T.C.A.No.11 of 2020 IN HIGH COURT OF JUDICATURE AT MADRAS DATED : 20.01.2020 CORAM : HONOURABLE MR.JUSTICE N.KIRUBAKARAN and HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.No.11 of 2020 and C.M.P.No.368 of 2020 Suneel Hirachand Shah No.178, Old No.88, NSC Bose Road, Sowcarpet, Chennai 600 079. [PAN AAOUPS 4435F] Appellant Vs Income Tax Officer, Non Corporate Circle 6(1), II Floor, Room No.223, BSNL Complex, Tower 1, Greams Road, Anna Salai, Chennai 600 006. Respondent PRAYER : Appeal under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal, C Bench, Chennai in S.P.No.319/CHNY/2019 in I.T.A.No.3197/CHNY/2019 dated 09.12.2019. For Appellant :Mr.R.Sandeep Bagmar http://www.judis.nic.in 1/7 T.C.A.No.11 of 2020 For Respondent :Mr.T.Ravi Kumar Senior standing counsel JUDGMENT (Judgment of Court was delivered by N.KIRUBAKARAN, J) Appeal has been preferred against dismissal of stay petition filed by assessee/appellant in ITA filed by Appellant agianst order of Appellate Commissioner confirming addition made by Assessment Officer. 2.The case of appellant is that he has purchased shares in Twenty First Century India Limited between October 2004 and November 2004 and he has sold shares only in 2010 and he is entitled for exemption u/s.10(38) of Income Tax Act, 1961. Assessment Officer disallowed claim and same was confirmed by Appellate Commissioner. In Appeal, Tribunal found that there is no prima facie case in favour of appellant, on premise that incriminating materials, based on report provided by SEBI and Director of Investment, Kolkatta prove that these transactions are bogus. 3. Tax Case Appeal is admitted on following substantial http://www.judis.nic.in 2/7 T.C.A.No.11 of 2020 questions of law: (i) Whether Tribunal was correct in dismissing request for stay of demand without considering complete facts and circumstances of case of Appellant? (ii)Whether Tribunal was correct in dismissing request for stay of demand when Appellant has strong prima facie case on merits, assessment order being without jurisdiction and in complete violation of principles of natural justice? (iii)Whether in interest of justice, equity and fairness Appellant should be granted stay of balance tax demand when it has made prima facie case on merits, balance of convenience is in faovur of Appellant and undue hardship will be caused to Appellant if further tax demand is to be paid? 4.Heard Mr.R.Sandeep Bagmar, learned counsel appearing on behalf of appellant and Mr.T.Ravikumar, learned Senior Standing counsel appearing on behalf of respondent. 5.Though there are arguments and rival arguments with regard to genuineness of transactions, this Court is not inclined to go into issues at this stage. only question to be decided is as to whether Tribunal is right in dismissing stay petition. learned counsel appearing for appellant has produced computation table which shows that tax http://www.judis.nic.in 3/7 T.C.A.No.11 of 2020 demanded is Rs.34,12,174/- and interest on tax is Rs.27,86,838/- and total tax and interest is Rs.61,99,012/-, whereas he has paid Rs.15,71,293/-. 6.Though Tribunal found that there is no prima facie case in view of incriminating documents, considering fact that appellant had already deposited sum of Rs.15,71,293/-, out of demand of Rs.61,99,012/-, Interest of Justice will be complied with by directing appellant to deposit further sum of Rs.15,00,000/- in three equal installments, each installments should be paid within 15 days of every month. On such payment, dismissal order passed by Tribunal in stay petition is set aside and there shall be order of interim stay till disposal of Appeal before Tribunal. question of law is answered in above terms. It is open to Tribunal to get along with matter and dispose of matter at earliest, in accordance with law. 7.Accordingly, this Appeal is disposed of. No costs. Consequently, connected Miscellaneous Petition is also closed. (NKKJ) (PVJ) 20.01.2020 http://www.judis.nic.in 4/7 T.C.A.No.11 of 2020 sai http://www.judis.nic.in 5/7 T.C.A.No.11 of 2020 To 1.The Income Tax Officer, Non Corporate Circle 6(1), II Floor, Room No.223, BSNL Complex, Tower 1, Greams Road, Anna Salai, Chennai 600 006. 2.Income Tax Appellate Tribunal 'C' Bench, Chennai. http://www.judis.nic.in 6/7 T.C.A.No.11 of 2020 N.KIRUBAKARAN, J. and P.VELMURUGAN, J. sai T.C.A.No.11 of 2020 Dated : 20.01.2020 http://www.judis.nic.in 7/7 Suneel Hirachand Shah v. Income-tax Officer, Non-Corporate Circle-6(1), Chennai