9911796707
TMI Blog2022 (9) TMI 1150X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manner stated above. However, this order shall come into effect from the date the Petitioner deposits the additional 100 crores in terms of para 7(i) above. Upon deposit of the said sum, the AO will withdraw the attachment orders and will communicate the same to the parties to whom attachment orders were served. With the above directions, present writ petition and pending applications stand disposed of. - W.P.(C) 6352/2022 & C.M.Nos.19200/2022 & 29324/2022 - - - Dated:- 30-8-2022 - HON'BLE MR. JUSTICE MANMOHAN AND HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA Petitioner Through: Mr. Arvind Datar and Mr. Tarun Gulati, Sr. Advocates with Mr. Kishore Kunal, Mr. Manish Rastogi and Ms. Ankita Prakash, Advocates. Respondents Through: Mr. Zoheb Hossain, Sr. Standing Counsel for the Revenue with Mr. Vipul Agrawal and Mr. Parth Semwal, Advocates. J U D G M E N T MANMOHAN, J (ORAL): 1. Petitioner has filed the present modification application seeking deletion of para 9(iii) of order dated 21st April, 2022 passed by this Court which is as follows: (iii) The Petitioner shall not repatriate any money abroad till the next date of hearing with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel appearing for the Petitioner have made the following submissions: - a. That while the petitioner is receiving foreign exchange from its overseas customers, it is unable to make payments to its own suppliers which is causing grave prejudice to the business interests of the Petitioner. It is submitted that on account of the business activities of the Petitioner, substantial amounts of foreign exchange are being brought into India. b. That in view of the above submission, the Petitioner is seeking modification of the order dated 21st April, 2022 and praying for dispensation from the condition (iii) imposed by this Hon ble Court vide order dated 21st April, 2022 thereby, permitting the Petitioner to make payments in order to continue its business operations. c. There is no demand at present for which a protection is sought by the Respondents. The future estimates of demand are without any basis. The powers under Section 132(9B) of the Income Tax Act, 1961 ( the Act ) cannot be used to protect any unsubstantiated future demands. Further, the track record of the Petitioner has been exemplary and there are no amounts due from the Petitioner of any outstanding tax dues. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ying with the legal requirement under the provisions of Section 128 of the Companies Act 2013 read with Rule 3 of Companies (Accounts) Rules, 2014, which prescribes that backup of the books of account maintained in electronic mode, including at a place outside India is required to be kept in servers physically located in India. Neither such location was conveyed during search nor in response to the summons dated 31st May, 2022. b. It has been submitted that there was huge quantum of the import transactions (exceeding Rs. 19,000 crores in the previous 6 years). In the absence of the books of accounts (though the same were stated to be produced as ERP dump of all the transactions undertaken by the company), it was not possible to determine the veracity of the profit margin disclosed by the petitioner in the telecom/relevant segment, which includes such import transactions. If the profit margin in itself is suspect (in the absence of appropriate books of accounts), there is no reason to consider the transactions of import to be at arm s length based on such profit margin. c. It was submitted that while the quantum of likely demand at Rs.350 crores had been determined on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it as well as reference to the Transfer Pricing Officer and the petitioner may then want to avail the route of Dispute Resolution Panel (DRP) which are all statutorily timebound and hence no reduction of such statutory time limits is warranted. h. Lastly, it was prayed that this Hon ble Court may appoint any independent expert to draw up the books of accounts of the petitioner on the basis of the ERP data dump seized during the search, especially considering claim of the petitioner that such data dump represents the prescribed books of accounts. 6. In rejoinder, the senior counsel on behalf of the Petitioner strongly refute the Revenue s contention that a demand of Rs.1000 crores is likely to be created by disallowing all the related party transactions of royalty, fees for technical services and business support services for the entire period of ten years. It is contended that the basis of these purported additions have already been scrutinized and have also been added to the income of the Petitioner in the regular assessments. 7. Having heard the learned senior counsel for the Petitioner and the senior standing counsel for the Revenue, in view of the fact that the Peti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
