9911796707
TMI Blog2012 (8) TMI 731X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 - S.V. MEHROTRA AND R.S. PADVEKAR, JJ. M.M. Golvala for the Applicant. D. Songate for the Respondent. ORDER R.S. Padvekar, Judicial Member - This stay petition is filed by the assessee with a prayer to stay the recovery of outstanding demand of Rs. 9,73,86,568 for the asst. yr. 2006-07. 2. As per the facts on record, the assessee is a subsidiary of Capgemini US LLC, USA. The assessee company is engaged in the business of providing software/information technology services. The assessee filed the return of income for the asst. yr. 2006-07 declaring the total income of Rs. 24,70,34,908 after claiming deduction under s. 10A to the extent of Rs. 4,03,29,190. The assessee has transactions with Associated Enterpris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es used by the assessee were rejected by the TPO without giving any valid reasons. The learned counsel drew our attention to one of the observations in the assessment order that the AO has himself accepted the factual position that the assessee has operating profit at 12.66 per cent. He further argues that the DRP passed the directions in its cryptic order of three pages without giving thought to all the objections raised by the assessee. He further argues that in the preceding years, no adjustment under s. 92CA are made. The assessee has reported 11.81 per cent operating profit which is within 5 per cent allowable under the said provision. He, therefore, submits that very high pitch addition is made by discarding the comparables given by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay Rs. 2,00,00,000 on or before 30th April, 2011. The balance outstanding demand which is in respect of the assessment order for the asst. yr. 2006-07 passed under s. 143(3) r/w s. 144C(13) of the IT Act dt. 30th Aug., 2010 is stayed for the period of 180 days from the date of this order or till the date of disposal of this appeal, whichever is earlier. The assessee should produce the proof of payment of Rs. 2,00,00,000 before the AO as well as file copy of the paid challan in the Tribunal on or before the date fixed for hearing of the appeal. This appeal is fixed for hearing on merit on 5th May, 2011 and no separate notice of hearing will be issued to both the parties. 5. In the result, assessee's stay petition is allowed in the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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