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2012 (11) TMI 391 - AT - Income TaxStay filed for monthly remittance - assessee had paid outstanding tax of Rs.3,57,12,514/- against the disputed demand of tax for Rs.10,84,45,192/- and provided security of Rs.7,84,45,192/- - Held that - The assessee has paid approximately 30% of the outstanding tax and has voluntarily provided security to the revenue as per the requirement of Schedule II Rule 34 of the Act As it appears that the issues involved in the appeals are complicated and requires substantial deliberations in the interest of justice and to avoid hardships to the assessee the monthly installments required to be paid of Rs.50,00,000/- is to be reduced to Rs.15,00,000/- to be paid before the end of every month starting from 12th of October, 2012 - partly in favour of assessee.
Issues:
Stay of recovery of outstanding tax payments and monthly installments reduction. Analysis: The case involved Stay Petitions by the assessee against tax demands for multiple assessment years. The assessee had paid a portion of the outstanding tax and provided security for the remaining amount. The learned AR argued against the requirement of additional monthly payments of Rs.50,00,000, citing hardships to the assessee. The IT Act's Schedule II Rule 34 regarding attachment by seizure was also referenced. On the contrary, the DR opposed the stay, alleging non-payment of tax despite opportunities, misrepresentation, non-cooperation, and tax evasion by the assessee. The DR highlighted the petitioner's non-compliance with court directions and alleged diversion of funds for personal use. The DR argued that granting a stay would be contemptuous to court directives. After considering the arguments, the ITAT reduced the monthly installment from Rs.50,00,000 to Rs.15,00,000, acknowledging the assessee's payment and security provision. The ITAT deemed the issues complex, necessitating further deliberation, and directed early hearing of the case. In conclusion, the Stay Petitions were partly allowed, with the monthly installment reduced to Rs.15,00,000 to alleviate hardships on the assessee while ensuring compliance with tax obligations. The decision aimed to balance the interests of both parties and expedite the proceedings for a prompt resolution.
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