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

SA 480/DEL/2024

AI Insights

The case involves Honda Motorcycle and Scooter India P. Ltd., which filed an application seeking a stay on the recovery of an outstanding tax demand for the assessment year 2021-22. The demand arose from four adjustments made by the Assessing Officer, including transfer pricing adjustments and issues related to the import of goods and capitalization of royalty expenses. The Tribunal noted that three of the issues were covered by previous orders in favor of the assessee, while the fourth was a new issue but appeared to have a prima facie good case in its favor. The department opposed the stay but suggested that if granted, it should be conditional on the payment of 20% of the outstanding demand.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472478 (ITAT-DELHI)
• Duration Of Justice: 14 day(s)
• Appeal Type: Others
• Pronouncement Date: 06-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Next Hearing Date: 06-12-2024
• Assessment Year: 2021-2022
• Appeal Filed On: 22-11-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Keywords: Application of stay; Royalty expenses

Judgement Text

" आयकर अपीलीय अिधकरण िदʟी पीठ “आई”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं ŵीमती रेणु जौहरी, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SMT. RENU JAUHRI, ACCOUNTANT MEMBER SA No. 480/Del/2024 (Arising out of ITA No. 5390/Del/2024, A.Y 2021-22) Honda Motorcycle and Scooter India P. Ltd., Plot No. 1 & 2, Sector-3, IMT Manesar, Gurugram 122050 PAN: AAACH-7467-D ...... आवेदक/Applicant बनाम Vs. Deputy Commissioner of Income Tax, Circle 1(1), Gurgaon ..... ᮧितवादी/Respondent आवेदक/Applicant : Shri Deepak Chopra & Ms. Mansvini Bajpai, Advocates ŮितवादीȪारा/Respondent by : Shri Rajesh Kumar Dhanesta, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 06/12/2024 घोषणा कᳱ ितिथ/ Date of pronouncement : 06/12/2024 आदेश/ORDER PER VIKAS AWASTHY, JM: This application has been filed by the assessee seeking stay of recovery of outstanding demand for assessment year 2021-22. 2. Shri Deepak Chopra, appearing on behalf of the assessee submits that the outstanding demand of tax in the impugned assessment year arises from four adjustments made by the Assessing Officer (AO) viz. (i) TP adjustment on payment of export commission; (ii) TP adjustment relating to Royalty paid on sales to AE’s; (iii) Import of Goods; and (iv) Capitalization of Royalty expenses. Out of these four issues, three issues are covered by the order of Tribunal in assessee’s own in the 2 SA No.480//DEL/2024 preceding assessment years. One of the issue in which the addition has been made is fresh, however, the assessee has prima face good case in its favour even on the fresh issue. The ld. Counsel for the assessee thus prayed for stay of recovery of outstanding demand. 3. Per contra, Shri Rajesh Kumar Dhanesta representing the department opposed the stay application. He further contended that, if at all stayed is to be allowed the same should be subject to payment of 20% of the outstanding demand. 4. Both sides heard. We are of considered view that the outstanding demand in the impugned assessment year deserves to be stayed. The recovery of outstanding demand is stayed subjected to the following conditions: (i) The assessee shall furnish 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 Tribunal in assessee’s own case in the preceding assessment years. The assessee shall furnish security to the satisfaction of AO. (ii) The assessee shall pay 20% of the outstanding demand in respect of addition on account of import of goods amounting to Rs.29,05,211/-. The assessee shall deposit 20% of the demand within a period of three weeks from the date of receipt of this order. (iii) The assessee shall furnish paper book, if any before the next date of hearing with an advance copy to the opposite side, in accordance with ITAT Rules. (iv) The assessee shall not seek adjournment. 3 SA No.480//DEL/2024 5. The recovery of outstanding demand is stayed for a period of 180 days from the date of this order or till the disposal of appeal, whichever is earlier. 6. The Registry is directed to fix the appeal for hearing on 18.03.2025. Since, date of hearing has been announced in the open court in the presence of both the sides issuance of separate notice of hearing is dispensed with. 7. In the result, the Stay Application of the assessee is allowed. Order pronounced in the open court on Friday the 06th day of December, 2024. Sd/- Sd/- (RENU JAUHRI) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी / Delhi, ᳰदनांक/Dated 06/12/2024 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "