M/s Navbharat Global Services Private Limited , Bangalore V. Deputy Commissioner of Income Tax, Circle-5(1)(1), Bangalore

SA 109/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5905 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 1 month(s) 9 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 23-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R RAMESH J
• Assessee Lawyers: K KOTRESH
• Keywords: Application of stay; Reasonable cause
• Section: 14A; 115JB

Judgement Text

Z IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, B ENGALURU BEFORE S HRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER SP NO. 109 /BANG/201 8 (IN I TA NO. 450 / BANG/2 0 1 8 ) (ASSESSMENT YEAR: 2013 - 14 ) M/S.NAVBHARATH GLOBAL SERVIC ES PVT.LTD. 421/G, I MAIN, 3 RD CROSS, I STAGE, INDIRANAGAR, BENGALURU - 560038. PAN:AACCK9182C VS. PETITIONER DEPUTY COMMISSIONER OF INCOME - TAX, CIRCLE 5(1)(1), BENGALURU. RESPONDENT PETITI O NER BY : SHRI K.KOTRESH, CA. RESPONDE NT BY : SHRI B.R.RAMESH, JCIT(DR) DATE OF HEARING : 13 /0 4 /2018 DATE OF PRONOUNCEMENT : 18 / 0 4 /201 8 O R D E R PER I NTURI RAMA RAO, AM : THIS PETITION IS FILED BY THE ASSESSEE SEEKING STAY OF DEMAND OF RS.36,30,875/ - . IT IS SUBMITTED THAT THE DE MAND HAS ARISEN ON ACCOUNT OF DISALLOWANCE MADE U/S 14A OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] TO THE BOOK PROFIT FOR THE PURPOSE OF COMPUTATION OF TAX LIABILITY U/S 115JB OF THE ACT. IT IS SUBMITTED THAT THIS ISSUE IS SQUARELY COVERED BY THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF ACIT VS. VIREET INVESTMENT (P) LTD. (2017) 82 TAXMANN.COM 415 (DELHI) , THE OUTSTANDING DEMAND MAY BE STAYED BY THIS TRIBUNAL. ON THE OTHER HAND, LEARNED DEPARTMENTAL RE PRESENTATIVE OPPOSED THE STAY PETITION. SP NO . 109 /BAN G/201 8 PAGE 2 OF 2 2. AFTER HEARING THE RIVAL SUBMISSIONS, WE ARE OF THE CONSIDERED OPINION THAT IT IS A FIT CASE TO STAY THE DEMAND , SINCE IT APPEARS THERE IS PRIMA FACIE CASE A S THE MERITS OF ADDITION ARE IN FAVOUR OF THE ASSE SSEE. ACCORDINGLY, WE STAY THE DEMAND UP TO 30 TH MAY 2018. HOWEVER, WE DIRECT THE REGISTRY TO POST THE CASE FOR HEARING ON 09 TH MAY 2018. THE STAY IS SUBJECT TO CONDITION THAT THE ASSESSEE SHALL NOT SEEK ADJOURNMENT OF THE CASE FROM HEARING WITHOUT ANY JUST AND REASONABLE CAUSE. 3. IN THE RESULT, THE STAY PETITION IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH APRIL, 2018 SD/ - SD/ - (SUNIL KUMAR YADAV) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BENGALURU. D A T E D : 18 / 04 /201 8 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE