GLAXOSMITHKLINE ASIA PRIVATE LIMITED,GURGAON V. .ASSESSMENT UNIT, INCOME TAX DEPARTMENT, CIRCLE 1(1), CHANDIGARH

SA 41/CHANDI/2024

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The case involves Glaxo Smithkline Asia Private Ltd., the appellant, contesting a demand raised by the Assessing Officer (AO) following a final assessment order under Section 143(3) read with Section 144C(13) of the Income Tax Act for the assessment year 2020-21. Initially, a demand of Rs. 179,65,49,610 was raised, which was later rectified to Rs. 47,30,02,796 following a rectification application by the assessee. The demand included various additions, disallowances, and a Transfer Pricing adjustment. The Tribunal considered the precedents set in the assessee's own earlier cases and the fact that the assessee had already deposited 20% of the demand for the non-covered issues. The Tribunal decided to stay the remaining demand, citing the need for a priority hearing due to the quantum of tax involved and the repetitive nature of some issues.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107808 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 day(s)
• Appeal Type: Others
• Pronouncement Date: 13-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Appeal Filed On: 03-12-2024
• Other Referred Cases: A.Y 2017-18 and 2018-19
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: AJAY VOHRA
• Keywords: Transfer pricing; Application of stay
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण,च᭛डीगढ़ ᭠यायपीठ “ए” , च᭛डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: HYBRID MODE ŵी िवŢम िसंह यादव, लेखा सद˟ एवं ŵी परेश म. जोशी, Ɋाियक सद˟ BEFORE: SHRI. VIKRAM SINGH YADAV, AM & SHRI. PARESH M. JOSHI, JM STAY APPLICATION No. 41/Chd/2024 (आयकर अपील सं./ ITA No. 856/Chd/2024) िनधाᭅरण वषᭅ / Assessment Years : 2020-21 Glaxo Smithkline Asia Private Ltd. DLF Plaza Tower, DLF City Phase-1 Gurgaon- 122002 बनाम The ITD Circle 1(1) Chandigarh ᭭थायी लेखा सं./PAN NO: AABCS3237R अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरती कᳱ ओर से/Assessee by : Shri Ajay Vohra, Sr.Advocate with Shri Neeraj Jain, Advocate Ms. Somya Jain, C.A & Ms. Richa Aggarwal, C.A (Virtual) राज᭭व कᳱ ओर से/ Revenue by : Shri Vivek Vardhan, JCIT, Sr. DR सुनवाई कᳱ तारीख/Date of Hearing : 10/12/2024 उदघोषणा कᳱ तारीख/Date of Pronouncement : 13/12/2024 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : The present Stay Application has been filed by the assessee in respect of demand raised by the AO pursuant to final assessment order passed under Section 143(3) r.w.s. 144C(13) of the Act dated 30/07/2024 for the impugned assessment year 2020-21. 2. It was submitted that pursuant to aforesaid order, the AO has raised original demand of Rs. 179,65,49,610/- and thereafter, pursuant to rectification 2 application filed by the assessee, the AO vide order dt. 14/10/2024 has rectified the quantum of demand and the same has been reduced to 47,30,02,796/-. It was submitted that the demand relates to various addition / disallowance as well as the Transfer Pricing adjustment and in this regard our reference was drawn to the following table, contents of which read as under: 3. It was submitted that in relation to disallowance of advertisement expenditure, market research expenses, provision for post retirement medical benefit and product development expenses, the matter is covered by the earlier decision of the Coordinate Benches in assessee’s own case vide order dt. 30/07/2021 and 26/10/2021. It was submitted that where the demand related to 3 covered issues is excluded, the demand relating to the uncovered issues comes to Rs. 10,55,69,654/- in respect of which the assessee has already deposited 20% of the demand amounting to Rs. 2,11,13,931/- vide Challan dt. 13/11/2024. It was submitted that on similar lines, the demand was stayed by the Tribunal for the A.Y 2017-18 and 2018-19. It was submitted that in light of above, the remaining demand for the impugned assessment year may be stayed for a period of six months or disposal of the matter, whichever is earlier. 4. The Ld. DR is heard, who couldn’t controvert the factual position regarding covered and fresh issues and in respect of the fresh issues, the fact that the assessee has already 20% of the outstanding demand and on similar, lines, the stay was granted for the earlier years. At the same time, it was submitted that given the quantum of tax demand involved and given the repetitive nature of the some of the issues, the matter may be heard on priority in order to arrive at the finality on the issues involved. 5. We have heard both the parties and considered the material available on record. As pointed out by the Ld. AR and not specifically objected by the Ld. DR, some of the issues are covered by the earlier decision of the Coordinate Benches in assessee’s own case and in respect of non-covered issues, some of the issues are repetitive in nature and in respect of which, the Coordinate Benches have already granted the stay for A.Y. 2017-18 and 2018-19 subject to deposit/adjustment of 20% of the outstanding demand vide order dated 4 26/08/2022 which has been extended from time to time. In light of the same, in the instant case, where the assessee has already come forward and deposited 20% of the outstanding demand on the non-covered issues and the matter is already listed for hearing on merit on 13/02/2025, we hereby stay the remaining outstanding demand for a period of 180 days or till the disposal of the appeal whichever occurs earlier. The assessee shall not seek any undue adjournment when the appeal is listed for hearing, failing which the stay granted shall be deemed to have been vacated. 6. In the result, Stay Application is allowed in light of aforesaid directions. Order pronounced in the open Court on 13/12/2024. Sd/- Sd/- परेश म. जोशी िवŢम िसंह यादव (PARESH M. JOSHI) ( VIKRAM SINGH YADAV) Ɋाियक सद˟ / JUDICIAL MEMBER लेखा सद˟/ ACCOUNTANT MEMBER AG आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : 1. अपीलाथᱮ/ The Appellant 2. ᮧ᭜यथᱮ/ The Respondent 3. आयकर आयुᲦ/ CIT 4. आयकर आयुᲦ (अपील)/ The CIT(A) 5. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 6. गाडᭅ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "