Reckitt Benckiser (India) Pvt. Ltd., Gurgaon V. D.C.I.T., Circle - 11(1), Kolkata

SA 6/KOL/2024

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 0662 (ITAT-KOLKATA)
• Duration Of Justice: 12 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 03-09-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Appeal Filed On: 22-08-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT KUNDU
• Assessee Lawyers: PRADEEP CHOPRA
• Keywords: Transfer pricing; Application of stay
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH KOLKATA BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER SA No. 6/KOL/2024 Assessment Year: 2020-2021 (Arising out of ITA No. 1801/Kol/2024) Reckitt Benckiser (India) Pvt. Ltd., 6 th & 7 th Floor, Tower-C, DLF Cyber Park, Udyog Vihar, Phase – III, Sector 20, Industrial Complex, Dundahera, S.O. – Gurgaon, Gurgaon, Haryana - 122016 (PAN: AABCR2655Q) Vs DCIT, Circle-11(1), Aayakar Bhawan, P-7, Chowringhee Square, Kolkata - 700069 (Appellant) (Respondent) Present for: Appellant by : Pradeep Chopra, Advocate Rohan Khare, Advocate Respondent by : Abhijit Kundu, CIT-DR Date of Hearing : 28.08.2024 Date of Pronouncement : 04.09.2024 O R D E R PER RAKESH MISHRA, ACCOUNTANT MEMBER: The assessee has filed the present Stay Petition dated 22.08.2024 on 23.08.2024 requesting for stay of demand of Rs. 112,80,49,410/-. It was argued before the Bench by the Ld. AR that the balance of convenience lies in favour of the assessee as the disputed issues of Royalty & AMP expenditures are covered in favour of the assessee vide the favourable orders of the Hon’ble Kolkata Bench of ITAT for AY 2010-11 to AY 2012-13. The adjustments as per the final assessment order made in AY 2020-21 2 SA No. 6/Kol/2024 Reckitt Benckiser (India) Pvt. Ltd. AY: 2020-2021 are Transfer Pricing Adjustment on account of Royalty, AMP Expenditure and Recovery of expenses at Rs. 9,96,97,601/-, Rs. 2,87,39,85,570/- and Rs. 27,973/- respectively while non-transfer pricing adjustment on account of Education Cess has been made at Rs. 17,86,10,815/-. There was also variation in disallowance u/s 43B of the Act which was requested to be made at Rs. 328,68,81,983/- as against inadvertently reported at Rs. 362,12,39,330/-, but has not been accepted by the Ld. AO. The total income was assessed at Rs. 216,038,52,450/- and consequential demand of Rs. 112,80,49,410/- was raised. The assessee also claimed that there was incorrect adjustment of refund of Rs. 24 Crore of AY 2020-21 which was adjusted in AY 2018-19. The Ld. DR opposed the Stay Petition unless the assessee made part payment of the demand. 2. We have heard the rival contentions and also examined the petition filed. The issues decided in AY 2010-11 to AY 2012-13 may not be similar to the issues disputed in the assessment for AY 2020-21 and the findings of those years may not be exactly applicable to the current year as the law has evolved further during the intervening period requiring fresh appraisal of the issues and besides the transfer pricing issues, there are non- transfer pricing issues as well. Thus, it would be appropriate and fair to both the assessee as well as the revenue, more so as no case of any financial hardship to the assessee has been made out before us. Therefore, the Stay Petition is allowed subject to the following conditions: (i) The assessee shall pay 10% of the outstanding demand (i.e. Rs. 11.28 Crores) within a period of one month. (ii) Subject to the payment of the demand as at (i), the rest of the demand shall be stayed for a period of 180 days or till the disposal of the appeal, whichever is earlier. 3 SA No. 6/Kol/2024 Reckitt Benckiser (India) Pvt. Ltd. AY: 2020-2021 (iii) No adjournment shall be sought by the assessee in the appeal before the Tribunal unless it is absolutely necessary on account of any exigency or unavoidable circumstances. 3. In the result, the Stay Application filed by the assessee is allowed as above. Order pronounced in the open court on 4 th September, 2024. Sd/- Sd/- (Rajpal Yadav) (Rakesh Mishra) Vice President Accountant Member Dated: 4 th September, 2024 AK, P.S. 4 SA No. 6/Kol/2024 Reckitt Benckiser (India) Pvt. Ltd. AY: 2020-2021 Copy to: 1. The Appellant: 2. The Respondent. 3. CIT(A) 4. The CIT, 5. DR, ITAT, Kolkata Bench, Kolkata //True Copy// By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata