Tribunal grants stay for Rs. 6,38,99,650 demand incl. interest for 2013-14. Payment & property restrictions apply.

The Tribunal granted a stay of the outstanding demand amounting to Rs. 6,38,99,650, inclusive of interest, for the assessment year 2013-14. The stay was allowed until the appeal's disposal or 180 days from the order date, subject to the payment of 15% of the demand by a specified date. Additionally, the assessee was required to provide an undertaking not to alienate any immovable properties until the appeal's resolution.

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Issues:
Stay of demand amounting to Rs. 6,38,99,650 inclusive of interest for the assessment year 2013-14.

Analysis:
The assessee, a private limited company providing facility management services, sought a stay of demand totaling Rs. 6,38,99,650, including interest, for the assessment year 2013-14 pending the final disposal of appeal. The Assessing Officer (AO) had made adjustments following the Transfer Pricing Officer's (TPO) order, resulting in a demand of Rs. 49,64,770. The Ld. CIT(A) enhanced this adjustment to Rs. 12,09,93,860 based on the operating profit to sales ratio of 14.29%. The assessee contended that certain binding jurisdictional pronouncements were not considered by the Ld. CIT(A), and a rectification petition was pending. The assessee argued for a stay of demand citing a prima facie good case and financial difficulties.

The Revenue opposed the stay application, highlighting that the assessee had not paid any amount out of the total demand. Relying on the Ld. CIT(A)'s order, the Revenue requested the rejection of the stay petition. After hearing both parties and examining the facts, the Tribunal decided to grant a stay of the outstanding demand until the appeal's disposal or 180 days from the order date, subject to the payment of 15% of the demand by a specified date. The stay was conditional on the assessee providing an undertaking not to alienate any immovable properties until the appeal's resolution. The Tribunal disposed of the stay application accordingly, allowing it on the specified terms and conditions.

In conclusion, the Tribunal allowed the stay application in the terms mentioned, emphasizing the payment of a specified percentage of the demand by a set date and the undertaking not to alienate any immovable properties until the appeal's resolution.

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