2012 (7) TMI 926 - AT - Income Tax

Stay of collection of outstanding demand tax together with interest - Held that - As the corresponding appeal of the assessee is posted for hearing on 17th October 2012 we are of the opinion that this is a fit case for grant of conditional stay. Accordingly we direct the applicant to pay an amount of 50, 00, 000/- on or before 30 th of each month starting from August 2012 till the disposal of connected appeal

Summary

Issues: Stay of collection of outstanding demand tax and interest

Stay Application Analysis:
The Assessee sought a stay of the outstanding demand tax of Rs. 5,17,57,862 along with interest of Rs. 2,84,66,824. The Assessee had already paid Rs. 1,00,00,000 following an earlier order granting stay. The remaining demand of Rs. 7,02,24,686 was requested to be stayed due to the Assessee's financial inability to meet the demand, with a claim of having a prima facie case on merits. The learned DR opposed the stay petition. The Tribunal considered the arguments and records, noting the upcoming appeal hearing. After evaluating the facts and circumstances, the Tribunal granted a conditional stay, directing the Assessee to pay Rs. 50,00,000 monthly starting from August 2012 until the disposal of the connected appeal (ITA No. 1978/hyd/2011). The Stay Application was partly allowed with this condition imposed. The decision was pronounced on 27/07/2012.