J.P. Morgan India P.Ltd, vs Assessee

The assessee has filed this Stay Application seeking stay of outstanding demand of Rs.16,52,40,030/-, which is mainly arising out of Transfer Pricing Adjustment of Rs.28,34,06,880/-.

2. The assessee is engaged in the business of merchant banking, stock broking and in providing financial and advisory related services. The TPO has made the Transfer Pricing Adjustment with regard to the most of provision of services under taken with its AEs.

2 SA No.48/Mum/2015 3. Before us the learned Counsel, Shri Nishant Thakkar submitted that, if the assessee's contention with regard to only three comparable on its various segment of services is accepted mainly on the ground that, firstly, the same are covered by the decision of the Tribunal in assessee's own case and secondly, they are functionally not comparable at all which is also supported by various decisions of the Tribunal, then the major demand will get substantially reduced. Apart from this, assessee has a prima facie good case on other aspect of the Transfer Pricing Adjustment, therefore, the entire demand should be stayed. In the alternative, he submitted that the Tribunal while deciding the stay application for the assessment year 2009-10 has directed to the assessee to deposit 6 crores out of outstanding demand of Rs.20.83 crores hence, in this year also on the same proportion assessee is ready to pay part of the demand .

4. On the other hand, Ld. DR submitted that TP adjustment have been confirmed by the DRP and therefore, it cannot be held that assessee's entire demand should be stayed.

5. After considering the rival submission and facts as stated by ld. counsel, we are of the opinion that the assessee has a prima facie case for partial stay of demand. After discussion with the parties, we direct as under;

(i) Assessee shall pay a sum of Rs.5 crores on or before 20th March 2015;

3 SA No.48/Mum/2015 (ii) Subject to the aforesaid demand, the balance outstanding demand shall be stayed for the period of six months from the date of this order or till the passing of the order in the appeal filed by the assessee, whichever is earlier;

(iii) The assessee's case would be heard on priority basis and after consulting with the parties the date of hearing of the appeal is fixed for 20th April 2015;

(iv) Lastly, the assessee shall not seek any adjournment except for any bonafide and genuine reasons.

6. The Registry is directed to fix the hearing of appeal for 20th April 2015.

7. In the result, the Stay Application filed by the assessee is partly allowed in the manner indicated above.

Order pronounced on this 27th February, 2015.

Sd/- Sd/- (CHANDRA POOJARI) (AMIT SHUKLA) [ ACCOUNTANT MEMBER JUDICIAL MEMBER

Mumbai, dated 27-02-2015. Patel 4 SA No.48/Mum/2015

copy to... 1. The appellant 2. The Respondent 3. The CIT(A) - Concerned, Mumbai 4. The CIT- Concerned, Mumbai 5. The DR Bench, D 6. Master File // Tue copy// [[[[[[ BY ORDER DY/ASSTT. REGISTRAR ITAT, MUMBAI