2018 (3) TMI 1846 - AT - Income Tax

Recovery of the demand - During operation of interim stay order, Department has attached Bank A/c of assessee maintained with Bank of America - Taxability of the credit namely Fleet Introductory Assistance ( FIA ) received from IAE (AG) Switzerland and disallowance of supplementary rent - HELD THAT - Considering the facts of the case in the light of material on record and that appeal of the assessee has been heard today and judgment is awaited, we are of the view that interim order granted on 06th December, 2017, could be confirmed till the disposal of the appeal. In view of the above facts and discussion above and the fact that appeal of the assessee has been heard and judgment is awaited, there is no delay attributable to the assessee, the interim order dated 06th December, 2017 is confirmed by directing that the outstanding demand for assessment year under appeal shall remain stayed for a period of six months or disposal of the appeal whichever expire earlier.

Summary

Issues:
1. Stay application against outstanding demand for A.Y. 2012-2013.
2. Taxability of Fleet Introductory Assistance (“FIA”) received from IAE (AG) Switzerland.
3. Disallowance of supplementary rent.

Analysis:
1. The assessee filed a Stay Application against an outstanding demand of &8377; 115,46,26,840/- for A.Y. 2012-2013. The main issues raised by the assessee in the appeal were related to the taxability of FIA received from IAE (AG) Switzerland and the disallowance of supplementary rent. The Counsel for the Assessee argued that the Tribunal had previously ruled in favor of the assessee regarding the nature of FIA as a capital receipt not liable to tax, citing a decision from an earlier assessment year. The Counsel highlighted that the question of law regarding FIA's taxability was admitted by the Hon'ble Delhi High Court in Departmental Appeals, while the issue of supplementary rent did not receive the same admission. The Counsel contended that the assessee had a prima facie case for the grant of absolute stay, especially since the appeal had been finally heard on 12th March, 2018. The Tribunal had previously granted interim stay in the stay application, and the Counsel requested for the continuation of the stay until the appeal's disposal.

2. The Special Counsel for the Revenue did not oppose the submissions made by the Counsel for the Assessee regarding the stay matter. After considering the facts and material on record, and noting that the appeal had been heard with judgment awaited, the Tribunal confirmed the interim order granted on 06th December, 2017, until the appeal's disposal. The Tribunal observed that there was no delay attributable to the assessee, and thus directed that the outstanding demand for the assessment year under appeal would remain stayed for a period of six months or until the appeal's disposal, whichever occurred earlier. Consequently, the Stay Application of the assessee was allowed, and the order was pronounced in the open Court.