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October 2023

Recovery of tax — Stay of demand — Application for stay pleading financial hardship — Plea should be considered and speaking order passed thereon.

By K B Bhujle, Ritu Punjabi
Advocates
Reading Time 3 mins

49. Tungabhadra Minerals Pvt Ltd vs. Dy. CIT [2023] 455 ITR 311 (Bom.) A.Y. 2008–09: Date of order: 30th September, 2022

Recovery of tax — Stay of demand — Application for stay pleading financial hardship — Plea should be considered and speaking order passed thereon.

Pursuant to search and seizure against the assessee u/s. 132 of the Income-tax Act, 1961, the assessment for A.Y. 2008-09 was completed u/s. 143(3) r.w.s. 153A of the Act after making an addition of R264.59 crores and consequently demand of R239.54 crores was raised. The assessment order was challenged in an appeal before the CIT(A) which was pending.

The assessee filed a stay application on 30th July, 2021 requesting for a stay of demand on the ground that the assessment order was bad and illegal. The assessee also pleaded financial difficulty. The assessing officer rejected the assessee’s application for stay of demand vide order dated 11th August, 2021 without assigning any reasons.

The assessee made an application before the Principal Commissioner largely on the grounds of financial stringency. However, vide order dated 17th November, 2021, the Principal Commissioner did not accept the plea of the assessee and directed the assessee to make payment of 10

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