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TMI Blog2019 (2) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... stay. In this regard, we notice that the total tax payable by the assessee excluding interest u/s.234B & 234C of the Income Tax Act, 1961 (Act) is ₹ 492,73,02,320, out of which the assessee has already paid ₹ 163,18,13,536, leaving balance tax payable of ₹ 329,54,88,784. The assessee has further paid a sum of ₹ 150 crores, thereby 45.5% of the outstanding demand in respect of taxes already stands discharged by the assessee. Taking into consideration these aspects, we have fixed a sum of ₹ 10 crores to be paid in two instalments by the assessee which will make the payment of outstanding demand of taxes by the assessee to almost 50% of the tax payable. This will sufficiently safeguard the interest of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eign currency. The adjustment suggested by the TPO was by applying 14.18% rate of interest, whereas as per the law laid down by the Hon ble Rajasthan High Court in the case of CIT v. Vaibhav Gems Ltd. [2017] 88 tgaxmann.com 12 and the decision of the jurisdictional Tribunal in the case of Sasken Technologies Ltd. in ITA No.550/Bang/2016, order dated 16.11.2018 , only the LIBOR rate of interest has to be adopted for loans given to overseas AEs, which in this case would be 0.23%. If the settled law on this issue is applied, then the tax effect on the disallowance would be less by ₹ 174.80 crores. 3. It was pointed out that another international transaction on corporate guarantee given to the AE was subject matter of determination ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resulted in levy of tax to the extent of ₹ 14.39 crores. The Hon ble High Court of Karnataka in the case of Indo Nissin Foods Ltd. reported in 35 taxmann.com 637 has taken a view that brand promotion expenses are revenue in nature and cannot be treated as capital expenditure. If effect is given to this decision, the tax payable would be reduced by ₹ 14.39 Crores. 6. The ld. counsel for the assessee submitted that assessee has a prima facie case and balance of convenience is in favour of granting of stay of recovery of outstanding demand. It was also submitted that the assessee is facing severe financial hardship, after having paid advance tax of ₹ 225 crores with an additional estimated ₹ 100 crores for the mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e High Court of Karnataka in the case of Pragathi Krishna Gramin Bank (supra) after the passing of the order of Tribunal in the Stay Petition filed for AY 2012-13. He therefore submitted that there were material changes in the facts and circumstances of the case and therefore dismissal of stay petition in the earlier assessment year will not be of any significance. 9. We have heard the rival submissions. Keeping in mind the existence of a prima facie case, other contentions regarding change of circumstances, since the passing of the earlier order of Tribunal in Stay petition for AY 12-13, balance of convenience, financial and other hardships, we are of the view that it would be just and appropriate to direct the assessee pay a furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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