GIESECKE & DEVRIENT INDIA PVT.LTD.,GURGAON V. ACIT, OSD, DELHI

SA 422/DEL/2024

AI Insights

The case involves Giesecke & Devrient India P. Ltd., which filed an application seeking a stay on the recovery of an outstanding demand of Rs. 8 lakhs due to Transfer Pricing adjustments made by the Assessing Officer. The adjustments were related to provisions for ITeS Support Services and Intra Group Services. The Tribunal considered a similar case involving the assessee's sister concern and decided to grant a stay on the condition that the assessee pays 20% of the demand for ITeS Support Services and provides security for 20% of the demand for Intra Group Services within 30 days.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472476 (ITAT-DELHI)
• Duration Of Justice: 15 day(s)
• Appeal Type: Others
• Pronouncement Date: 05-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Next Hearing Date: 01-11-2024
• Assessment Year: 2021-2022
• Appeal Filed On: 21-10-2024
• Other Referred Cases: SA No. 116/Del/2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Keywords: Transfer pricing; Reasonable cause; Application of stay

Judgement Text

" आयकर अपीलीय अिधकरण िदʟी पीठ “आई”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं नवीन चंū, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER SA No. 422/Del/2024 (Arising out of ITA No. 4882/Del/2024, A.Y 2021-22) Giesecke & Devrient India P. Ltd., Plot No. 2, EHTP, Sector-34, Gurgaon, Haryana 122001 PAN: AABCG-4223-D ...... आवेदक/Applicant बनाम Vs. Assistant Commissioner of Income Tax, OSD, New Delhi ..... ᮧितवादी/Respondent आवेदक/Applicant : Shri Harpreet Singh Ajmani, and Ms. Ashmita Sharma, Advocates ŮितवादीȪारा/Respondent by : Shri Om Prakash, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 01/11/2024 घोषणा कᳱ ितिथ/ Date of pronouncement : 01/11/2024 आदेश/ORDER PER VIKAS AWASTHY, JM: This application has been filed by the assessee seeking stay of recovery of outstanding demand in the impugned assessment year. 2. Shri Harpreet Singh Ajmani, appearing on behalf of the assessee submits that the total outstanding demand in impugned assessment year is Rs.8 lakhs. The demand arises from Transfer Pricing adjustments made by the Assessing Officer (AO) on account of: (i) Provision for ITeS Support Service; and 2 SA No.422//DEL/2024 (ii) Intra Group Services. 3. The issue relating to Intra Group Services is squarely covered by the decision of Tribunal in the case of assessee’s group concern. He further pointed that coordinate Bench of the Tribunal in the case of assessee’s sister concern M/s. Giesecke & Devrient MS India P. Ltd., in SA No. 116/Del/2022 for AY 2017-18 vide order dated 23.12.2022 while granting stay has not laid down any condition for granting stay on similar addition. 4. Shri Om Prakash, representing the department opposed the Stay Application. However, the ld. DR submitted that if recovery of outstanding demand is to be stayed, the same be subject to payment of 20% of the total demand. 5. Both sides heard. We have also considered the decision of the coordinate Bench in SA No. 116/Del/2022 (supra). Taking into consideration entire facts of the case, we are of considered view that the benefit of stay of recovery of outstanding demand can be extended to assessee subject to following conditions: (i) The assessee shall pay 20% of the demand arising from adjustment in respect of provisions of ITeS Support Services; (ii) The assessee shall furnish security to the extent of 20% of the demand arising from adjustment in respect of Intra Group Services; (iii) The assessee shall pay 20% of the demand/furnish security as stated above within 30 days from the date of this order and shall furnish proof of payment/security to the Registry within a weeks time thereafter; 3 SA No.422//DEL/2024 (iv) Subject to payment of 20%/ furnishing security (supra), recovery of balance amount is stayed for a period of 180 days from the date of this order or till the disposal of appeal, whichever is earlier; and (v) The assessee shall not seek adjournment in the hearing of appeal, without their being any reasonable cause. 6. The Registry is directed to fix appeal for hearing on 21.01.2025. Since, the date of hearing has been announced in the open court, in presence of both the sides, issuance of separate notice is dispensed with. 7. The stay application of the assessee is allowed, in the terms aforesaid. Order pronounced in the open court on Friday the 01st day of November, 2024. Sd/- Sd/- (NAVEEN CHANDRA) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी / Delhi, ᳰदनांक/Dated 01/11/2024 NV/- ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. 4 SA No.422//DEL/2024 BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "