NESTLE INDIA LIMITED,NEW DELHI V. ACIT, 10 OSD, DELHI

SA 326/DEL/2025

AI Insights

Nestle India Ltd. filed a stay application (SA No. 326/Del/2025) seeking an extension on the recovery of an outstanding demand of Rs. 1,71,51,67,571, which was part of a larger demand of Rs. 1,80,51,67,571. The company had already deposited Rs. 9,00,00,000 in compliance with a previous stay order. The appeal related to this case (ITA No. 5211/Del/2024) involved a dispute over an assessment year 2021-22 and included a limitation issue based on a decision from the Hon'ble Madras High Court, which was pending before the Supreme Court. The Tribunal decided to extend the stay, citing the compliance by the assessee and the ongoing judicial proceedings regarding the limitation issue.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669228 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 27-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2021-2022
• Other Referred Cases: CIT v. Roca Bathroom Products (P) Ltd. 445 ITR 537(Mad.)
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHEERAJ KUMAR JAIN
• Keywords: Application of stay
• Section: 2

Judgement Text

"1 SA No. 326/Del/2025 (In ITA No. 5211/Del/2024) Nestle India Ltd. v. ACIT 10 OSD, Assessment Unit, Income Tax Department, New Delhi A.Y: 2021-22 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘H’: NEW DELHI) BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER SA No. 326/Del/2025 (In ITA no. 5211/Del/2024) Assessment Year.: 2021-22 Nestle India Limited 100/101, World Trade Centre Barakhamba Lane, Connaught Place S.O., New Delhi-110001 v. ACIT-10,OSD, Assessment Unit, Income Tax Department, New Delhi. PAN No: AAACN0757G APPLICANT RESPONDENT Assessed by : Shri Neeraj Jain, Adv.& Ms. Manisha Bhalla, CA Revenue by : Shri Dheeraj Kumar Jain, Sr. DR Date of Hearing :27.06.2025 Date of Pronouncement :27.06.2025 ORDER PER RAMIT KOCHAR, AM: The assessee has filed this stay application in SA No. 326/Del/2025 which has arisen from ITA no. 5211/Del/2024 for assessment year 2021-22, seeking extensionof stay on recovery of the outstanding demand to the tune of Rs. 1,71,51,67,571/- (Total demand Rs. 1,80,51,67,571/- -Rs. 9,00,00,000/-(already deposited by assessee in compliance of stay order dated 20.12.2024)). It is the say of the ld. Counsel for the assessee that the Tribunal granted stay on the recovery of outstanding demand vide order dated 20.12.2024in SA No. 519/Del/2024arising out of appeal in ITA no. 5211/Del/2024 2 SA No. 326/Del/2025 (In ITA No. 5211/Del/2024) Nestle India Ltd. v. ACIT 10 OSD, Assessment Unit, Income Tax Department, New Delhi A.Y: 2021-22 for assessment year 2021-22 on the condition that the assessee deposit Rs. 9,00,00,000/- out of the aforesaid demand within 30 days of the stay order. The ld. Counsel has filed copy of aforesaid stay order dated 20.12.2024 which is placed on record in file.It was submitted by ld. Counsel for the assessee that the assessee has duly complied with the condition of the stay order by depositing Rs. 9 crores(Rs. Nine Crores) on17.01.2025 vide Challan No. 08125 (BSR code 0510002, Bank Reference No. P2501700002911, CIN 2501700059312HDFC with HDFC Bank). The ld. Counsel has filed the copy of challan , which is placed on record in file. Thus, it was submitted that since the conditions stipulated by the stay order dated 20.12.2024 was met, it was prayed that stay on recovery of outstanding demand be extended. It was submitted that after grant of aforesaid stay by ITAT vide orders dated 20.12.2024 , the appeal in ITA No. 5211/Del/2024 came up for hearing before Division Bench, ITAT , Delhi Benches on 19.03.2025, wherein the ITAT has adjourned the appeal of the assessee sine-die keeping in view that in the said appeal, the assessee has raised an issue/ground of assessment being barred on limitation based on the decision of Hon’ble Madras High Court in the case of CIT v. Roca Bathroom Products (P) Ltd. 445 ITR 537(Mad.). The issue of limitation in the case of Roca Bathroom Products (P) Ltd. (supra) is now subjudiced before Hon’ble Supreme Court , and that the Hon’ble Apex Court has already heard the matter and the judgment/orders are awaited. Thus it was submitted that no fault can be attributed to the assessee and prayers were made to grant extension on stay on the recovery of the remaining outstanding demand. 2. Ld. Sr. DR submitted that the assessee may be asked to deposit further amount so that entire demand stood deposited. 3 SA No. 326/Del/2025 (In ITA No. 5211/Del/2024) Nestle India Ltd. v. ACIT 10 OSD, Assessment Unit, Income Tax Department, New Delhi A.Y: 2021-22 3. After hearing both the parties we are inclined to extend the stay on the recovery of the remaining outstanding demandof Rs. 171,51,67,571/- for a further period of 180 days or till disposal of the corresponding appeal , as the factual circumstances and matrix as were before the Tribunal for grant of stay on recovery of outstanding demandvide orders dated 20.12.2024 in SA No. 519/Del/2024 arising out of ITA no. 5211/Del/2024 for assessment year 2021-22, remains the same. The assessee has already deposited Rs. 9,00,00,000/- of the total outstanding demand of Rs. 1,80,51,57,571/-as was directed by ITAT vide order dated 20.12.2024 as pre-condition for stay on recovery of remaining outstanding demand ,and keeping in view limitation issue raised by the assessee based upon judgment and order of Hon’ble Madras High Court in the case of Roca Bathroom Products (P) Ltd. (supra) which is now subjudiced before Hon’ble Supreme Court and orders are awaited, the ITAT has considered fit to adjourned the appeal filed by the assessee sine-die on 19.03.2025.The ld. SR DR could not point to any change in factual circumstances since the grant of stay by ITAT vide orders dated 20.12.2024, as well no fault can be attributed to the assessee, we are inclined to extend the stay on recovery of the outstanding demand for A.Y. 2021-22 for a further period of 180 days or till disposal of the corresponding appeal, whichever is earlier.We clarify that we have not commented on the merits of the issue’s in the appeal. We further direct that the assessee will not seek un-necessary adjournments before the Bench , and shall co-operate in early disposal of the appeal. We are aware that presently , the appeal of the assessed was adjourned sine-die by the Tribunal, keeping in view that judgment and order of Hon’ble Supreme Court in the case of Roca Products (supra) wrt limitation issue is awaited. Once the judgment and order of Hon’ble Supreme Court is pronounced, the assessee shall move an application before ITAT for regular listing of its aforesaid appeal. We order accordingly. 4 SA No. 326/Del/2025 (In ITA No. 5211/Del/2024) Nestle India Ltd. v. ACIT 10 OSD, Assessment Unit, Income Tax Department, New Delhi A.Y: 2021-22 4. In the result, stay application in SA No. 326/Del/2025 arising out of ITA No. 5211/Del/2024 for assessment year 2021-22 is allowed in the manner as indicated in this order. Order pronounced in the open court on 27th June, 2025. Sd/- Sd/- (SUDHIR PAREEK) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 30.06.2025. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DRP 5. DR 6. Guard File Asst. Registrar, ITAT, New Delhi "