Income Tax Appellate Tribunal - Delhi
Airbnb Payments India Private Ltd., ... vs Tpo 1(3)(1), Delhi on 8 April, 2022
Author: G.S. Pannu
Bench: G.S. Pannu
IN THE INCOME TAX APPELLATE TRIBUNAL,
DELHI BENCH: 'I-1' NEW DELHI
BEFORE SHRI G.S. PANNU, PRESIDENT &
SHRI SAKTIJIT DEY, JUDICIAL MEMBER
Stay Application No. 78/Del/2022
Arising out of ITA No.409/Del/2022
Assessment Year: 2017-18
Airbnb Payments India Vs. TPO 1(3)(1),
Private Ltd., Delhi
Level-9, Spaze 1 Tech Park,
A1, Tower Sector 49,
Sohana Road,Gurgaon (Hr.)
PIN: 122018
PAN :AANCA6203B
(Applicant) (Respondent)
Applicant by S/Shri Vishal Kalra & S.S. Tomar,
Adv.
Respondent by Shri Umesh Takyar, Sr. DR
Date of hearing 08.04.2022
Date of pronouncement 08.04.2022
ORDER
PER SAKTIJIT DEY, JM:
Captioned application has been filed by the assessee seeking stay on recovery of outstanding demand amounting to Rs.4,81,15,228 pertaining to assessment year 2017-18.
2SA No. 78/Del/2022
2. Learned counsel for the assessee submitted, assessee is in the business of providing payment process services to its associated enterprises and for which, it is remunerated at arm's length.
3. Learned counsel submitted, the assessee collects reservation amount booked on the Airbnb Platform for brokings undertaken by Indian guests originating in India and initiate payment of fees due to host for utilization of their accommodation. He submitted, for providing value added functions, the assessee is remunerated by the AE. He submitted, in course of its activities, assessee incurs expenses in the nature of merchant fees and chargeback payment to certain payment gateway. He submitted, these payments made by the assessee to payment gateway, per se do not represent any value added function/services. He submitted, disregarding the aforesaid factual position and submissions made, the departmental authorities applied a mark up of 20% on such costs which resulted in the present demand. He submitted, assessee is following this arrangement consistently over the years and in the preceding assessment year it has been accepted by the departmental authorities. Thus, he submitted, the assessee has a strong prima facie case on merits. Without prejudice, he submitted, 3 SA No. 78/Del/2022 assessee is willing to pay an amount of Rs.1 crore, subject to which recovery of the balance outstanding demand may be stayed. Further, he urged for fixation of the appeal on out of turn basis.
4. Learned Departmental Representative submitted, stay may be granted to the assessee subject to payment of 20% of the outstanding demand.
5. We have considered rival submissions and perused the material available on record. While disposing of the stay application, this bench is not required to examine the merits of the issue arising in the corresponding appeal. However, upon consideration of prima facie case, balance of convenience and the willingness of the assessee to pay a part of the demand, we direct the assessee to pay an amount of Rs. 1 crore on or before 30.04.2022. Subject to payment of the aforesaid amount as directed, recovery of the balance demand shall remain stayed for a period of six months from the date of this order or till disposal of the appeal of the assessee, whichever is earlier. Further, with the consent of both the parties, we fix the appeal for hearing on out of turn basis on 04.05.2022.
4SA No. 78/Del/2022
6. Paper books, if any, must be filed by the parties sufficiently ahead of the date of hearing of appeal. It is made clear, assessee may run the risk of vacation of the stay order, if, it seeks any, adjournment without valid reasons. Since, the date of hearing of the appeal was announced in the open court in the presence of both the parties, there is no need for issuing separate hearing notices to the concerned parties.
8. In the result, the stay application is allowed.
Order pronounced in the open court on 8th April, 2022.
Sd/- Sd/-
( G.S. PANNU ) (SAKTIJIT DEY)
PRESIDENT JUDICIAL MEMBER
Dated: 08th April, 2022.
Mohan Lal
Copy forwarded to:
1. Applicant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asst. Registrar, ITAT, New Delhi
5
SA No. 78/Del/2022
Sl. No. Particulars Date
1. Date of dictation: 08.04.2022
2. Date on which the draft of order is placed before the 08.04.2022 Dictating Member:
3. Date on which the draft of order is placed before the other Member:
4. Date on which the approved draft of order comes to the Sr. PS/PS:
5. Date of which the fair order is placed before the 08.04.2022 Dictating Member for pronouncement:
6. Date on which the final order received after having been singed/pronounced by the Members:
7. Date on which the final order is uploaded on the website of ITAT:
8. Date on which the file goes to the Bench Clerk
9. Date on which files goes to the Head Clerk:
10. Date on which file goes to the Assistant Registrar for signature on the order:
11. Date of dispatch of order: