DELL INTERNATIONAL SERVICES INDIA PRIVATE LIMTED(AS SUCCESSOR TO EMC IT SOLUTIONS INDIA PVT LTD.,),BANGALORE V. DCIT, CIRCLE-2(2)(1), BANGALORE

SA 155/BANG/2025

AI Insights

Dell International Services India Private Limited filed stay petitions under section 253(7) of the Income Tax Act, 1961, seeking to stay the disputed demands arising from intimation under section 143(1) for the assessment years 2023-24 and 2024-25. The main issues revolved around the addition of GST refunds not credited to the profit and loss account and the addition of margins on finished goods converted to capital assets, which were already offered to tax. The Departmental Representative proposed a condition for stay involving a 20% payment of the outstanding demand, which the Tribunal found unjust given the pending GST refunds with the revenue authorities.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 829116 (ITAT-BANGALORE)
• Duration Of Justice: 26 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 12-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Bangalore
• Assessment Year: misc
• Appeal Filed On: 17-12-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N. BALUSAMY
• Assessee Lawyers: SURYANARAYAN
• Keywords: Capital asset; Opportunity of being heard

Judgement Text

"SP Nos.154 & 155/Bang/2025 Dell International Services India Private Limited, Bengaluru IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH: BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER SP Nos.154 & 155/Bang/2025 (Arising out of ITA No.2889 & 2890/Bang/2025 Assessment Years: 2023-24 & 2024-25 Dell International Services India Private Limited Crystal Downs, Survey No.7/1, 7/2, 7/3 Embassy Golf Links Business Park Off-Intermediate Ring Road Domlur Varthur Hobli Bengaluru 560 071 PAN NO : AAACH1925Q Vs. The DCIT Circle 2(2)(1) Bengaluru APPELLANT RESPONDENT Appellant by : Sri Suryanarayan, A.R. Respondent by : Sri N. Balusamy, D.R. Date of Hearing : 09.01.2026 Date of Pronouncement : 12.01.2026 O R D E R PER KESHAV DUBEY, JUDICIAL MEMBER: These stay petitions u/s 253(7) of the Income Tax Act, 1961 (in short “the Act”) filed by the assessee seeking stay of disputed demand arising out of the intimation passed u/s 143(1) of the Act for the assessment years 2023-24 & 2024-25 as detailed below: Printed from counselvise.com SP Nos.154 & 155/Bang/2025 Dell International Services India Private Limited, Bengaluru Page 2 of 5 Total demands as per intimation for AYs 2023-24 & 2024-25 is Rs.3,01,86,06,682/- Printed from counselvise.com SP Nos.154 & 155/Bang/2025 Dell International Services India Private Limited, Bengaluru Page 3 of 5 2. Before us, the ld. A.R. of the assessee vehemently submitted that while passing the intimation u/s 143(1) of the Act for both these assessment years, the CPC added the Goods & Services Tax (GST) refunds not credited to profit and loss account. The ld. A.R. of the assessee submitted that the GST is not routed through the profit & loss account and therefore, a refund of GST is not liable to be taxed. Further, for the AY 2023-24, the CPC also added margin on finished goods converted to capital assets which was already been voluntarily offered to tax and thus the same amounts to double taxation. Lastly, the ld. A.R. of the assessee submitted that prima facie, the cases are in favour of the assessee and accordingly prayed that full stay may be granted and the appeals may be fixed for hearing expeditiously. 3. The ld. D.R. on the other hand vehemently submitted that the stay may be granted subject to the condition that the assessee paid 20% of the outstanding demand for both these years in dispute. 4. We have heard the rival submissions and perused the materials available on record. A perusal of the provision of section 254(1) of the Act exhibits that the Appellate Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. After analyzing the fact and considering the submission made by the ld. A.R. & ld. D.R. as well as the material placed on record, we are of the considered opinion that prima facie, the cases are in favour of the assessee for both these assessment years. With regard to the addition of GST Refunds, we are of the opinion that as stated by the AR if the GST element is not routed through the profit & loss account by applying the exclusion method, then question of taxing the GST Refunds does not arise. Further, with regard to the addition of margin on finished goods converted to capital asset, we take a note of the fact that this margin was disclosed under clause 16(a) of the TAR and voluntarily offered Printed from counselvise.com SP Nos.154 & 155/Bang/2025 Dell International Services India Private Limited, Bengaluru Page 4 of 5 to tax in the return of income under schedule BP for AY 2023-24 and accordingly, the disallowance of the same will amount to double taxation. 4.1 As per section 254(2A) of the Act, the Tribunal may after considering the merit of the application made by the assessee, pass an order of stay in any proceedings relating to an appeal filed u/s 253(1) of the Act, for a period not exceeding 180 days from the date of such order subject to the condition that the assessee deposits not less than 20% of the amount of tax, interest, fee, penalty or any other sum payable under the provisions of this Act, or furnishes security of equal amount in respect thereof and the Appellate Tribunal shall dispose of the appeal which the said period of stay specified in that order. Coming to the fact of the present case, as submitted by the ld. Counsel of the assessee that based on the orders passed by the revenue authority, the following refunds are pending with the Authorities which are detailed below:- A. Refunds pending based on orders passed by the revenue authorities Amount (INR) AY 2009-10 – Appendix 16 39,67,57,391 AY 2012-13 – Appendix 17 1,38,98,16,914 AY 2004-05 – Appendix 18 1,77,44,857 AY 2014-15 – Appendix 19 23,29,00,367 Total refunds determined based on orders and pending receipt from the revenue authorities 2,03,72,19,529 4.2 This being so, it will be unjust for the assessee, if we direct the assessee to pay 20% of the total outstanding demand for the assessment years 2023-24 & 2024-25 again especially when the Refunds of Total amount of Rs.2,03,72,19,529/- is already pending with the Revenue Authority. Accordingly, we direct the AO to grant stay of disputed demand for both these assessment years for the period of 180 days from the date of this Order or till the disposal of appeal, whichever is earlier. Further, as requested by the AR of the Printed from counselvise.com SP Nos.154 & 155/Bang/2025 Dell International Services India Private Limited, Bengaluru Page 5 of 5 assessee, the Registry is also directed to fix both the cases for hearing 5.2.2026 and no separate notices need to be served to the parties. It is ordered accordingly. 5. In the result, both the stay petitions filed by the assessee are allowed. Order pronounced in the open court on 12th Jan, 2026 Sd/- (Waseem Ahmed) Accountant Member Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated 12th Jan, 2026. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. Printed from counselvise.com "