TMI Blog2012 (9) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee there exists a lack of transparency as AO should have provided opportunity as to why the comparables relied upon by the assessee are not acceptable. And the objections raised by the assessee before the lower authorities were not met by passing a speaking order - the assessee deserves grant of conditional stay on paying the whole of the tax component if easy instalment is granted - partly in favour of assessee. - SA No.96/Hyd/2012 & ITA No.1961/Hyd/2011 - - - Dated:- 15-6-2012 - SHRI D.KARUNAKARA RAO, AND SHRI SAKTIJIT DEY, JJ. Applicant by : Shri K.C.Devadas Respondent by : Shri K.Viswanatham O R D E R Per D.Karunakara Rao, Accountant Member: By this application, assessee seeks stay of recovery of out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of the CBDT, at page 23 of the paper-book, setting out the circumstances in which recovery proceedings cannot be initiated by the assessing officer. He mentioned that when the assessment order is not a speaking one, notwithstanding the financial soundness of the assessee, stay must be granted as per para 2 of the said circular. 4. Assessee s counsel took objection to the manner in which the provisions of S.220(6) were invoked in this case, without taking any decision on the stay application of the assessee pending before the assessing officer. It is unfortunate, according to the learned counsel, that the Revenue authorities did not bother to inform the assessee about the fact of attachment on the bank account of the assessee, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. V/s. B.R.Balakrishnan of Bombay High Court (2001)119 Taxman 974(Bom) Substantially higher than the returned income (figures not mentioned) M.G.M. Transports (Madras) (P) Ltd. V/s. ITO of Madras High Court (2008) 303 ITR 115 (Mad) Substantially higher than the returned income (figures not mentioned) 6. Highlighting the unfair assessment order of the AO/TPO, the learned counsel mentioned that the assessee outsourced the database from the known databases (i) Capitaline Plus and (2) Prowess. At the back of the assessee, the assessing officer picked up the comparables from the database from unknown sources, in violation of the set principles of natural justice. The counsel relied on the arguments con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee for stay of recovery of outstanding demand. If at all, any stay is ordered, he pleaded that at least 50% of the demand may be directed to be paid by the assessee. 10. The learned counsel for the assessee, submitted in view of the stand of the Revenue on the present application, that the assessee would be in a position to pay an amount of Rs.15-lakhs per month, subject to stay of recovery of the balance outstanding demand, pending hearing and disposal of appeal. 11. We heard the parties and perused the material available on record. This is a fact that the assessed income of Rs.14.49 crores is nearly twice the returned income of Rs.8.29 crores. It is also a fact that the assessing officer initiated the recovery proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... illing to pay the whole of the demand, at least the tax component, if easy instalment is granted. We have also discussed in the preceding paras that the Revenue has not attended to the stay application filed by the assessee before them. Considering the above, we are of the opinion that the assessee deserves grant of conditional stay, which is accordingly granted subject to the following conditions- (a) The assessee shall pay the whole of tax component of the demand amounting to Rs.1.97 crores (rounded off). (b) We shall grant instalment facility for the payment of the above demand; (c) Each instalment shall be Rs.15 lakhs per month. (d) The first instalment shall be paid by 30th June, 2012 and each successive instalment shall be pai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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