TaxTMI 
TaxTMI 
TaxTMI 
2019 (6) TMI 50
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....ons. The breakup of the addition, tax component and interest including the payments made and outstanding tax and interest for both the assessment years 2013-14 and 2014-15 is tabulated hereunder for convenience. Addition Points AY 2013-14 Addition Made by AO (Rs.) Tax Component Including Surcharge and E Cess Interest Component Total Demand Payments Made Outstanding (Tax) Outstanding (Interest) Royalty Issue 768.59 249.37 139.65 389.02 225.00 24.37 139.65 Transfer Pricing 346.32 112.36 62.92 175.28 0.00 112.36 62.92 Attribution 396.13 128.52 71.97 200.49 0.00 128.52 71.97 Total 1,511.04 490.25 274.54 764.79 225.00 490.25 274.54 Addition Points AY 2014-15 Addition Made by AO (Rs.) Tax Component Including Surcharge and E Cess Interest Component Total Demand Payments Made Outstanding (Tax) Outstanding (Interest) Royalty Issue 1076.19 365.80 204.85 570.65 0.00 365.80 204.85 Transfer Pricing 690.59 234.73 65.92 300.65 0.00 234.73 65.92 Attribution 527.12 179.17 100.33 279.50 0.00 179.17 100.33 Total 2293.90 779.70 371.10 1150.80 0.00 779.70 371.10 3. Being aggrieved by t....
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....factors i.e., prima-facie, balance of convenience and hardship. Balancing equity is necessary as the discretion exercised by the Tribunal is arbitrary, perverse and against the public interest. Considering the factual aspects of the case in the light of the order of this Court dated 28.8.2018 In ITA No.502/2018 and allied matters, the order impugned deserves to be set aside. 7. Learned Senior Counsel Sri.Ganesh.S representing the learned counsel Sri.Aditya V. Bhat for the respondent - assessee submitted that the interim order of the Tribunal protects and safeguards the interest of the revenue. Approximately, 89% of the demand towards royalty is directed to be paid as a condition for grant of stay. In addition to that, the assessee has already paid Rs. 114 crores relating to the assessment year 2013-14 and Rs. 169 crores relating to the assessment year 2014-15 in the proceedings initiated under Section 201 of the Income Tax Act, 1961. It is ordered that if payment made by the assessee to Google Ireland Limited [GIL] were held to be the purchase price of advertisement space and not royalty, then no demand could at all be raised on the assessee. Royalty issue has arose year after yea....
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....he demand has been paid by the Assessee to the Revenue. Further, the Bank Guarantee of about Rs. 26 Crores, which is subsisting as of now and shall be kept alive till the disposal of these appeals, has also been given to the Revenue Department, which adequately protects the interest of the Revenue and therefore, the recovery of the balance amount may be stayed and no coercive proceedings may be undertaken by the Revenue till the present Appeals filed by the Assessee along with another batch of Appeals filed earlier by the Assessee against the order of Tribunal dated 23.10.2017 which are on Board today also are decided and which were admitted by co-ordinate Bench on 15.11.2017. 10. Having heard the learned counsels on both sides about the interim relief, we pass the following interim directions: i) The coercive process for the recovery of the balance amount of demand may not be taken by the respondent-Revenue in view of their interest having been adequately safeguarded and the major portion of the demand having already been paid by the appellant-Assessee Company. ii) The penalty proceedings shall not be undertaken by the Revenue Authorities during the pendency of the pr....
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....t of the issues remanded in deviating of the interim arrangement made by this Hon'ble Court, the Tribunal should have directed the assessee to pay the entire amount with interest in respect of the issues confirmed by it. Having not directed so, the order of the Tribunal is arbitrary and perverse." 15. Further paragraph Nos.12 and 13 of the impugned order makes it clear that the department's demand for the Assessment years 2013-14 and 2014-15 was Rs. 24 crores and Rs. 365 crores respectively and the said paragraphs are extracted hereunder:- "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 Rs. 596 Crores after giving credit to Rs. 375 Crores already paid by the Assessee. 13. The calculation of outstanding demand and sum which the Assesee wants to pay as a condition for grant of stay and the sum which the Department wants the Assessee to pay as a condition for grant of stay are as follows:- (Rupees in Crores) Assessment Year Total Demand* Taxes Already Paid Assesse's Offer Depart....