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Showing contexts for: Google India in Google India P Ltd, Bangalore vs Assistant Commissioner Of Income Tax, ... on 22 March, 2017Matching Fragments
2. This stay application is filed by the assessee for grant of stay of demand of Rs. 486,46,79,020/- u/s. 254(1) of the IT Act. The ld. Senior Advocate for the assessee submitted that in the demand of Rs.486,46,79,020/-, the principal tax amount is s. 308,57,01,483/- and the remaining amount is for interest element. It was submitted by the assessee that an application for stay dated 13.02.2017 was filed with the ld. AO on 15.02.2017 and it was orally communicated that AO is unwilling to grant the stay on demand of tax and, therefore, it was submitted that this Tribunal has powers to grant stay of demand u/s. 254 of the Income-tax Act. To buttress his argument for grant of stay, the ld. Senior Advocate relied upon the Office Memorandum dated 29.12.2016 issued by CBDT whereby it is provided that in case the demand is disputed by the assessee before the CIT(A) then the AO shall grant stay of demand till disposal of the appeal on payment of 15% of tax demand. Relying upon the said office memorandum, the ld. Senior Advocate submitted that the assessee is ready and willing to pay the 15% of the impugned demand in two installments. In addition to that the ld. Senior Advocate has drawn our attention to the order passed in the assessee's own case for assessment year 2011-12, wherein the demand of Rs.30 crores was directed to be paid against the demand of Rs.178,24,27,530/-. On merit, it was submitted that the ld. AO in the assessment order has disallowed the amount payable as consideration for purchase of advertisement space by the applicant to Google Ireland Ltd., to the extent of Rs.570,74,19,173/- u/s. 40(a)(i) of the Act. It was further submitted that the amount payable by the company to Google Ireland Ltd., are not chargeable to tax in India and accordingly, it was submitted that the demand with respect to disallowance u/s 40(a)(i) should be stayed. It was also submitted by the ld. Senior Advocate that appeal has been preferred by the assessee for the current assessment year on 20th February 2017 and it is to be listed in due course of time.