Income Tax Appellate Tribunal - Chennai
Intelsat Global Sales And Marketing ... vs Dcit Circle 1(2), Chennai on 23 October, 2020
आयकर अपील य अ धकरण, 'डी' याय पीठ, चे नई
IN THE INCOME TAX APPELLATE TRIBUNAL , 'D' BENCH, CHENNAI
ी वी. दग
ु ा राव, या यक सद य एवं ी जी. मंजुनाथ , लेखा सद य के सम%
BEFORE SHRI V.DURGA RAO, JUDICIAL MEMBER
AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER
Stay Petition Nos.163 to 173/Chny/2020
[In IT(TP )A Nos.39 to 49/Chny/2018]
( नधारणवष / Assessm ent Year: 2002-03 to 2012-1 3)
M/s. Intelsat Global Sales & Vs The Deputy Commissioner of
Marketing Ltd., Income Tax,
Building No.5, Chiswick Park, 566 Circle-1(2),
Chiswick High Road, London W4 5YF, United Kingdom Chennai.
C/o.Pricewaterhouse Coopers P.Ltd,
th
8 floor, Prestige Palladium Bayan,
129-140, Creams Road, Chennai-6.
PAN:AABCI 1 539E
( ाथ क /Petitioner) ( यथ /Respondent)
ाथ क क ओरसे/ Petitioner by : Mr.S.P.Chidambaram, Advocate
यथ क ओरसे/Respondent by : Ms. A.Anitha, JCIT
सुनवाई क तार ख/Dat e o f hear ing : 23.10.2020
घोषणा क तार ख /Date of P r on ou n ce m ent : 23.10.2020
आदे श / O R D E R
PER G. MANJUNATHA, ACCOUNTANT MEMBER:
By way of these stay applications, the assessee is seeking extension of stay granted by this Tribunal vide stay order No. 135 to 145/Chny/2020 dated 05.06.2020 for recovery of outstanding demand of taxes for the assessment years 2002-03 to 2012-13.
2. The learned A.R for the assessee referring to the stay order passed by this Tribunal vide S.P.No. 135 to 145/Chny/2020 dated 05.06.2020 submitted that the Tribunal after considering the relevant facts, prima-facie merits of the case and balance of convenience has granted stay for recovery of outstanding 2 S.P No. 163 to 173 /Chny/2020 demand for all assessment years for a period of four months from the date of stay order. Further, the stay granted by the Tribunal was expired on 05.10.2020. In the meantime, the appeals of the assessee could not be disposed off, on various occasions due to non-functioning of Benches on 29.04.2020, 05.08.2020 and 19.08.2020. Further, although the Bench was functioning on 26th August, 2020, but the Departmental Representative sought an adjournment and the appeals were posted for hearing on 14.12.2020. under these circumstances, the delay in disposal of the appeals filed by the assessee cannot be attributed to the assessee, therefore the stay granted by the Tribunal on earlier occasion may be extended for further period of three months on the same terms & conditions for which the assessee is willing to extend the bank guarantee given to the Department which will expire during November, 2020. The learned AR further stated that the assessee is not in a position to pay any more taxes but ready to adjust refund of `8.68 crores due for assessment year 2018-19 and `14.06 crores for the assessment year 2019-20. Considering the above facts, he requested the Bench to extend the stay for further period of three months or till the disposal of appeals, whichever is earlier. 3
S.P No. 163 to 173 /Chny/2020
3. The learned D.R for the Revenue, strongly opposing the stay applications filed by the assessee, submitted that the assessee has so far paid `38.08 crores towards total outstanding payment of ` 330.17 crores excluding TDS amount of ` 48.96 crores. If it is considered taxes paid by the assessee which works out to less than or equal to 10% of the total demand, therefore, if at all the Bench wish to grant stay, the assessee may be directed to pay at least 20% of the outstanding demand.
4. We have heard rival submissions of both the parties and perused the material available on record including the stay order passed by this Tribunal dated 05.06.2020. We find that Tribunal has granted stay for a period of four months after considering necessary facts including the additional demand raised by the Assessing Officer on account of levy of interest u/s.234B for which the assessee has filed rectification petition u/s.154 of the Act which is pending for adjudication before the Assessing Officer. The Tribunal has also taken all the facts that if the original demand is considered in the light of total taxes paid by the assessee including adjustment of TDS credit, then the assessee has already paid total outstanding demand. The assessee has also given bank guarantee of `53 crores which is valid till November, 4 S.P No. 163 to 173 /Chny/2020 2020. Under these circumstances, the Tribunal was of the opinion that it was a fit case for stay of outstanding demand for a period of four months and accordingly granted stay and posted the appeals for hearing on 29.04.2020. Further, the appeals of the assessee could not be disposed of on the date of hearing due to non- functioning of Benches on 29.04.2020, 05.08.2020 and 19.08.2020. Although the Bench was functioning on 28.10.2020, but the learned DR has sought an adjournment and accordingly appeals were posted for hearing on 14.12.2020. In the meantime, stay granted by the Tribunal was expired on 05.10.2020. Under these circumstances, the delay in disposal of appeals cannot be attributed to the assessee. Moreover, it is an extraordinary circumstances due to Covid-19 pandemic, and because of which normal functioning of the Tribunal is not happening. Therefore, considering these facts, the Tribunal granted stay after considering necessary facts and prima-facie case of the assessee and also taken note of situation prevailing in the country. Therefore, we are of the considered view that the stay granted to the assessee deserves to be extended for further period of three months, subject to certain conditions. Accordingly, we extend the stay for a further period of three months from the date of this order and as 5 S.P No. 163 to 173 /Chny/2020 requested by the assessee, we direct the Assessing Officer to adjust refunds due to the assessee of `8.68 crores for the assessment year 2018-19 and ` 14.06 crores for the assessment year 2019-20. We further direct the assessee to extend the bank guarantee furnished to the Department which expires during November, 2020 for further period of three months. Further, the appeals filed by the assessee will come up for hearing on 14.12.2020 as per date given by the Bench on earlier occasion. The assessee shall not seek any adjournment unless otherwise warranted under extreme circumstances. In case, the assessee seeks adjournment without any valid reasons, the stay granted shall stand automatically vacated. With these observations, the stay granted by the Tribunal vide order dated 5.6.2020 is extended for further period of three months or till the disposal of appeals, whichever is earlier.
5. In the result, the stay applications filed by the assessee for all the assessment years mentioned above are disposed of in terms of the observations stated hereinabove.
Order pronounced in the open court on 23rd October, 2020 Sd/- Sd/-
( वी. दग
ु ा राव ) (जी.मंजुनाथ)
( V.Durga Rao ) ( G.Manjunatha )
या यक सद य /Judicial Member लेखा सद य / Accountant Member
6
S.P No. 163 to 173 /Chny/2020
चे नई/Chennai,
"दनांक/Dated 23rd October, 2020
DS
आ दे श क त&ल'प अ*े'षत/Copy to:
1. Appellant 2. Respondent 3. आ यकर आ यु+त (अपील)/CIT(A)
4. आ यकर आ यु+त/CIT 5. 'वभागीय त न1ध/DR 6. गाड फाईल/GF.