Cummins Turbo Technologies Ltd., Pune V. Deputy Commissioner of Income tax,(IT),CIrcle-1, Pune

SA 128/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0554 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 27-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K VERMA
• Keywords: Application of stay
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUN E BEFORE SHRI R.S. SYAL, VP AND SHRI VIKAS AWASTHY, JM S.A. NO.128/PUN/2018 (ARISING OUT OF ITA NO.388/PUN/2017) / ASSESSMENT YEAR : 2012-13 CUMMINS TURBO TECHNOLOGIES LIMITED, UNITED KINGDOM- INDIA BRANCH, C/O- CUMMINS INDIA OFFICE CAMPUS, 5 TH FLOOR, TOWER-A, SURVEY NO. 21, BALEWADI, PUNE-411 045, MAHARASHTRA PAN : AABCH2501H .. /APPLICANT / V/S. THE DEPUTY COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION), CIRCLE-1, PUNE. .. / RESPONDENT ASSESSEE BY : SHRI KETAN VED REVENUE BY : SHRI M.K. VERMA / DATE OF HEARING : 30.11.2018 / DATE OF PRONOUNCEMENT : 30.11.2018 / ORDER PER VIKAS AWASTHY, JM THIS APPLICATION HAS BEEN FILED BY THE ASSESSEE SEEKING ST AY OF RECOVERY OF OUTSTANDING TAX DEMAND OF RS.1,19,88,590/- (INCLUDING INTE REST). 2. SHRI KETAN VED APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THA T TAX DEMAND HAS ARISEN CONSEQUENT TO TP ADJUSTMENT. THE LD. AR CONTENDED THAT 2 SA NO.128/PUN/2018 A.Y.2012-13 DRP HAS GRANTED RELIEF TO THE ASSESSEE ON TREATMENT O F WRITE BACK OF PROVISIONS RELATED TO GRATUITY AND LEAVE ENCASHMENT. HOWE VER, THE ASSESSING OFFICER HAS NOT GIVEN EFFECT TO THE DIRECTIONS OF DRP WHILE PA SSING THE FINAL ASSESSMENT ORDER. THE LD. AR POINTED THAT IF EFFECT IS GIVEN TO THE DIRECTIONS OF DRP, DEMAND WOULD BE REDUCED TO RS.83,35,103/-. THE LD. A R POINTED THAT CONSEQUENT TO THE RELIEF GRANTED BY THE TRIBUNAL IN EARLIER ASSESSMENT YEARS, REFUND TO THE TUNE OF RS.72.14 LAKHS IS PENDING WIT H THE DEPARTMENT. 3. ON THE OTHER HAND, SHRI M.K. VERMA REPRESENTING THE D EPARTMENT VEHEMENTLY OPPOSED THE STAY APPLICATION. 4. BOTH SIDES HEARD. WE ARE OF CONSIDERED VIEW THAT PRIMA-FACIE , THE ASSESSEE HAS MERIT IN THE SUBMISSIONS. THE DEPARTMENT HA S NOT DISPUTED THAT REFUND IS DUE TO THE ASSESSEE ON ACCOUNT OF RELIEF G RANTED BY THE TRIBUNAL IN THE EARLIER ASSESSMENT YEARS. TAKING INTO CON SIDERATION ENTIRETY OF FACTS, THE DEMAND RAISED BY DEPARTMENT IS STAYED SUBJ ECT TO THE FOLLOWING CONDITIONS: (I) 20% OF THE REFUND DUE TO THE ASSESSEE BY THE DEPARTM ENT FOR THE EARLIER ASSESSMENT YEARS BE ADJUSTED AGAINST CURRE NT DEMAND. (II) RECOVERY OF REMAINING AMOUNT SHALL REMAIN STAYED FOR A PERIOD OF 180 DAYS FROM THE DATE OF THIS ORDER OR TILL DISPO SAL OF APPEAL, WHICHEVER IS EARLIER. (III) THE ASSESSEE/A.R. SHALL NOT SEEK FRIVOLOUS ADJOURNMENTS OR DELAY THE HEARING OF APPEAL WITHOUT THEIR BEING BONA-FIDE CAUSE. (IV) THE ASSESSEE, IF WISHES TO FILE ANY PAPER BOOK, SHALL FURN ISH THE SAME BEFORE THE DATE OF HEARING IN ACCORDANCE WITH I TAT RULES. V) IF THE ASSESSEE/ AR VIOLATE ANY OF THE CONDITIONS MENTIO NED ABOVE, THE STAY GRANTED SHALL AUTOMATICALLY GET VACATED AND THE ASSESSEE SHALL ALSO LOSE THE BENEFIT OF EARLY HEARING OF APPEAL. 3 SA NO.128/PUN/2018 A.Y.2012-13 5. THE REGISTRY IS DIRECTED TO LIST THE APPEAL FOR HEARING ON 08.01.2019 SINCE, THE DATE OF HEARING HAS BEEN INFORMED TO BOTH SIDES IN OPEN COURT, ISSUANCE OF SEPARATE NOTICE OF HEARING IS DISPENSED WITH. 6. IN THE RESULT, STAY APPLICATION OF ASSESSEE IS ALLOWED SU BJECT TO THE CONDITIONS MENTIONED ABOVE. ORDER PRONOUNCED IN OPEN COURT AFTER HEARING OF STAY A PPLICATION, ON FRIDAY, THE 30 TH DAY OF NOVEMBER, 2018. SD/- SD/- R.S. SYAL VIKAS AW ASTHY VICE-PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 30 TH NOVEMBER, 2018. SB !' #' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT (APPEALS)-13, PUNE 4. THE PR. CIT-5, PUNE. ! '#$%%&' , &' , ()* , / DR, ITAT, B BENCH, PUNE. 6. $+,-. / GUARD FILE. // TRUE COPY // / / BY ORDER, %0 &* / PRIVATE SECRETARY &' , / ITAT, PUNE.