Income Tax Appellate Tribunal - Delhi
Gates India Pvt Ltd, Delhi vs Acit, Circle-10(1), Delhi on 14 October, 2022
Author: G.S. Pannu
Bench: G.S. Pannu
IN THE INCOME TAX APPELLATE TRIBUNAL,
DELHI BENCH: 'I' NEW DELHI
BEFORE SHRI G.S. PANNU, HON'BLE PRESIDENT
AND
SHRI SAKTIJIT DEY, JUDICIAL MEMBER
S.A. No.341/Del/2022
[Arising out of ITA No.2379/Del/2022]
Assessment Year: 2018-19
M/s. Gates India Pvt. Ltd., Vs. ACIT,
C-434, Defence Colony Circle-10(1),
South, Delhi
New Delhi
PAN :AAACA8125F
(Applicant) (Respondent)
Applicant by Sh. Rohit Tiwari, Advocate
Respondent by Sh. Sanjay Kumar, Sr. DR
Date of hearing 14.10.2022
Date of pronouncement 14.10.2022
ORDER
PER SAKTIJIT DEY, JM:
Captioned application has been filed by the assessee seeking stay on recovery of outstanding demand of Rs.5,11,77,210/- pertaining to assessment year 2018-19.
2. Before us, learned counsel appearing for the assessee submitted that the assessee is engaged in the business of manufacturing, trading, and marketing of rubber hoses and hose assembly. He submitted, in respect of various international S.A. No.341/Del/2022 AY: 2018-19 transactions entered with the Associated Enterprises (AEs), the Transfer Pricing Officer (TPO) proposed couple of adjustments amounting to Rs.8,73,00,969/- and Rs.70,15,519/- relating to payment of management charges and interest on outstanding receivables, respectively.
3. Learned counsel strenuously submitted that the assessee has a strong prima facie case on merits and ultimately, the adjustments proposed by the TPO would not survive. However, he submitted, the assessee is willing to pay 20% of the outstanding demand as a condition of stay. Further, he requested for granting an early date for hearing of the appeal.
4. Learned Departmental Representative submitted, the assessee may be directed to pay 20% of the outstanding demand. However, he did not oppose assessee's request for early hearing of the appeal.
5. We have considered rival submissions and perused the materials on record. The merits of the additions giving rise to the present demand can be considered at the time of full blown hearing of the appeal. After considering the prima facie case, balance of convenience and assessee's willingness to pay 20% of the outstanding demand, we direct the assessee to deposit 20% of
2|Page S.A. No.341/Del/2022 AY: 2018-19 the outstanding demand on or before 30th November, 2022. Subject to payment of the aforesaid amount, as directed, recovery of the balance outstanding demand shall remain stayed for a period of 180 days from the date of this order or till the disposal of the corresponding appeal.
6. Further, considering assessee's prayer, we direct the Registry to fix the corresponding appeal for hearing on 08.12.2022, on an out of turn basis. Paper-books, if any, must be filed by the parties sufficiently ahead of the date of hearing of the appeal. Since, the date of hearing of appeal was announced in the open court in presence of both the parties, there is no need for issuance of separate notice of hearing to the parties. Further, we make it clear, in case, the assessee seeks any adjournment without compelling reasons, it will run the risk of vacation of stay.
9. In the result, the stay application is partly allowed, as indicated above.
Order pronounced in the open court on 14th October, 2022 Sd/- Sd/-
(G.S. PANNU) (SAKTIJIT DEY)
PRESIDENT JUDICIAL MEMBER
Dated: 14th October, 2022.
RK/-
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S.A. No.341/Del/2022
AY: 2018-19
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asst. Registrar, ITAT, New Delhi
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