2012 (9) TMI 924 - AT - Income Tax

Extension of stay on collection of outstanding demand - Held that - We are of the opinion that the stay on collection of outstanding demand be extended for a further period of 180 days from 7.9.2012 or till the disposal of appeal whichever is earlier. The appeal is posted for hearing on 29th October 2012.

Summary

Issues: Stay application for extension of stay on collection of outstanding demand.

Analysis:
The stay application was filed by the assessee in relation to ITA No.1086/Bang/2011 seeking an extension of stay on the collection of an outstanding demand amounting to Rs. 64,00,121. The issues involved in the case were related to transfer pricing adjustment and computation of deduction under section 10A of the Income Tax Act, 1961. The total demand raised, including interest, was Rs. 2,09,01,121. The assessee had already paid taxes amounting to Rs. 1,45,00,000, leaving an outstanding demand of Rs. 64,01,121, which solely pertained to the interest component. The counsel for the assessee argued that the assessee had a strong case supported by precedents set by the Tribunal.

The Departmental Representative acknowledged that the outstanding demand of Rs. 64,01,121 was solely related to the interest portion, as the entire tax component had been paid by the assessee. Consequently, the Departmental Representative had no objection to the extension of the stay on the collection of the outstanding demand as requested by the assessee. After considering the submissions from both parties, the Tribunal decided to grant an extension of the stay on the collection of the outstanding demand for an additional 180 days from 7.9.2012 or until the disposal of the appeal, whichever was earlier. The appeal was scheduled for a hearing on 29th October 2012. The registry was instructed to post the appeal on the mentioned date and issue necessary notices. Ultimately, the stay petition was allowed by the Tribunal, and the order was pronounced in open court on 07.09.2012.