Income Tax Appellate Tribunal - Bangalore
M/S. Citrix R & D India Private Limited, ... vs Deputy Commissioner Of Income Tax, ... on 11 March, 2022
IN THE INCOME TAX APPELLATE TRIBUNAL
'B' BENCH : BANGALORE
BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER
AND
SMT. BEENA PILLAI, JUDICIAL MEMBER
S.P. No. 06/Bang/2022
(in IT(TP)A No. 2428/Bang/2019)
Assessment Year : 2015-16
M/s. Citrix R & D India
Pvt. Ltd., The Deputy
Prestige Dynasty, Commissioner of
Ground Floor, Income Tax,
33/2, Ulsoor Road, Circle 2 (1)(1),
Bangalore - 560 042. Vs. Bangalore.
PAN: AABCN3639C
APPELLANT RESPONDENT
Assessee by : Shri Sumeet Khurana, CA
Shri Priyadarshi Mishra, Addl.
Revenue by :
CIT (DR)
Date of Hearing : 11-03-2022
Date of Pronouncement : 11-03-2022
ORDER
PER BEENA PILLAI, JUDICIAL MEMBER
Present stay petition has been filed by assessee seeking stay of outstanding demand of Rs.17,92,38,164/- arising out of final assessment order dated 25.09.2019 passed by Ld.ITO, Circle 2 (1)(1) for A.Y: 2015-16.
2. The Ld.AR submitted that Citrix R&D India Private Limited ('the Petitioner'), a private limited company, having its registered office in Bangalore, subsidiary of Citrix Systems Inc., USA ("Citrix US"). The petitioner is a registered 100% Export Oriented Unit (EOU) with Software Technology Park Scheme ("STPI", Bangalore) Page 2 of 4 S.P. No. 06/Bang/2022 (in IT(TP)A No. 2428/Bang/2019) wherein the petitioner performs software development that supports and supplements Citrix US's product offerings in the cloud computing and online services industry. Further, the petitioner is also engaged in rendering order processing services and technical support services to its Associated Enterprises ("AEs"). For the Assessment Year under consideration, the petitioner filed its return of income on November 30, 2015, declaring a total income of Rs.58,17,74,420. In the draft assessment order, addition of Rs. 57,12,70,900/- was made on account of adjustment to the arm's length price of the international transactions between the petitioner and its AEs. This adjustment was made in conformity with the order passed by the Ld.TPO vide order dated 30.10.2018.
The Ld.AR submitted that the main issue that led to the addition is due to the selection of comparables and the filters applied by the Ld.TPO. It is the submission by the Ld.AR that the grievance of the assessee in respect of the alleged comparable has been addressed by Coordinate Bench of this Tribunal in various decisions and that assessee has a prima facie good case on merits. The Ld.AR thus prayed for stay of outstanding demand as according to assessee 26.91% of liability has already been discharged by way of Advance tax, Self Assessment Tax and TDS. He also intimated that the present appeal is fixed for hearing on 06.04.2022.
3. On the contrary, the Ld.DR vehemently opposed taking support of the amendment to section 254 of the Act, wherein 20% of outstanding demand is necessary to be made for grant of stay by the Tribunal. He thus emphasised that the assessee may be Page 3 of 4 S.P. No. 06/Bang/2022 (in IT(TP)A No. 2428/Bang/2019) directed to deposit 20% of the outstanding demand in the event stay is to be granted.
We have perused the submissions advanced by both sides in the light of records placed before us.
4. We see that assessee has paid a sum of Rs. 1.84 crores each on 29.01.2020, 25.02.2020 and 24.03.2020 as per the demand raised by the Ld.AO. However, pursuant to the first proviso to section 254(2A), it is mandatory that assessee has to deposit not less than 20% of the outstanding demand against the order of Ld.CIT(A) w.e.f. 01.04.2020. Accordingly, we direct the assessee to deposit 20% of Rs.17,92,38,164/- on or before 31.03.2022. Upon making such payment and production of the challan to this office, this stay shall be granted for a period of six months or till the disposal of the appeal whoever is earlier. The appeal is already fixed for hearing on 06.04.2022. The assessee is therefore directed not to take any adjournment without there being any cogent reason on granting of stay. In the event, adjournment is sought on frivolous grounds, the stay shall automatically stand vacated.
Accordingly, the stay petition filed by assessee stands allowed. In the result the stay petition filed by assessee stands allowed.
Order pronounced in open court on 11th March, 2022.
Sd/- Sd/- (CHANDRA POOJARI) (BEENA PILLAI) Accountant Member Judicial Member Bangalore, Dated, the 11th March, 2022. /MS / Page 4 of 4 S.P. No. 06/Bang/2022 (in IT(TP)A No. 2428/Bang/2019) Copy to: 1. Appellant 4. CIT(A) 2. Respondent 5. DR, ITAT, Bangalore 3. CIT 6. Guard file By order Assistant Registrar, ITAT, Bangalore