2011 (1) TMI 1368 - AT - Income Tax

Seeking stay of recovery of outstanding demands - reduction of outstanding demands - amounts of advance taxes, etc. already paid by the assessee to be adjusted against the gross outstanding demands - part outstanding amount relates to the issue of transfer price, for which it is prepared to furnish a bank guarantee. HELD THAT - The stay of recovery of the outstanding demand granted, subject to the condition that the assessee pays an amount of ₹ 50 lakhs out of the outstanding demand by 31st January, 2011. It has been brought to notice that the appeals of the assessee have already been posted for hearing on 7.2.2011, and as such no direction is required in that behalf. The parties are directed to file the paperbooks, if any desired to be filed, by 31.1.2011.

Summary

Issues:
Stay of recovery of outstanding demands for assessment year 2006-07 pending appeal hearing.

Analysis:
The appellant sought a stay on the recovery of outstanding demands amounting to &8377; 3,96,14,987 and &8377; 1,01,40,232 for the assessment year 2006-07, pending the disposal of its appeals by the Tribunal. The appellant claimed that a significant portion of the outstanding demands should be reduced due to advance taxes paid and requested a rectification petition for adjustment. The remaining balance related to transfer pricing, for which the appellant offered to provide a bank guarantee. The Departmental Representative opposed the grant of stay. After considering the submissions, the Tribunal decided to grant a stay on the recovery of the outstanding demand, with the condition that the appellant pays &8377; 50 lakhs by a specified date. The Tribunal noted that the appeals were already scheduled for hearing, and no further direction was necessary in that regard. The parties were directed to file any necessary documents by a specified deadline. Ultimately, the applications for stay were partly allowed by the Tribunal.

This judgment primarily dealt with the issue of granting a stay on the recovery of outstanding demands for the assessment year 2006-07 pending the appeal hearing before the Tribunal. The appellant's arguments regarding the reduction of outstanding demands due to advance taxes paid and the offer to provide a bank guarantee for the remaining balance were considered. The Departmental Representative's opposition to the grant of stay was noted, but the Tribunal, after evaluating the submissions, decided to allow a partial stay on the recovery of the outstanding demand. The Tribunal imposed a condition for the appellant to make a payment of &8377; 50 lakhs by a specified date as part of the stay order. Additionally, the Tribunal mentioned that the appeals were already scheduled for a hearing, and no further direction was needed in that regard. The parties were instructed to file any necessary documents by a specific deadline set by the Tribunal.