SIGMA ALDRICH CHEMICALS PRIVATE LIMITED,BANGALORE V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-6(1)(1), BENGALURU

SA 57/BANG/2024

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The case involves Sigma Aldrich Chemicals Private Limited appealing for a stay against an outstanding tax demand for the assessment year 2020-21. The primary contention was the erroneous computation of interest and the non-consideration of a payment made and refunds due from earlier years. The appellant argued that the total demand was overstated by Rs.14,99,800 due to incorrect interest calculations and that adjustments for previous refunds and payments would significantly reduce the net demand. The respondent, Deputy Commissioner of Income Tax, opposed the stay. The Tribunal found merit in the appellant's arguments, leading to the grant of a stay.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473979 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 5 day(s)
• Appeal Type: Others
• Pronouncement Date: 23-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-10-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 18-09-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: TATA KRISHNA
• Section: 143(3); 143(2); 234B; 244A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K., JUDICIAL MEMBER SP No.57/Bang/2024 [ in IT(TP)A No. 1805/Bang/2024 ] Assessment year : 2020-21 M/s. Sigma Aldrich Chemicals Private Limited, Plot No.12, Bommasandra Jigani Link Road, Industrial Area, Anekal Taluk. Bangalore – 560 100. PAN : AAHCS 1882L Vs. The Deputy Commissioner of Income Tax, Circle 6(1)(1), Bangalore. APPELLANT RESPONDENT Appellant by : Shri Tata Krishna, Advocate Respondent by : Shri Subramanian S., Jt.CIT(DR)(ITAT), Bengaluru. Date of hearing : 18.10.2024 Date of Pronouncement : 23.10.2024 O R D E R Per Laxmi Prasad Sahu, Accountant Member This stay petition is filed by the assessee seeking stay against the outstanding demand of Rs.6,94,05,477. 2. The ld. AR submitted that in the demand notice u/s. 156 dated 22.07.2024 the demand is “Rs. 0”. The interest computation made by the AO vide computation sheet dated 22.07.2024 is erroneous. The SP No.57/B/2024 Page 2 of 4 correct interest is Rs.1,96,26,694 [234A: Rs.3,32,809, 234B: Rs.1,73,06,068 and 234C: Rs.19,87,817]. Accordingly the AO has computed total demand in excess by Rs.14,99,800. Hence the net demand should be Rs.6,79,05,677. 3. The ld. AR has further submitted that OGE to the ITAT’s order for the AYs 2005-06 to 2008-09 are as under:- AY Date of OGE Amount of refunds due 2005-06 25.05.2018 22,48,326 2006-07 11.06.2018 21,90,119 2007-08 07.05.2018 20,00,000 2008-09 11.06.2018 58,78,692 Total refund due 1,23,17,137 4. The ld. AR further submitted that the assessee has filed a letter dated 24.04.2024 to the ACIT, Circle 6(1)(1) requesting for processing of the above refund along with interest u/s. 244A which has not been received by the assessee till date of hearing of this petition. 5. It was further submitted that the assessee has paid Rs.53 lakhs on 31.01.2024 and filed a copy of challan which has not been considered by the AO in his computation for the year under consideration. He submitted that if this amount of Rs.53 lakhs and the above amounts of refund are adjusted against the demand for AY 2020-21, it is more than 20% of the demand. SP No.57/B/2024 Page 3 of 4 6. The ld. AR submitted that the following issues are raised in its appeal before the ITAT on merits which are prima facie in favor of the assessee:- (i) Notice u/s. 143(2) dated 29.6.2021 is bad in law as it has not been issued by the prescribed authority and contrary to the mandate of section 144B(1)(i) of the Act. (ii) The TPO’s order is signed by non-existent authority viz., DC/ACIT(TP) 1(1)(1), Bangalore which is invalid and bad in law. (iii) The DRP’s directions are in contravention of section 144C(8) and 144B(1)(xxix) & (xxx) of the Act. (iv) The impugned final assessment order is barred by limitation u/s. 153(1) r.w. Section 153(4). (v) The TP adjustment with respect to IT enabled services and interest on outstanding receivables is bad. (vi) The assessment unit is not justified in levying interest u/s. 234A, 234B & 234C of the Act. 7. The ld. DR, on the other hand, objected to grant of stay. 8. Considering the rival submissions we note that in the final assessment order dated 22.07.2024 passed u/s. 143(3) r.w.s. 144C(13) of the Act, there is a difference in the total interest charged u/s. 234A, 234B & 234C and the total interest comes to Rs.1,96,26,694 instead of Rs.2,11,26,494. Therefore the actual net demand for the impugned year should be Rs.6,79,05,677. 9. During the course of hearing, the ld. AR drew our attention to the total refund due of Rs.1,23,17,137 for AYs 2005-06 to 2008-09 as SP No.57/B/2024 Page 4 of 4 per the OGEs noted supra. The assessee has paid Rs.53 lakhs on 31.01.2024 as per copy of challan filed, but credit of the same has not been given. Considering these, the amount comes to Rs.1,76,17,137 which is more than the amount of 20% (1,35,81,135) of the demand (Rs.6,79,05,677) as per section 254 r.w. first proviso. In view of the above, this is a fit case for grant of stay. Accordingly, we grant stay for a period of six months from the date of this order, or till the disposal of the appeal, whichever is earlier; subject to verification of the above challan for payment of Rs.53 lakhs and the refunds due as noted above by the AO. If the AO finds otherwise, the assessee has to pay the 20% of the net demand which comes to Rs..1,35,81,135. 10. In the result, the stay petition by the assessee is allowed in the above terms. Pronounced in the open court on this 23rd day of October, 2024. Sd/- Sd/- ( SOUNDARARAJAN K.) (LAXMI PRASAD SAHU ) JUDICIAL MEMBER ACCOUNTANT MEMBER Bangalore, Dated, the 23rd October, 2024. /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. "