Income Tax Appellate Tribunal - Bangalore
M/S. Swiss Re Global Business Solutions ... vs The Deputy Commissioner Of Income Tax, ... on 3 January, 2020
IN THE INCOME TAX APPELLATE TRIBUNAL
"B" BENCH : BANGALORE
BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT
AND SHRI B R BASKARAN, ACCOUNTANT MEMBER
SP No.332/Bang/2019
[in ITA No.2266/Bang/2019]
Assessment year: 2015-16
Swiss Re Global Business Vs. The Deputy Commissioner of
Solutions India Pvt. Ltd., Income Tax,
[formerly Swiss Re Shared Circle 6(1)(2),
Services (I) P. Ltd.], Bangalore.
2nd to 5th Floor, Fairwinds
Building, Embassy Golf Links
Business Park, Challaghatta
Village, Varthur Hobli,
Bangalore - 560 071.
PAN: AAECS 8786L
APPLICANT RESPONDENT
Applicant by : Shri C. Narayan, CA
Respondent by : Ms. Priyadarshini Misra, Jt.CIT(DR)
Date of hearing : 03.01.2020
Date of Pronouncement : 03.01.2020
ORDER
Per N.V. Vasudevan, Vice President This is an application praying for an order of stay of recovery of outstanding demand of Rs.3,58,69,810 comprising of a sum of SP No.332/Bang/2019 Page 2 of 3 Rs.2,12,00,113 towards outstanding taxes and a sum of Rs.1,46,69,697 comprising of interest.
2. The outstanding demand arises on an addition made out of total income consequent to determination of arm's length price (ALP) in respect of an international transaction of rendering Information Technology enabled Services [ITeS] by the assessee to its AE. The contention of the assessee is that some of the companies chosen as comparable company ought not to have been chosen as a comparable company and that some of companies chosen by the assessee as a comparable company have been wrongly excluded from the list of comparable companies for the purpose of comparison of profit margins of the assessee with the comparable companies. The assessee has also submitted that its plea for exclusion and inclusion of companies as comparable companies has already been decided by the ITAT in the case of companies engaged in the ITeS such as the assessee.
3. The ld. counsel for the assessee reiterated submissions made in the Stay Petition on the existence of a prima facie case, balance of convenience and hardship. The ld. DR, on the other hand, opposed the prayer for grant of stay of recovery of outstanding demand and insisted that the assessee should be directed to pay substantial amount towards outstanding demand as a condition for grant of stay.
4. Having heard the rival submissions and taking to consideration the existence of a prima facie case, balance of convenience and relative hardship, we are of the view that it would be just and appropriate to direct the assessee to pay a sum of Rs.1,06,00,000 which is approximately 50% of the tax component of the outstanding demand on or before 21.01.2020. The appeal of the assessee is already listed for hearing on 22.01.2020. Subject to the above, there shall be an order of stay of recovery of SP No.332/Bang/2019 Page 3 of 3 outstanding demand for a period of six months from the date of this order, or till the disposal of the appeal, whichever is earlier.
5. In the result, the stay petition is allowed on the terms indicated above.
Pronounced in the open court on this 3rd day of January, 2020.
Sd/- Sd/-
( B R BASKARAN ) ( N V VASUDEVAN )
ACCOUNTANT MEMBER VICE PRESIDENT
Bangalore,
Dated, the 3rd January, 2020.
/Desai S Murthy /
Copy to:
1. Appellant 2. Respondent 3. CIT 4. CIT(A)
5. DR, ITAT, Bangalore. 6. Guard file
By order
Assistant Registrar
ITAT, Bangalore.