2019 (1) TMI 1058 - AT - Income Tax

Stay of demand - Penalty levied u/s 271AAB - Held that - The assessee has already paid more than 41% of the demand and the stay was granted at the time of filing the appeal, however, due to release of the appeal, the stay granted by the Tribunal was expired, we find it proper to grant stay against the balance outstanding demand up to 28/2/2019. The appeal of the assessee is now fixed for hearing on 13/02/2019. The next date of hearing has been announced in the open court and has been noted by both the parties, therefore, no separate notice shall be issued in this regard. The parties are directed not to take any adjournment except in unavoidable circumstances. Stay petition allowed.

Summary

Issues:
Stay against outstanding demand of penalty under Section 271AAB of the Income Tax Act, 1961.

Analysis:
The Appellate Tribunal ITAT Jaipur considered a Stay petition filed by the assessee seeking relief against the outstanding demand of penalty imposed under Section 271AAB of the Income Tax Act, 1961. The penalty amount levied by the Assessing Officer was ?1,00,10,000, out of which the assessee had already paid ?41,59,744, which was more than 41% of the total demand. The Tribunal had previously granted a stay against the outstanding demand when the appeal was filed, considering the fact that the assessee had already paid over 40% of the total demand. However, due to the release of the appeal for fresh hearing, the stay granted by the Tribunal had expired. Therefore, taking into account the circumstances and the fact that the assessee had already paid a significant portion of the demand, the Tribunal decided to grant stay against the balance outstanding demand up to 28/2/2019. The appeal was scheduled for a hearing on 13/02/2019, and both parties were directed not to seek adjournments unless absolutely necessary. Ultimately, the Stay petition was allowed, and the order was pronounced in open court on 11th January 2019.