2019 (3) TMI 211

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....DER Per N.V. Vasudevan, Vice President These are Stay Petitions filed by the Assessee, M/s. Google India Pvt. Ltd. [GIPL], praying for an order of stay of recovery of outstanding demand arising out of orders of Assessment and the first appellate Authority in relation to AY 2014-15, 2016-17 & 2013-14 respectively. 2. The outstanding demand arises out of three additions made by the Assessing Officer (AO) /Transfer Pricing Officer (TPO) which were confirmed by the CIT(Appeals) in AY 2014-15 and by the Disputes Resolution Panel (DR) in AY 2013-14. The outstanding demand as far as AY 2016-17 is concerned arises out of an order passed u/s.201(1) & 201(1A) of the Income Tax Act, 1961 (Act) for Assessee's failure to deduct tax at source on....

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....en a stand that the amount payable to GIL was not in the nature of royalty either under the Act or under the India-Ireland 'DTAA'. 7. The AO/CIT(A)/DRP held that the payment was in the nature of Royalty and accordingly disallowed the sum paid, which was claimed as deduction while computing income from business by invoking the provisions of section 40(a)(ia) of the Act in AYs 2014-15 & 2013-14 respectively. Similarly for AY 2016-17, orders u/s.201(1) & 201(1A) of the Act were passed treating GIPL as an Assessee in default. The Assessee is in appeal against the aforesaid orders in these three appeals. 8. The second addition which has given rise to the outstanding demand in the appeals for AYs 2014-15 & 2013-14 arises out of dete....

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....nsel pointed out that in the earlier orders of the Tribunal the issue has been set aside to the AO for fresh adjudication and therefore the demand arising out of those additions should not be permitted to be recovered. He submitted that if on the issue of addition on account of Royalty alone is considered for calculating outstanding demand, then 50% of the outstanding demand for all the three years would be about Rs. 347 Crores, after giving credit to Rs. 375 Crores already paid by the Assessee. 12. The learned DR, on the other hand, submitted that 100% of the outstanding amount on account of taxes alone for the three assessment years, if the addition on account of Royalty alone is considered for calculating outstanding demand, would be ....