M/s Yahoo Software Development India Private Limited , Bangalore V. Deputy Commissioner of income Tax Circle-7(1)(2), Bangalore

SA 17/BANG/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6168 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 15 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: 2014-2015
• Appeal Filed On: 17-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C H SUNDAR RAO
• Assessee Lawyers: SRIRAM
• Keywords: Recovery proceedings; Transfer pricing

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, BENGALURU BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER SP NO.17/BANG/2019 (IN IT(TP)A NO.2657/BANG/2018 (ASSESSMENT YEAR: 2014-15) M/S. YAHOO SOFTWARE DEVELOPMENT INDIA PVT. LTD., EMBASSY GOLD LINKS BUSINESS PARK, OFF INDIRANAGAR-KORAMANGALA INDIRANAGAR RING ROAD, BENGALURU-560071. PAN:AAACY1876D VS. PETITIONER DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE 7(1)(2), BENGALURU. RESPONDENT PETITIONER BY : SHRI SRIRAM, CA. RESPONDENT BY : SHRI C.H.SUNDAR RAO, CIT(DR) DATE OF HEARING : 01/02/2019 DATE OF PRONOUNCEMENT: /02/2019 O R D E R PER PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED THE STAY PETITION IN IT(TP) A NO.2657/BANG/2018 TO STAY THE RECOVERY OF TAX OF RS .15.90 CRORES TILL DISPOSAL OF THE APPEAL BY THE TRIBUNAL. THE LEARNED AR SUBMITTED THAT THE ASSESSEE IS IN THE BUSINESS OF P ROVIDING SOFTWARE RELATED SERVICES TO M/S.YAHOO INC. AND FIL ED THE RETURN OF INCOME ON 29/11/2014 DECLARING TOTAL INCOME OF R S.161.14 CRORES. THE ASSESSING OFFICER, AFTER CONSIDERING T HE TRANSFER PRICING ADJUSTMENT AND THE DRP DIRECTIONS, PASSED T HE FINAL SP NO.17/BANG/2019 PAGE 2 OF 3 ASSESSMENT ORDER RAISING DEMAND OF RS.17.90 CRORES. THE ASSESSEE HAS ALREADY PAID RS.2 CRORES AGAINST THE S AID AMOUNT. THE LEARNED ARS CONTENTION IS THAT THE ASSESSEE HA S A PRIMA FACIE CASE AND BALANCE OF CONVENIENCE IS IN FAVOUR OF THE ASSESSEE. ON THE OTHER HAND, LEARNED DR OPPOSED THE STAY APP LICATION AND SUBMITTED THAT THAT NO BLANKET STAY BE GRANTED. 3. CONSIDERING THE FACTUAL ASPECTS AND ALSO THE SUB MISSIONS OF THE LEARNED AR, WE STAY THE RECOVERY OF TAX FOR A P ERIOD OF 90 DAYS AND DIRECT THE ASSESSEE TO PAY RS.2.5 CRORES O UT OF THE OUTSTANDING DEMAND IN TWO INSTALMENTS OF RS.1.25 CR ORE EACH PAYABLE ON 15 TH FEBRUARY 2019 AND 15 TH MARCH 2019. WE DIRECT THAT THE APPEAL TO BE POSTED FOR HEARING ON 20/05/2 019. SINCE DATE HAS BEEN ANNOUNCED IN THE OPEN COURT, NO SEPAR ATE HEARING NOTICE BE ISSUED. FURTHER WE DIRECT THAT NO COERCI VE STEPS BE TAKEN UP AGAINST THE ASSESSEE FOR RECOVERY OF TAX A S THE ASSESSEE HAS COME FORWARD TO MAKE THE ABOVE PAYMENT AND SHAL L FILE CHALLANS WITH THE TRIBUNAL. 4. IN THE RESULT, THE STAY PETITION IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST FEBRUARY, 2019. SD/- SD/- ( CHANDRA POOJARI ) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE : BENGALURU D A T E : 01/02/2019. SRINIVASULU, SPS SP NO.17/BANG/2019 PAGE 3 OF 3 COPY TO : 1 PETITIONER 2 RESPONDENT 3 CIT(A)- 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL BANGALORE