M/s Vijayshree Food Products Pvt. Ltd. vs ACIT

R.K. Panda, AM

The assessee, through this Stay Application requests the Tribunal to stay the realization of outstanding demand of Rs.21,32,900/-.

The learned counsel for the assessee referring to the contents of the Stay Application submitted that as against the returned income of Rs.18,78,467/-, the Assessing Officer has completed the assessment determining the total income at Rs.1,71,21,533/-. The learned CIT(A) has dismissed the appeal filed by the assessee. He submitted that out of the total outstanding demand of Rs.76,66,103/- including interest of Rs.21,10,931/- u/s 234B of the Act, the assessee has already paid an amount of Rs.55,33,203/- which constitutes more than 72% of the total demand. While explaining the prima facie case in favour of the assessee, the learned counsel for the assessee referring to various decisions submitted that the assessee has a strong prima facie case in its favour, since, the assessment has been framed in utter disregard of provisions of section 153C of the Act and against the various decisions rendered by the Hon'ble Apex Court and the Hon'ble jurisdictional High Court.

So far as, the balance of convenience is concerned, the learned counsel for the assessee submitted that the assessee is not in a position to make any further payment since the financial condition of the assessee is very bad. He accordingly submitted that full stay should be granted to the assessee for the balance amount. He also requested for an out of turn hearing of the appeal.

The learned DR on the other hand, strongly opposed the Stay Application filed by the assessee. He submitted that the assessee has not filed its bank statement to explain its financial condition. Therefore, the assessee should be directed to deposit the entire amount forthwith.

We have heard the rival arguments made by both the sides and perused the record. Since, the assessee in the instant case has already paid more than 70% of the total outstanding demand, therefore, we are of the considered opinion that this is a fit case for granting stay on realization of balance outstanding demand for a period of six months from today or till the disposal of the appeal whichever is earlier. The request of the assessee for out of turn hearing of the appeal is also accepted and the appeal is fixed for hearing on 15.06.2021 which was announced in the open court. It was further announced that no separate notice of hearing shall be sent to which both the parties agreed. The Stay application filed by the assessee is accordingly disposed off in the terms indicated hereinabove.

Oder pronounced in the open court at the time of hearing itself i.e. on 16/04/2021.