SCHNEIDER ELECTRIC SYSTEMS INDIA PRIVATE LIMITED,CHENNAI V. NATIONAL FACELESS ASSESSMENT CENTRE - JAO -ACIT, CORPORATE CIRCLE, 3(1), CORPORATE CIRCLE

SA 35/CHNY/2025

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The case involves Schneider Electric Systems India Private Ltd, which filed a stay petition against an outstanding tax demand for the assessment year 2021-22. The company argued that the Assessing Officer incorrectly applied a 30% tax rate instead of the concessional rate under section 115BAA, despite having filed Form 10-IC. The company agreed to pay 20% of the revised demand and requested the stay of the remaining amount until the appeal's disposal. The Tribunal considered similar past cases and the agreement of the Departmental Representative before granting the stay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107106 (ITAT-CHENNAI)
• Appeal Type: Stay Application
• Pronouncement Date: 25-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2021-2022
• Other Referred Cases: Schneider Electric IT Business India Pvt Ltd vs. DCIT- Bangalore Tribunal \\u2013 SP No.46/Bang/2024 (in IT(TP)A No. 1585/Bang/2024) for the A.Y.2020-21 dated 17.03.2025, Outsourcing Partners International Pvt Ltd vs. ACIT \\u2013 Delhi Tribunal \\u2013 SA No.491/Del/2024 (in ITA No.4297/Del/2024) for the A.Y.2020-21 dt 17.01.2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: ROHITH TIWARI; VIRTUAL
• Keywords: Rectification of order; Application of stay
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ Ɋायपीठ,चेɄई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI ŵी मनु क ुमार िगįर, Ɋाियक सद˟ एवं ŵी एस. आर.रघुनाथा, लेखा सद˟ क े समƗ BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER S.A. No.: 35/Chny/2025 (In IT(TP)A. No. 110/Chny/2024) िनधाŊरणवषŊ / Assessment Year: 2021-22 Schneider Electric Systems India Private Ltd, SP Plot No 16-19 and 20A, Tamarai Tech Park Inner Ring Road, Thiru Vi Ka Estate S.O Guindy, Chennai-600 032. [PAN:AABCS8027M] V. The Assistant Commissioner of Income Tax, Corporate Circle 3(1), Chennai`. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎकीओरसे/Appellant by : Shri. Rohith Tiwari, Advocate (Virtual) ŮȑथŎकीओरसे/Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 21.03.2025 घोषणा की तारीख/Date of Pronouncement : 25.03.2025 आदेश /O R D E R PER S.R. RAGHUNATHA, AM: This stay petition is filed by the assessee for stay of the outstanding demand of Rs.25,86,41,350/- for the assessment year 2021-22. 2. The ld. AR for the assessee submitted that the AO while passing rectified order dated 17.12.2024 u/s.154 r.w.s 143(3) of the Income Tax Act, 1961 [“Act” in short] has erroneously applied the tax rate of 30% on the assessed income while computing the tax liability, without considering that the company has opted for concessional tax regime u/s.115BAA of the Act :-2-: SP. Nos:35/Chny/2025 and had filed Form 10-IC on 16.10.2020 which is a mistake apparent from the record. Further, the ld.AR stated that the assessee has filed an application for rectification of the said mistake, thereby the net liability will be reduced to Rs.16,21,59,992/-. 3. The ld. AR stated that the assessee is agreeing to pay 20% of the revised demand of Rs.16,21,59,992/- and prayed for granting stay for the balance payable until the disposal of the appeal filed in IT(TP)A 110/Chny/2024. The ld.AR also brought to our notice that the assessee is eligible to receive a refund from the department for the following assessment years as per the communication received from the department: 4. Therefore, the ld. AR stated that the 20% of the revised demand of Rs.16,21,59,992/- may be adjusted out of the above eligible refunds and stay may be granted for the balance amount. 5. Further, the ld. AR stated that the final assessment order as per directions of the DRP passed by the AO is being challenged before this Tribunal on account of additions made towards adjustment of ALP of Rs.52.64 Crores and also addition made u/s.143(1) of the Act to the tune of Rs.20.72 Crores and assessee is confident of getting a favourable order. A.Y. Date Amount 2015-16 22.10.2024 Rs.7,48,79,982/- 2016-17 23.10.2024 Rs.15,27,55,475/- 2017-18 23.10.2024 Rs.8,35,48,811/- :-3-: SP. Nos:35/Chny/2025 6. The ld. AR relied on the following Tribunal decisions, wherein the Tribunal has granted stay in the identical facts and circumstances:  Schneider Electric IT Business India Pvt Ltd vs. DCIT- Bangalore Tribunal – SP No.46/Bang/2024 (in IT(TP)A No. 1585/Bang/2024) for the A.Y.2020-21 dated 17.03.2025.  Outsourcing Partners International Pvt Ltd vs. ACIT – Delhi Tribunal – SA No.491/Del/2024 (in ITA No.4297/Del/2024) for the A.Y.2020- 21 dt 17.01.2025. 7. Per contra, the ld. DR fairly agreed for the above proposal. 8. We have heard the rival submissions and perused the records of the case which are relevant to dispose the stay application. We note that the assessee is liable to pay tax u/s.115BAA of the Act as against the tax rate of 30% computed by the AO. Therefore, the actual liability of the assessee for the A.Y.2021-22 is Rs.16,21,59,992/- as against the demand raised by the AO of Rs.25,86,41,350/-. Further, we also note that the assessee is eligible for refund for the A.Y.2015-16, 2016-17 and 2017-18 and also agreed to discharge 20% of the revised demand of Rs.16,21,59,992/-. Therefore, we direct the AO to recompute the demand as per Section 115BAA of the Act and adjust 20% of the revised demand from the eligible refunds intimated to the assessee for the A.Y.2015-16, 2016-17 and 2017- 18. In the present facts and circumstances of the case we are inclined to grant stay for the balance outstanding demand for a period of six months :-4-: SP. Nos:35/Chny/2025 from the date of this order or till the appeal is disposed, whichever is earlier. 9. In the result, the stay petition of the assessee is allowed as above. Order pronounced in the open court on 25th March, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार िगįर) (MANU KUMAR GIRI) Ɋाियक सद˟/Judicial Member (एस.आर.रघुनाथा) (S. R. RAGHUNATHA) लेखा सद˟/Accountant Member चेɄई/Chennai, िदनांक/Dated, the 25th March, 2025 Vm/- आदेशकीŮितिलिपअŤेिषत/Copy to: 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3.आयकर आयुƅ/CIT– Chennai/Coimbatore/Madurai/Salem 4. िवभागीय Ůितिनिध/DR 5. गाडŊ फाईल/GF "