Minacs Ltd, vs Assessee

M/s. Minacs Limited D C I T - 10(2)(2) (Formerly Aditya Birla Minacs Worldwide Room No. 209, Aayakar Bhavan Ltd.) 9th Floor, Symphony IT Park Vs. M.K. Road, Mumbai 400020 Chandivali Farm Rd., Andheri (E) Mumbai 400072 PAN - AAACT1567A Applicant Respondent

Applicant by: Shri Yogesh Thar Respondent by: Shri Vivek A. Perampurna

Date of Hearing: 13.03.2015 Date of Pronouncement: 13.03.2015

ORDER

Per D. Manmohan, V.P.

By this application assessee seeks stay of collection of outstanding demand of `9,64,70,100/- pending disposal of the appeal and also requested for posting the appeal on out of turn basis.

2. During the course of hearing of the stay application assessee placed before us a statement to highlight that the additions made by the AO/TPO are arbitrary and not in accordance with the decisions rendered by the ITAT in number of cases and the assessee has a strong prima facie case on merit. For example, the AO adopted an arbitrary LIBOR rate while making addition of notional interest on account of loan given to Associate Enterprises. Similarly, in treating corporate guarantee as an international transaction and while making an addition of notional corporate guarantee fees AO adopted about 3%, which is excessive. He filed a statement before us to 2 SA No. 93/Mum/2015 M/s. Minacs Limited

highlight that if proper relief is given by the Tribunal the tax demand, if any, can at best be `1.40 crores, though in fact there may not be any tax demand. Under these circumstances, he submitted that it is a fit case for granting stay of collection of outstanding demand.

3. On the other hand, the learned D.R. submitted that even as per the calculation of assessee, if reasonable additions are confirmed, the tax demand works out to `1.40 crores and hence it is not a fit case for granting absolute stay.

4. We have considered the rival submissions and carefully perused the record. Having regard to the overall circumstances of the case we are of the view that it is a fit case for granting conditional stay; assessee is directed to pay a sum of `1.50 crores on or before 25th March, 2015 and subject to payment of the sum Registry is directed to post the appeal for final hearing on 15.06.2015. Assessee is also directed to pay another sum of `50 lakhs on or before 30th April, 2015. It deserves to be noticed that assessee claims that it is entitled for refund from Income Tax Department in other group cases which can be adjusted against the tax payable herein. AO to verify and adjust the same, and if the refund is less than `50 lakhs, the assessee shall pay the balance amount by 30th April, 2015. Assessee should furnish surety for the balance amount to the satisfaction of the AO. Since the date is announced in the open court, notice to the parties is dispensed with.

5. In the result, the stay application filed by the assessee is partly allowed.

Order pronounced in the open court on 13th March, 2015.

Sd/- Sd/- (Sanjay Arora) (D. Manmohan) Accountant Member Vice President

Mumbai, Dated: 13th March, 2015 3 SA No. 93/Mum/2015 M/s. Minacs Limited

Copy to:

1. The Appellant 2. The Respondent 3. DRP-I, Mumbai 4. The CIT/DIT concerned 5. The DR, "K" Bench, ITAT, Mumbai

By Order

//True Copy// Assistant Registrar ITAT, Mumbai Benches, Mumbai n.p.