Leo Edibles & Fats Limited v. ACIT, Circle-16(1), Hyderabad
[Citation -2019-LL-0826-122]
| Citation | 2019-LL-0826-122 |
|---|---|
| Appellant Name | Leo Edibles & Fats Limited |
| Respondent Name | ACIT, Circle-16(1), Hyderabad |
| Court | ITAT-Hyderabad |
| Relevant Act | Income-tax |
| Date of Order | 26/08/2019 |
| Assessment Year | 2016-17 |
| Judgment | View Judgment |
| Keyword Tags | interest income earned • outstanding demand • business income • disputed amount • other sources • stay petition • charging of interest • stay of recovery |
| Bot Summary: | Learned Counsel for the Assessee submitted that the demand has arisen due to computation of the interest income earned by the assessee from deposits with the banks as income under the head income from other sources rather than the business income offered by the assessee. He submitted that the total tax demand along with interest is Rs. 25,38,267/- out of which, the assessee has already paid an amount of Rs. 19,89,497/-. Since the major portion of the taxes along with the interest has been paid, Learned Counsel for the Assessee sought for stay from recovery of outstanding demand of tax till the appeal is decided. Ld. DR on other hand objected for granting of stay. Having regard to the rival submissions and on perusal of the record, we find that the assessee has an arguable case and has already paid a substantial amount of outstanding demand i.e., Rs. 19,89,497/- which is more than 20 of the disputed amount of taxes. We are of the considered view that the assessee is deserved for grant of stay from recovery of outstanding demand of tax for a period of 180 or till the disposal of the appeal, whichever is earlier. In the result, Stay Application filed by the assessee is allowed. |