1                      S.A No. 855/Del/2018


                 IN THE INCOME TAX APPELLATE TRIBUNAL
                     DELHI BENCH: `E' NEW DELHI

            BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER
                                     AND
               MS SUCHITRA KAMBLE, JUDICIAL MEMBER
                        S. A NO. 855/Del/2018
                                  In
                (ITA No. 5983/DEL/2018 ( A.Y 2014-15)

     Trilok Chand Chaudhary               Vs   ACIT
     39, Gadai Pur, Mehrauli,                  Central Circle-26,
     New Delhi                                 Room No. 323, E-2, ARA
     AAEPC0683P                                Centre, Jhandewalan,
      (APPELLANT)                              Delhi
                                               (RESPONDENT)


                 Appellant by      Sh. Pranshu Goel, CA
                 Respondent by     Sh. Surender Pal Singh, Sr
                                   (DR)

                  Date of Hearing              22.11.2018
                  Date of Pronouncement        22 .11.2018

                                   ORDER

PER SUCHITRA KAMBLE, JM
     This Stay Application is filed by the assessee against the outstanding
demand of Rs. 175,00,000/- raised by the Revenue.


2.   The Ld. AR submitted that the assessee has filed the appeal whereby
challenging the order dated 07.09.2018 passed the CIT (A). The Ld. AR further
submitted that the assessee has prima facie case on merit.        The Ld. AR
submitted that the penalty was levied on the amount of Rs. 6,50,00,000/-
surrendered by the assessee during the course of search proceedings and such
income does not fall within the meaning of `undisclosed income' provided in
Explanation to Section 271AAB of the Act. The Ld. AR further submitted that
the penalty proceedings initiated under Section 271AAB of the Act are void-ab-
                                        2                       S.A No. 855/Del/2018







initio as no proper satisfaction was recorded by the Assessing Officer in the
Assessment Order for initiating the penalty proceedings u/s 271AAB of the Act.
Thus, the Ld. AR submitted that the assessee has good case on merit. The Ld.
AR further submitted that the assessee received summons dated 27.09.2018
under Rule 83 of the 2nd Schedule to the Act from the office of the Tax Recovery
Officer wherein a total demand of Rs. 27,98,15,185/- was reflected as
outstanding on the part of the assessee for A.Y. 2008-09 to 2010-11 and 2012-
13 to 2014-15. The assessee filed submissions before the Tax Recovery Officer
on 04.10.2018. Thereafter, the Tax Recovery Officer again issued summons
dated 09.10.2018 wherein total demand of Rs. 4,86,25,391/- was reflected as
outstanding demand. The Ld. AR submitted that the assessee furnished
cheques amounting to Rs. 20,00,000/- against the outstanding demand.
Therefore, the Ld. AR requested to grant stay of the outstanding tax demand
and further requested to grant early hearing.


3.    The Ld. DR opposed this stay application.


4.    We have heard both the parties. We are of the view that this is a fit case
for granting stay and early hearing. The assessee has a prima facie case on
merit. Therefore, we are inclined to grant stay for six months (180 days) or till
the disposal of appeal whichever is earlier with the direction to deposit Rs.
20,00,000/- (Rupees Twenty Laksh) should be paid till 15.12.2018.            If the
assessee failed to comply with the directions then the stay will automatically
get vacated. The assessee is advised not to take adjournment of hearing of
appeal otherwise the stay will automatically get vacated. We are also granting
early hearing in the main appeal being ITA No. 5983/Del/2018. The registry is
directed to place appeal for hearing on 18.12.2018. Dasti of the order be given
to both the parties.
                                        3                     S.A No. 855/Del/2018







5.   In result, the stay application is allowed.


Order pronounced in the Open Court on          22nd   November, 2018.

       Sd/-                                                       Sd/-
(N. K. BILLAIYA)                                       (SUCHITRA KAMBLE)
ACCOUNTANT MEMBER                                       JUDICIAL MEMBER


Dated:       22/11/2018
R. Naheed

Copy forwarded to:

1.                         Appellant
2.                         Respondent
3.                         CIT
4.                         CIT(Appeals)
5.                         DR: ITAT




                                                   ASSISTANT REGISTRAR
                                                      ITAT NEW DELHI
                            4                            S.A No. 855/Del/2018


Date of dictation                                    22.11.2018

Date on which the typed draft is placed before the 22.11.2018
dictating Member

Date on which the typed draft is placed before the
Other Member

Date on which the approved draft comes to the Sr.
PS/PS

Date on which the fair order is placed before the
Dictating Member for pronouncement

Date on which the fair order comes back to the Sr. 22.11.2018
PS/PS

Date on which the final order is uploaded on the 22.11.2018
website of ITAT

Date on which the file goes to the Bench Clerk       22.11.2018

Date on which the file goes to the Head Clerk

The date on which the file goes to the Assistant
Registrar for signature on the order

Date of dispatch of the Order