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

SA 333/DEL/2024

AI Insights

The case involves Giesecke & Devrient India Pvt. Ltd., which filed a stay application against the recovery of an outstanding income tax demand revised to Rs.5,32,64,008 for the assessment year 2020-21. The demand arose from transfer pricing adjustments related to IT and support services. The assessee argued that similar issues had been favorably decided in previous cases, including one involving a group concern. The Revenue opposed the stay, citing insufficient explanations and lack of collaboration on the expenses claimed. The Tribunal, after considering the submissions and the balance of convenience, decided to grant the stay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 31659 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 10-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2020-2021
• Other Referred Cases: M/s Giesecke & Devrient MS India P. Ltd. in SA No.116/Del/2022 for AY 2017-18
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT KATOCH
• Assessee Lawyers: HARPREET S. AJMANI
• Keywords: Transfer pricing; Recovery proceedings; Application of stay

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I” DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER Stay Application No.333/Del/2024 (Arising out of ITA No.3859/Del/2024) Assessment Year: 2020-21 Giesecke & Devrient India Pvt. Ltd., Plot No.2, EHTP, Sector-34, Gurgaon, Haryana. PAN No.AABCG4223D Vs. ACIT (OSD) Delhi. (APPELLANT) (RESPONDENT) Assessee by Shri Harpreet S. Ajmani, Adv. Shri Pulkit Pandey, Adv. & Ms. Ashmita Sharma, Adv. Revenue by Shri Amit Katoch, Sr. DR Date of hearing: 10.01.2025 Date of Pronouncement: 10.01.2025 O R D E R PER PRADIP KUMAR KEDIA, AM: The stay application has been filed by the Assessee u/s 254(2A) read with 35A of Income Tax Rules, 1962 seeking stay of recovery of outstanding demand for the impugned assessment year. 2. The Ld. Counsel for the assessee submits that as per the stay application, the outstanding Income tax demand stands at Rs.35,65,76,824/-. However, the aggregate demand stands revised to Rs.5,32,64,008/- for which he seeks stay from recovery proceedings. The Ld. Counsel pointed out that sA No.333/Del/2024 Giesecke & Devrient India P. Ltd. 2 demand arises from transfer pricing adjustments made by the Assessing Officer (AO) on account of (i) Provision for ITeS Support Service; (ii) Intra Group Services. The issue relating to Intra Group Services is squarely covered by large number of decisions of the Tribunal including the case of the assessee’s group concern namely M/s Giesecke & Devrient MS India P. Ltd., in SA No.116/Del/2022 for AY 2017-18 vide order dated 23.12.2022. 3. The Ld. Counsel submits that the assessee has a prima facie case on merits on both the issues involved and, therefore, the stay sought by the assessee deserves to be granted without any stipulations. 4. The Ld. Sr. DR for the Revenue, on the other hand, objected to the blanket stay of demand and pointed out that the additions/transfer pricing adjustments have been carried out by the Revenue owing to unsatisfactory explanation and lack of collaboration of expenses claimed in question. The Ld. DR contended that the assessee has not discharged its onus before the Revenue authorities and, therefore, the stay application is without merit and liable to be dismissed. 5. On careful consideration of rival submissions as well as material aspects of the case which are relevant to ascertain the balance of convenience, prima facie case of the assessee on merits, we are of the view that mitigating circumstances do exist to enable us to favourably consider the benefit of stay of recovery of revised outstanding demand completely. Hence, we are sA No.333/Del/2024 Giesecke & Devrient India P. Ltd. 3 inclined to exercise our discretion in favour of the assessee for stay of demand outstanding for a period of six months or till the disposal of appeal, whichever is earlier. 6. The Registry is directed to fix the appeal for hearing on 21.01.2025. No notice to the parties. Order pronounced in the open Court on 10/01/2025 Sd/- Sd/- [MAHAVIR SINGH] [PRADIP KUMAR KEDIA] VICE PRESIDENT ACCOUNTANT MEMBER Dated: 10/01/2025 *Kavita Arora, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR Assistant Registrar ITAT, New Delhi sA No.333/Del/2024 Giesecke & Devrient India P. Ltd. 4 1. Date of dictation of Tribunal Order 10.01.2025 2. Date on which the typed draft Tribunal Order is placed before the dictating Member 10.01.2025 3. Date on which the typed draft Tribunal Order is placed before the Other Member 4. Date on which the approved draft comes to the Sr. PS/PS 5. Date on which the fair Tribunal order is placed before the Dictating Member for pronouncement 6. Date on which the signed order comes back to the Sr. PS/PS 7. Date on which the final Tribunal order is uploaded by the Sr. PS/PS on the official website 8. Date on which the file goes to the Bench Clerk along with Tribunal Order 9. Date of killing off the disposed of files on the JudiSIS portal of ITAT by the Bench Clerks 10. Date on which the file goes to the Supervisor (Judicial) 11. The date on which the file goes to the Assistant Registrar for endorsement of the order 12. Date of Dispatch of the Order "