Aegis Ltd , vs Assessee

आयकर अपीलीय अिधकरण, अिधकरण मुंबई IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES 'K' MUMBAI सव[ौी ǒवजय पाल राव, Ûयाियक सदःय एवं ौी डȣ. कǾणाकर रावु लेखा सदःय के सम¢ । BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI D.KARUNAKARA RAO, ACCOUNTANT MEMBER SA NO.387/MUM/2014 (Arising out of ITA No.7694/Mum/2014, A.Y 2010-11)

Aegis Limited, The Dy. Commissioner of Equinox Business Park, Income Tax , Range - 5(1), Tower 1, Vs. Mumbai. Off BKC, LBS Marg, Kurla (W), (Respondent) Mumbai, Maharashtra 400 070 PAN:AAACE 8354Q (Applicant ) Applicant by : Shri Rajan V. Vora Respondent by : Shri Rudolph N. D'souza

Date of hearing : 23/01/2015 Date of pronouncement : 23/01/2015

ORDER

PER VIJAY PAL RAO, J.M:

By this application the assessee is seeking stay against the total outstanding demand of Rs.1,09,42,32,490/- inclusive of interest under section 234A,234B, 234C & 234D of the Income Tax Act,1961(the Act) amounting to Rs. 32,64,96,106/- arising from the assessment order passed under section 144C(13) of the Act for the assessment year 2010-11.

2. We have heard the Ld. AR as well as Ld. DR and considered the relevant material on record. On the last date of hearing of this stay petition the Bench directed the AO to consider the adjustment of refund as well as rectification as 2 SA NO.387/MUM/2014

pointed out by the assessee and then work out the balance outstanding demand after making the necessary rectification and adjustment of the credits. The Ld. AR of the assessee has filed an order dated 8/1/2015 passed under section 154 of the Act, whereby the AO has carried out the necessary rectification as well as given adjustment of refund due to the assessee. After rectification and adjustment of refund the AO has worked out the net outstanding demand at Rs.57,13,41,170/-. Thus, the Ld. AR has submitted that more than 50% of the original demand has been recovered by the Department by way of adjustment of refund payable to the assessee and the remaining demand of more than Rs.26.00 crores is relating to T.P adjustment, which are likely to be decided in favour of the assessee as the assessee has a good prima-facie case. He has further pointed out that identical issue of T.P adjustment has been heard by this Tribunal in assessee's own case for the earlier assessment year and the order is awaited. Thus, Ld. AR has submitted that the balance demand should be stayed till appeal of the assessee is disposed of.

3. On the other hand, Ld. DR has vehemently opposed the stay against the demand and submitted that the assessee should deposit the balance amount.

4. Having considered the rival submissions as well as relevant material on record, we note that in pursuant to the directions of the Tribunal vide order dated 02/01/2015, the AO has passed order dated 08/01/2015 under section 154 of the Act, whereby the necessary rectification as well as adjustment of refund payable to the assessee has been carried out. Out of the total original outstanding demand of Rs.109.42 crores the net balance demand after the rectification and adjustment is only Rs.57.13,41,170/-. Thus, it is clear that more than 50% of the original demand stands recovered by virtue of necessary adjustment of refund payable to the assessee. Even otherwise, the demand arising in this case is due to Transfer Pricing adjustment of which 3 SA NO.387/MUM/2014

the assessee has claimed to have a good prima-facie case in view of the identical issue involved in the earlier years of the assessee, already heard by the Tribunal. Having regard to the facts and circumstances of the case as well as in the interest of justice we are of the view that the assessee has made out good prima-facie case for grant of stay against the balance outstanding demand of Rs.57.13 crores subject to payment of Rs.1.50 crores. The assessee is directed to pay Rs.50.00 lacs on or before 28/02/2015 and balance amount of Rs.1.00 crore on or before 15/03/2015. Subject to the payment of the above amount of Rs.1.50 crores, we stay the recovery of the balance amount for a period of 180 days or till the disposal of the appeal of the assessee, whichever is earlier. The appeal of the assessee is directed to be listed out of turn on 24/03/2015. It is made clear that if the assessee seeks unnecessary adjournments the stay granted by us shall stand vacated. The next date of hearing of the appeal of the assessee is pronounced in the open court and noted by the parties, therefore, no separate notice of hearing of the appeal shall be issued.

5. In the result, the stay application is allowed.

Order pronounced in the open court on 23/01/2015 आदे श कȧ घोषणा खुले Ûयायालय मɅ Ǒदनांकः 23/01/2015 को कȧ गई ।

Sd/- Sd/- (डȣ. कǾणाकर रावु/ D.KARUNAKARA RAO ) (ǒवजय पाल राव/VIJAY PAL RAO ) लेखा सदःय / ACCOUNTANT MEMBER Ûयाियक सदःय / JUDICIAL MEMBER मुंबई Mumbai; Ǒदनांक Dated : 23/01/2015 4 SA NO.387/MUM/2014

आदे श कȧ ूितिलǒप अमेǒषत/Copy षत of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. ू×यथȸ / The Respondent. 3. आयकर आयुƠ(अपील) / The CIT(A)- 4. आयकर आयुƠ / CIT 5. ǒवभागीय ूितिनिध, आयकर अपीलीय अिधकरण, मुब ं ई / DR, ITAT, Mumbai 6. गाड[ फाईल / Guard file.

आदे शानुसार/ ार BY ORDER, स×याǒपत ूित //True Copy//

उप/सहायक उप सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अिधकरण मुब ं ई / ITAT, Mumbai व.िन.स./Vm, Sr. PS