Tax Tribunal Grants Stay on Rs. 2.09 Crore Demand, Requires Rs. 35 Lakh Payment

The Tribunal granted a stay of outstanding tax demand amounting to Rs. 2,09,01,121, subject to the assessee paying an additional Rs. 35.00 lakhs by a specified date. The stay was valid for 180 days or until the appeal's disposal, whichever was earlier. The decision was made after considering arguments from both parties, with the Tribunal allowing the Stay Petition filed by the assessee on February 21, 2012.

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Issues: Stay of outstanding tax demand, transfer pricing adjustment, computation of deduction u/s 10A of the IT Act.

Stay of Outstanding Tax Demand: The assessee filed an application seeking a stay of the outstanding demand of tax amounting to Rs. 2,09,01,121. The counsel for the assessee argued that the demand arose from transfer pricing adjustment and computation of deduction u/s 10A of the IT Act. The assessee had already paid Rs. 1.10 lakhs, which was more than 50% of the tax demand. The counsel expressed confidence in winning the case as most issues were covered by Tribunal decisions.

Opposition to Stay: The Departmental Representative (DR) opposed the grant of stay, citing the lack of evidence regarding the assessee's financial constraints for making the payment.

Decision on Stay: After hearing both parties, the Tribunal decided to grant the stay on the condition that the assessee would pay an additional Rs. 35.00 lakhs by a specified date. The stay was granted for 180 days or until the appeal's disposal, whichever was earlier. The appeal was scheduled for hearing on a specific date, and no fresh notice was deemed necessary.

Conclusion: The Stay Petition filed by the assessee was allowed, and the order was pronounced in the open court on February 21, 2012.

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