2017 (7) TMI 1097 - HC - Income Tax

Estimation of stay - Direction of tribunal to deposit 50% of the total tax demand - Held that - This writ petition is disposed of with a slight notification of the direction given by the learned Tribunal that instead of 50% of the total tax demand the petitioner-company may deposit 30% of the said total tax demand disputed before the learned Tribunal and if the petitioner-company has already deposited 20% of the tax demand in view of the aforesaid direction of the learned Tribunal remaining 10% of the same also be deposited by the petitioner-company within the aforesaid period of one month as undertaken by the learned Senior counsel on behalf of the petitioner-company.

Summary

Issues:
Interlocutory stay order requiring deposit of 50% of tax demand - Petitioner's challenge - Tribunal's direction - Petitioner's willingness to deposit 30% - Tribunal's expeditious decision required.

Analysis:
The petitioner, M/s. Google India Pvt. Ltd., challenged an interlocutory stay order by the Income Tax Appellate Tribunal (ITAT), 'B' Bench, Bengaluru, for the Assessment year 2012-13. The Tribunal directed the petitioner to deposit 50% of the tax demand, with 20% to be paid within seven days and the balance in six equal installments. The petitioner, represented by Senior Counsel Mr. Percy Pardiwala, objected to this and referred to the Tribunal's suggestion of paying 30% instead, which was not accepted. The Tribunal justified its decision based on considerations like prima facie case, balance of convenience, and irreparable loss.

The petitioner sought to argue the case's merits, but the Court declined, noting the pending appeals before the Tribunal for final hearing. The Court emphasized the need for the Tribunal to expedite the pending appeals, refraining from expressing any opinion on the case's merits. The petitioner agreed to deposit 30% of the tax demand as suggested by the Tribunal, with the remaining 10% to be paid within a month. The Court, while not inclined to interfere with the Tribunal's order, accepted the petitioner's submission in light of the circumstances and urged the Tribunal to decide the appeals promptly, preferably within six months.

Consequently, the writ petition was disposed of with a modification to the Tribunal's direction, allowing the petitioner to deposit 30% of the disputed tax demand instead of 50%, with the remaining 10% to be paid within a month as agreed by the petitioner's Senior Counsel. No costs were awarded in the judgment.