M/s Citrix R & D India Private Limited , Bangalore V. Deputy Commissioner of Income Tax Circle- 2(1)(1), Bangalore

SA 264/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6134 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 4 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: 27-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Assessee Lawyers: UMASHANKAR GAUTAM
• Keywords: Transfer pricing
• Section: 143(3); 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI JASON P BOAZ , ACCOUNTANT MEMBER S.P. NO.264/BANG/2018 (IN IT(TP)A NO. 3134/BANG/2018) ASSESSMENT YEAR : 20 14 - 15 M/S. CITRIX R&D INDIA PRIVATE LIMITED, PRESTIGE DYNASTY, GROUND FLOOR, 33/2, ULSOOR ROAD, BANGALORE 560 042. PAN : AABCN 3639 C VS. THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE 2(1)(1), BANGALORE. APPELLANT RESPONDENT ASSESSEE BY : SHRI. UMASHANKAR GAUTAM, ADVOCATE REVENUE BY : DR. P. V. PRADEEP KUMAR, ADDL. CIT DATE OF HEARING : 07 . 1 2 .201 8 DATE OF PRONOUNCEMENT : 07 . 1 2 .201 8 O R D E R PER JASON P BOAZ, ACCOUNTANT MEMBER THIS STAY PETITION (SP) BY THE ASSESSEE IS IN RESPECT OF ITS APPEAL IN IT(TP)A NO. 3134/BANG/2018 FOR ASSESSMENT YEAR 2014-15. 2. BRIEFLY STATED, FACTS RELEVANT FOR DISPOSAL OF THIS STAY PETITION ARE AS UNDER: 2.1 THE ASSESSEE, A COMPANY ENGAGED IN PROVISION OF SOFTWARE DEVELOPMENT AND SUPPORT SERVICES FOR ITS ASSOCIATED ENTERPRISES (AE) FILED ITS RETURN FOR ASSESSMENT S.P. NO.264/BANG/2018 (IN IT(TP)A NO. 3134/BANG/2018) PAGE 2 OF 4 YEAR 2014-15 ON 29.11.2014 DECLARING TOTAL INCOME OF RS.21,27,22,024/-. THE CASE WAS TAKEN UP FOR SCRUTINY FOR THIS YEAR AND THE DRAFT ORDER OF ASSESSMENT WAS PASSED U/S 143(3) R.W.S. 144C(1) OF THE INCOME TAX ACT (IN SHORT THE ACT) VIDE ORDER DATED 15.12.2017, WHEREIN THE ASSESSEES INCOME WAS DETERMINED AT RS.1,09,03,96,651/-, IN VIEW OF A TRANSFER PRICING ADJUSTMENT OF RS.46,50,26,231/- U/S 92CA OF THE ACT. THE OBJECTIONS RAISED BY THE ASSESSEE WERE DISPOSED OFF BY THE DISPUTE RESOLUTION PANEL (DRP), BANGALORE VIDE DIRECTIONS ISSUED U/S 144C(5) OF THE ACT ON 12.09.2018. PURSUANT THERETO, THE FINAL ORDER OF ASSESSMENT FOR ASSESSMENT YEAR 2014-15 WAS PASSED U/S 143(3) R.W.S. 144C(13) OF THE ACT VIDE ORDER DATED 25.09.2018 WHEREIN THE ASSESSEES INCOME WAS DETERMINED AT RS.1,12,42,88,816/- IN VIEW OF THE T.P ADJUSTMENT OF RS.49,89,18,396/-, RAISING TOTAL TAX DEMAND OF RS.26,92,50,130/- (WHICH IS INCLUSIVE OF INTEREST OF RS.9,98,26,389/- CHARGED U/S 234B AND 234C OF THE ACT). THE ASSESSEE, BEING AGGRIEVED BY THE FINAL ORDER OF ASSESSMENT FOR ASSESSMENT YEAR 2014-15, IS NOW IN APPEAL BEFORE THE TRIBUNAL AND THE APPEAL IS PENDING DISPOSAL. 3. BEFORE US, THE LEARNED AR OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE COMPANY HAS VERY GOOD CHANCES OF THE GROUNDS OF APPEAL RAISED BY IT BEING HELD IN ITS FAVOUR BY THE TRIBUNAL, IN VIEW OF THE JUDGMENTS OF COURTS AND TRIBUNALS ON VARIOUS ISSUES AGITATED BY IT. IT IS FURTHER SUBMITTED THAT EVEN OTHERWISE, THE ASSESSEE HAS SO FAR PAID RS.8,97,50,043/- OUT OF TOTAL DEMAND OF RS.26,92,50,130/-; WHICH INCLUDES INTEREST AMOUNTING TO RS.9,98,26,389/-. THIS AMOUNTS TO THE ASSESSEE HAVING PAID MORE THAN 50% OF THE TAX DEMAND OF APPROX. RS.17.04 CRORES (I.E., RS.26.92 CRORES LESS INTEREST OF RS.9.98 CRORES). IT IS PRAYED THAT, IN THESE CIRCUMSTANCES, WHERE THE ASSESSEE HAS PAID MORE THAN 50% OF TAX DEMAND AND EXPECTS TO SUCCEED SUBSTANTIALLY ON MERITS WHEN THE APPEAL FOR ASSESSMENT YEAR 2014-15 IS HEARD, THE ASSESSEE BE GRANTED STAY ON RECOVERY OF BALANCE OUTSTANDING DEMAND TILL DISPOSAL OF THE APPEAL. S.P. NO.264/BANG/2018 (IN IT(TP)A NO. 3134/BANG/2018) PAGE 3 OF 4 4. PER CONTRA, THE LEARNED DR FOR REVENUE PRAYED FOR REJECTION OF THE ASSESSEES STAY PETITION AND FOR THE ASSESSEE TO BE DIRECTED TO PAY THE OUTSTANDING DEMAND. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND CAREFULLY CONSIDERED THE MATERIAL ON RECORD. AS SUBMITTED BY THE ASSESSEE, IT IS SEEN THAT THE ASSESSEE HAS SO FAR PAID APPROX. RS.8.97 CRORES WHICH IS MORE THAN 50% OF THE TAX DEMAND OF APPROX. RS.17.04 CRORES (EXCLUDING INTEREST CHARGED AMOUNTING TO APPROX. RS.9.98 CRORES). TAKING INTO ACCOUNT THE FACTS AND CIRCUMSTANCES OF THE CASE, THE FACT THAT THE ASSESSEE HAS ALREADY PAID MORE THAN 50% OF THE TAX DEMAND (EXCLUDING INTEREST) AND THE BALANCE OF CONVENIENCE, WE ARE OF THE CONSIDERED VIEW THAT THIS IS A FIT CASE FOR GRANT OF STAY ON RECOVERY OF OUTSTANDING DEMAND. WE, ACCORDINGLY, GRANT STAY ON RECOVERY OF OUTSTANDING DEMAND IN THE CASE ON HAND FOR ASSESSMENT YEAR 2014-15 FOR A PERIOD OF 180 DAYS, COMMENCING TODAY I.E., 07.12.2018 OR DISPOSAL OF THE APPEAL WHICHEVER IS EARLIER; SUBJECT TO THE CONDITION THAT THE ASSESSEE DOES NOT SEEK ADJOURNMENT OF HEARINGS WITHOUT GOOD AND SUFFICIENT REASON. FAILURE ON THE PART OF THE ASSESSEE TO ADHERE TO THE CONDITIONS LAID DOWN WOULD RESULT IN THIS STAY BEING WITHDRAWN AUTOMATICALLY. 6. THE HEARING OF THE ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15 IS POSTED FOR HEARING ON 12.03.2019. AS THE DATE OF HEARING HAS BEEN ANNOUNCED IN OPEN COURT IN THE PRESENCE OF BOTH PARTIES, NO SEPARATE NOTICES WILL BE ISSUED FOR THIS HEARING. 7. IN THE RESULT, THE ASSESSEES STAY PETITION FOR ASSESSMENT YEAR 2014-15 IS ALLOWED AS INDICATED ABOVE. S.P. NO.264/BANG/2018 (IN IT(TP)A NO. 3134/BANG/2018) PAGE 4 OF 4 ORDER PRONOUNCED IN THE OPEN COURT ON THIS 7 TH DAY OF DECEMBER, 2018. SD/- SD/- BANGALORE. DATED: 7 TH DECEMBER, 2018. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE. ( N. V. VASUDEVAN ) ( JASON P BOAZ ) VICE PRESIDENT ACCOUNTANT MEMBER