Market Tools Research Private Limited, ... vs Assessee

Market Tools Research Pvt. The Asst. Commissioner Ltd., vs. of Income Tax, Madhapur, Ward-16(2), Hyderabad Hyderabad. [PAN: AADCM 9330 M]

(Applicant) (Respondent)

For Assessee : Shri A.V.Raghu Ram, AR For Revenue : Shri Rajat Mitra, DR

Date of Hearing : 16-01-2015 Date of pronouncement : 16-01-2015

ORDER

PER B. RAMAKOTAIAH, A.M :

This application is preferred by assessee requesting stay of outstanding demand of Rs. 2,60,95,430/- raised by Assessing Officer, as confirmed by the DRP under the Transfer Pricing provisions.

2. The Ld.Counsel submitted that the issue of Transfer Pricing was considered by the Transfer Pricing Officer (TPO) in the assessment proceedings and DRP has given relief partly. Referring to the comparables confirmed by DRP, assessee's submission that two of the companies viz., Accentia Technologies Ltd., and TCS e-serve International Ltd. were also held to be not comparable in other 2 SA.No.105/Hyd/2014 in ITA.1866/Hyd/2014 Market Tools Research P. Ltd

co-ordinate bench decisions. If these are excluded, assessee's ALP will be within the ALP determined by the TPO. It was further submitted that assessee has suomotu adjusted some amounts voluntarily and filed the revised return, but Assessing Officer has not considered the same, while making further addition. Filing a copy of application u/s.154 of the Income Tax Act (Act) made to the Assessing Officer dt.05-12-2014 in which assessee has raised various issues including that the net addition would be only Rs.97,08,814/- as against Rs.4,09,44,188/- and further giving credit to the MAT credit and also advance tax paid of Rs.14.28 Lakhs. It was the submission that there will be no demand outstanding if these are considered. It was further submitted that by the order of ITAT in earlier years, refunds to the extent of Rs.1.77 Crores would arise to assessee which can be adjusted if required. Considering the above, it was the prayer that entire demand may be stayed.

3. Ld.DR while admitting that some of the comparables are rejected by the co-ordinate benches, he defended the orders of Assessing Officer.

4. Considering the amounts which are due from the Department to the assessee by way of refunds in earlier years and the prima-facie case made out by assessee before us and also considering that application u/s.154 is pending before the Assessing Officer, we are of the opinion that entire demand can be stayed till the disposal of appeal or for a period of six months whichever is earlier. We were informed that the case is already posted on 01-04-2015 which Ld.Counsel wanted to be pre-poned. Considering the request, the case is now stands posted on 05-03-2015. Since the date is announced in the open court, there is no issuance of notice by the Registry separately. Parties are advised to file Paper Books if they want to rely on any document. Assessee should not seek any adjournment without any valid reason.

3 SA.No.105/Hyd/2014 in ITA.1866/Hyd/2014 Market Tools Research P. Ltd

5. With these directions and observations, the Stay Application is considered allowed.

Order pronounced in the open Court on 16th January, 2015

Sd/- Sd/-

(SAKTIJIT DEY) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER

Hyderabad, Date: 16th January, 2015

TNMM

Copy to :

1. Market Tools Research Pvt. Ltd., 1st Floor, Phase 1A & 3rd Floor, Phase 1B, Cyber Pearl, Hitech City, Hyderabad- 500 081;

2. ACIT, Ward(16)-2, Hyderabad

3. DRP, II Floor, IT Towers, 10-2-3, AC Guards, Hyderabad

4. Director of Income Tax (IT & TP), Hyderabad

5. CIT-IV, Hyderabad

6. DCIT (Transfer Pricing-2), Hyderabad

7. D.R. ITAT, Hyderabad.