M/S. XIAOMI TECHNOLOGY INDIA PRIVATE LIMITED,BANGALORE V. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(1), BANGALORE

SA 59/BANG/2025

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Xiaomi Technology India Private Limited filed a stay application seeking an extension of the stay previously granted concerning an income tax demand for the assessment year 2018-19. The original stay was granted due to the security provided by attached fixed deposits and the prima facie case and balance of convenience favoring the assessee. The Income Tax Department had raised issues regarding the validity of the order due to the absence of a proper Document Identification Number (DIN) and limitations on the claim, which were contested by the assessee based on precedents set by the High Courts. The Department of Revenue argued against the extension of the stay, suggesting that the assessee should deposit the tax. However, the tribunal found no change in circumstances that would warrant a different decision from previous rulings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708816 (ITAT-BANGALORE)
• Appeal Type: Stay Application
• Pronouncement Date: 18-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2018-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N. BALUSAMY
• Assessee Lawyers: A SHANKAR; SENIOR
• Keywords: Application of stay

Judgement Text

"SA No.59/Bang/2025 Xiaomi Technology India Private Limited, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “C’’ BENCH: BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE PRESIDENT AND SHRI KESHAV DUBEY, JUDICIAL MEMBER SA No.59/Bang/2025 (Arising out of IT(TP)A No.455/Bang/2023 Assessment Year: 2018-19 Xiaomi Technology India Private Limited Orchid (Block E), Ground Floor Embassy Tech Village Marathalli Outer Ring Road Bellandur SO Kadabeesanahalli Bengaluru 560 103 Karnataka PAN NO : AAACX1645B Vs. DCIT Central Circle-2(1) Bengaluru APPELLANT RESPONDENT Appellant by : Sri A Shankar, Senior Advocate Respondent by : Sri N. Balusamy, D.R. Date of Hearing : 18.07.2025 Date of Pronouncement : 18.07.2025 O R D E R PER KESHAV DUBEY, JUDICIAL MEMBER: The present Stay Application No.59/Bang/2025 filed by M/s. Xiaomi Technology India Private Limited (The assessee/Applicant) for assessment year 2018-19 in IT(TP)A No.455/Bang/2023 seeking extension of the stay already granted by the coordinate bench originally on 9.8.2023. It was previously extended by an order dated 24.1.2025 as there was no change in the facts and circumstances of the case from the date of the original stay order. In SA No.32/Bang/2023 dated 9.8.2023, the coordinate bench has held that the assessee has a prima facie case and a balance of convenience in its favour and the interest of revenue is also fully secured against SA No.59/Bang/2025 Xiaomi Technology India Private Limited, Bangalore Page 2 of 3 the quantified demand of Rs1,833 Crores in view of the fixed deposit of Rs.3,700 crores which had been attached by the ld. AO. 2. The ld. Senior advocate Shri A. Shankar vehemently submitted that there is no change in the facts and circumstances of the case and on all the occasions at the time of hearing of the appeal, the revenue has sought for adjournment for the reason that the assessee has challenged the validity of the order as it did not have proper document identification number(DIN) as well as it is barred by limitation. He further submits that both the issues are covered in favour of the assessee by the decision of Hon’ble High Courts. He further submitted that the fixed deposit receipts of Rs.3,700 crores still remain attached by the Income Tax Department. 3. The ld. D.R. vehemently submitted that the assessee may be directed to deposit the tax and stay may not be continued. 4. We have carefully considered the rival submissions and perused the stay application filed before us as well as the orders of the coordinate bench originally directing the ld. AO to keep the recovery of demand in abeyance till the disposal of appeal which was subsequently extended by 3 orders. The ld. D.R. could not point out that the delay in disposal of appeal is on account of the assessee. It was also not shown to us that the issue of DIN and issue of limitation is at present is not in favour of the assessee. We further observe that interest on revenue is fully secured as almost double the amount of demand are attached by the Income Tax Department. In view of the above facts, we extend the stay for a further period of 180 days or till the disposal of appeal, whichever is earlier of the impugned amount. We also note that the revenue is seeking adjournment on these issues, as the amount involved in the stay application is huge, it is in the interest of revenue to facilitate early disposal of these SA No.59/Bang/2025 Xiaomi Technology India Private Limited, Bangalore Page 3 of 3 appeals by appropriate measures. In view of the above facts, the stay application filed by the assessee is allowed. 5. In the result, stay application filed by the assessee is allowed. Order pronounced in the open court on 18th July, 2025 Sd/- (Prashant Maharishi) Vice President Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated 18th July, 2025. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. "