2010 (7) TMI 1112 - AT - Income Tax

Summary

Issues involved: Stay petition u/s Rule 35(A) of ITAT Rules, 1963 for stay of tax demands.

Summary:
The assessee filed a stay petition u/s Rule 35(A) of the ITAT Rules, 1963 seeking to stay demands of Rs. 11,20,023. The total tax demand was Rs. 20,67,196, comprising tax of Rs. 15,66,897 and interest of Rs. 5,00,296. The department had already collected Rs. 1,77,890 and Rs. 6,61,892 against refunds for assessment years 2008-09 and 2009-10, leaving a balance outstanding demand of Rs. 11,20,023. The assessee argued that their financial position was not conducive to pay the remaining demand and claimed to have a strong prima facie case with a reasonable hope of success on appeal before the Tribunal. The Departmental Representative opposed the request.

After considering both sides and the submissions, including the existence of a prima facie case, financial constraints, revenue interests, and balance of convenience, the Tribunal found it a fit case to grant stay. Consequently, the stay petition was allowed, and the stay was granted until the appeal's disposal by the Tribunal.

This judgment was pronounced in open court on 23.7.2010.