GE ENERGY PARTS INC,ATLANTA V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE INT TAX 1(3)(1), NEW DELHI

SA 294/DEL/2025

AI Insights

The case involves GE Energy Parts Inc., which filed a stay application against the recovery of an outstanding tax demand of Rs. 64,42,192/- for the assessment year 2022-23. The demand arose from an assessment order that computed the assessee's income significantly higher than the returned income, leading to a tax demand including interest. The assessee argued that the interest charged was erroneous as the TDS exceeded the tax computed by the AO. The Tribunal, after considering the submissions and the rectification application filed by the assessee, decided to grant the stay on the recovery of the demand pending the appeal's disposal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396866 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 30-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2022-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR ARORA
• Assessee Lawyers: AJAY VOHRA
• Keywords: TDS; Application of stay
• Section: 143(3); 154; 2

Judgement Text

"1 SA No. 294/Del/2025 Arising out of ITA No. 1947/Del/2025 GE Energy Parts Inc. A.Y. 2022-23 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘D’: NEW DELHI) BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER SA no. 294/Del/2025 (In ITA no. 1947/Del/2022) A.Yr.: 2022-23 GE Energy Parts Inc. 4200 Wildwood Parkway, Atlanta, GA, USA. v. ACIT, Circle Int. Tax 1(3)(1), New Delhi. PAN No: AACCG2798N APPLICANT RESPONDENT Assesseeby : Shri Ajay Vohra, Sr. Adv.; Shri Aditya Vohra, Adv;& Shri Arpit Goel, AR. Revenue by : Shri Ajay Kumar Arora, Sr. DR Date of Hearing : 30.05.2025 Date of Pronouncement : 30.05.2025 ORDER PER RAMIT KOCHAR, AM: This stay application in SA no. 294/Del/2025, arising out of ITA no. 1947/Del/2025 pertaining to assessment year 2022-23, has been filed by the assessee, seeking grant of stay on recovery of outstanding demand of Rs. 64,42,192/- towards income tax and interest thereon, which demand has arisen from the notice of demand 2 SA No. 294/Del/2025 Arising out of ITA No. 1947/Del/2025 GE Energy Parts Inc. A.Y. 2022-23 u/s 156(DIN & Notice no. ITBA/AST/S /156/2024-25/1072061079(1) read with computation sheet, both dated 10.01.2025(DIN & Document No. ITBA/AST/S/622/2024-25/1072061064(1)(Page 99-103). The assessment has been framed by the AO u/s 143(3) read with Section 144C(13) of the Income-tax Act, 1961(hereinafter referred to as “Act”) vide assessment order dated 10.01.2025, computing income of the assessee at Rs.10,85,67,794/- against returned income of Rs. Nil ,which is placed at pages 5 to 103 of the paper book. 2. It is the say of the Ld. Sr. Advocate Shri Ajay Vohra that on perusal of the demandraised , and without prejudice, it is submitted that the assessee has filed return of income declaring ‘Nil’ income and claiming refund of Rs. 4,79,42,900/-, which was by way of income-tax deposited at source(TDS).The AO has assessed income of the assesseeat Rs. 10,85,67,794/- and raised a total demand of Rs. 5,35,87,323/- towards income-tax and interest ,including interest of Rs. 61,64,912/-. It was submitted that the assessee filed return of income declaring income of Rs. Nil, and claiming refund of Rs. 4,79,42,899/- . Since income-tax of Rs. 4,79,42,899/- was deducted at source and income-tax liability of Rs. 4,74,22,411/- was computed on the assessed income by the AO, there could not be any liability for interest as the taxes prepaid were higher than income tax computed by the AO on the assessed income. It was submitted that return of income was filed by the assessee on 07th November, 2022, which was the extended due date of filing of return u/s 139(1), and it is not even the case of filing of belated return of income. It was submitted that assessee has already filed rectification application dated 24.01.2025 u/s 154 with the department wherein several issues have been raised, inter alia, raising issue that once prepaid taxes by way of TDS is more than the income-tax liability computed by the AO, no 3 SA No. 294/Del/2025 Arising out of ITA No. 1947/Del/2025 GE Energy Parts Inc. A.Y. 2022-23 interest is liable to be payable more so return of income was also filed within extended due date u/s 139(1). The CBDT extended due date for assessment year 2022-23 vide Circular No. 20/2022. Thus, it was submitted that there is erroneous calculation by the department vide notice of demand/computation sheet, and hence stay on recovery of the outstanding demand be granted to the assessee, keeping in view facts and circumstances of the assessee, as the erroneous demand is raised by the Revenue, and the assessee could not be made to suffer due to the mistakes of the department. 3. Ld. Sr. DR could not controvert this position that the assessee has prepaid taxes by way of TDS of more than the income-tax demand raised by the Department(excluding interest component) on assessed income, and since pre-paid taxes by way of TDS are more than the tax demand(excluding interest), then there could not be any interest leviable. The assessee has filed rectification application for said correction. 4. Keeping in view the entire facts and circumstances of the case, prima facie the contention of the assessee appears to be correct that the amount of prepaid taxes by way of income-tax deducted at source(TDS) is more than the income-tax demand raised by the Revenue on assessed income in pursuance of the assessment framed u/s 143(3) read with Section 144C(13). Accordingly keeping in view facts and circumstances of the case and without commenting on the merits of the issue arising in the appeal, we are inclined to grant stay on recovery of the outstanding demand amounting to Rs. 64,42,192/- for a period of 180 days or till disposal of the appeal, whichever is earlier. The corresponding appeal in ITA No. 1947/Del/2025 for assessment year 2022-23 is directed to be listed for hearing before the Division Bench ‘D’ on 17.07.2025. The date was announced in the open court in the presence of both the parties. We order accordingly. 4 SA No. 294/Del/2025 Arising out of ITA No. 1947/Del/2025 GE Energy Parts Inc. A.Y. 2022-23 5. Stay application in SA No.294/Del/2025 for assessment year 2022-23arising out of ITA no. 1947/Del/2025, is allowed in above terms. Order pronounced in the open court on 30th May, 2025. Sd/- Sd/- (MS. MADHUMITA ROY) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 03/06/2025. *MPV* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DRP 5. DR Asst. Registrar, ITAT, New Delhi "