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2022 (10) TMI 153 - AT - Income TaxStay of demand - recovery of outstanding demand - HELD THAT - Assessee will be put to great hardship if we do not grant a stay. The refund due to the assessee for the earlier years is adjusted against the outstanding demand for the relevant assessment years, which are subject matter of appeal before the Tribunal, that would also amount to recovery of outstanding demand as held in the case of Maruti Suzuki Ltd. 2011 (11) TMI 312 - DELHI HIGH COURT . Therefore, the outstanding demand arising out of issues already decided in favour of the assessee by the Tribunal in the earlier assessment years cannot be recovered, we deem it fit to grant stay of recovery of outstanding demand for a period of 180 days or the final disposal of the appeals, whichever is earlier. Since the issues raised in these appeals are covered by the earlier order of the Tribunal for assessment years 2012-2013 to 2014-2015, we post these appeals for hearing to 21st September, 2022. Since the date of hearing is pronounced in the open Court, both the parties have waived the right to separate notice of hearing. Stay applications filed by the assessee are allowed.
Issues:
Stay of recovery of outstanding tax arrears amounting to Rs.132.48 crore for assessment years 2015-2016 to 2018-2019. Analysis: The Stay Applications sought by the assessee were for the recovery of tax arrears totaling Rs.132.48 crore for the assessment years 2015-2016 to 2018-2019. The issues raised in these appeals mirrored those in the assessment years 2012-2013 to 2014-2015. The Tribunal had previously set aside these issues for the earlier years, directing a fresh assessment by the Assessing Officer. The Departmental Representative confirmed the similarity of the issues in the current appeals to those addressed in the earlier years, which were also remanded by the Tribunal for de novo assessment. The A.O. reported that the disputed issues were akin to adjustments made in the preceding assessment years and were challenged before the Tribunal, resulting in a direction for fresh assessment. The A.O. provided details of the tax demand and payments for the relevant assessment years, highlighting the similarity of issues to those previously adjudicated upon by the Tribunal. The A.O. mentioned that an amount of Rs.54.04 crore had been collected or adjusted against the demand for the assessment years 2012-2013 to 2014-2015. Due to the Tribunal's remand in the assessee's own case for these years, the assessee was entitled to a refund of Rs.54.04 crore, which exceeded 20% of the outstanding demand in the current appeals. Referring to a decision by the Hon'ble Delhi High Court in Maruti Suzuki Ltd., it was noted that outstanding demand arising from issues decided in favor of the assessee by the Tribunal in earlier assessment years could not be recovered. Consequently, a stay of recovery of outstanding demand was granted for 180 days or until the final disposal of the appeals, whichever was earlier. The Tribunal acknowledged that denying the stay would cause significant hardship to the assessee as the refund due for earlier years had been adjusted against the outstanding demand for the current assessment years. In conclusion, the Tribunal allowed the stay applications filed by the assessee, emphasizing that the issues raised in the appeals were already covered by the Tribunal's earlier order for the assessment years 2012-2013 to 2014-2015. The appeals were scheduled for a hearing on 21st September, 2022, as both parties waived the right to separate notice of hearing. The order granting the stay was pronounced on 16th September, 2022.
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