, physical disability of the assessee affecting income source, grant of stay till appeal disposal or 180 days, financial position of the assessee. Analysis: The assessee filed a Stay Application seeking relief from an outstanding demand of Rs.1,09,68,965 out of a total demand of Rs.1,24,91,415. The counsel for the assessee highlighted that the demand arose from long-term capital gains and tax adjustments for the assessment year 2008-09. The assessee, a physically handicapped individual with 52% permanent disability, primarily relies on pension income from being an Ex-M.P. and Ex-MLA, along with interest income. The counsel argued for a stay of the demand until appeal disposal, citing a similar case where stay was granted subject to payment. The Departmental Representative suggested allowing the assessee to pay the demand in installments during the appeal process. Upon review, the Tribunal noted the assessee's physical disability, evidenced by a deduction claimed under section 80-U of the Income Tax Act, 1961. Financial documents for subsequent assessment years revealed the weak financial position of the assessee. Considering these factors, the Tribunal deemed it appropriate to grant a stay of the outstanding demand. Noting that the assessee had already paid a significant portion of the demand, the Tribunal found it just to stay the remaining amount until the appeal's disposal or 180 days, whichever is earlier. The Tribunal acknowledged the unique circumstances of the case, where the assessee's disability and limited income sources warranted compassionate consideration. As a result, the Tribunal granted the stay application in favor of the assessee. The order specified the duration of the stay and scheduled the main appeal for a hearing date. The decision aimed to balance the interests of the assessee with the need for tax compliance, ensuring a fair and just resolution in line with the principles of equity and justice. In conclusion, the Tribunal's decision to grant the stay application reflected a nuanced consideration of the assessee's physical disability, financial constraints, and the overall merits of the case. By balancing the need for tax collection with the assessee's circumstances, the Tribunal upheld the principles of fairness and equity in its judgment.
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