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2019 (3) TMI 909 - AT - Income TaxStay petition - as per DR the applicant should be directed to deposit at least 50% of the outstanding demand before the stay is granted - HELD THAT - We are of the view that the assessee company has a prima facie case and this is a fit case for granting unconditional stay as well as early hearing as 35% of total demand is already paid by the assessee company. Therefore, we grant stay for a period of six months (180 days) or till the disposal of appeal whichever is earlier. We would also like to make it clear that on the fixed date of hearing of the appeal, the assessee will not seek any adjournment for any reason. If any adjournment is sought by the assessee, the Stay granted will automatically stand vacated.
Issues: Stay Application for outstanding demand of ?21,79,180 for Assessment Year 2015-16.
Analysis: 1. Prima Facie Case and Payment: The applicant submitted that approximately 35% of the total tax demanded had already been deposited. The expenses incurred by the assessee were argued not to fall under the Explanation to Section 37(1) of the Act. The applicant requested complete stay of the outstanding demand, citing precedents where similar expenses were considered as business expenditure. The applicant expressed inability to deposit any further tax. 2. Opposition and Deposit Requirement: The Departmental Representative opposed the applicant's plea for complete stay, suggesting that the applicant should deposit at least 50% of the outstanding demand before any stay is granted. 3. Tribunal Decision: After hearing both parties, the Tribunal found that the assessee company had a prima facie case and had already paid 35% of the total demand. Consequently, the Tribunal granted an unconditional stay for a period of six months or until the appeal's disposal, whichever is earlier. The appeal was scheduled for an early hearing on a fixed date, with a condition that no adjournment would be sought by the assessee. Any adjournment request would automatically vacate the granted Stay. 4. Outcome: The Tribunal allowed the stay application, emphasizing the need for an early hearing and compliance with the fixed hearing date. The order was pronounced in the Open Court on 15th March 2019.
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