PERFETTI VAN MELLE ICT B.V.,NETHERLANDS V. ACIT(INTL. TAX), GURGAON

MA 71/DEL/2025

AI Insights

The case involves M/s Perfetti Van Melle ICT B.V., the appellant, contesting an erroneous adjustment of a refund by the Revenue/CPC against a demand for the assessment year 2019-20, despite a favorable ITAT ruling for that year. The adjustment was later rectified, and the amount was incorrectly applied to the demand for the assessment year 2022-23. The Tribunal's decision on the Miscellaneous Application sought to correct the conditions set in the stay order regarding the deposit of the disputed amount. The Tribunal did not comment on the merits of the underlying appeal but focused on the procedural rectification concerning the stay conditions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360934 (ITAT-DELHI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2022-2023
• Other Referred Cases: ITA No.1601/Del/2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHEERAJ KUMAR JAIN
• Assessee Lawyers: ANMOL ANAND; SHEETAL KANDPAL
• Keywords: Application of stay

Judgement Text

"1 MA No. 71/Del/2025 arising out of SA no. 54/Del/2025 (In ITA no. 422/Del/2025) A.Y. 2022-23 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘D’: NEW DELHI) BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT, AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER MA No. 71/Del/2025 arising out of SA No.: 54/Del/2025 Arising Out of ITA No.: 422/Del/2025 (Assessment Year: 2022-23) M/s Perfetti Van Melle ICT B.V. Zoete Inval 20, Breda 4815 HK Netherlands. v. Asstt. Commissioner of Income Tax (International Taxation), Gurgaon. PAN No: AAICP1554F APPELLANT RESPONDENT Assesseeby : Shri Anmol Anand, Adv. & Ms. Sheetal Kandpal, Adv. Revenue by : Shri Dheeraj Kumar Jain, Sr. DR Date of Hearing : 23.05.2025 Date of Pronouncement : 23.05.2025 ORDER PER RAMIT KOCHAR, AM: This Miscellaneous Application bearing MA No.71/Del/2025 arising out of stay application in SA no. 54/Del/2025, which in turn has arisen out of ITA no. 422/Del/2025 for A.Y. 2022-23, has been filed by the assessee, seeking rectification of the stay order dated 28.02.2025 passed by the ITAT. 2 MA No. 71/Del/2025 arising out of SA no. 54/Del/2025 (In ITA no. 422/Del/2025) A.Y. 2022-23 2. It is submitted by ld. Counsel for the assessee that the Tribunal has observed in its order dated 28.02.2025 in para 4 that refund of Rs. 78,11,541/- was issued to the assessee, while no refund was issued and rather the same was adjusted erroneously by Revenue/CPC against the demand for assessment year 2019-20 , despite the factthat the Tribunal vide order dated 22.07.2022 in ITA No.1601/Del/2022has adjudicated the appeal for assessment year 2019-20 in favour of the assessee. The said adjustment was made on 04.03.2023 which is reflected in 26AS for assessment year:2020-21, and said adjustment was made erroneously after the order of the ITAT in favour of the assessee. 3. Learned Sr. DR on the other hand submitted that there was an erroneous adjustment made by CPC of the aforesaid amount of Rs. 78,11,540/- against the demand for assessment year 2019-20.Now the same is rectified and the said amount of Rs. 78,11,540/- being out of refund for assessment year 2024-25 is adjusted against the demand for assessment year 2022-23by CPC(challan dated 08.04.2025). The ld. Sr. DR has placed on record letter dated 21.05.2025 issued by ld. DCIT, International taxation, Gurugram to that effect. It is further stipulated in the said letter that even interest u/s 220(2) also stood recovered by the Revenue, so much so that an amount of Rs. 1,60,97,077/- stood recovered. 4. We have heard rival contentions and perused the material on record.Since, the Revenue interest is now protected by adjustment of 3 MA No. 71/Del/2025 arising out of SA no. 54/Del/2025 (In ITA no. 422/Del/2025) A.Y. 2022-23 refund due to assessee for assessment year 2024-25 to the tune of Rs. 78,11,540/- being adjusted against the demand for the impugned assessment year. The earlier adjustment against demand for assessment year 2019-20 being erroneously made by the Revenue/CPC as admitted by the ld. Sr. DR as aforesaid, there should not be any further requirement to deposit any further sum of Rs. 78,11,541/- by the assessee as one of the conditions for grant of stay on recovery of outstanding demand, as was directed by us in Stay Order dated 28.02.2025 in SA No. 54/Del/2025. Thus, too that extent our aforesaid stay order dated 28.02.2025 stood modified.We once again clarify that we have not commented on the merits of the issues arising in the appeal. We order accordingly. 5. In the result, MA No. 71/Del/2025 arising out of Stay Application SA No. 54/Del/2025 for assessment year 2022-23 is allowed in the manner as indicated above. Order pronounced in the open court on 23rd May, 2025 Sd/- Sd/- (MAHAVIR SINGH) (RAMIT KOCHAR) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 26/05/2025. Copy forwarded to: 1. Appellant 4 MA No. 71/Del/2025 arising out of SA no. 54/Del/2025 (In ITA no. 422/Del/2025) A.Y. 2022-23 2. Respondent 3. CIT 4. DRP 5. DR Asst. Registrar, ITAT, New Delhi "