SUZUKI MOTORCYCLE INDIA PVT LTD,NEW DELHI V. DCIT , CIRCLE -22(2), NEW DELHI

SA 247/DEL/2025

AI Insights

The case involves Suzuki Motorcycles India P. Ltd., which filed an application seeking a stay on the recovery of an outstanding demand of Rs.6,50,21,940 for the assessment year 2021-22. The demand arose from Transfer Pricing adjustments concerning AMP expenditure, payment of royalty, and trade receivables. The Tribunal noted that the AMP expenditure issue was previously decided in favor of the assessee for AY 2010-11, and the other two issues were supported by decisions from the Hon'ble Delhi High Court. The Tribunal directed the assessee to pay 20% of the demand related to the royalty and trade receivables issues, staying the recovery of the remaining amount for 180 days or until the appeal's disposal, whichever is earlier.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312119 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 02-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2021-2022
• Other Referred Cases: Magnetti Marelli vs. 389 ITR 469, Pr. CIT vs. Boeing India P. Ltd. in ITA No. 71/2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Keywords: Transfer pricing; Application of stay
• Section: 2

Judgement Text

" आयकर अपीलीय अिधकरण िदʟी पीठ “आई”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं अवधेश क ुमार िमŵा, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER SA No. 247/Del/2025 (Arising out of ITA No. 5439/Del/2024, A.Y 2021-22) Suzuki Motorcycles India P. Ltd., IInd Floor, Plot No. 1,Nelson Mandela Road, Vasant Kunj, New Delhi 110070 New Delhi PAN: AAACI-5832-P ...... आवेदक/Applicant बनाम Vs. Deputy Commissioner of Income Tax, Circle-22(2), New Delhi ..... ᮧितवादी/Respondent आवेदक/Applicant by : Shri Dhruv Seth, Advocate & Ms. Mansha Bhalla, Authorized Representative ŮितवादीȪारा/Respondent by : Shri Om Prakash, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 02/05/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : 02/05/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This application has been filed by the assessee/applicant seeking stay on recovery of outstanding demand of Rs.6,50,21,940/-, for assessment year 2021-22. 2. Shri Dhruv Seth, appearing on behalf of the assessee submits that the outstanding demand in the impugned assessment year arises from Transfer Pricing (TP) adjustments made on three counts: i. AMP expenditure; 2 SA No.247/DEL/2025 ii. Payment of royalty; and iii. Trade receivables. 3. In so far as the issue of AMP expenditure is concerned the same is squarely covered by the decision of Coordinate Bench of Tribunal in assessee’s own case for AY 2010-11 in ITA No. 476/Del/2015 decided on 26.11.2018. Whereas, the other two issues are covered by the decisions of Hon’ble Delhi Court in the case of Magnetti Marelli 389 ITR 469 and in the case of Pr. CIT vs. Boeing India P. Ltd. in ITA No. 71/2022 by Hon’ble Delhi High Court. Even, SLP filed by the Department against the said order of Hon’ble High Court is dismissed. 4. The ld. Counsel submits that the assessee would pay 20% of the outstanding demand on the issues not covered in the assessee’s own case. 5. The ld. DR insisted on deposit of 20% of the entire outstanding demand for the impugned assessment year. 6. Both sides heard. Considering the fact that AMP issue in the impugned assessment year is squarely covered by the order of Tribunal in assessee’s own case for AY 2010-11 (supra) and the facts on the issue are stated to be identical in the impugned assessment year, the assessee is directed to pay 20% of the outstanding demand in respect of other two issues i.e. issue arising out of payment of royalty and trade receivables. The outstanding demand in respect of these two issues as per the sheet provided by assessee is Rs. 1,63,42,279/-, The ld. DR has not disputed the amount of addition with regard to the two uncovered issues. The assessee is directed to pay 20% of aforesaid outstanding demand on or before 31.05.2025. Subject to payment of aforesaid amount, the recovery of remaining outstanding demand for the impugned 3 SA No.247/DEL/2025 assessment year is stayed for a period of 180 days from the date of this order or till the disposal of appeal, whichever is earlier. 7. Paper book if any be filed on or before the date of hearing of appeal with an advance copy to the opposite side, in accordance with ITAT Rules. 8. The ld. Counsel for the assessee stated that the appeal for AY 2020-21 in ITA No. 4067/Del/2024 is listed for hearing on 29.05.2025 in Bench ‘H’. The issues are common in both appeals. The Registry is directed to list appeal for hearing along with ITA No.4067/Del/2024 (supra) on 29.05.2025 in ‘H’ Bench. 9. In the result, Stay Application of the assessee is allowed in the terms aforesaid. Sd/- Sd/- (AVDHESH KUMAR MISHRA) (VIKAS AWASTHY) लेखाकार सद˟/ACCOUNTANT MEMBER Ɋाियक सद˟/JUDICIAL MEMBER िदʟी / Delhi, ᳰदनांक/Dated 02/05/2025 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "