2016 (3) TMI 1334 - AT - Income Tax

Tribunal grants stay on outstanding tax demand pending appeal with deposit and property restriction

Giesecke And Devrient India Pvt. Ltd. Versus DCIT, Circle 10 (1), New Delhi

The Tribunal granted the stay application for the outstanding demand of Rs. 63,71,370, inclusive of interest, until the appeal for the Assessment Year ... Seeking stay the outstanding demand - Held that:- We are inclined to accept the request of the assessee for grant of stay for a period of six months or till the disposal of the appeal, whichever is earlier, subject to the assessee depositing a further sum of ₹ 12.50 lac by 31.3.2016. AR agreed to deposit the above amount by the stipulated date. This accommodation is subject to furnishing of undertaking to the satisfaction of the AO to the effect that assessee will not alienate or dispose of any of its immovable properties till the final disposal of the present appeal. The assessee will also not be entitled to seek any adjournment without just cause. In case any of the terms and conditions is/are violated, the stay herein granted shall be vacated and appeal will revert to its original position to be fixed in routine manner - stay application of the assessee gets disposed of accordingly Issues: Stay application for outstanding demand of Rs. 63,71,370 inclusive of interest till disposal of appeal for AY 2011-12.Analysis:1. The primary issue in this case is the stay application filed by the assessee requesting the Tribunal to stay the outstanding demand of Rs. 63,71,370 inclusive of interest until the appeal for the Assessment Year 2011-12 is disposed of.2. The major addition leading to the demand is related to transfer pricing adjustment of AMP expenses. The assessee's representative argued that the Hon'ble Delhi High Court has ruled in favor of the assessee in similar cases concerning this issue, which was contested by the Departmental Representative.3. After hearing both parties and examining the relevant material on record, the Tribunal decided to grant the stay for a period of six months or until the appeal is disposed of, subject to the condition that the assessee deposits an additional sum of Rs. 12.50 lakh by a specified date. The assessee agreed to comply with this condition. Additionally, the assessee was required to provide an undertaking to the Assessing Officer, pledging not to alienate or dispose of any immovable properties until the appeal's final disposal. The Tribunal also imposed restrictions on seeking adjournments without just cause. Violation of any terms and conditions would result in the vacation of the stay granted.4. The Tribunal directed the Registry to schedule the appeal for a hearing on a specified date after giving notice to both parties. The stay application was allowed based on the aforementioned terms and conditions.5. The order was pronounced in the open court on 23.03.2016, concluding the disposition of the stay application in favor of the assessee.