HITACHI ASTEMO RAJASTHANBRAKE SYSTEMS PVT LTD,RAJASTHAN V. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 1, ALWAR

SA 78/DEL/2025

AI Insights

The case involves Hitachi Astemo Rajasthan Brake Systems P. Ltd., formerly known as Nissin Brake India P. Ltd., which filed two Stay Applications against the Deputy Commissioner of Income Tax, Circle 1, Alwar, concerning the recovery of outstanding demands for the assessment years 2017-18 and 2018-19. The assessee argued that the AO did not comply with the DRP's directions in the final assessment orders, leading to an unjust outstanding demand. The Tribunal considered the precedents and adjustments related to comparables, working capital, capacity utilization, and royalty, which were previously adjudicated in favor of the assessee. The Tribunal decided to stay the recovery of the outstanding demand, acknowledging the potential merit in the assessee's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 39373 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 14-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE; ASHISH TRIPATHI
• Keywords: Application of stay
• Section: 154

Judgement Text

" आयकर अपीलीय अिधकरण िदʟी पीठ “एच”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं अवधेश क ुमार िमŵा, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER SA Nos. 77 & 78/Del/2025 (Arising out of ITA Nos. 1175 & 2044/Del/2022, A.Y 2017-18 & 2018-19) Hitachi Astemo Rajasthan Brake Systems P. Ltd., (Earlier Known as Nissin Brake India P. Ltd.) Plot No. 663, Phase-5, Udyog Vihar, Industrial Complex, Dhundahera, Gurgaon, Haryana 122016 PAN: AACCN-3633-K ...... आवेदक/Applicant बनाम Vs. Deputy Commissioner of Income Tax, Circle 1, Alwar ..... ᮧितवादी/Respondent आवेदक/Applicant : Shri Vishal Kalra, Advocate ŮितवादीȪारा/Respondent by : Shri Ashish Tripathi, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 14/02/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : 14/02/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: These two Applications have been filed by the assessee praying for stay of recovery of outstanding demand for assessment years 2017-18 & 2018-19. 2. The ld. Counsel for the assessee submits that an applications for stay were filed before the Assessing Officer the same have now been disposed off by the Assessing Officer (AO) vide order dated 05.02.2025, directing the assessee to pay 20% of the total demand. The ld. Counsel for the assessee submits that the AO while passing final 2 SA Nos.77 &78/DEL/2025 assessment order has not given effect to the directions of DRP. If directions of the DRP are complied with, no demand would be outstanding. The Counsel for assessee furnished chart to explain as to how the issues relating to comparables, working capital adjustment, proportionate adjustment, capacity utilization adjustment and royalty were adjudicated by the Tribunal in preceding assessment years in favour of assessee. He pointed that rectification petition u/s. 154 of the Income Tax Act,1961 (hereinafter referred to as ‘the Act’) was filed by the assessee before the AO. The AO vide order dated 30.09.2024 dismissed the same stating that the matter is not within the purview of rectification petitions u/s. 154 of the Act. The AO has dealt with the issue in absolutely high headed manner in both the impugned assessment years. 3. The ld. DR submitted that the assessee may be directed to deposit 20% of outstanding demand. He further prayed that time may be allowed to him to verify the facts from the AO. 4. Both sides heard. Facts in AY 2017-18 & 2018-19 are identical. After considering submissions of the assessee, prima facie we are of considered view that the assessee deserves benefit of stay of recovery outstanding demand in impugned assessment years. The recovery of outstanding demand for AY 2017-18 and 2018-19 is stayed for a period of 180 days from the date of this order or disposal of appeal(s), whichever is earlier. 5. The ld. Counsel for the assessee informed that the appeals have been listed for hearing on 06.05.2025. The assessee may file paper book if so advised before the date of hearing with an advance copy to the opposite side, in accordance with ITAT Rules. 3 SA Nos.77 &78/DEL/2025 6. The Revenue may furnish factual report from the AO on the date of hearing of appeal. 7. In the result, both Stay Applications of the assessee are allowed. Order pronounced in the open court on Friday the 14th day of February, 2025. Sd/- Sd/- (AVDHESH KUMAR MISHRA) (VIKAS AWASTHY) लेखाकार सद˟/ACCOUNTANT MEMBER Ɋाियक सद˟/JUDICIAL MEMBER िदʟी / Delhi, ᳰदनांक/Dated 14/02/2025 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "