PERFETTI VAN MELLE INDIA PVT. LTD,GURGAON V. ACIT CIRCLE 3(1), GURGAON

SA 307/DEL/2025

AI Insights

The case involves Perfetti Van Melle India Pvt. Ltd., which sought an extension of stay on the recovery of an outstanding tax demand resulting from an assessment order and subsequent appeal effect order by the Income Tax Department. The demand arose from transfer pricing adjustments and other corporate tax additions, including the withdrawal of a claim for education cess. The Tribunal had previously granted a stay subject to certain conditions, which the assessee complied with by depositing specified amounts. The Tribunal considered the compliance and the progress of the appeal in deciding to extend the stay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398187 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 06-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2020-2021
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Transfer pricing; International transaction; Application of stay; Extension of stay
• Section: 143(3); 154; 6; 2

Judgement Text

"1 SA No. 307/Del/2025 (In ITA No. 3959/Del/2024) Perfetti Van Melle India Pvt. Ltd. v. ACIT Cir. 3(1), Gurgaon A.Y. 2020-21 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘I’: NEW DELHI) BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR US, JUDICIAL MEMBER SA no. 307/Del/2025 (In ITA no. 3959/Del/2024) Assessment Year: 2020-21 Perfetti Van Melle India Pvt. Ltd., 47, Milestone Delhi-Jaipur Highway, Manesar, Gurugram-122050, Haryana v. NFAC, Assessment Unit, Income Tax Department (DCIT, Circle 3(1), Gurgaon) PAN No: AAACP 2626 A APPLICANT RESPONDENT Assessee represented by Ms. Sheetal Kandpal, Adv.; & Shri Deepak Chopra, Adv. Department represented by Shri Dheeraj Kumar Jain, Sr. DR Date of hearing 06.06.2025 Date of pronouncement 06.06.2025 ORDER PER RAMIT KOCHAR, AM: This stay application in SA no. 307/Del/2025, arising out of ITA no. 3959/Del/2024 pertaining to assessment year 2020-21, has been filed by the assessee, 2 SA No. 307/Del/2025 (In ITA No. 3959/Del/2024) Perfetti Van Melle India Pvt. Ltd. v. ACIT Cir. 3(1), Gurgaon A.Y. 2020-21 seeking extension of stay on recovery of outstanding demand to the tune of Rs. 46,55,14,910/- which has arisen in consequence of assessment order dated 30.07.2024 passed by the AO/NFAC, Assessment Unit, Income Tax Department u/s 144C(13) read with Section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) , and further read with appeal effect order dated 09.10.2024 passed by the AO u/s 154 read with Section 143(3)(F.No.DCIT/circle-3(1)/GGN/2024-25/1055 dated 09.10.2024, & DIN & Document No. ITBA/REC/S/91/2024-25/1070153512(1) dated 06.11.2024). 2. It is the say of the learned counsel appearing for the assessee that Tribunal vide original stay order dated 13.12.2024 in SA No. 339/Del/2024 arising out of ITA No. 3959/Del/2024 for A.Y. 2020-21 has granted stay on recovery of the outstanding demand subject to the condition that firstly the assessee deposits 20% of the demand arising from adjustment made onBenchmarking of International Transaction in the Manufacturing Segment , and secondly the assessee was also directed by the Tribunal to deposit entire demand(100%) arising out of claim of deduction of education cess which claim of deduction of education cess was withdrawn by the assessee itself. With respect to the demand arising on account of transfer pricing additions towards AMP Expenses to the tune of Rs. 124,28,84,602/-, the Tribunal has considered and recorded in its original stay order dated 13.12.2024 at para 2 that similar issue was decided by the Coordinate Bench of ITAT in assessee’s own case for assessment year’s 2016-17 & 2017-18 , as well as in preceding assessment year’s 2009-10, 2011- 12& 2012-13, and there wereaccordingly no directions by ITAT to pre-deposit any amount as condition for grant of stay on recovery of the outstanding amount so far as Transfer Pricing additions towards AMP expenses were concerned. It is further the 3 SA No. 307/Del/2025 (In ITA No. 3959/Del/2024) Perfetti Van Melle India Pvt. Ltd. v. ACIT Cir. 3(1), Gurgaon A.Y. 2020-21 say of the learned counsel for the assessee that the assessee has duly complied with the aforesaid directions of the Bench vide original stay order dated 13.12.2024 wherein the assessee deposited Rs.1,06,02,000/-with Government Treasury vide challan No. 47845 dated 07.01.2025 (CIN 25010700499411SBIN - Bank Reference No. CK00FXADU2 – BSR Code 0005087). The assessee has submitted details of the demand which has arisen on account of the additions made as under: S. No. Particulars Amount of Addition Corresponding Demand A Transfer Pricing Addition (i) AMP adjustment 120,97,96,859 45,55,48,016 (ii) Benchmarking of International Transaction 3,30,87,743 1,24,59,164 Sub-Total (A) 124,28,84,602 46,80,07,180 B Corporate Tax Additions (iii) Withdrawal of educational cess 2,15,36,851 81,09,684 Sub-Total (B) 2,15,36,851 81,09,684 Grand Total 1,26,44,21,453 47,61,16,864 It was contended that , thus, correspondingly Rs. 1,06,02,000/- being representing 20% of the demand raised on account of Benchmarking of international transaction, and the entire demand(100%) arising out of withdrawal of claim of educational cess, stood duly deposited by the assesseewith Government Treasury which was the pre- condition for grant of stay on recovery of outstanding demand and hence, terms of condition of stay on recovery of outstanding demand vide order dated 13.12.2024 were duly complied with by the assessee. The details of working are submitted by the assessee, as under:- 4 SA No. 307/Del/2025 (In ITA No. 3959/Del/2024) Perfetti Van Melle India Pvt. Ltd. v. ACIT Cir. 3(1), Gurgaon A.Y. 2020-21 Particulars Demand Raised(In Rs.) Working Amount to be deposited (In Rs.) Benchmarking of international transactions 1,24,59,164 20% 24,91,833 Withdrawal of claimof education cess 81,09,684 100% 81,09,684 Total 2,15,36,851 1,06,01,517 Thus, it was prayed that since assessee has complied with the directions by the Tribunal vide aforesaid original stay order dated 13.12.2024, and deposited an amount of Rs. 1,06,02,000/- , the stay on recovery of outstanding demand may be further extended for a period of 180 days or disposal of appeal whichever is earlier. Further , it was submitted that after the grant of theaforesaid stay order dated 13.12.2024, the hearing(s)in appeal in ITA no. 3959/Del/2024 for assessment year 2020-21 took place before Division Bench of ITAT, Delhi Benches, as under: Date of Hearing Remarks 23.01.2025 The captioned appeal of the applicant was adjourned to 17.02.2025 atthe behest of the Hon’ble Bench 17.02.2025 The captioned appeal of the Applicant was adjourned to 08.04.2025 due to non-functioning of the Hon’ble Bench 08.04.2025 The appeal of the Applicant was adjourned to 23.04.2025 owing to personal medical difficultly of the Authorised Representative of the Appellant/Applicant. 23.04.2025 The captioned appeal of the Applicant was adjourned to 28.05.2025 at the request of the Ld. DepartmentalRepresentative. 28.05.2025 The captioned appeal of the Applicant was heard on 28.05.2025 and the judgment there under was reserved. 5 SA No. 307/Del/2025 (In ITA No. 3959/Del/2024) Perfetti Van Melle India Pvt. Ltd. v. ACIT Cir. 3(1), Gurgaon A.Y. 2020-21 It was submitted that as could be seen , no fault could be attributable to the assessee in delay in disposal of the quantum appeal and in any case, now the quantum appeal of the assessee in ITA no. 3959/Del/2024 is heard by Division Bench of ITAT, Delhi Benches on 28.05.2025, and orders are awaited to be pronounced by the DB. 3. Learned Sr.DR could not controvert the factual position as narrated above. 4. After hearing both the parties and without commenting on the merits of the issue arising in the appeal, as also keeping in view that facts and circumstances have remained the same and further that appeal is already heard by the Division Bench on 28.05.2025 and orders of the Tribunal are awaited to be pronounced, and no fault could be attributable to the assessee in delay in disposal of the quantum appeal, we are inclined to extend the stay on recovery of the outstanding demand for a period of ninety(90) days or till the Pronouncement of the order in ITA No. 3959/Del/2024 which stood heard on 28.05.2025, whichever is earlier, on the same terms and conditions as are stipulated in original Stay Order dated 13.12.2024 granting stay on recovery of the outstanding demand. We order accordingly. 5. Stay application in SA No.307/Del/2025 for assessment year 2020-21, arising out of ITA no. 3959/Del/2024, is allowed in the manner as indicated in this order. Order pronounced in the open court on 06thJune, 2025. Sd/- Sd/- (YOGESH KUMAR US) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 09/06/2025. 6 SA No. 307/Del/2025 (In ITA No. 3959/Del/2024) Perfetti Van Melle India Pvt. Ltd. v. ACIT Cir. 3(1), Gurgaon A.Y. 2020-21 *MPV* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DRP 5. DR Asst. Registrar, ITAT, New Delhi "