SCHNEIDER ELECTRIC IT BUSINESS INDIA PRIVATE LIMITED,BANGALORE V. DEPUTY COMMISSIONER OF INCOME TAX,CIRCLE-6(1)(1), BANGALORE

SA 46/BANG/2024

AI Insights

The case involves Schneider Electric IT Business India Private Ltd., which filed a stay petition against the outstanding tax demand for the assessment year 2020-21. The primary contention was that the Assessing Officer (AO) had erroneously computed the tax demand without considering the Tax Deducted at Source (TDS), Advance Tax, and Tax Collected at Source (TCS) of the assessee, despite these being acknowledged in the intimation under section 143(1) by the Centralized Processing Center (CPC). Both parties agreed that the AO had erred in not considering these tax credits in the final computation of the tax demand. The Tribunal directed the AO to reverify and adjust the tax credits accordingly and granted a stay on the condition that the assessee complies with the payment directives.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473924 (ITAT-BANGALORE)
• Appeal Type: Stay Application
• Pronouncement Date: 17-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ROHIT TIWARI
• Keywords: TDS
• Section: 143(3); 154; 143(1); 22

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER SP No.46/Bang/2024 [in IT(TP)A No.1585/Bang/2024] Assessment year : 2020-21 Schneider Electric IT Business India Private Ltd., Tower C, 6th Floor, Bearys Global Research Triangle, Whitefield-Hoskote Main Road, Goravigere Village, Bangalore – 560 027. PAN: AACCA 6398Q Vs. The Deputy Commissioner of Income Tax, Circle 6(1)(1), Bangalore. APPELLANT RESPONDENT Appellant by : Shri Rohit Tiwari, AR Respondent by : Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru. Date of hearing : 20.02.2025 Date of Pronouncement : 17.03.2025 O R D E R Per Laxmi Prasad Sahu, Accountant Member This stay petition is filed by the assessee for stay of the outstanding demand of Rs.160,89,50,720 for the assessment year 2020-21. 2. The ld. counsel for the assessee submitted that the AO has wrongly computed tax demand without considering the TDS, Advance Tax & TCS of the assessee while computing tax demand in SP No.46/Bang/2024 Page 2 of 3 consequence of order passed u/s. 143(3) of the Act. While processing the return, the CPC has considered the above Tax credits which is clear from the intimation generated by the CPC as per computation sheet at sl.nos.44 to 47. The figures as per the computation sheet u/s. 143(1) at sl.no.39 are advance tax of Rs.86 lakhs, TDS of Rs.16,17,11,743 and TCS of Rs.2,875 totalling to Rs.1,02,13,77,313. Accordingly he submitted that the balance tax payable by the assessee will be very less and assessee will follow the directions of the Tribunal. 3. On the other hand, the ld. DR also conceded that while computing tax after the assessment, the AO has committed error in not considering the above Tax credits of the assessee and she had no objection if the assessee complies with the directions of the Tribunal. 4. Considering the rival submissions, we note that while computing the tax demand of the assessee after the assessment, the advance tax, TDS & TCS has not been considered by the AO as per computation sheet to the assessment order, but the same has been considered in the intimation u/s. 143(1) by the CPC. In this regard, the assessee has also filed application u/s. 154 before the concerned AO and the assessee submitted that it has not been disposed of by the AO till date. The ld. counsel for the assessee submitted that as per page 22 of the PB, if the department adjusts the total tax paid by the assessee, then the net demand will remain at Rs.7,33,57,110. Considering the intimation generated u/s. 143(1), the AO is directed to give credit of the same after due reverification and the assessee is directed to pay 20% of the SP No.46/Bang/2024 Page 3 of 3 net tax demand by 20.3.2025 in two equal instalments and produce proof of payment of the same before the AO before 31.03.2025. With this condition, we grant stay against the balance outstanding demand for a period of 6 months from the date of this order, or till the appeal is disposed, whichever is earlier. The assessee is also directed not to seek unnecessary adjournment for early disposal of the case. If the assessee seeks adjournment without any cogent reason, the stay granted shall be automatically vacated. 5. In the result, the stay petition of the assessee is allowed as above. Pronounced in the open court on this 17th day of March, 2025. Sd/- Sd/- ( KESHAV DUBEY ) ( LAXMI PRASAD SAHU ) JUDICIAL MEMBER ACCOUNTANT MEMBER Bangalore, Dated, the 17th March, 2025. /Desai S Murthy / Copy to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore. "