Tribunal Grants Stay Petition for Tax Recovery, Sets Deposit Deadline

The Tribunal granted the Stay Petition filed by the assessee concerning the recovery of an outstanding tax amount for the assessment year 2013-14. The Tribunal found a prima facie case for granting stay and ordered the stay of recovery of the outstanding amount for six months, subject to the condition that the assessee deposits a specified amount by a set deadline. Failure to meet the deposit deadline would automatically vacate the stay. The appeal was scheduled for final disposal on a specified date, as indicated in the order.

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Issues involved: Stay petition for recovery of outstanding tax amount for the assessment year 2013-14.

Analysis:

1. Issue: Stay petition for recovery of outstanding tax amount
- The assessee filed a Stay Petition seeking relief from the recovery of an outstanding amount of Rs. 2,79,94,680 for the assessment year 2013-14.
- The counsel for the assessee stated that the tax portion amounts to Rs. 1,56,11,128 and the interest is Rs. 1,23,83,552. The primary issue under consideration was the transfer pricing adjustment made by the Assessing Officer.
- The Tribunal noted that the dispute pertained to transactions involving engineering design services and information technology support services, where the assessee had purchased raw material and finished goods from an Associated Enterprise.
- Out of the total demand of Rs. 9,55,56,640, the assessee had already paid Rs. 6,75,61,964, leaving a balance of Rs. 2,79,94,680. The assessee offered to deposit Rs. 60,00,000 towards the outstanding demand.
- Considering the facts and submissions, the Tribunal found a prima facie case for granting stay. Consequently, it ordered the stay of recovery of the outstanding amount for six months, subject to the condition that the assessee deposits Rs. 60,00,000 by 31-03-2018.
- Failure to meet the deposit deadline would automatically vacate the stay. The appeal was scheduled for final disposal on 09-05-2018, and the order served as a notice for the hearing on that date.

2. Judgment:
- The Stay Petition filed by the assessee was allowed based on the above considerations and observations made by the Tribunal.

This detailed analysis outlines the key issues involved in the Stay Petition for recovery of outstanding tax amounts, the arguments presented by both parties, and the Tribunal's decision to grant a stay subject to specific conditions and timelines.

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