CANON INDIA PRIVATE LTD.,HARYANA V. AO CIRCLE-4(2) , DELHI

SA 90/DEL/2022

AI Insights

The case involves Canon India Private Limited, which filed four stay applications concerning outstanding tax demands for the assessment years 2011-12, 2013-14, 2020-21, and 2021-22. The primary issue across these years was the Transfer Price Adjustment related to Advertisement Marketing & Promotions (AMP) Expenses, classified as international transactions. The Tribunal noted that the Hon'ble Supreme Court had previously been approached regarding this issue, and the matter was still pending. Consequently, the Tribunal decided to stay the demands for 180 days, acknowledging the ongoing legal proceedings and the substantial payments already made by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26189 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 03-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2011-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHARM VEER SINGH
• Assessee Lawyers: HIMANSHU S. SINHA
• Keywords: Set aside; Application of stay

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘I’ NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER S.A. No. 90/Del/2022 [Arising out of ITA No. 484/Del/2022] Assessment Year: 2011-12 S.A. No. 91/Del/2022 [Arising out of ITA No. 485/Del/2022] Assessment Year: 2013-14 Canon India Private Limited, 7th Floor, Building No.5, Tower B, DLF Cyber City, DLF Phase III, Gurugram-122 002 PAN:AAACC4175D Vs. AO, Circle-4(2), Delhi. (Appellant) (Respondent) S.A. No. 316/Del/2024 [Arising out of ITA No.3668/Del/2024] Assessment Year: 2020-21 Canon India Private Limited, 7th Floor, Building No.5, Tower B, DLF Cyber City, DLF Phase III, Gurugram-122 002 PAN:AAACC4175D Vs. Deputy Commissioner of Income Tax, Circle-4(2), Delhi. (Appellant) (Respondent) S.A. No. 486/Del/2024 [Arising out of ITA No. 4901/Del/2024] Assessment Year: 2021-22 Canon India Private Limited, 7th Floor, Building No.5, Tower B, DLF Cyber City, DLF Phase III, Gurugram-122 002 PAN:AAACC4175D Vs. Assessment Unit, Verification Unit, Technical Unit, Review Unit, Income Tax Department, NFAC, Delhi. (Appellant) (Respondent) Assessee by Shri Himanshu S. Sinha, Adv., Shri Prashant Meharchandani, Adv. & Shri Jainender Kataria, Adv Department by Shri Dharm Veer Singh, CIT-DR Date of hearing 03.03.2025 Date of pronouncement 03.03.2025 2 SA No.90/Del/2024 & Ors. 2 | P a g e O R D E R PER MANISH AGARWAL, AM: These are four stay applications filed by the assessee for Assessment Years 2011-12, 2013-14, 2020-21 and 2021-22. The position of the demand outstanding in all these assessment years as per the Stay Petition is tabulated as under: Sr. No. Asst. Years Total Demand Outstanding Demand 1 2011-12 Rs.18,53,46,157/- Rs.55,49,093/- 2 2013-14 Rs.18,38,23,219/- Rs.18,89,31,450/- 3 2020-21 Rs.47,04,18,185/- Rs.10,59,81,100/- 4 2021-22 Rs.59,44,25,329/- Rs.23,14,95,790/- It is submitted by the Ld. AR that in all these years the major issue involved is Transfer Price Adjustment on account of Advertisement Marketing & Promotions (AMP) Expenses as international transactions. It was submitted that in the case of assessee itself on this very same issue, in first round of appeal, the Hon’ble Jurisdictional High Court in course of appeals has set aside the issue to the Tribunal vide its order dated 16/03/2015. Against such order, the assessee has filed SLP before the Hon’ble Supreme Court on 1st July, 2015 in Diary No.20560/15 which is admitted and is pending despite of repeated listing. Since, the issue is sub- judice before the Hon’ble Supreme Court, the Tribunal in all these years has adjourned the appeals till the orders of Hon’ble Supreme Court which has direct bearing on the issue in hand before the Tribunal. Under these circumstances, we are of the view that the demand outstanding being substantially related to issue which is pending before the Hon’ble Supreme Court and assessee in all the 3 SA No.90/Del/2024 & Ors. 3 | P a g e four assessment years has paid substantial amount out of total demand created, therefore, in all assessment years i.e. in AY 2011- 12, 2013-14, 2020-21 and AY 2021-22, the total outstanding demand as tabulated above is stayed for a period of 180 days. The assessee is at liberty to apply afresh for stay in case the appeal in all the four assessment years involved is not decided within the period of 180 days. Accordingly, the Stay Petitions of the assessee are allowed. 2. In the result, the All Stay Applications filed by the assessee are allowed as per directions given herein above. Order pronounced in the open Court on 03/03/2025. Sd/- Sd/- (MAHAVIR SINGH) (MANISH AGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 03/03/2025. PK/Sps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "