9911796707
TMI Blog2024 (12) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... % of the outstanding tax demand. In the given circumstances, the effect of the Revenue adjusting refunds against the stayed demand would essentially place the Assessee that is entitled to a refund in a disadvantageous position vis-a-vis those assesses to whom no refund is due. It is also material to note that there is no allegation that the petitioner is alienating its assets so as to frustrate the recovery of any demand or that it would be unable to pay the disputed demand in the event the same was confirmed in the appellate proceedings. In the given facts, we find merit in the contention that the Revenue s decision to adjust the refund due to the petitioner for the AYs 2008-09 and 2017-18, is arbitrary. See Eko India Financial Services (P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corporated in India and is engaged in the business of manufacturing and trading of telecommunication network equipment, network design, installation and commissioning. 4. The petitioner had filed its return of income for the AY 2015-16, declaring an income of Rs. 994,63,70,810/-. The said return was subsequently modified on 24.06.2016, based on the terms of the Advance Pricing Agreement, and the total income was enhanced to Rs. 10,81,39,73,740/-. Thereafter, on 31.03.2017, the petitioner filed a revised return disclosing an income of Rs. 10,76,12,12,220/-. 5. The petitioner s return was picked up for scrutiny. The assessment proceedings culminated in an assessment order dated 29.12.2018, whereby the petitioner s total income was assessed at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unds were granted to the petitioner in respect of the AY 2008-09 as well as the AY 2017-18. The petitioner is, essentially, aggrieved by the said refunds being adjusted against the balance outstanding demand in respect of the AY 2015-16, which was stayed in terms of the order dated 05.02.2019 and 21.02.2019. 11. In the aforesaid context, the question that falls for our consideration is whether the Revenue is entitled to adjust the refunds granted to the petitioner against the demand of tax that was stayed, pursuant to the order dated 21.02.2019. 12. Mr. Bhatia, the learned counsel appearing for the Revenue has contended that the grant of stay was not unconditional. The order dated 05.02.2019 expressly provided that the stay granted was, int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that the Assessee deposits an amount equal to 20% of the outstanding tax demand. 15. In the given circumstances, the effect of the Revenue adjusting refunds against the stayed demand would essentially place the Assessee that is entitled to a refund in a disadvantageous position vis-a-vis those assesses to whom no refund is due. It is also material to note that there is no allegation that the petitioner is alienating its assets so as to frustrate the recovery of any demand or that it would be unable to pay the disputed demand in the event the same was confirmed in the appellate proceedings. 16. In the given facts, we find merit in the contention that the Revenue s decision to adjust the refund due to the petitioner for the AYs 2008-09 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be recovered from the petitioner-assessee at this stage in accordance with paragraph 4(B) of the office memorandum dated 29th February, 2016. Consequently, this Court is of the view that the respondent is entitled to seek pre-deposit of only 20% of the disputed demand during the pendency of the appeal in accordance with paragraph 4(A) of the office memorandum dated 29th February, 2016, as amended by the office memorandum dated 25th August, 2017. 13. Accordingly, the respondent no.1 is directed to refund the amount adjusted in excess of 20% of the disputed demand for the Assessment Year 2017-18, within four weeks. This Court clarifies that it is not granting any relief with regard to prayer (c), as the Principal Commissioner, Income Tax vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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