GLAXOSMITHKLINE ASIA PRIVATE LIMITED,GURGAON V. DCIT, CIRCLE 1(1), CHANDIGARH

SA 37/CHANDI/2024

AI Insights

The case involves GlaxoSmithkline Asia Private Ltd., which filed stay applications concerning the recovery of outstanding tax demands for the assessment years 2017-18 and 2018-19. Initially, a stay was granted on 26/08/2022, which was extended multiple times. The Tribunal considered the compliance of the assessee with the conditions of the stay and the absence of any coercive actions by the Assessing Officer. Due to administrative changes, including the retirement of a Tribunal member, the matter was rescheduled for a fresh hearing on 28/11/2024, prompting the need for an extension of the stay.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107810 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 day(s)
• Appeal Type: Others
• Pronouncement Date: 26-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 25-11-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: AJAY VOHRA
• Keywords: Application of stay

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 Nos. 37 & 38/Chd/2024 (आयकर अपील सं./ ITA Nos. 578 & 579/Chd/2022) िनधाᭅरण वषᭅ / Assessment Years : 2017-18 & 2018-19 GlaxoSmithkline Asia Private Ltd. DLF Plaza Tower, DLF City Phase-1 Gurgaon- 122002 बनाम The DCIT Central 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. Richa Aggarwal, C.A राज᭭व कᳱ ओर से/ Revenue by : Shri Vivek Vardhan, JCIT, Sr. DR सुनवाई कᳱ तारीख/Date of Hearing : 26/11/2024 उदघोषणा कᳱ तारीख/Date of Pronouncement : 26/11/2024 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : These are two Stay Applications wherein the assessee seeks extension of stay on recovery of outstanding demand related to A.Y 2017-18 and 2018-19. 2. It was submitted by the Ld. AR that the Tribunal had initially granted the stay vide order dt. 26/08/2022 wherein it had directed adjustment of refund of Rs. 2.30 Crores against the aggregate demand of Rs 63,95,27,004/- (Rs. 36,20,40,260/- for A.Y. 2017-18 and Rs. 27,74,86,744 for A.Y. 2018-19 and remaining demand was stayed and the stay has since been extended from time 2 to time and our reference was drawn to the initial stay order dated 26/08/2022 wherein the relevant directions of the Coordinate Bench read as under: 4.0 Having heard both the parties and having perused the material available on record before us, we direct that the Department can adjust the amount of Rs. 2,30,00,000/- from the amount of refund due to the applicant thereby fulfilling the statutory condition of pre deposit of 20% of outstanding demand prior to the grant of stay. We further grant stay against recovery of the outstanding demand for both the A.Y’s for a period of 180 days or the disposal of these appeal whichever occurs earlier with the caveat that the applicant shall not seek any undue adjournment when the appeals are listed for hearing failing which the stays granted shall be deemed to have been vacated. We also direct the Registry to fix the date of hearing on 26/09/2022 through the mode of virtual hearing. Since the date of hearing was pronounced at the close of virtual hearing today itself, the issuance of notice is dispensed with. 3. It was submitted that detailed arguments were made by both the parties and the matter was last heard by the Bench and reserved for orders on 09/08/2024, however, due to certain administrative exigency (retirement of one of the members on superannuation), the order couldn’t be pronounced and has been released for fresh hearing on 28/11/2024. It was submitted that there is due compliance on part of the assessee as far as the conditions for grant of stay is concerned and has not sought any adjournment in the matter as far as the earlier proceedings were concerned and they are ready to argue the matter on the next date of hearing. It was submitted that since the earlier stay has already expired on 15/11/2024, there is an apprehension that the AO may contemplate steps to recover the outstanding tax demand and it was prayed that the stay be further extended for a period of six months and appropriate direction may be issued in this regard so that there is no coercive measures taken by the AO to 3 recover the outstanding demand till the matter is heard and order pronouncement by the Bench. 4. The Ld. Sr DR has been heard who has fairly submitted that the matter was last heard by the Bench on 9/08/2024 but the order couldn’t be pronounced and the matter was released for fresh hearing on 28/11/2024 due to retirement of one of the members constituting the Bench which had heard the matter. It was submitted that the Revenue is ready to argue the matter at the next date of hearing. He has further submitted that he has no communication/information regarding any coercive steps being taken by the AO and it is merely an apprehension on the part of the Ld. AR in terms of any potential coercive measures being adopted by the AO. 5. Having heard both the parties and considering the material available on the record especially the fact that the stay granted earlier had expired on 15/11/2024 and that the matter has been released for fresh hearing for 28/11/2024, we hereby extend the stay for a further period of six (06) months or till the matter is heard and the order is pronounced, whichever is earlier subject to same conditions as stated in the initial stay order. The Assessing officer is also directed not to adopt any coercive measures to recover outstanding demand during the said period and the ld DR is hereby requested to communicate the aforesaid decision to the Assessing officer expeditiously in view of apprehension so expressed by the ld AR on behalf of the assessee. 4 6. In the result, stay applications filed by the assessee are allowed in light of aforesaid directions. Order pronounced in the open Court on 26/11/2024. 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 "