M/S. ALTAIR ENGINEERING INDIA PRIVATE LIMITED,BENGALURU V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -1(1)(1), BENGALURU

SA 26/BANG/2025

AI Insights

The case involves M/s. Altair Engineering India Pvt. Ltd., the appellant, seeking an extension of a stay previously granted by the ITAT concerning a disputed tax demand for the assessment year 2020-21. The original stay was granted based on the assessee's deposit of 20% of the disputed demand. The Deputy Commissioner of Income Tax, Circle \\u2013 1 (1)(1), Bengaluru, the respondent, contested the amount claimed by the assessee as the disputed demand. The ITAT had earlier directed the Assessing Officer (AO) to determine the correct disputed demand through a section 154 order, which resulted in a higher assessed demand than claimed by the assessee. The ITAT's decision to extend the stay was contingent upon the assessee depositing the additional amount to cover the shortfall in the initially disputed demand.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471038 (ITAT-BANGALORE)
• Appeal Type: Stay Application
• Pronouncement Date: 24-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARITHIVEL V
• Assessee Lawyers: TATA KRISHNA
• Keywords: Application of stay
• Section: 244A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER S.P. No. 26/Bang/2025 (Arising out of IT(TP)A No. 1540/Bang/2024) Assessment Year : 2020-21 M/s. Altair Engineering India Pvt. Ltd., No. 46, First Floor, Prestige Trade Tower, Palace Road, Municipal Ward No. 77, Sampangiramanagar, Bengaluru – 560 001. PAN: AABCA1860A Vs. The Deputy Commissioner of Income Tax, Circle – 1 (1)(1), Bengaluru. APPELLANT RESPONDENT Assessee by : Shri Tata Krishna, Advocate Revenue by : Shri Parithivel .V, JCIT-DR Date of Hearing : 21-03-2025 Date of Pronouncement : 24-03-2025 ORDER PER PRAKASH CHAND YADAV, JUDICIAL MEMBER Present stay application is filed for extending the stay granted by the ITAT in S.P. No. 47/Bang/2024 on 23/09/2024. It is the case of the assessee that assessee has already deposited 20% of the disputed demand i.e. Rs. 18,96,47,558/- and hence the stay granted by the ITAT may kindly be extended for another six months. Page 2 of 3 S.P. No. 26/Bang/2025 2. The Ld. DR appearing on behalf of the assessee drawn the attention of the Bench to the stay order given by Bench dated 23/09/2024 (supra). The Ld. DR pointed out that the ITAT has given a direction to the AO to pass an order on the 154 application filed by the assessee for determining the correct disputed demand for the impugned year. The Ld. DR also drawn attention of the Bench to the 154 order passed by the AO on 24/01/2025, copy of the same is placed in paper book at page no. 32 and contended that the AO has determined an amount of Rs. 19,53,36,984/- and hence the contention of the assessee that the disputed demand is only Rs. 18.96 crores is not correct. The Ld. DR contended that the assessee is still required to deposit an amount of Rs. 35,39,086/- to fall in ambit of 20% of the outstanding demand. 3. We have heard the rival submissions and perused the materials available on record. 4. We observe that the ITAT vide order dated 23/09/2024 has given the following directions to the AO. a) The AO will pass an order u/s. 154 determining the correct tax liability for the impugned year. b) The AO will pass an order given appeal effect for A.Y. 2018-19 in pursuance to the ITAT order in ITA No. 1025/Bang/2022 and the refund amount should be granted to the assessee along with the interest of 244A and the refund amount should be deposited with the demand of impugned year i.e. A.Y. 2020-21. c) The ITAT has also directed to deposit an amount of Rs. 50 Lakhs on or before 07/10/2024. 5. Now following the above directions, the AO has passed the order u/s. 154 on 24/01/2025 and after giving credit of Rs. 50 Lakhs to the assessee has determined the outstanding demand to the tune of Rs. 19,60,26,411/-. Therefore, there is no merit in the contention of the Ld.AR that the outstanding demand is only Rs. 18.96 crores. Page 3 of 3 S.P. No. 26/Bang/2025 6. We observe that the assessee has also got a refund of Rs. 3.62 crores for A.Y. 2018-19(including interest of 244A), which is to be adjusted with the current demand. Now if one would add this refund the amount of Rs. 50 Lakhs deposited, then there is a short fall of Rs. 35,39,086/- as pointed out by the Ld DR. Therefore, we direct the assessee to deposit this amount of Rs Rs. 35,39,086/- within 15 days from today and subject to this deposition of Rs 35,39,086/- we hereby extend the stay granted earlier to the assessee for further 180 days or till the disposal of the appeal whichever is earlier. 6. In the result, the stay petition filed by the assessee is allowed as indicated above. Order pronounced in the open court on 24th March, 2025. Sd/- Sd/- (LAXMI PRASAD SAHU) (PRAKASH CHAND YADAV) Accountant Member Judicial Member Bangalore, Dated, the 24th March, 2025. /MS / Copy to: 1. Appellant 2. Respondent 3. CIT 4. DR, ITAT, Bangalore 5. Guard file 6. CIT(A) By order Assistant Registrar, ITAT, Bangalore "