2012 (9) TMI 964 - AT - Income Tax

Summary

Issues involved: Application for stay of outstanding demand u/s Transfer Pricing adjustment and disallowance u/s 10A.

Transfer Pricing Adjustment: The assessee applied for stay of outstanding demand of Rs. 5,05,21,028/- arising from Transfer Pricing adjustment and disallowance u/s 10A. The assessee had favorable orders by the ITAT in A.Y. 2006-07 and claimed deduction u/s 10A from assessment year 2001-02. The Tribunal found a prima facie case in favor of the assessee and granted stay of demand, directing the assessee to pay Rs. 50 lakhs by a specified date and stay the balance till the disposal of the appeal or six months, whichever is earlier.

Decision: The Tribunal allowed the stay application of the assessee, considering the prima facie case in favor of the assessee and the outstanding amount involved. The assessee was directed to make a partial payment and the balance was stayed till the appeal's disposal or six months, whichever is earlier. The appeal was scheduled for a future date, and notice issuance was dispensed with as both parties were informed in the open court. The order was pronounced in the open court on 7th September 2012.