Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (9) TMI 1349 - ITAT CHENNAI

2015 (9) TMI 1349 - ITAT CHENNAI - TMI - 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 t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

establish that there exists financial stringency 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s in any place in the name of the assessee.

(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. Accordin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

marai Kannan, Advocate For The Respondent : 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

inter corporate deposit taken from Cineyug 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

1) 2012-13 (-) 10,47,47,275 2) 2013-14 (-) 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, Kodamb .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

unable to offer any security in the form 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. Wit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

red huge losses is not correct due to the 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 no .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

otected when there is a huge outstanding 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 hear .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

also rejected the stay of outstanding demand. 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, CBD .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd the case was posted for hearing on 29.5.2015. 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 immedia .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version