PERNOD RICARD INDIA PVT. LTD.,DELHI V. ACIT, CENTRAL CIRCLE-31, DELHI

SA 492/DEL/2024

AI Insights

The case involves Pernod Ricard India Pvt. Ltd., the appellant, seeking a stay on the demand for the Assessment Years 2020-21 and 2021-22. The appellant argued that the outstanding demand for AY 2020-21 would be reduced significantly following a rectification application for recalculating interest under section 234C of the Income Tax Act, 1961. Additionally, they highlighted that certain disallowances and additions made by the Assessing Officer were previously ruled in their favor in an earlier case. For AY 2021-22, the effective outstanding demand was also presented, along with details of refunds from earlier years that were still payable to the assessee. The respondent insisted on the payment of 20% of the outstanding demand before granting the stay, which was a point of contention.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 36818 (ITAT-DELHI)
• Duration Of Justice: 10 day(s)
• Appeal Type: Others
• Pronouncement Date: 06-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Next Hearing Date: 06-12-2024
• Assessment Year: 2021-2022
• Appeal Filed On: 26-11-2024
• Other Referred Cases: Pernod Ricard India Pvt. Ltd. vs ACIT for AY 2007-08
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: DEEPAK CHOPRA
• Keywords: Application of stay
• Section: 40(a)(ia)

Judgement Text

"S.A No.492/Del/2024 Pernod Ricard India Pvt.Ltd. vs ACIT Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “I” BENCH: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SMT. RENU JAUHRI, ACCOUNTANT MEMBER S.A.Nos.-492 & 493/Del/2024 [In ITA Nos.5449 & 4427/Del/2024] [Assessment Years : 2021-22 & 2020-21] M/s. Pernod Ricard, India Pvt.Ltd., Atelier No.-10, Level-1, Worldmark 2, Aerocity, New Delhi-110037. PAN-AAACS4781P vs ACIT, Central Circle-31, New Delhi. APPELLANT RESPONDENT Appellant by Shri Deepak Chopra, Adv., Shri Anmol Anand, Adv., Ms. Priya Tandon, Adv. & Ms. Sheetal Kandpal, Adv. Respondent by Shri Rajesh Kumar Dhanesta, Sr. DR Date of Hearing 06.12.2024 Date of Pronouncement 06.12.2024 ORDER PER RENU JAUHRI, AM : These stay applications have been filed by the assessee seeking stay of demand for Assessment Years (“AYs”) 2021-22 & 2020-21 respectively. Both these applications are being disposed off by a common order as facts are similar for both the years. 2. At the outset, Ld.AR has submitted that total outstanding demand for AY 2020-21 would stand reduce to INR 47,33,43,769/- after rectification application dated 11.11.2024 filed by the assessee for re-calculation of interest u/s 234C of the Income Tax Act, 1961 (“the Act”) is disposed off. It has been further contended that out of various disallowances/additions made by the AO, two issues relating to TP adjustment on account of AMP expenses and S.A No.492/Del/2024 Pernod Ricard India Pvt.Ltd. vs ACIT Page | 2 disallowance u/s 40(a)(ia) on account of trade scheme expenses are covered in favour of the assessee vide order of the Co-ordinate Bench dated 15.03.2019 for AY 2007-08 in its own case. Similarly for AY 2021-22, the effective outstanding demand works out to INR 4,01,22,363/-. Ld.AR pointed out that the following refunds have been determined for earlier years by the Department and are still payable to the assessee alongwith interest :- Sl.No. Assessment Year Amount (INR) 1. 2006-07 4,77,00,690/- 2. 2007-08 35,99,53,130/- 3. 2011-12 5,87,49,860/- 3. It was accordingly requested by Ld.AR that 20% of the outstanding demand for both the years may be recovered from these refunds. Ld.AR for the assessee further drew our attention to the order of the Co-ordinate Bench dated 03.05.2024 wherein stay on recovery of demand for AY 2019-20 had been granted in similar circumstances. 4. On the other hand, Ld. Sr. DR insisted on payment of 20% of outstanding demand for both the years before grant of stay even as the facts submitted by the Ld.AR have not been controverted. 5. After careful consideration of the rival submissions, we hereby direct the Ld. AO to adjust the determined refunds of earlier years against outstanding demand for AYs 2020-21 & 2021-22 to the extent of 20% only. The stay on recovery of balance demands for AYs 2020-21 & 2021-22 is granted for 180 days from the date of this order or till the disposal of appeals whichever is earlier. The Registry is directed to fix appeal for hearing on 11.03.2025. Paper book, if any be filed before the next date of hearing with an advance copy to the S.A No.492/Del/2024 Pernod Ricard India Pvt.Ltd. vs ACIT Page | 3 opposite side, in accordance with ITAT Rules. Since, the date of hearing of appeal has been announced in the open court in presence of both sides, issuance of separate notice of hearing is dispensed with. 6. In the result, stay applications filed by the assessee are allowed. Order pronounced in the open Court on 06th December, 2024. Sd/- Sd/- (VIKAS AWASTHY) JUDICIAL MEMBER * Amit Kumar * Dated : 06.12.2024 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT (RENU JAUHRI) ACCOUNTANT MEMBER ASSISTANT REGISTRAR ITAT, NEW DELHI "