2019 (1) TMI 683 - AT - Income Tax

Stay of disputed outstanding demand - Held that - As submitted by the assessee that the assessee is not in a position to make any further payment of the disputed outstanding tax and the assessee will be satisfied if early hearing is granted by rejecting this stay petition but in that case, the revenue should be directed for not taking any coercive measures for recovery till the end of the week in which the hearing is fixed. DR of the revenue had no objection regarding granting of early hearing by rejecting the stay petition. As considered the rival submissions and in view of the facts discussed above, we reject the stay petition and grant early hearing. The hearing of the appeal is fixed on 10.12.2018 and the revenue is directed that no coercive measures for recovery should be adopted by the revenue till 14.12.2018. Since the date of hearing was pronounced in open court, no notice of hearing is required to be issued. Stay petition filed by the assessee is dismissed.

Summary

Issues: Stay of disputed outstanding demand for A.Y. 2015-16

Analysis:
The Appellate Tribunal ITAT BANGALORE heard a stay petition filed by the assessee seeking a stay on the disputed outstanding demand of ?51,16,895 for the assessment year 2015-16. During the hearing, the assessee's representative expressed inability to make further payments towards the disputed tax and requested early hearing instead of granting the stay. The assessee agreed to forego the stay if early hearing was provided, with a condition that the revenue should refrain from taking coercive recovery measures until the hearing date. The revenue did not object to the early hearing proposal. Consequently, the Tribunal rejected the stay petition and decided to grant an early hearing. The appeal hearing was scheduled for 10.12.2018, and the revenue was directed not to take any coercive recovery actions until 14.12.2018. The Tribunal emphasized that as the hearing date was announced in open court, no separate notice was necessary. Ultimately, the Tribunal dismissed the stay petition, and the order was pronounced in open court on the hearing date.

This judgment primarily revolves around the stay petition filed by the assessee concerning the disputed outstanding demand for the assessment year 2015-16. The Tribunal carefully considered the submissions made by both parties during the hearing. The assessee's representative highlighted the financial constraints preventing further payment of the disputed tax, leading to the request for early hearing instead of a stay. The Tribunal took note of this request and decided to reject the stay petition while granting an early hearing to address the matter promptly. The Tribunal's decision to schedule the appeal hearing for a specific date and direct the revenue not to undertake coercive recovery measures until a specified timeframe demonstrates a balanced approach to resolving the issue at hand. By ensuring that the hearing date was publicly announced in court, the Tribunal eliminated the need for a separate hearing notice, streamlining the procedural aspects of the case. Ultimately, the Tribunal's dismissal of the stay petition and the subsequent pronouncement of the order in open court reflect a decisive resolution to the matter, maintaining transparency and procedural fairness throughout the process.