INCOME TAX ACT, 1961

Section 220

Recovery of tax - Stay of demand - Assessee had prima faice case for grant of stay -

Assessee through this stay application pleaded Tribunal to stay on realization of the outstanding demand and applicable interest under section 220. AO completed the assessment under section 143(3) determining the total income of assessee under the normal provisions. However, he accepted income declared under section 115JB. He submitted that assessee filed an appeal before CIT(A) and appeal of assessee as well as revenue are pending before the Tribunal. AO alongwith order passed under section 143(3) had also made an adjustment and raised demand under section 115QA by levying tax and interest in respect of buy back of shares made by Genpact pursuant to a scheme of arrangement. Held: Assessee had prima facie case for grant of stay subject to certain conditions. Tribunal therefore, without commenting upon the merits of the case, stay the outstanding demand for a period of 6 months or disposal of the appeal whichever might expire earlier subject to payment a sum by assessee to revenue within 30 days and directed AO to adjust the refund arising to the assessee for assessment year 2010-11 against outstanding demand for assessment year 2014-15. Plea of the assessee for out of turn hearing was also accepted and the appeal was fixed for hearing which was announced in the open court. Assessee was hereby directed to file the paper book in advance and not to sought any adjournment under any pretext failing which the stay granted to assessee shall stand vacated automatically.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2014-15

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