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M/s. Kalaignar TV Pvt. Ltd Versus The Deputy Commissioner of Income-tax, Non Corporate Circle – 20, Chennai

Stay of recovery of tax demand - AO stay asking to the assessee to pay 50% of the outstanding demand in 18 equal monthly instalments. However, the assessee has not complied with the order of the AO granting the stay - Assessee failed to get relief from CIT(A), CCIT, CBDT - Now, the plea of the ld. AR is that absolute stay to be granted to the assessee as the assessee is Golden Egg laying Goose and immediate recovery of the outstanding disputed amount of tax would destroy the dayto- day operation .....

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ingency to pay the outstanding demand by instalments. Since, the assessee has not paid any amount so far towards demand, we are not intending to grant absolute stay as requested by the assessee. On the other hand, we are inclined to grant conditional stay as follows:

(i) The assessee shall pay ₹ 10 crores on or before 15th Sept., 2015.

(ii) The assessee shall pay 10% of the collection including receivables from various heads to the Department towards outstanding deman .....

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e.

(v) The assessee shall submit to the AO all details of bank account being operated by the assessee as of now. Thus, all the revenue, receipts and receivable shall deposit in various accounts to be brought to the knowledge of the Assessing Officer, once in every week and the assessee shall furnish the copy of challan of payment of 10% of the collections including receivables to the Department once in a week i.e. Friday of every week. Accordingly, recovery of balance outstanding tax .....

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: Shri T. Ravikumar, Sr. Standing Counsel ORDER PER CHANDRA POOJARI, ACCOUNTANT MEMBER By these stay petitions, the assessee seeks stay of outstanding disputed demand of tax as follows: A.Y. 2009-10 A.Y. 2010-11 Tax ₹ 6,36,60,340 ₹ 59,40,53,087 Interest ₹ 2,92,34,528 ₹ 21,38,59,113 Total ₹ 9,28,94,768 ₹ 80,79,12,200 Total = 90,08,06,968/- (Rs. 9,28,94,768 + 80,79,12,200 3. The ld. AR submitted that for these assessment years the assessee filed a loss of retur .....

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ug b) Disallowance of ₹ 8,17,16,474/- towards interest payment to Cineyug c) Disallowance of depreciation on the capitalized interest paid to Cineyug of ₹ 1,76,87,320/- ( on petition u/s.154, this was reduced to ₹ 47,59,490/-.) According to the ld. AR, these additions cannot be made under law, as the entire amount was came by way of banking channel and the entire addition was made on surmises and presumptions. He also submitted that all the ingredients required to be proved u/s .....

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) 10,31,35,455 3) 2014-15 (-) 15,52,46,053 Further, the ld. AR submitted that due to the losses made by the assessee, its paid capital of about ₹ 10 crores has already been eroded as the accumulated loss as on 31.03.2015 is approximately ₹ 38.53 crores. According to the ld. AR, day to day running of the assessee company is made possible only because of open cash credit account with a limit of ₹ 85 crores, sanctioned by India Bank, Kodambakkam Branch. Against this limit of ͅ .....

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of surrendering the Title deed. Therefore, the ld. AR prayed that the entire demand of ₹ 90,08,06,868/- may be stayed till the disposal of the appeal by the Tribunal. 4. On the other hand, the ld. DR submitted that stay shall not be granted in this case, as the assessee could not prove the financial difficulties. Without prejudice to the above, he submitted that assessee may be asked to pay atleast 50% of the outstanding disputed demand of tax. With regard to the averments made by the ass .....

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facts that the statement of the profit and loss account for the financial year 2011-12 of the assessee clearly shows that out of a total expense of ₹ 95.81 crores depreciation and amortization itself accounted to ₹ 41.47 crores and thereafter only the assessee had arrived at a net loss before tax at ₹ 10.47 crores. Thus, the loss of the assessee company is only a bookloss which is mainly due to depreciation and amortization which are non cash item and therefore, the claim of t .....

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arrears payable by the assessee and in the interest of justice, suitable safeguards are to be made so that the tax demand is realized in time as the same forms part of the consolidated fund of the Union Government and other welfare activities of the State are curtained and therefore, the ld. DR prayed that keeping in mind the larger public interest, the Tribunal may be rejected the stay petition as devoid of merits and thus render justice. 5. We have heard both the parties and perused the materi .....

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and. Against this order of the CCIT, the assessee went in appeal before the Member, Revenue, CBDT, who rejected the assessee s request for grant of stay vide her order dated 12.2.2014. Once again, the assessee went in appeal before the Chairman, CBDT, who granted stay vide order dated 17.2.2014 upto 15.4.2014 or disposal of the appeal by the CIT(Appeals). The CIT(Appeals) has not disposed of the matter. Once again, the assessee requested the Chairman, CBDT to extend the stay for further period. .....

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5.2015. On 29.5.2015, the appeals and stay petitions were adjourned to 24.6.2015. On 24.6.2015, the same was adjourned to 6.8.2015, at the request of the Revenue. Again on 6.8.2015, the same was adjourned to 27.8.2015. However, on 27.8.2015 the stay petitions are posted to 28.8.2015 and the appeals are posted to 8.10.2015. Now, the plea of the ld. AR is that absolute stay to be granted to the assessee as the assessee is Golden Egg laying Goose and immediate recovery of the outstanding disputed a .....

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