MARUTI SUZUKI INDIA LIMITED,NEW DELHI V. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE 16(1), DELHI, NEW DELHI

SA 326/DEL/2024

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Maruti Suzuki India Limited filed a stay application against a tax demand of Rs. 779.23 crores arising from an assessment order under sections 143(3), 144C, and 144B of the Income-tax Act, 1961. The Tribunal considered previous decisions on similar issues in favor of the assessee and noted that some issues were remitted back to the Assessing Officer. The Tribunal found that the majority of the issues, amounting to Rs. 729.35 crores, were already decided in favor of the assessee or pending adjudication. The Tribunal also acknowledged three new issues requiring detailed submissions, with a total demand of Rs. 49.88 crores. After considering the adjustments and pre-paid taxes, the Tribunal concluded that the assessee was entitled to a refund of Rs. 35.72 crores, thus favoring the grant of stay.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 31660 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Others
• Pronouncement Date: 11-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Next Hearing Date: 11-10-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 22-08-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT KATOCH
• Assessee Lawyers: AJAY VOHRA
• Keywords: Capital Gains; Deemed to accrue or arise in india; Non-deduction of tax; Application of stay
• Section: 143(3); 144C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”, NEW DELHI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT and SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER SA No.326/Del/2024 (in ITA No.3786/Del/2024) (Assessment Year : 2020-21) Maruti Suzuki India Limited, vs. DCIT, Circle 16 (1), Plot No.1, Nelson Mandela Road, New Delhi. Vasant Kunj, New Delhi – 110 070. (PAN : AAACM0829Q) (APPLICANT) (RESPONDENT) APPLICANT/ASSESSEE BY: Shri Ajay Vohra, Sr. Advocate Shri Rohit Jain, Advocate Ms. Somya Jain, CA REVENUE BY : Shri Amit Katoch, Sr. DR Date of Hearing : 11.10.2024 Date of Order : 11.10.2024 O R D E R PER S.RIFAUR RAHMAN, AM: 1. Applicant/Assessee, Maruti Suzuki India Limited (hereinafter referred to as ‘the assessee’) filed the present stay application sought to stay the demand of Rs.779.23 crores out of assessment order passed u/s 143 (3) r.w.s. 144C and 144B of the Income-tax Act, 1961 (for short ‘the Act’). 2. Brief facts submitted by the assessee to pray for grant of stay in its case are, assessee is engaged in the business of manufacture and sale of automobiles. The final 2 SA No.326/Del/2024 assessment order passed u/s 143(3) r.w.s. 144C and 144B of the Act. After considering the directions of ld. DRP, the total income of the assessee was determined at Rs.7817,51,39,280/-. Accordingly, the addition of income-tax demand was raised at Rs.779.23 crores. Aggrieved with the above order, assessee has filed appeal before us raising several grounds of appeal. 3. At the time of hearing, ld. AR for the assessee submitted a chart as per which the issues involving disallowance u/s 43B, 14A, royalty paid, CSR expenses, TP adjustment on account of brand royalty and disallowance on account of foreseen price increase were decided by the coordinate Bench in AY 2010-11 in favour of the assessee. Further, he submitted that with regard to income from trading in mutual funds and disallowance of purchase on account of non-deduction of tax from payments made to SMC were also considered by the coordinate Bench in AY 2010-11 and the Bench remitted these issues back to the file of Assessing Officer. He submitted that all these issues were settled as far as current assessment year is concerned which covers to the extent of Rs.729.35 crores. With regard to new issues relating to disallowance of deduction u/s 80G, deemed income u/s 41 of the Act and TP issue on R&D expenditure were the issues which need fresh submission and adjudication, the total demand on these abovesaid three issues are Rs.49.88 crores. Further, he submitted that for the sake of consideration, if it take the total demand on fresh issues for the purpose of payment of tax, even then assessee will get refund of Rs.35.72 crores as per the calculation submitted before us. For the sake of clarity, the same is reproduced below :- 3 SA No.326/Del/2024 Particulars Amount (In Rs.) Assessed Income 78,17,51,39,280 Less: benefit of 41 issue however allowed in the order but while totalling – benefit not given of Rs.25,41,985/-. Added back by AO in totalling mistake. 25,41,985 Actual Assessed Income should have been 78,17,25,97,295 Less : Addition on covered issues [Rs. 2599.38 cr. (-) Amount re-classified from Capital Gains to PGBP in assessment of Rs.617.50 cr., taxed separately] 19,81,88,75,982 Revised assessed income (returned income plus new issues) 58,35,37,21,313 Tax on income [(Rs. 27634421313 – Rs. 467,13,71,361) @25.168%)] 13,51,07,73,836 Tax on LTCG at special rates (Rs. 467,13,71,361 @22.88%) 1,06,88,09,767 Less : Relief u/s. 90/90A 34,37,78,970 Less : Prepaid taxes 14,59,30,04,495 Balance amount payable / (refundable) by Appellant -35,71,99,862 20% of the revised demand - 4. With the above submissions, he prayed that the stay may be granted considering the above facts on record and also prayed for early hearing of the matter out of turn. 5. On the other hand, ld. DR for the Revenue submitted that ITAT has decided several issues in the earlier assessment year in favour of the assessee, still there are fresh issues which have huge demands. He prayed that suitable direction may be given by the Bench. 6. Considered the rival submissions and material placed on record. We observed that assessment order passed u/s 144C which has pending tax demand of Rs.779.23 crores. We observed that majority of the issues on which coordinate Bench has already considered the similar issues in AY 2010-11 and accordingly granted relief to the assessee and certain issues were remitted back to the file of Assessing Officer, 4 SA No.326/Del/2024 therefore, to the extent of tax demand of Rs.729.35 crores, the issues are already decided in favour of the assessee and several issues are pending for adjudication in ITAT. We observed that there are three fresh issues which need detailed submissions and adjudication. However, as per the calculation submitted before us, after considering adjustment of various issues decided by the coordinate Bench and after considering the pre-payment of taxes by the assessee, the net result is that assessee has to get a refund of Rs.35.72 crores from the Revenue. Considering the above facts on record and balance of convenience in favour of the assessee, we are inclined to grant stay for a period of 180 days from the date of this order or till the date of disposal of present appeal, whichever is earlier, subject to the rider that the assessee shall not take unnecessary adjournment to prolong the appeal otherwise stay order would cease to operate. As per the request of the ld. AR for the assessee, we are fixing the case for hearing on 22.01.2025 out of turn. No separate notice shall be issued. 7. In the result, the aforesaid stay application is allowed as above. Order pronounced in the open court on this 11th day of October, 2024 after the conclusion of the hearing. Sd/- sd/- (SAKTIJIT DEY) (S.RIFAUR RAHMAN) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 11.10.2024 TS 5 SA No.326/Del/2024 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "