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IN THE
INCOME-TAX APPELLATE TRIBUNAL MUMBAI BENCH ‘E’ MUMBAI
BEFORE SHRI G. E. VEERBHADRAPPA (VP) & SMT. P. MADHAVI DEVI
S. A. No. 94/MUM/2007
(Arising out of ITA No. 2313 / MUM / 07 For A. Y. 2003-04)
SKOL Breweries Limited
The ACIT Circle 8(3)
No. 1, Mahal Industrial Estate
Mumbai
Mahakali Road, Andheri (E)
Mumbai – 400093
PAN: AAICS2238R
(Applicant)
Respondent
Applicant by : S/Shri
Pawan Kumar & Kamal Abrol
Respondent by : S/Shri
R. N. Parbat, Y. D. Sharma (Addl CIT) & S. A. R. Shaikh (AO)
ORDER
G. E. Veerbhadrappa, Vice-President : The assessee has filed the above stay
petition requesting the Tribunal to stay the following demand stated to be
outstanding in respect of the assessment framed for
A.Y. 2003-04
Tax
65,522,886
(+) Interest
21,961,047
87,483,933
(-) Amount already paid
45,601,113
Amount outstanding
41,882,820
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The registry had posted this
stay petition for hearing on Friday the 30th March 2007, when normally the
stay petitions are listed for hearing . On 27th March 2007, the assessee moved
an emergency petition requesting the Tribunal to interface in the matter as
the department had attached all its bank accounts after the CIT rejected its
petition on the same date thereby jeopardizing the business of the assessee.
The emergency petition was listed for hearing before the Bench on 27th March,
2007 itself. The learned Departmental Representative pointed out that he
cannot express any opinion as regards the merits of the stay petition for the
want of the stay petition itself. After going through the record. The Tribunal
granted interim stay directing the revenue not to enforce any coereive
measures to recover the disputed dues till the stay petition was heard and
disposed of on 30th March 2007. The order was so pronounced in the open court.
The leaned Departmental Representative who was present was directed to convey
the interim stay granted by the Tribunal to the concerned revenue authorities.
Apart from this, the Registry was also directed to furnish the order-sheet
entries of the Bench to the revenue authorities for the same to be effectively
communicated. When the stay petition was listed for hearing on 30th March
2007, the learned counsel for the assessee stated that despite the interim
stay granted by the Tribunal, Shri. S.A.R. Shaikh the Assistant Commissioner
of Income-tax Circle 8(3) has already recovered the money to the extent of Rs.
2.68 crores. The learned Departmental Representative pointed out that this was
voluntary payment by the assessee in order to enable the Assessing Officer to
lift the attachment on the bank. The Tribunal felt that the revenue has
exceeded its jurisdiction and wanted to personally hear the Assessing Officer
who recovered the money and accordingly announced absolute stay in the matter
with a direction to the Departmental Representative to appear along with Shri
S.A.R. Shaikh the ACIT on 2nd April, 2007.
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On 2nd April 2007, the
learned Departmental Representative appeared along with Shri. S. A. R. Shaikh
the ACIT and Shri Y.D. Sharma, Additional CIT Range 3 The revenue authorities,
who appeared, pleaded that the recovery has been done in the month of March
without any force and the Assessing Officer pointed out that he was willing to
refund the amount within any force and the Assessing Officer pointed out that
he was willing to refund the amount within a days time, if so directed by the
Bench. The additional CIT Shri Sharma also pleaded that he himself and the
Assessing Officer has great respect for the Tribunal and does not want to
enter into any contempt of its order. It was pointed out that some of the
Tribunal orders are directly in favour of the revenue on the disputed issue
and, therefore, the stay should not be granted as announced by the Bench. The
assessee on its part has also filed an affidavit stating the circumstances
under which the payment was required to be made. The matter was adjourned to
3rd April 2007 to enable the department to consider the refund of the amount
as the same, in our view, has been done in violation of the interim order
passed in this regard.
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On 3rd April 2007 the
Assessing Officer as well as the Additional CIT appeared along with the
learned Departmental Representative and gave the cheque drawn in favour of the
assessee in our presence. They further pleaded that further proceedings in the
matter may be dropped and absolutely they had no intention to violate the
orders of the Tribunal. It was done with a good intention and in zeal to
recover the outstanding arrears. The learned counsel for the assessee, on the
other hand, also pleaded that he was ready to go ahead with the matter any
time from now and would not like to prolong the issue as also co-operate for
the early disposal of the appeal. Therefore, we pass the following order :
i) Absolute stay is granted to the assessee for a period of 180 days from the
date of this order or till the disposal of the appeal, whichever is earlier.
ii) The revenue as well as the assessee shall file their paper-book well in
advance so that the matter does not get adjourned. The parties shall not seek
unnecessary adjournment.
iii) The department is free to retain the refund that may be due to the
assessee, which is stated to be to the extent of Rs. 1.5 crores as arising out
of the consequential orders, which the department is yet to pass in the
earlier years. If the department was to pass any consequential order during
the pendency of this appeal in the Tribunal to the extent stated above, it is
free to appropriate the same to the arrears outstanding. This order shall not
preclude the revenue authorities from doing so.
iv) The Registry is directed to post this appeal for hearing on 28th June 2007
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In the result, the stay
application is allowed and it was so pronounced in the open court.
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Sd/- |
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Sd/- |
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(P. Madhavi Devi) |
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(G. E. Veerabhdrappa) |
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JUDICIAL MEMBER |
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VICE-PRESIDENT |
Mumbai dated 3rd April, 2007. |