STATE BANK OF INDIA,MUMBAI V. THE ASSISTANT COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION CIRCLE - 4(2)(1), MUMBAI, MUMBAI

SA 31/MUM/2025

AI Insights

The case involves State Bank of India (SBI) seeking a stay on the recovery of outstanding tax demands for the assessment years 2013-14 to 2018-19, which were based on orders under section 201 of the Income Tax Act, alleging non-deduction of tax at source on payments made to MasterCard International Inc. and Visa Worldwide Pte. Ltd. The disputes with these entities were being resolved through the Mutual Agreement Procedure (MAP) at the government level, where it was acknowledged that taxes had been paid by the payees. The first appellate authority had sustained the orders due to the non-filing of Form No. 26AS. The Tribunal considered the compliance of SBI with previous stay conditions and the ongoing resolution of disputes with the payees, leading to the decision to grant a conditional stay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 40868 (ITAT-MUMBAI)
• Appeal Type: Stay Application
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PUSHKARAJ BHANGEPATIL
• Keywords: Application of stay
• Section: 201

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VP AND SHRI NARENDRA KUMAR BILLAIYA, AM SA Nos. Arising out of ITA No Assessment Year 28/Mum/2025 5070/Mum/2024 2013-14 29/Mum/2025 5069/Mum/2024 2014-15 30/Mum/2025 5068/Mum/2024 2015-16 31/Mum/2025 5067/Mum/2024 2016-17 32/Mum/2025 5066/Mum/2024 2017-18 33/Mum/2025 5065/Mum/2024 2018-19 State Bank of India Financial Reporting & Taxation 3rd Floor, Corporate Centre, Madam Cama Road, Nariman Point, Mumbai-400 021 Vs. Asst. CIT(IT), Circle-4(2)(1) Mumbai PAN/GIR No. AAACS 8577 K (Applicant) : (Respondent) Applicant by : Shri Percy Pardiwala Respondent by : Shri Pushkaraj Bhangepatil Date of Hearing : 21.02.2025 Date of Pronouncement : 21.02.2025 O R D E R Per Saktijit Dey, VP: The captioned applications have been filed by the assessee, seeking stay on recovery of outstanding demands, pertaining to assessment years 2013-14 to 2018-19. 2. Shri Percy Pardiwala, learned counsel for the assessee submitted that the demands in dispute arises out of orders passed u/s. 201 of the Act, alleging non deduction of tax at source on payments made to two entities, i.e., MasterCard International Inc. (Mastercard) and Visa Worldwide Pte. Ltd. (Visa). He submitted, subsequently, Mastercard has applied 2 SA Nos. 28 to 33/Mum/2025 (A.Ys. 2013-14 to 2018-19) SBI vs. Asst. CIT for Mutual Agreement Procedure (MAP) and dispute has been settled at Government level. He submitted, in terms of the MAP, taxes have been paid by payee. He submitted, in case of other entity also the dispute is in process of getting resolved. He submitted, though all these facts were brought to the notice of first appellate authority, however, merely because Form No. 26AS was not filed, he sustained the orders passed by the Assessing Officer. He further submitted that during the pendency of first appeals, ld. PCIT had granted stay, subject to condition that 15% of the outstanding demand is to be paid. He submitted, assessee has complied with such direction. He further submitted that the assessee is willing to pay further 5% of the outstanding demand, so that 20% of the demand would get paid. 3. Having considered rival submissions, taken note of prima facie case, balance of convenience and other relevant factors, we are inclined to grant conditional stay by directing the assessee to pay 5% of the outstanding demand arising on each assessment year withing a period of two weeks. Subject to such payment, recovery of balance outstanding demand shall remain stayed for a period of 180 days from the date of this order or till the disposal of the corresponding appeals, whichever is earlier. We are further informed that the appeals are already fixed for hearing on 19.03.2025. We make it clear that the parties must ensure that hearing of appeals proceed on the date fixed. 6. In the result, the Stay Applications are partly allowed. Order pronounced in the open court on 21.02.2025. Sd/- Sd/- (Narendra Kumar Billaiya) (Saktijit Dey) Accountant Member Vice President Mumbai; Dated : 21.02.2025 Roshani, Sr. PS 3 SA Nos. 28 to 33/Mum/2025 (A.Ys. 2013-14 to 2018-19) SBI vs. Asst. CIT Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT - concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai "