M/s Brocade Communications Systems Private Limited , Bangalore V. Deputy Commissioner of Income Tax Circle-1(1)(1), Bangalore

SA 94/BANG/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6180 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 05-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: T SURYANARAYANA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER S.P. NO. 94/BANG/2019 (IN IT (TP) A NO. 79/ BANG/201 9) ASSESSMENT YEAR : 2 0 14 - 15 M/S. BROCADE COMMUNICATIONS SYSTEMS PRIVATE LIMITED, FLOOR 3, B AND C WING AND FLOOR 8, D WING, S1, WIPRO ELECTRONIC CITY SPECIAL ECONOMIC ZONE, DODDATHOGUR VILLAGE BEGUR HOBLI, ELECTRONIC CITY, BANGALORE 560 100. PAN: AACCB4490N VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1 (1) (1), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SHRI T. SURYANARAYANA, ADVOCATE RESPONDENT BY : SHRI R.N. SIDDAPPAJI, ADDL. CIT (DR) DATE OF HEARING : 1 5 .0 3 .2019 DATE OF PRONOUNCEMENT : 15. 0 3 .2019 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS STAY PETITION IS FILED BY THE ASSESSEE SEEKING STAY OF DISPUTED OUTSTANDING DEMAND OF RS. 9,22,18,881/- FOR ASSESSMENT YEAR 2014-15. 2. IN COURSE OF HEARING OF THE STAY PETITION, IT WAS SUBMITTED BY LD. AR OF ASSESSEE THAT STAY PETITION WAS FILED BY THE ASSESSEE ON 05.03.2019 AND AFTER THAT, THE ASSESSEE HAS MADE FURTHER PAYMENT OF RS. 1,56,33,966/- ON 13.03.2019. HE SUBMITTED A COPY OF THE RELEVANT CHALLAN TO ESTABLISH THIS PAYMENT. HE SUBMITTED THAT ONCE THIS PAYMENT IS CONSIDERED, TOTAL PAYMENT MADE BY THE ASSESSEE COMES TO RS. 7,65,84,915/- AS AGAINST TOTAL DISPUTED OUTSTANDING DEMAND OF RS. 15,31,69,830/- WHICH INCLUDES INTEREST ALSO OF RS. 5,43,32,355/- AND RS. 51,397/-. HE SUBMITTED THAT ASSESSEE HAS A VERY GOOD PRIMA FACIE CASE AND SINCE ASSESSEE HAS ALREADY MADE PAYMENT OF 50% OF TOTAL DISPUTED DEMAND INCLUDING INTEREST, STAY SHOULD BE GRANTED. THE LD. DR OF REVENUE STRONGLY OPPOSED GRANTING OF STAY. S.P. NO. 94/BANG/2019 (IN IT(TP)A NO. 79/BANG/2019) PAGE 2 OF 2 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THE TOTAL PAYMENT MADE BY THE ASSESSEE TILL DATE IS OF RS. 7,65,84,915/- AGAINST TOTAL DISPUTED DEMAND OF RS. 15,31,69,830/- INCLUDING INTEREST OF RS. 5,43,32,355/- AND RS. 51,397/-. CONSIDERING THESE FACTS, WE FEEL IT PROPER TO GRANT STAY TO THE ASSESSEE FOR THE DISPUTED OUTSTANDING DEMAND FOR A PERIOD OF 3 MONTHS FROM THE DATE OF THIS ORDER OR TILL THE DISPOSAL OF THE APPEAL WHICHEVER IS EARLIER. THE APPEAL IS FIXED FOR HEARING ON 09.07.2019. SINCE WE ARE GRANTING STAY TO THE ASSESSEE, WE PREPONE THE DATE OF HEARING OF THIS APPEAL AND FIX THE SAME ON 29.04.2019. SINCE THE DATE OF HEARING IS PRONOUNCED IN THE OPEN COURT, NO SEPARATE NOTICE OF HEARING IS REQUIRED TO BE ISSUED. 4. WE WANT TO MAKE IT CLEAR THAT THE ASSESSEE SHOULD NOT SEEK ANY ADJOURNMENT IN THE COURSE OF HEARING OF THE APPEAL WITHOUT ANY JUSTIFIABLE REASONS AND IF THE ASSESSEE DOES SO, THEN THE STAY GRANTED BY THIS ORDER SHALL STAND VACATED AUTOMATICALLY. 5. IN THE RESULT, THE STAY PETITION FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE OF HEARING ON CONCLUSION OF THE HEARING. SD/- SD/- (LALIET KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 15 TH MARCH, 2019. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.