Income Tax Appellate Tribunal - Mumbai
Jabil Circuit India Private Limited, ... vs Deputy Commissioner Of Income Tax ... on 16 March, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL "K ", BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI, JM SA No.96/Mum/2018 & 97/Mum/2018 (Arising out of ITA Nos. 867/Mum/2018 & 2200/Mum/2017) (Assessment Year :2013-14 & 2012-13) M/s. Jabil Circuit India Pvt. Ltd., Vs. DCIT - CIR 3(2)(1) Arena House, Plot No.103 Mumbai Road No.12, Opp. Tulip Telecom Marol, MIDC, Andheri (E) Mumbai - 400 093 PAN/GIR No. AACCP7114K Appellant) .. Respondent) Assessee by Shri Nitesh Joshi Revenue by Shri Saurabh Kumar Rai Date of Hearing 16/03/2018 Date of Pronouncement 16/03/2018 आदे श / O R D E R PER R.C.SHARMA (A.M):
These stay applications arose out of ITA No.867/Mum/2018 & 2200/Mum/2017.
Stay Application No.97/Mum/2018 (2012-13)
2. Through this stay application, assessee has requested for stay of demand of Rs.6.21 Crores. It was argued by learned AR that demand has been mainly raised by the Department by making adjustment with regard to the value of IT cost allocation.
3. It was further submitted by learned AR that in the immediately subsequent year DRP itself has not made this addition. Our attention was invited to the relevant portion of the DRP order as per Annexure A:- 2
SA No.96 & 97/Mum/2018 M/s. Jabil Circuit India Pvt. Ltd.,
4. The other addition pertains to disallowance of expenses of Chennai Special Economic Zone Unit and adhoc disallowance of depreciation of Chennai SEZ Unit. As per ld. A.R the assessee had already paid a sum of Rs.6,21,92,130/-.
5. On the other hand, learned DR objected the stay application and contended that assessee should be asked to pay more amount towards demand.
6. We have considered rival contentions and carefully gone through the stay application and found that transfer pricing adjustment made during the year have also arisen in the subsequent A.Y.2013-14, wherein DRP has directed to delete the same. With regard to the adjustment for which assessee is required to pay the tax dues works out to be Rs.6,12,79,147/-. However, assessee has already paid a sum of Rs.6,21,92,130/-. Considering totality of facts and circumstances of the case, we direct the assessee to pay a sum of Rs.25 lakhs before 31/03/2018. Appeal is fixed for early hearing on 23/04/2018. Subject to above condition, stay is granted for a period of six months or till disposal of appeal whichever is earlier. We direct accordingly. Stay Application No.96/Mum/2018 (A.Y.2012-13)
7. Through this stay application, assessee has requested for stay of demand of Rs.16.11 Crores.
8. It was argued by learned AR that assessee is having prima facie case with regard to the transfer pricing adjustment and disallowance of Chennai Special Economic Zone expenses with regard to the transfer 3 SA No.96 & 97/Mum/2018 M/s. Jabil Circuit India Pvt. Ltd., pricing expenses. Our attention was invited to the first allocation charges towards support services provided by its overseas Jabil group entities. We found that AE provided support function to the overall group and then allocate the same based on pre-determined allocation keys.
9. In view of the above, it was contended by learned AR that assessee should be granted stay till disposal of the appeal.
10. On the other hand, learned DR strongly objected to the stay application and it was requested that assessee should be asked to pay at least 50% of the amount due.
11. We have considered rival contentions and carefully gone through the stay application as well as orders of the authorities below. Without going much to the merit of the addition and keeping in view the balance of convenience, we direct the assessee to pay a sum of Rs.4 Crores before 31/03/2018. Appeal is fixed for early hearing on 23/04/2018. Subject to the above, stay is granted for a period of six months or till the date of passing of order of the Tribunal whichever is earlier.
12. In the result, stay applications are disposed of in terms indicated hereinabove.
Order pronounced in the open court on this 16/03/2018
Sd/- Sd/-
(RAM LAL NEGI) (R.C.SHARMA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Mumbai; Dated 16/03/2018
Karuna Sr.PS
4
SA No.96 & 97/Mum/2018
M/s. Jabil Circuit India Pvt. Ltd.,
Copy of the Order forwarded to :
1. The Appellant
2. The Respondent.
3. The CIT(A), Mumbai.
4. CIT
DR, ITAT, Mumbai
5. BY ORDER,
6. Guard file.
सत्यापित प्रतत //True Copy//
(Asstt. Registrar)
ITAT, Mumbai