GLOBALLOGIC INDIA PRIVATE LIMITED,NEW DELHI V. INCOME TAX DEPARTMENT, DELHI

SA 386/DEL/2024

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Globallogic India Private Limited filed a stay application against a demand raised following an assessment order under sections 143(3) and 144C of the Income-tax Act, 1961. The assessment included significant transfer pricing adjustments and other disallowances, resulting in a total assessed income substantially higher than declared. The tribunal considered the arguments regarding the limitation period of the assessment order, referencing several precedents, and noted that the matter is currently pending before the Supreme Court. The absence of recovery proceedings or pressure from the Assessing Officer also influenced the decision to deny the stay.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471529 (ITAT-DELHI)
• Duration Of Justice: 25 day(s)
• Appeal Type: Others
• Pronouncement Date: 18-10-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 18-10-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 23-09-2024
• Other Referred Cases: CIT vs. Roca Bathroom Products Private Limited, Amadoroco Ltd. vs. ACIT, Super Brands Ltd. (UK) vs. ADIT
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHANKAR LAL VERMA
• Assessee Lawyers: NEERAJ JAIN
• Keywords: Transfer pricing; Recovery proceedings; Application of stay
• Section: 143(3); 144C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”, NEW DELHI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT and SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER SA No.386/Del/2024 (in ITA No.4399/Del/2024) (Assessment Year : 2020-21) Globallogic India Private Limited, vs. ITO, 207, Plot No.5, Gupta Arcade LSC, Delhi. Mayur Vihar Phase 1, New Delhi – 110 091. (PAN : AABCI2526F) (APPLICANT) (RESPONDENT) APPLICANT/ASSESSEE BY: Shri Neeraj Jain, Advocate Ms. Richa Garwal, Advocate REVENUE BY : Shri Shankar Lal Verma, Sr. DR Date of Hearing : 18.10.2024 Date of Order : 18.10.2024 O R D E R PER S.RIFAUR RAHMAN, AM: 1. Applicant/Assessee, Globallogic India Private Limited (hereinafter referred to as ‘the assessee’) filed the present stay application sought to stay the demand of Rs.24,03,98,140/- out of assessment order passed u/s 143 (3) r.w.s. 144C of the Income-tax Act, 1961 (for short ‘the Act’). 2. At the time of hearing, ld. AR for the assessee submitted that the assessee has filed return of income on 15.02.2021 declaring total income of Rs.63,81,66,900/- and the assessment was completed vide order dated 27.07.2024 under section 143 (3) read 2 SA No.386/Del/2024 with section 144C of the Act and assessed the total income at Rs.1,11,05,37,724/- by making transfer pricing adjustment of Rs.35,54,99,208/- in relation to provision of software development services, adjustment towards delay in receipt of receivables and disallowance of delay in deposit of employees contribution towards welfare fund. The Assessing Officer has raised aggregate demand of Rs.24,03,98,140/-. Assessee filed appeal against the above order before the ITAT. 3. In this regard, ld. AR for the assessee submitted that the assessment order passed by the Assessing Officer is barred by limitation by relying on the decision of CIT vs. Roca Bathroom Products Private Limited (2021) 127 taxmann.com 332, Amadoroco Ltd. vs. ACIT (2023) 149 taxmann.com 485 and Super Brands Ltd. (UK) vs. ADIT (2023) 147 taxmann.com 323. He further submitted that the case of the assessee is fully covered in assessee’s own case on various issues relating to selection of comparable companies and also adjustment made on account of interest on delay in receipt of receivables from its AEs. He also brought to our notice other issues raised by the assessee in the said application and prayed that the stay may be granted. 4. On the other hand, ld. DR for the Revenue objected to the various submissions made by the ld. AR for the assessee. 5. Considered the rival submissions and material placed on record. At the time of hearing, ld. counsel for the assessee was asked whether any recovery proceedings were initiated against the assessee or any pressure from the Assessing Officer at the Bar. However, ld. AR submitted the same in negative. After careful consideration, we observed that assessee has raised the issue of assessment passed u/s 143(3) read 3 SA No.386/Del/2024 with section 144C is barred by limitation relying on the decision in the case of Roca Bathroom Products Private Limited (supra) which is pending before Hon’ble Supreme Court. The issue under consideration may not be resolved in near future considering the case still pending before Hon’ble Supreme Court and also there is no pressure from the Assessing Officer for recovery of the demand, we do not see any reason to grant stay. Accordingly, the stay application filed by the assessee is rejected. 6. Further, on request of ld. AR for the assessee for early hearing out of turn, the same is granted to be posted on 08.01.2025 on out of turn basis. The same is announced in the open court, hence there is no necessity of issue of separate notice. Order pronounced in the open court on this 18th day of October, 2024 after the conclusion of the hearing. Sd/- sd/- (SAKTIJIT DEY) (S.RIFAUR RAHMAN) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 18.10.2024 TS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "