2016 (5) TMI 96

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....2. The total demand of penalty for all the relevant assessment years before us put together is Rs. 11,95,84,931 after payment of Rs. 2,98,98,234 being the 20% of the demand under section 271C of Rs. 14,94,81,165. It is stated by the Ld. Counsel for the assessee that the assessee company has filed these stay applications seeking stay of the outstanding demand of penalty levied under section 271C of the I.T. Act, 1961. 3. As regards the issue on which the penalty under section 271C is levied, it is submitted that the assessee, for the purpose of its business and for efficient distribution of its services, has appointed distributors in its territories, distributing its 'right to pre-paid services' on a principal-to-principal basis. It is su....

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.... the taxes on the discounts given to the distributors of pre-paid services. Subsequently, for the A.Y. 2010-2011, the assessments of the assessee were taken-up for extensive verification under section 201(1) and 201(1A) of the I.T. Act and the detailed orders were passed on 15th March, 2011. It is submitted that the assessee filed an appeal before the Ld. CIT(A) which was disposed of vide orders dated 14th March, 2014 upholding the liability of the assessee under section 194H of the Act. Meanwhile, the A.O. initiated penalty proceedings under section 271C of the Act and levied the penalty against which the assessee has filed appeals before the CIT(A). The CIT(A) upheld the penalty orders and the assessee is in appeal before us. The Ld. Coun....

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....le Supreme Court are coming up for hearing in the month of April, 2016 which fact has been taken note of by this Tribunal while extending stay granted vide orders dated 21.12.2015. 4. The Ld. D.R. however, opposed to grant of stay and submitted that the assessee should be asked to pay the demand outstanding. 5. Having regard to the rival contentions and the material available on record, we find that the main issue as to whether the assessee is required to make any TDS under section 194H of the I.T. Act is pending adjudication before the Hon'ble Supreme Court of India as divergent views have been expressed by various High Courts in India. The appeals on merits are coming up for hearing before the Hon'ble Supreme Court in the month of A....