2012 (2) TMI 478 - AT - Income Tax

Seeking stay of the outstanding demand of tax - Held that - We are of the opinion that the stay is to be granted in this case on the condition that the assessee shall pay a further sum of ₹ 35.00 lakhs on or before 15-03-2012. The stay shall be in force for a period of 180 days or till the disposal of the appeal whichever is earlier. The appeal is posted for hearing on 04-05-2012. As the date of hearing of the appeal is declared in the open court, no fresh notice need be given. In the result, the Stay Petition filed by the assessee is allowed.

Summary

Issues: Stay of outstanding tax demand, transfer pricing adjustment, computation of deduction u/s 10A of the IT Act.

Stay of Outstanding Tax Demand: The assessee filed an application seeking a stay of the outstanding demand of tax amounting to Rs. 2,09,01,121. The counsel for the assessee argued that the demand arose from transfer pricing adjustment and computation of deduction u/s 10A of the IT Act. The assessee had already paid Rs. 1.10 lakhs, which was more than 50% of the tax demand. The counsel expressed confidence in winning the case as most issues were covered by Tribunal decisions.

Opposition to Stay: The Departmental Representative (DR) opposed the grant of stay, citing the lack of evidence regarding the assessee's financial constraints for making the payment.

Decision on Stay: After hearing both parties, the Tribunal decided to grant the stay on the condition that the assessee would pay an additional Rs. 35.00 lakhs by a specified date. The stay was granted for 180 days or until the appeal's disposal, whichever was earlier. The appeal was scheduled for hearing on a specific date, and no fresh notice was deemed necessary.

Conclusion: The Stay Petition filed by the assessee was allowed, and the order was pronounced in the open court on February 21, 2012.