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IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI
FRIDAY `C' BENCH, NEW DELHI
BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER
SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
SA No. 1091/DEL/2019
A/o ITA No. 8199/DEL/2019 [A.Y 2010-11]
M/s Designarch Infrastructure Pvt. Ltd Vs. The I.T.O
C/o Raj Kumar & Associates, CAs Ward 7(1)
L 7A[LGF], South Extension, Part II New Delhi
New Delhi
PAN: AACCD 3278 Q
(Applicant) (Respondent)
Assessee By : Shri Raj Kumar Gupta, CA
Shri Sumit Goel, CA
Department By : Dr. V.K. Chadha, Sr. DR
Date of Hearing : 06.12.2019
Date of Pronouncement : 06.12.2019
ORDER
PER N.K. BILLAIYA, ACCOUNTANT MEMBER,
With this stay application, the assessee prays for stay of demand
arising out of the assessment order dated 27.12.2017 framed u/s
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143(3) r.w.s 147 of the Income tax Act, 1961 [hereinafter referred to
as 'The Act' for short] for assessment year 2010-11.
2. Before us, the ld. counsel for the assessee pointed out that out
of the total demand arising out of the assessment order is Rs. 1.58
crores, out of which the assessee has already paid Rs. 31.67 lakhs and
prayed for stay of the balance outstanding demand.
3. It is the say of the ld. counsel for the assessee that the reason for
reopening the assessment was in respect of an amount of Rs. 5 lakhs
alleged to have been received from Ashish Capital Services Pvt. Ltd as
accommodation entry. The ld. counsel for the assessee vehemently
stated that the said sum was never received by the assessee during the
year under consideration and the assessee has furnished certificates
from the bank certifying that no such amount was received from the
said company. The ld. counsel for the assessee further pointed out
that the amount of Rs. 2.20 crores being share capital and share
premium was never the reason for reopening the assessment and,
therefore, the said addition cannot survive before the Tribunal.
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4. Per contra, the ld. DR strongly opposed the stay application. It is
the say of the ld. DR that if the entire reasons for reopening of the
assessment is considered, then, one of the causes for reopening the
assessment is share capital and share premium. Therefore, it cannot
be said that this was not the basis for reopening the assessment.
5. We have given thoughtful consideration to the contents of the
stay application and have carefully considered the rival submissions.
We have gone through the contents of the reasons for reopening the
assessment. It is true that one of the reason for reopening the
assessment was alleged accommodation entry of Rs. 5 lakhs. It is also
true that the four banks of the assessee have certified that no such
amount was received by the assessee from the said company. It is
equally true that the share capital and share premium have been
referred to in the reasons for reopening of the assessment. However,
we are of the considered view that the assessee has made out a prima
facie good case in favour of the appellant.
6. We are of the considered view that a further payment of Rs. 25
lakhs towards outstanding demand would suffice to stay the balance
outstanding demand. We, accordingly, direct the assessee to pay a
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further sum of Rs. 25 lakhs on or before 30th day of December 2019 and
subject to the payment of this sum, balance demand is stayed for a
period of six months or till the disposal of the appeal, whichever is
earlier.
7. The Registry is directed to list the case for hearing on
06.02.2020. Since the date of hearing was announced in the
open court, which is in the knowledge of both the
representatives, no notice shall be served. Needless to
mention that the assessee shall not seek adjournment
without any justifiable cause and shall file relevant paper
books prior to the date of hearing, as per provisions of the
law.
8. In the result, the stay application of the assessee in SA No.
1091/DEL/2019 is disposed of accordingly.
The order is pronounced in the open court on 06.12.2019.
Sd/- Sd/-
[SUSHMA CHOWLA] [N.K. BILLAIYA]
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated: December, 2019
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VL/
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asst. Registrar,
ITAT, New Delhi
Date of dictation
Date on which the typed draft is placed before the
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.PS/PS
Date on which the final order is uploaded on the website
of ITAT
Date on which the file goes to the Bench Clerk
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
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