M/s Swiss Re Global Business Solutions India Private Limited , Bangalore V. The Deputy Commissioner of Income Tax Circle-5(1)(2), Bangalore

SA 45/BANG/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6163 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 19 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 11-02-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Application of stay; Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH ES B , BANGALORE BEFORE SHRI N.V.VASUDEVAN, VP & SHRI B.R.BASKARAN, AM SA NO. 45 / BANG /201 9 : ASST.YEAR 20 14 - 20 15 (ARISING OUT OF IT(TP)A NO.3181/BANG/2018) M/S.SWISS RE GLOBAL BUSINESS SOLUTIONS INDIA PRIVATE LIMITED (FORMERLY KNOWN AS SWISS RE SHARED SERVICES (INDIA) PVT. LTD.) 2 ND TO 5 TH FLOOR, FAIRWINDS BUILDING, EMBASSY GOLF LINKS BUSINESS PARK, CHALLAGHATTA VILLAGE, VARTHUR HOBLI BENGALURU 560 071. PAN : AAECS8687L. VS. THE DY.COMMISSIONE R OF INCOME - TAX, CIRCLE 6(1)(2) BANGALORE. ( APPLICANT ) (RESPONDENT) APPLICANT BY : SHRI NAGESHWAR RAO, ADVOCATE RESPONDENT BY : SHRI R.N.SIDDAPPAJI, ADDL.CIT DATE OF HEARING : 1 5 .02.2019 DATE OF PRONOUNCEMENT : 15 .02.2019 O R D E R PER B.R.BASKARAN, AM : THE ASSESSEE HAS FILED THIS STAY APPLICATION SEEKING STAY OF OUTSTANDING DEMAND OF RS.694.10 LAKHS RAISED UPON THE ASSESSEE FOR ASSESSMENT YEAR 2014 - 15. 2. THE LD COUNSEL APPEARING FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF PROVIDING IT ENABLED SERVICES. HE SUBMITTED THAT THE ASSESSING OFFICER COMPLETED THE ASSESSMENT BY ADDING T.P ADJUSTMENT OF RS.1917.49 LAKHS IN PURSU ANCE OF DIRECTIONS GIVEN BY LD DRP. THE LD A.R SUBMITTED THAT THE ASSESSEE HAS GOT A GOOD CASE SA NO. 45 / BANG /201 9 . M/S.SW I SS RE GLOBAL BUSINESS SOLUTIONS INDIA PVT.LTD . 2 ON MERITS. HE SUBMITTED THAT THE OUTSTANDING DEMAND CONSISTED OF TAX PORTION OF RS.567.48 LAKHS AND INTEREST PORTION OF RS.326.62 LAKHS. HE SUBMITTED THAT THE ASSESSEE HAS ALREADY PAID A SUM OF RS.200.00 LAKHS TOWARDS OUTSTANDING DEMAND, I.E., ALMOST 40% OF THE TAX PORTION IN THE OUTSTANDING DEMAND. ACCORDINGLY HE PRAYED THAT THE ENTIRE OUTSTANDING DEMAND MAY BE STAYED. 3. THE LD D.R, ON THE CONTRARY, STRO NGLY OBJECTED TO THE PETITION FILED BY THE ASSESSEE. HE SUBMITTED THAT THE LD DRP HAS PASSED A REASONED ORDER AND ACCORDINGLY SUBMITTED THAT PRAYER OF THE ASSESSEE SHOULD NOT BE ACCEPTED. 4. WE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORD. EVEN THOUGH THE LD A.R CONTENDS THAT THE ASSESSEE HAS GOT A GOOD CASE ON MERITS, YET THE SAME CAN BE APPRECIATED AT THE TIME OF HEARING OF APPEAL. WE NOTICE THAT THE ASSESSEE HAS PAID ALMOST 40% OF THE TAX PORTION OF THE OUTSTANDING DEMAND. CONSIDERING THE FA CTS OF THE CASE, WE ARE OF THE VIEW THAT THE BALANCE OF CONVENIENCE IS IN FAVOUR OF GRANTING PARTIAL STAY TO THE ASSESSEE. ACCORDINGLY WE DIRECT THE ASSESSEE TO PAY A FURTHER SUM OF RS.80.00 LAKHS (RUPEES EIGHTY LAKHS) ON OR BEFORE 28.02.2019 TOWARDS THE OUTSTANDING DEMAND. SUBJECT TO THE PAYMENT OF THE ABOVE SAID AMOUNT, WE GRANT STAY FOR RECOVERY OF BALANCE AMOUNT OF OUTSTANDING DEMAND FOR A PERIOD OF SIX MONTHS OR TILL THE DATE OF DISPOSAL OF THE APPEAL, WHICHEVER PERIOD EXPIRES EARLIER. SA NO. 45 / BANG /201 9 . M/S.SW I SS RE GLOBAL BUSINESS SOLUTIONS INDIA PVT.LTD . 3 5. THE LD A.R SUBMITTED THAT THE APPEAL IS ALREADY POSTED FOR HEARING ON 13.06.2019. SINCE WE HAVE GRANTED PARTIAL STAY TO THE ASSESSEE, WE DIRECT THAT THE ASSESSEE SHOULD NOT SEEK ADJOURNMENT ON THE DATE OF HEARING WITHOUT REASONABLE CAUSE, FAILING WHICH THE PRESE NT STAY ORDER SHALL BE SUBJECTED TO REVIEW BY THE BENCH HEARING THE APPEAL. 6. IN VIEW OF THE ABOVE, THE STAY APPLICATION OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED ON THIS 15 TH DAY OF FEBRUARY, 2019 . SD/ - SD/ - (N.V.VASUDEVAN) ( B.R.BASKARAN ) VICE - PRESIDENT ACCOUNTANT MEMBER BANGALORE ; DATED : 15 TH FEBRUARY, 2019 . DEVDAS* COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER, (ASSTT. REGISTRAR) ITAT, BANGALORE 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT (A). 4. THE DRP - 2, BANGALORE. 5. THE DR, ITAT, BANGALORE 6. GUARD FILE.