NEC CORPORATION INDIA PRIVATE LIMITED,DELHI V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 16(1), DELHI

SA 424/DEL/2024

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The case involves NEC Corporation India P. Ltd., which filed an application seeking a stay on the recovery of an outstanding demand for the assessment year 2020-21. The demand arose from transfer pricing adjustments made by the Assessing Officer, totaling Rs. 4,61,14,912. The Tribunal noted that the assessee had already paid a significant portion of this demand through adjustments from tax refunds. The department opposed the stay, suggesting an additional 20% payment of the outstanding demand. However, the Tribunal decided to grant the stay, citing the substantial payment already made by the assessee and the upcoming hearing of the appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29180 (ITAT-DELHI)
• Duration Of Justice: 10 day(s)
• Appeal Type: Others
• Pronouncement Date: 01-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Next Hearing Date: 01-11-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 22-10-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Keywords: Transfer pricing; Reasonable cause; Application of stay

Judgement Text

" आयकर अपीलीय अिधकरण िदʟी पीठ “आई”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं नवीन चंū, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER SA No. 424/Del/2024 (Arising out of ITA No. 3926/Del/2024, A.Y 2020-21) NEC Corporation India P. Ltd., A-31, 1st Floor, Lajpat Nagar, South Delhi, Delhi 110024 PAN: AACCN-3496-J ...... आवेदक/Applicant बनाम Vs. Deputy Commissioner of Income Tax, Circle 16(1), Delhi ..... ᮧितवादी/Respondent आवेदक/Applicant : Shri Nageshwar Rao, Advocate ŮितवादीȪारा/Respondent by : Shri Om Prakash, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 01/11/2024 घोषणा कᳱ ितिथ/ Date of pronouncement : 01/11/2024 आदेश/ORDER PER VIKAS AWASTHY, JM: This application has been filed by the assessee seeking stay of recovery of outstanding demand for assessment year 2020-21. 2. Shri Nageshwar Rao, appearing on behalf of the assessee submits that the total demand raised by the Assessing Officer (AO) on account of addition/transfer pricing adjustment made during assessment proceeding for the impugned assessment year is Rs.4,61,14,912/-. The AO has already adjusted Rs.2,67,05,729/- against total demand from refunds due to the assessee. The outstanding demand after adjustment of refunds is Rs.2,37,14,317/-. In light of refunds adjusted 2 SA No.424//DEL/2024 against the total demand, the assessee has already paid 55% of total demand for the impugned assessment year. Thus, he prayed for stay of outstanding demand. The ld. Counsel for the assessee further submitted that the Tribunal vide order dated 27.09.2024 in SA No. 345/Del/2024 has granted the benefit of early hearing of appeal to the assessee, now appeal is listed for hearing on 31.12.2024. 3. Per Contra, Shri Om Prakash representing the department vehemently opposed the Stay Application and submitted that the assessee may be asked to deposit further 20% of the outstanding demand. 4. Both sides heard. This is second Stay Application filed by the assessee. The initial Stay Application in SA No. 345/Del/2024 was dismissed vide order dated 27.09.2024. However, the benefit of out of turn hearing of appeal was allowed to the assessee and appeal was directed to be listed for hearing on 31.12.2024. 5. In the instant application seeking stay of recovery of outstanding demand, the counsel for the assessee has highlighted that out of total demand of Rs.4,61,14,912/- germinating from the additions/transfer pricing adjustments made during the impugned assessment year, the Department has already recovered an amount of Rs.2,67,05,729/- due to the assessee in the form of refund as per the return of Income Tax. Thus, the assessee has already paid 55% (approximately) of the total outstanding demand. This fact has not been disputed by the Revenue. These facts where not brought to the notice of Bench when the first stay application was heard. In light of undisputed fact that 55% (approximately) of total demand for the assessment year under appear is adjusted, recovery of balance outstanding demand in the impugned assessment year is 3 SA No.424//DEL/2024 stayed for a period of 180 days from the date of this order or till the disposal of appeal, whichever is earlier. The assessee shall not seek adjournment without their being any reasonable cause in hearing of appeal. 6. The stay application of assessee is allowed. Order pronounced in the open court on Friday the 01st day of November, 2024. Sd/- Sd/- (NAVEEN CHANDRA) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी / Delhi, ᳰदनांक/Dated 01/11/2024 NV/- ᮧितिलिप अᮕेिषत/Copy 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 "