TaxTMI 
TaxTMI 
2019 (6) TMI 50
X X X X Extracts X X X X
X X X X Extracts X X X X
....ined the liability by making certain additions. 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....red the demand made by the Revenue relating to the royalty alone in utter disregard to the total tax liability determined relating to other issues viz., transfer pricing and attribution. The order of the Tribunal is contrary to the key 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....same, it is apt to refer to the relevant paragraphs of the said order at paras-8, 10, 12 and 13.: "8. On the question of recovery of tax, interest and penalty, the learned counsel urged before this Court that approximately 90% of the tax and interest part of the 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e extent of issues confirmed by the Tribunal i.e., in respect of the royalty issue, the assessee would be entitled/liable to pay the entire amount pertaining to the confirmed demand. 13. It is submitted that without prejudice to the contention that the assessee/respondent should not be directed to pay tax and interest in respect 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 Cror....