M/s Aquarelle India Pvt Ltd, Bengaluru V. Deputy Commissioner of Income tax, Circle-1(1)(1), Bengaluru

SA 172/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5994 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 7 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 25-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Assessee Lawyers: P C KHINCHA
• Keywords: Recovery proceedings

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI A.K.GARODIA , ACCOUNTANT MEMBER SP NO.172/BANG/2018 [IN ITA NO.2 8 /BANG/201 8 ] ASSESSMENT YEAR : 201 4 - 1 5 M/S.ACQUARELLE INDIA PRIVATE LIMITED, NO.570, NEW NO.22, 32 ND D CROSS, 11 TH MAIN JAYANAGAR, 4 TH BLOCK, BANGALORE-560 011. P AN : AA GCA 1203Q VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1), BANGALORE. APPLICANT RESPONDENT APPLICANT BY : SHRI P.C. K HINCHA, CA RESPOND ENT BY : DR. P.V.PRADEEP KUMAR, ADDL.CIT DATE OF HEARING : 12 .10.2018 DATE OF PRONOUNCEMENT : 12 .10.2018 O R D E R PER N.V. VASUDEVAN, JUDICIAL MEMBER THIS IS AN APPLICATION FILED BY THE ASSESSEE PR AYING FOR AN ORDER EXTENDING THE ORDER OF STAY OF RECOVERY OF OUTSTAND ING DEMAND OF RS.2,62,03,540 FOR A PERIOD OF SIX MONTHS OR TILL T HE DISPOSAL OF THE APPEAL, WHICHEVER IS EARLIER. 2. IT HAS BEEN STATED IN THE APPLICATION FOR EXTEN SION OF STAY THAT BY AN ORDER DATED 7.2.2018 IN S.P.NO.23/BANG/2018 IN ITA NO.28/BANG/2018 FOR AY 2014-15, THIS TRIBUNAL GRANTED CONDITIONAL STAY OF RECOVERY OF OUTSTANDING DEMAND IN RESPECT OF THE ORDER OF ASSES SMENT FOR AY 2014-15 SP NO.172/BANG/2018 PAGE 2 OF 3 FOR A PERIOD OF 6 MONTHS FROM 7.2.2018 OR TILL DISP OSAL OF THE APPEAL WHICHEVER IS EARLIER. THE APPEAL WAS FIXED FOR HEA RING ON 7.5.2018. THE ASSESSEE HAD COMPLIED WITH THE CONDITIONS IMPOSED F OR GRANT OF STAY. ON 7.5.2018, THE APPEAL WAS POSTED FOR HEARING AND WAS ADJOURNED TO 29.8.2018 AT THE REQUEST OF THE LEARNED DR. ON 29. 8.2018, THE APPEAL WAS ADJOURNED TO 14.11.2018 AT THE REQUEST OF THE LEARN ED DR. SINCE THE PERIOD FOR WHICH STAY WAS GRANTED EXPIRED ON 7.2.2018, THE ASSESSEE APPREHENDS RECOVERY PROCEEDINGS AND HENCE THIS APPLICATION SEE KING AN ORDER EXTENDING THE ORDER OF STAY FOR A PERIOD OF 6 MONTH S OR TILL DISPOSAL OF THE APPEAL WHICHEVER IS EARLIER. 3. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE HAS COMPLIED WITH THE CONDITIONS FOR GRANT OF STAY AND THE NON DISPOSAL OF THE APPEAL WITHIN THE PERIOD OF 6 MONTHS FOR WHICH STAY WAS GRANTED IS NOT ATTRIBUTABLE TO THE ASSESSEE AND THEREFORE THE ORDE R OF STAY SHOULD BE EXTENDED AS PRAYED FOR. 4. WE HAVE HEARD THE SUBMISSION OF THE LEARNED CO UNSEL FOR THE ASSESSEE.. FROM THE FACTS NARRATED ABOVE, IT IS CL EAR THAT THE DELAY IN NON- DISPOSAL OF THE APPEAL IS NOT ATTRIBUTABLE TO THE A SSESSEE. THE LAW IS BY NOW WELL SETTLED THAT IF THE DELAY IN NON-DISPOSAL OF THE APPEAL IS NOT ATTRIBUTABLE TO THE ASSESSEE, THEN THE TRIBUNAL HAS POWER TO EXTEND THE PERIOD OF STAY EVEN BEYOND THE TIME LIMIT LAID DOWN IN THIRD PROVISO TO SECTION 254(2A) OF THE ACT. REFERENCE MAY BE MADE TO THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF PEPSI FOODS (P) LTD. V. ACIT, 376 ITR 87 (DEL) WHICH WAS FOLLOWED BY THE ITAT BANGALORE BENCH IN T HE CASE OF M/S. SAP LABS (I) PVT. LTD. V. ACIT, 67 TAXMANN.COM 78. WE THEREFORE EXTEND THE ORDER OF STAY OF RECOVERY OF OUTSTANDING DEMAND FOR A PERIOD OF SIX MONTHS FROM THE DATE OF THIS ORDER, OR TILL THE DISPOSAL OF THE APPEAL, WHICHEVER IS EARLIER. THE APPEAL IS ALREADY FIXED F OR HEARING ON 14.11.2018. SP NO.172/BANG/2018 PAGE 3 OF 3 5. IN THE RESULT, THE STAY PETITION IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS THE 12 TH DAY OF OCTOBER, 2018. SD/- SD/- ( A.K.GARODIA ) ( N.V. VASUDEVAN ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 12 TH OCTOBER, 2018. / D ESAI S MURTHY / COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.