Tribunal Grants Stay on Transfer Pricing Demand, Directs Payment & Sets Appeal Date

The Tribunal granted the assessee's application for stay of an outstanding demand of Rs. 5,05,21,028/- related to Transfer Pricing adjustment and disallowance u/s 10A. The Tribunal found a prima facie case in favor of the assessee and directed payment of Rs. 50 lakhs by a specified date, with the balance stayed until appeal disposal or six months, whichever is earlier. The Tribunal dispensed with notice issuance as both parties were informed in open court, scheduling the appeal for a future date. The decision was pronounced on 7th September 2012.

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Issues involved: Application for stay of outstanding demand u/s Transfer Pricing adjustment and disallowance u/s 10A.

Transfer Pricing Adjustment: The assessee applied for stay of outstanding demand of Rs. 5,05,21,028/- arising from Transfer Pricing adjustment and disallowance u/s 10A. The assessee had favorable orders by the ITAT in A.Y. 2006-07 and claimed deduction u/s 10A from assessment year 2001-02. The Tribunal found a prima facie case in favor of the assessee and granted stay of demand, directing the assessee to pay Rs. 50 lakhs by a specified date and stay the balance till the disposal of the appeal or six months, whichever is earlier.

Decision: The Tribunal allowed the stay application of the assessee, considering the prima facie case in favor of the assessee and the outstanding amount involved. The assessee was directed to make a partial payment and the balance was stayed till the appeal's disposal or six months, whichever is earlier. The appeal was scheduled for a future date, and notice issuance was dispensed with as both parties were informed in the open court. The order was pronounced in the open court on 7th September 2012.

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