Income Tax Appellate Tribunal - Hyderabad
S & P Capital Iq (India) Private Limited, ... vs Deputy Commissioner Of Income Tax, ... on 8 December, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCHES "B" : HYDERABAD
BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER
AND
SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER
Stay Application No. 155/Hyd/2017
(Arising out of ITA No. 1878/Hyd/2017)
Assessment Year : 2013-14
S&P Capital IQ (India) Private Deputy Commissioner of
Limited, Vs. Income Tax,
HYDERABAD Circle-3(1),
[PAN: AACCS8657G] HYDERABAD
[Applicant] [Respondent]
For Assessee : Shri K.C. Devdas, AR
For Revenue : Smt. N. Swapna DR
Date of Hearing : 08-12-2017
Date of Pronouncement : 08-12-2017
ORDER
PER B. RAMAKOTAIAH, A.M. :
Vide this stay application, assessee is seeking stay of outstanding demand of Rs. 13,90,93,720/- raised due to transfer pricing adjustment of Rs. 25,10,61,407/-. The above amount includes interest of about Rs. 5 Crores u/s. 234B and 234C of the Income Tax Act [Act].
2. Assessee has filed return of income admitting taxable income of Rs. 54,88,99,407/- and in the scrutiny assessment, consequent to the orders of DRP, transfer pricing adjustment of Rs. 25,10,61,407/- was made. It was the submission of the Ld. SA. No. 155/Hyd/2017 :- 2 -:
Counsel that the transfer pricing adjustment in earlier years have been adjudicated in favour of assessee and in this year also assessee is having a favourable case, particularly with reference exclusion of certain comparables. Further, it was submitted that assessee could not have anticipated a very high addition under the transfer pricing provisions and the demand of interest u/s. 234B and 234C could not have been visualised which should be stayed pending the disposal of appeal. It was further submitted that assessee has approached Pr.CIT after rejection by the AO and stay application is still pending for the last one month.
3. With reference to financial position also, assessee explained that even though there are certain receipts they are all committed for various expenditures and assessee is not in a position to discharge the entire liability.
4. Ld.DR, however, submitted that assessee has not paid any amount and hence, assessee may be asked to pay at-least 20% of the outstanding demand.
5. This is a direct appeal against the orders of AO to the ITAT and the appeal is pending, as it was filed recently. There is prima- facie case in favour of assessee and considering the financial position, we are of the opinion that assessee shall pay an amount of Rs. 1 Crore on or before 31-12-2017 and the balance of the outstanding demand including interest is stayed for a period of six months or till the disposal of the appeal, whichever is earlier. Assessee should not be treated as 'assessee in default' during the pendency of this order and AO is directed not to take any coercive SA. No. 155/Hyd/2017 :- 3 -:
steps for recovery of balance of the demand. Assessee is directed to furnish the proof of payment of Rs. 1 Crore to the AO as well as to the Registry. Since the case is already posted on 23-04-2018, no fresh notice will be issued by the Registry and parties should not seek any adjournment without any valid reason.
6. In the result, the Stay Application is allowed, accordingly.
Order pronounced in the open court on 8th December, 2017 upon conclusion of hearing Sd/- Sd/-
(P. MADHAVI DEVI) (B. RAMAKOTAIAH)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Hyderabad, Dated 8th December, 2017
TNMM
SA. No. 155/Hyd/2017
:- 4 -:
Copy to :
1. S&P Capital IQ (India) Private Limited, Survey No. 12P, Kondapur Village, Serilingampally Mandal, Ranga Reddy District, Hyderabad.
2. The Deputy Commissioner of Income Tax, Circle-3(1), Hyderabad.
3. Dispute Resolution Panel (DRP)
4. Director of Income Tax (IT & TP), Hyderabad.
5. Addl. Commissioner of Income Tax (Transfer Pricing), Hyderabad.
6. D.R. ITAT, Hyderabad.