Sabic Innovative Plastics India ... vs Assessee

IN THE INCOME TAX APPELLATE TRIBUNAL " A " BENCH, AHMEDABAD (BEFORE SHRI MUKUL Kr. SHRAWAT, J.M & SHRI ANIL CHATURVEDI, A.M.)

S.P. No. 31 /AHD/2015 ( In ITA No. 367/AHD/2015) (Assessment Year: 2010-11)

SABIC Innovative Plastics V/S The A.C.I.T, Circle-2 (1)(1), India Private Limited Plastic Baroda Avenue, P.. Jawaharnagar- 391320 Distt. Vadodara, India

(Appellant) (Respondent)

Appellant by : Shri. Anis Mehta, A.R. Respondent by : Shri .M.K. Singh, Sr. D.R.

(आदे श)/ORDER

Date of hearing : 20-03 -2015 Date of Pronouncement : 20 -03-2015

PER SHRI ANIL CHATURVEDI,A.M.

1. Through this stay petition, Assessee want us to stay for A.Y. 2010-11 total tax demand of Rs. 2,67,83,930 which comprises of tax of Rs. 1,61,32,677/- and interest of Rs. 1,06,51,253/-.

2. Before us, ld. A.R. submitted that the tax demand is on account of the additions that have been made on account of Transfer Pricing adjustments and other additions. He submitted that Assessee has a very strong prima facie arguable case and is confident that on merits the case will be decided in 2 S.P No 31A/15 (in ITA No. 367/A/2015) . A.Y. 2010-11 favour of Assessee and therefore there would be no tax demand. He further submitted that pursuant to the Hon'ble Tribunal's order for A.Y. 2008-09, Assessee would be eligible for refund in excess of Rs. 5 crore and which has not been refunded to the Assessee. He submitted that the balance of convenience is in favour of the Assessee and therefore a complete stay against the recovery of outstanding demand till the disposal of appeal be granted. As an alternate he submitted that Assessee is ready to pay Rs. 10 lacs per month till the disposal of appeal. On the other hand, the ld. D.R. also submitted that against the outstanding demand, Assessee has not paid any amount and therefore Assessee should not be granted any stay and thus opposed the stay application. In the alternate, he submitted that the Assessee be asked to pay at least 50% of the demand.

3. We have heard the rival submissions and perused the material on record. After considering to the facts and circumstances of the case and the balance of convenience, we are of the view that in the present case Assessee deserves a stay of demand. We therefore are of the view that in the present case, the stay of demand be granted subject to the following conditions:-

(a) the Assessee shall pay Rs. 20 lacs before 31st March, 2015 and thereafter Rs. 5 lac by 15th of every month subject to the other conditions laid down herein.

(b) Subject to the fulfillment of the above conditions, the rest of the demand is hereby stayed for a period of 180 days from the date of this order or till the disposal of appeal whichever is earlier on the following conditions:-

3 S.P No 31A/15 (in ITA No. 367/A/2015) . A.Y. 2010-11

(i) The appeal shall be fixed for hearing on 12.05.2015. Since the date of hearing of appeal has been pronounced in the open court, the issuance of separate notice is dispensed with.

(ii) Assessee shall not seek any frivolous adjournment on the date of hearing.

(iii) If a paper book is desired to be filed by the Assessee then the same should be submitted well in advance as prescribed in ITAT Rules. In case of breach of the conditions stated hereinabove, the stay granted shall automatically get vacated unless directed otherwise by the Bench.

4. In the result, the Stay Petition is allowed on the terms indicated in the

foregoing paragraphs.

Order pronounced in Open Court on 20 - 03 - 2015.

Sd/- Sd/- (MUKUL Kr. SHRAWAT) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad. TRUE COPY Rajesh

Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) - 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad. 6. Guard File. By ORDER

Deputy/Asstt.Registrar ITAT,Ahmedabad