GENPACT INDIA PVT LTD,GURUGRAM V. ACIT, TP 2(1), NEW DELHI

SA 339/DEL/2025

AI Insights

Genpact India Private Limited filed stay applications SA nos. 338 & 339/Del/2025 arising from ITA nos. 2442 & 2443/Del/2022, seeking an extension of stay on the recovery of outstanding demands for the assessment years 2017-18 and 2018-19, amounting to Rs. 458.15 crores. The Tribunal had previously granted stays conditioned on a 20% pre-deposit of the outstanding demands, which the assessee complied with through adjustments of refunds and bank guarantees. The department proposed adjustments of refunds against the outstanding demands, which the Tribunal found to be a legitimate expectation of the assessee. The Tribunal noted that there was no material change in facts or circumstances since the last extension of stay and that the delay in adjudication of the appeals was not attributable to the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705266 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 04-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SINGH SHARMA
• Assessee Lawyers: RASHI KHANNA; WAY OF; TREATING IT
• Keywords: Rectification of order; Assessment record; Application of stay; Extension of stay
• Section: 143(3); 154; 11; 6; 2

Judgement Text

"1 SA no. 338 & 339/Del/2025 Arising Out of ITA No.2442 & 2443/Del/2022 Genpact India Private Limited, Gurgaon Assessment Year:2017-18 & 2018-19 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘H’: NEW DELHI) BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER SA no. 338 & 339/Del/2025 (Arising Out of ITA no. 2442 & 2443/Del/2022) Assessment Year.: 2017-18 & 2018-19 Genpact India Private Limited 12A, (Ground Floor), Prakash Deep Building 7R, Tolstoy Marg, New Delhi-110001 Also at DLF City, Phase-V, Sector- 53, Golf Course Road, Gurgaon, Haryana-122002 v. ACIT, OSD, C.R. Building New Delhi-110002 PAN No:AABCE4461B APPLICANT RESPONDENT Assesseeby :Ms. Rashi Khanna, Advocate Revenue by : Shri Vikram Singh Sharma,Sr. DR Date of Hearing :04.07.2025 Date of Pronouncement :04.07.2025 ORDER PER RAMIT KOCHAR, AM: Thesetwo stay applications in SA nos. 338 & 339/Del/2025, arising out of ITA nos. 2442 & 2443/Del/2022 pertaining to assessment year(s): 2017-18 & 2018-19 respectively, havebeen filed by the assessee, 2 SA no. 338 & 339/Del/2025 Arising Out of ITA No.2442 & 2443/Del/2022 Genpact India Private Limited, Gurgaon Assessment Year:2017-18 & 2018-19 seeking extension of stay on recovery of outstanding demand(s) for these two assessment years viz. ay:2017-18(Rs.3,02,97,95,228/-) and ay:2018-19(Rs.1,55,17,03,177/-), aggregating to Rs.458.15 crores. 2. We have heard learned counsel for the assessee as well ld. Sr. DR. It was submitted by the learned Counsel appearing for the assessee that earlier the Tribunal had originally granted stay on recovery of outstanding demand vide common order dated 23.12.2022 in SA no. 346 & 347/Del/2022 for assessment years 2017-18 and 2018-19, which stay on recovery of outstanding demand was extended from time to time, the last extension of stay was granted by ITAT vide common orders dated 03.01.2025 in SA Nos. 537 & 538/Del/2024 for assessment years 2017-18 and 2018-19(placed on record in file). It was submitted by learned Counsel for the assesseethat the Tribunal stipulated that 20% of the outstanding demand be deposited by the assessee as a pre- conditions of stay on recovery of remaining outstanding demand, which have been duly met by the assessee. It was submitted that the ITAT stipulated conditions for pre-deposit of 20% of the outstanding demand as pre-condition for staying remaining outstanding demand, which pre- 3 SA no. 338 & 339/Del/2025 Arising Out of ITA No.2442 & 2443/Del/2022 Genpact India Private Limited, Gurgaon Assessment Year:2017-18 & 2018-19 deposit amount was either deposited by the assessee by way of adjustment by department of refund due to the assessee for different assessment years against demands due for the impugned assessment years viz:ay(s):2017-18 and 2018-19, and the remaining balance pre- deposit amount of 20% of the outstanding demand through submission of Bank Guarantee of Rs. 23 crores issued by Hongkong & Shanghai Banking Corporation Limited (HSBC Bank) , which was extended from time to time, and now the aforesaid Bank Guarantee is valid till 31.01.2026(BG No. CGANDH251479 dated 30.1.2023 issued by HSBC(last extension dated20.01.2025 valid till 31.01.2026)). The copy of said BG is placed on record(PB-AY:2017-18/Page-70-75,75A-75D). It was submitted that the department issued letter No. F.No. ACIT(OSD)/Range-10/Judl./2022-23 dated 25.11.2022 (ACIT(OSD), Range-10,C R Building, New Delhi-110002) proposing to adjust refund due to the assessee for assessment year 2003-04 to the tune of Rs. 2,71,43,780/- which was adjusted against the outstanding demand for assessment year 2017-18(PB-AY:2017-18/Page-76) and refund voucher issued by department to that effect is also filed(PB-AY:2017-18/Page-77) which was adjusted by department against the demand for the 4 SA no. 338 & 339/Del/2025 Arising Out of ITA No.2442 & 2443/Del/2022 Genpact India Private Limited, Gurgaon Assessment Year:2017-18 & 2018-19 assessment year 2017-18. It was , further submitted that the department issued letter No. F.No. ACIT(OSD)/Range-10/Judl./2022- 23/178 dated 19.12.2022 (ACIT(OSD),Range-10,C R Building, New Delhi-110002) proposing to adjust ,inter-alia, refund due to the assessee for assessment year 2004-05 to the tune of Rs. 7,09,82,950/- ,which was adjusted against the demand for assessment year 2018-19(PB- AY:2018-19/Page77-78). Our attention was drawn to Computation of Income for assessment year 2018-19 enclosed with rectification order dated 13.11.2024(PB-AY:2018-19/Page 80-82) u/s 154 read with 143(3) r.w.s. 144C(13) of the 1961 Act, wherein the aforesaid amount of Rs. 7,09,82,950/- is duly reflected to be adjusted against the outstanding demand of the assessee for assessment year 2018-19. It was also submitted by learned counsel for the assessee that vide letter No. F.No. ACIT/OSD/R-10/Demand/Refund/2022-23/ dated 22.12.2022 issued by ACIT(OSD), Range 10 , C R Building , New Delhi-110002, it was proposed by department to adjust refunds due to the assessee for different assessment years aggregating to Rs. 63,85,06,549/- against the demand outstanding for assessment years 2017-18 and 2018-19, and the operative part of the said letter is reproduced as under: 5 SA no. 338 & 339/Del/2025 Arising Out of ITA No.2442 & 2443/Del/2022 Genpact India Private Limited, Gurgaon Assessment Year:2017-18 & 2018-19 “03.We have perused the said letter filed by the assessee and the submission of the assessee has been considered . Contentions of the assessee has been verified from the assessment records and the same has been found to be correct and bonafide. 04. In this regard, we acknowledge and agree that the below refunds due to the assessee may be adjusted against the aforesaid outstanding demand for AY 2017-18 and AY 2018-19 , subject to internal approvals for such adjustments S.No. Assessment Year Amount of Refund(In Rs.) To be adjusted Against (AY) 1. 2012-13 8,56,63,144 2017-18 2. 2014-15 8,69,26,116 2017-18 3. 2015-16 3,75,43,820 2017-18/2018-19 4. 2020-21 29,92,23,870 2017-18/2018-19 5. 2021-22 12,91,49,599 2017-18/2018-19 05 The above adjustments are subject to internal verification of these refunds and internal approvals by the Range Head, Sd/22.12.2022 (Dr. Manoj Kumar) Assistant Commissioner of Income Tax(OSD) Range-10, Room No. 405 C.R.Building, New Delhi-110002” Thus, it was stated that the assessee has legitimate expectation based on department aforesaid letter dated 22.12.2022 that the said amounts of refund due to the assessee to the tune of Rs. 63,85,06,549 due for different assessment years as stipulated in the said letter shall be adjusted against the outstanding demands for assessment years 2017- 18 and 2018-19 , and based on the said legitimate expectation , the 6 SA no. 338 & 339/Del/2025 Arising Out of ITA No.2442 & 2443/Del/2022 Genpact India Private Limited, Gurgaon Assessment Year:2017-18 & 2018-19 assessee has taken credit of aforesaid amount of Rs. 63,85,06,549/- as pre-deposit amount of 20% of the outstanding demand for assessment years 2017-18 and 2018-19 as stipulated by the Tribunal as pre- condition for grant of stay on remaining outstanding demand for assessment years 2017-18 and 2018-19. Thus, it was stated that this amount was treated as paid for assessment years 2017-18 and 2018-19 on proportionate basis to the liability of the outstanding demands for these two assessment years viz. ay:2017-18 and 2018-19, thereby, treating it as compliance of pre-deposit amount towards 20% of the outstanding demands which was precondition imposed by the Tribunal for grant of stay of the remaining outstanding demands for these two assessment years. It was further submitted that for the balance amount of 20% of the outstanding demand as precondition for stay after taking cognizance of aforesaid adjustments of refunds, the assessee duly submitted Bank Guarantee for Rs. 23 crores issued by HSBC towards these two assessment years, which BG is now valid till 31.01.2026.The ld. Counsel for the assessee submitted that originally stay on recovery of the outstanding demand was granted by the Tribunal vide common orders dated 23.12.2022 for these two assessment years viz. ay:2017-18 7 SA no. 338 & 339/Del/2025 Arising Out of ITA No.2442 & 2443/Del/2022 Genpact India Private Limited, Gurgaon Assessment Year:2017-18 & 2018-19 and 2018-19 , which stay orders were extended from time to time, the last extension of stay was granted by the Tribunal vide orders dated 03.01.2025. It was submitted by ld. Counsel for the assessee that there is no material change in facts and circumstances of the case since the extension on stay on recovery of outstanding demand was granted by the Division Bench vide common orders dated 03.01.2025. It was also submitted that the delay in adjudication of the corresponding appeals before the Tribunal is not attributable to the assessee, and prayers were made to extend the stay for a further period of 180 days or disposal of corresponding appeal(s), whichever is earlier. 3. Learned Sr. DR submitted that the assessee be asked to deposit the entire outstanding amount of demand. 4. After hearing both the parties and carefully perusing the material on record ,we observe that there is no material change in the facts and circumstances on which the stay was originally granted by the Tribunal to the assessee, and further no fault could be attributable to the assessee for non-disposal of the appeal by the Tribunal. However, while carefully perusing the records, it is observed that so far as credit of Rs. 8 SA no. 338 & 339/Del/2025 Arising Out of ITA No.2442 & 2443/Del/2022 Genpact India Private Limited, Gurgaon Assessment Year:2017-18 & 2018-19 63,85,06,549/- towards prepaid taxes taken by assessee by treating it as part-compliance of the condition of pre-deposit of 20% of the outstanding demand for these two assessment years viz. ay:2017-18 and 2018-19 is concerned ,which was based on the letter No. F.No. ACIT/OSD/R-10/Demand/ Refund/ 2022-23/ dated 22.12.2022 issued by ACIT(OSD), Range 10 , C R Building , New Delhi-110002 , could be said to be a legitimate expectation of the assessee, but the fact remains that the department has not yet adjusted the said refunds against the outstanding demands for these two assessment years 2017-18 and 2018-19 although considerable time of almost more than two and half years have elapsed. Despite this legitimate expectation, there could be genuine and valid reasonssuch as wherein due to supervening material event happening , the fulfilment of this legitimate expectations has entered into an arena of impossibility say for example that refunds are determined in the proceedings u/s 143(1) but subsequently vide proceedings conducted u/s 143(3) read with Section 144C(13) culminated into an demand which is higher than this refundable amount which led to further raising of demand towards income-tax and interest thereon even after adjustment of the refund computed under 9 SA no. 338 & 339/Del/2025 Arising Out of ITA No.2442 & 2443/Del/2022 Genpact India Private Limited, Gurgaon Assessment Year:2017-18 & 2018-19 proceedings u/s 143(1) or the refunds although determined to be payable to be adjusted against these two assessment years but actually got adjusted against outstanding demands for some other assessment years directly by CPC and so and so forth there could be other valid and genuine so that those refunds are no more existing to be payable to the assessee. Thus, it will be fair and in the interest of justice, that the entire working of outstanding demands against the assessee for these two assessment years viz. ay:2017-18 and 2018-19 be re-worked by the AO ,and thereafter compliance of pre-condition imposed by the Tribunal towards pre-deposit of 20% be then accordingly be taken into account and its compliance thereof by the assessee. In case the aforesaid refunds vide letter dated 22.12.2022 are still available for adjustment against the outstanding demands for these two assessment years as was proposed by ld. ACIT vide letter dated 22.12.2022, then the said adjustment be madeby the department forthwith, but if due to supervening event the aforesaid refunds are not available for adjustment against the outstanding demands for these two assessment years due to valid and genuine reasons, the assessee shall deposit the shortfall immediately with Government treasury and/or by submission of additional Bank 10 SA no. 338 & 339/Del/2025 Arising Out of ITA No.2442 & 2443/Del/2022 Genpact India Private Limited, Gurgaon Assessment Year:2017-18 & 2018-19 Guarantee, so that condition imposed by the Tribunal vide stay orders dated 23.12.2022(which got extended from time to time) towards pre- deposit of 20% of the outstanding demand as pre-condition for grant of stay on the remaining outstanding demand stood duly fulfilled by the assessee. This exercise shall be completed by the AO in three week times from now. The assessee is directed to co-operate with the department with respect thereto.Subject toafore-said observations and directions, and without commenting on the merits of the issues in the appeal, we are inclined to grant extension of stay on recovery of outstanding demand for the impugned assessment years:2017-18 and 2018-19 for a further period of 180 days or till the disposal of corresponding appeal, whichever is earlier, on the same terms and conditions on which the stay on recovery of outstanding demand was originally granted earlier by the Bench. Needless to say that the assessee will co-operate in the early adjudication of appeal and shall not seek any un-necessary adjournments. The stay applications are accordingly disposed off. We order accordingly. 11 SA no. 338 & 339/Del/2025 Arising Out of ITA No.2442 & 2443/Del/2022 Genpact India Private Limited, Gurgaon Assessment Year:2017-18 & 2018-19 5. Stay application in SA no. 338 & 339/Del/2025 arising out of ITA No. 2442 & 2443/Del/2022for assessment year(s): 2017-18 and 2018- 19stands allowed accordingly, in the manner as indicated above. Order pronounced in the open court on 04th July, 2025. Sd/- Sd/- (SUDHIR KUMAR) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 07/07/2025. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DRP 5. DR 6. Guard File Asst. Registrar, ITAT, New Delhi "