HONDA MOTORCYCLE AMD SCOOTER INDIA PRIVATE LIMITED,GURGAON V. DCIT, CIRCLE-1(1), GURGAON

SA 297/DEL/2025

AI Insights

The case involves M/s Honda Motorcycle & Scooter India Pvt. Ltd., which filed a stay application (SA No. 297/Del/2025) related to an income tax demand of Rs. 84,06,63,631 for the assessment year 2021-22. The application sought an extension of the stay previously granted by the ITAT. The Tribunal had earlier granted a stay on the condition that the assessee furnished a bank guarantee covering 20% of the demand and paid 20% of the outstanding demand concerning specific additions. The assessee complied by submitting a bank guarantee and making the required payment. The Tribunal noted that the circumstances had not changed since the original stay was granted and agreed to extend the stay under the same terms.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396867 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 30-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2021-2022
• Other Referred Cases: Roca Bathroom Products Private Limited (2022) 445 ITR 537(Mad.)
• Laws Referred To: Income-tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR ARORA
• Assessee Lawyers: ANKUL GOEL; ASHISH SARDA
• Keywords: Application of stay; Extension of stay
• Section: 143(3); 2

Judgement Text

"1 SA No. 297/Del/2025 (In ITA No. 5390/Del/2024) A.Y. 2021-22 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘I’: NEW DELHI) BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER SA no. 297/Del/2025 (In ITA no. 5390/Del/2024) A.Yr.: 2021-22 M/s Honda Motorcycle & Scooter India Pvt. Ltd., Honda Plot No. 1&2 , Sector3, Kasan, Kasan, IMT Manesar, Gurugram-122050, Haryana. v. DCIT, Circle-1(1), Gurgaon. PAN No: AAACH 7467 D APPLICANT RESPONDENT Assessee by : Shri Ankul Goel, Adv.; & Shri Ashish Sarda, Adv. Revenue by : Shri Ajay Kumar Arora, Sr. DR Date of Hearing : 30.05.2025 Date of Pronouncement : 30.05.2025 ORDER PER RAMIT KOCHAR, AM: This stay application in SA nos. 297/Del/2025marising out of ITA no. 5390/Del/2024 pertaining to assessment year 2021-22,has been filed by the assessee seeking extension of stay on recovery of outstanding demand towards income-tax and interest etc. thereon, to the tune of Rs. 84,06,63,631/-. 2 SA No. 297/Del/2025 (In ITA No. 5390/Del/2024) A.Y. 2021-22 2. It is the contention of the learned counsel for the assessee that the assessee has already been granted stay on the recovery of the outstanding demand towards income- tax and interest etc due thereon by the Tribunal vide stay order dated 06.12.2024 in S.A. No. 480/Del/2024 arising out of ITA No. 5390/Del/2024 for A.Y. 2021-22 on the condition that the assessee furnishes security equal to 20% of the demand arising on the issues which are stated to be covered in favour of the assessee by the order of the Tribunal in assessee’s own case in preceding assessment years, and further also pay 20% of the outstanding demand in respect of addition on account of import of goods amounting to Rs. 29,05,211/-. It was submitted by learned counsel for the assessee that the assessee has duly complied with the directions of the Bench vide order dated 06.12.2024, and submitted Bank Guarantee in favour of the Department(BG- bearing no. 3611MD2435584508 dated 20.12.2024 for Rs. 16,75,51,685/- which is to expire on 18.06.2025 issued by MUFG Bank Limited) which consisted 20% of the demand arising out of the issues which are covered in favour of the assessee by the order of the ITAT for the earlier years, and further an amount of Rs. 5,81,402/- has been deposited vide challan dated 19.12.2024 (CIN: 241219000243561CIC – ICICI Bank reference No. 2034191743 dated 19-Dec-2024-BSR code 6390009). It was submitted that the aforesaid BankGuarantee will expire on 18.06.2025, and assessee undertakes to furnish fresh Bank Guarantee or renew the existing bank guarantee in favour of the 3 SA No. 297/Del/2025 (In ITA No. 5390/Del/2024) A.Y. 2021-22 department, to cover the entire period of stay on recovery of outstanding demand in respect of issues covered in favour of the assessee, to be granted by the ITAT. It was also brought to the notice of the Bench, that since the date of grant of original stay order dated 06.12.2024, the hearing in the appeal in ITA No. 5390/Del/2024 took place on 18.03.2025, when the matter was adjourned to 25.03.2025. Thereafter on 25.03.2025, when the hearing took place before the Division Bench, the ld. Counsel for the assessee moved application for consolidation of appeals, and matter was adjourned to 20.05.2025. When the appeal came up for hearing before the Division Bench on 20.05.2025, the ld. Counsel for the assessee moved an application raising additional ground of appeal that the assessment is barred by limitation keeping in view decision of Hon’ble Madras High Court in the case of Roca Bathroom Products Private Limited (2022) 445 ITR 537(Mad.), and this issue of limitation is now sub- judiced before Hon’ble Supreme Court and hearing has already taken place before Hon’ble Supreme Court, and judgment of Hon’ble Supreme Court on this issue is awaited. This appeal is now fixed before ITAT, Division Bench for hearing on 01.09.2025. Thus, it was submitted that no fault could be attributable to the assessee for any delay in adjudication of the appeal of the assessee. Prayers were made to grant stay on recovery of outstanding demand of Rs. 84,06,63,631/- 4 SA No. 297/Del/2025 (In ITA No. 5390/Del/2024) A.Y. 2021-22 3. Learned Sr. DR has no objection to the extension of the stay on the same terms and conditions, as facts and circumstances have remained same. 4. After hearing both the parties and keeping in view the facts and circumstances of the case which has remained unchanged since the grant of the original stay of demand by order of the ITAT dated 06.12.2024, and without commenting on the merit of the issues arising in the appeal, we hereby extend the stay on the recovery of the outstanding demand towards income-tax and interest etc due thereon to the tune of Rs. 84,06,63,631/-, for a period of 180 days or till disposal of the appeal whichever is earlier. As a material condition for grant of extension of stay vide this order, the assessee will deposit fresh bank guarantee or renew the existing bank guarantee as detailed in the preceding para of this order in favour of the Department. On satisfactory furnishing of the aforesaid Bank Guarantee before the Revenue, the stay on recovery of the outstanding demand to the tune of Rs. 84,06,63,631/- towards income-tax , interest etc. due thereon raised vide notice of demand u/s 156 dated 29.10.2024 read with computation sheet dated 29.10.2024 raised in pursuance of assessment order dated 29.10.2024 passed u/s 143(3) read with section 144C(13) read with Section 144B, shall become operational. The assessee will not seek un-necessary adjournments and shall co-operate in early disposal of the appeal, otherwise stay shall 5 SA No. 297/Del/2025 (In ITA No. 5390/Del/2024) A.Y. 2021-22 stand vacated. We clarify that we have not commented on the merits of the issues arising in the appeal. We order accordingly. 5. Extension of Stay application in SA No. 297/Del/2025 is allowed accordingly, in the manner as detailed above. Order pronounced in the open court on 30th May, 2025. Sd/- Sd/- (MS. MADHUMITA ROY) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 03/06/2025. *MPV* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DRP 5. DR Asst. Registrar, ITAT, New Delhi "