CNH INDUSTRIAL (INDIA) PRIVATE LIMITED,DELHI V. .DEPUTY COMMISSIONER OF INCOME-TAX, DELHI

SA 364/DEL/2024

AI Insights

The case involves CNH Industrial (India) Pvt. Ltd, which filed a stay application against the Deputy Commissioner of Income Tax (DCIT), Circle-4(2), New Delhi, concerning an outstanding demand of Rs. 40.64 crores for the Assessment Year 2020-21. The demand primarily arose from transfer pricing adjustments related to the export of goods, intra-group services, and interest on outstanding receivables. The tribunal had previously decided on some issues in favor of the assessee for the preceding assessment year. However, the current issues under consideration were the adjustments related to intra-group services and interest on outstanding receivables, along with the disallowance of health and education cess. The tribunal's decision partially granted the stay, requiring the assessee to make specific payments while allowing the appeal to be heard on 04.02.2025.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470155 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Others
• Pronouncement Date: 13-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2020-2021
• Appeal Filed On: 02-09-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAHIL KUMAR BANSAL
• Assessee Lawyers: MANOJ KUMAR PARDASANI
• Keywords: Transfer pricing; Rectification of order; Application of stay

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER SA No. 364/Del/2024 (In ITA No.3972/Del/2024) (Assessment Year: 2020-21) CNH Industrial (India) Pvt. Ltd, Level-4, Rectange-1, D4, District Center, Commercial Complex, Saket, South Delhi, Delhi Vs. DCIT, Circle-4(2), New Delhi (Applicant) (Respondent) PAN: AAACI3922Q Assessee by : Shri Manoj Kumar Pardasani, CA Revenue by: Shri Sahil Kumar Bansal, Sr. DR Date of Hearing 13/12/2024 Date of pronouncement 13/12/2024 O R D E R PER VIKAS AWASTHY, JM: 1. This stay application has been filed by the assessee for stay of recovery of outstanding demand in AY 2020-21. 2. The ld. Counsel submits that after passing of rectification order dated 11.12.2024, the total outstanding demand is Rs. 40.64 crores. The said demand is arising primarily on account of Transfer Pricing Adjustment in respect of:- (i) Export of goods, a. Foreign Exchange gains to be considered as operating b. Action Construction Ltd wrongly included in the list of comparables. (ii) Availing of intra-group services and SA No. 364/Del/2024 CNH Industrial (India) Pvt. Ltd Page | 2 (iii) Interest on outstanding receivables. Insofar as adjustment with regard to foreign exchange gains and inclusion of Action Construction Equipment Ltd, both these issues are decided in favour of the assessee by the Tribunal in preceding assessment year. The only issue which are for fresh adjudication in the impugned year is with regard to intra group services, interest of outstanding receivables and disallowance of health and education cess. The outstanding demand in respect of aforesaid two adjustments/ additions is Rs. 3.41 crores. The ld. Counsel submitted that the assessee is willing to pay 20% of the outstanding in respect of issues which are not covered by earlier order of the Tribunal. 3. The ld DR insisted that the assessee may be directed to deposit 20% of the entire outstanding demand. 4. We have heard the submissions made by the rival sides. Considering facts of the case, prima facie we are of considered view that insofar as the TP issue which are not covered by the order of Tribunal in assessee’s own case in preceding assessment year, i.e. (i) Intra-group services; and (ii) Interest on outstanding receivables; the assessee shall pay an amount equal to 20% of the total demand arising thereon: 5. The assessee is further directed to pay entire outstanding demand in respect of disallowance of health and education cess. 6. The assessee shall deposit aforesaid amounts on or before 10.01.2025 and shall submit proof of the same before the Registry within two weeks. 7. The assessee shall file paper book if so advised on or before the date of hearing of appeal with an advance copy to opposite side. 8. The Registry is directed to fix the appeal for hearing on 04.02.2025. Since, the date of hearing of the appeal has been announced in the open SA No. 364/Del/2024 CNH Industrial (India) Pvt. Ltd Page | 3 court, in presence of both sides, issuance of separate notice of hearing is dispensed with. 5. The stay petition is allowed, in the terms aforesaid. Order pronounced in the open court on 13/12/2024. -Sd/- -Sd/- (M. BALAGANESH) (VIKAS AWASTHY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated:13/12/2024 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "