PITNEY BOWES INDIA PRIVATE LIMITED,DELHI V. ASSESSMENT UNIT, DELHI

SA 121/DEL/2026

AI Insights

The case involves Pitney Bowes India Private Limited, which filed a stay application against the recovery of an outstanding demand of Rs. 8,38,09,150 for the assessment year 2022-23. The primary legal issue was the authority of the Dispute Resolution Panel (DRP) to remand the matter back to the Transfer Pricing Officer (TPO) for re-examination of functional comparability. The assessee's counsel argued that the DRP exceeded its powers by remanding the matter, citing a decision from the Karnataka High Court that supported their position. The revenue opposed the stay but suggested that it could be granted subject to the payment of 20% of the outstanding demand. The Tribunal, considering the arguments and the cited precedent, decided to grant the stay on the recovery of the demand.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839790 (ITAT-DELHI)
• Duration Of Justice: 4 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 27-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2022-2023
• Appeal Filed On: 23-02-2026
• Other Referred Cases: GE India Technology Centre (P) Ltd Vs. DRP, Bangalore
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SINGH SHARMA
• Assessee Lawyers: KAMAL SAWHNEY
• Keywords: Reasonable cause; Application of stay

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER SA No. 121/Del/2026 (In ITA No. 62/Del/2026) (Assessment Year: 2022-23) Pitney Bowes India Private Limited D-7/3, Okhla Industrial Estate Phase II, New Delhi, Tehkhand South East Delhi, Okhla Industrial Estate S.O 110020, Delhi, India Vs. Assessment Unit, NFAC, Delhi (Appellant) (Respondent) PAN: AADCP3417C Assessee by : Shri Kamal Sawhney, Adv Shri Nikhil Agrawal, Adv Shri PUru Medhira, Adv Shri Nishank Vashishta, Adv Shri Arun Bhaduria, Adv Revenue by: Shri Vikram Singh Sharma, Sr. DR Date of Hearing 27/02/2026 Date of pronouncement 27/02/2026 O R D E R PER M. BALAGANESH, A.M: 1. By virtue of this stay application assessee is seeking stay of recovery of outstanding demand of Rs. 8,38,09,150/- for AY 2022-23. 2. Mr. Shri Kamal Sawhney, ld. Counsel for the assessee submits that the solitary issue in the present appeal is that the ld DRP vide its directions dated 10.12.2025 has remanded the matter back to the file of the TPO to re-examine functional comparability. He submitted that the issue is now settled by the decision of the Hon’ble Karnataka High Court in the case of GE India Printed from counselvise.com SA No. 121/Del/2026 Pitney Bowes India Private Limited Page | 2 Technology Centre (P) Ltd Vs. DRP, Bangalore reported in 338 ITR 416 wherein, it is held that the ld DRP has no power to remand the matter to the TPO. 3. Per contra, Shri Vikram Singh Sharma opposed the stay application and submitted that stay can be granted subject to the payment of 20% of outstanding demand. 4. Both sides heard. Considering the prima facie case, we are of the considered opinion that the assessee deserves benefit of stay of outstanding of recovery of demand for the impugned assessment year. The recovery of balance outstanding demand for AY 2022-23 is stayed for a period of 180 days from the date of this order or till the disposal of appeal, whichever is earlier. 5. The assessee shall file paper book, if so advised, on or before the date of hearing of appeal with an advance copy to opposite side in accordance with the ITAT Rules. 6. The Registry is directed to fix appeal for hearing on 07.05.2026. Since date of hearing has been pronounced in open court in the presence of both the sides, the issuance of notice of hearing is dispensed with. It is made clear that the benefit of stay shall cease to operate forthwith in case the assessee seeks adjournment without any reasonable cause. 7. Stay petition is allowed with the aforesaid conditions. Order pronounced in the open court on 27/02/2026. -Sd/- -Sd/- (VIKAS AWASTHY) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 27/02/2026 Printed from counselvise.com "