2018 (1) TMI 1518 - AT - Income Tax

Stay of demand - recovery proceedings - HELD THAT - Considering the fact that the demand is for all the seven years put together nearly ₹ 200.00 Crs. against which the assessee had paid only ₹ 15.00 Crs, the assessee is granted an installment scheme of ₹ 7.00 Crs. per month representing an installment of ₹ 1.00 Cr. for each of the assessment years in respect of the appeals which the Stay Petitions have been filed. The first installment is to be paid on or before 16.01.2018 and the subsequent installments to be paid on or before 15th of every succeeding month. The appeals of the assessee have been filed on 08.01.2018 and consequently, Registry is directed to post the appeals of the assessee on 19.03.2018. No notice to be issued to the parties as the order has been pronounced in the open court. Stay Petitions filed by the assessee are partly allowed.

Summary

Issues: Stay petitions for multiple assessment years regarding substantial disallowance of payments to Motor Vehicle Dealers

In this judgment by the Appellate Tribunal ITAT Chennai, the Appellant filed Stay Petitions for various assessment years related to substantial disallowance of payments made to Motor Vehicle Dealers. The Appellant was represented by Mr. R. Vijayaraghavan, while the Respondent was represented by Mr. B. Sagadevan, JCIT. The main issue raised by the Appellant was the significant demand amounting to approximately ?200.00 Crs. for all seven assessment years, with a request for a stay on the recovery of disputed taxes until the appeal is decided. The Respondent opposed the Stay Petitions and suggested considering an installment scheme for payment.

The Tribunal, without delving into the merits of the appeals, noted the substantial demand against which the Appellant had paid only ?15.00 Crs. The Tribunal granted an installment scheme of ?7.00 Crs. per month, with an installment of ?1.00 Cr. for each assessment year covered by the Stay Petitions. The first installment was to be paid by 16.01.2018, followed by subsequent installments by the 15th of every succeeding month. The appeals were scheduled for a hearing on 19.03.2018, considering the filing date of 08.01.2018. No further notice was to be issued to the parties as the order was pronounced in open court. Consequently, the Stay Petitions filed by the assessee were partly allowed, providing relief through the installment scheme.

This judgment showcases the Tribunal's approach in balancing the interests of the Appellant seeking a stay on tax recovery pending appeal and the revenue authorities' concerns regarding payment. By granting an installment scheme, the Tribunal ensured a structured payment plan while acknowledging the significant demand amount and the Appellant's financial capacity. The decision highlights the importance of procedural fairness and efficient case management in tax dispute resolution.