SYNAMEDIA INDIA PRIVATE LIMTIED,BENGALURU V. DCIT,CIRCLE-6(1)(1), BENGALURU

SA 82/BANG/2024

AI Insights

Synamedia India Pvt. Ltd. filed a stay application concerning a significant tax demand of Rs.20,30,09,300 for the assessment year 2021-22. The company argued that it was entitled to a refund of Rs.20,44,91,343 for AY 2013-14, which could offset the current demand. The Tribunal noted the strong prima facie case of the assessee, referencing a previous ITAT order in the assessee's favor for AY 2020-12. The Department of Income Tax opposed the stay, but the Tribunal found merit in the assessee's arguments, leading to the decision to grant the stay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633651 (ITAT-BANGALORE)
• Appeal Type: Stay Application
• Pronouncement Date: 11-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2021-2022
• Other Referred Cases: IT(TP) number - 1354/Bang/ 2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SWAROOP MANNAVA
• Assessee Lawyers: SUDHINDRA
• Keywords: Rectification of order; Application of stay
• Section: 154

Judgement Text

"SP No.82/Bang/2024 Synamedia India Pvt. Ltd., Bengaluru IN THE INCOME TAX APPELLATE TRIBUNAL “C’’ BENCH: BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER SP No.82/Bang/2024 (Arising out of IT(TP)A No.2609/Bang/2024 Assessment Year: 2021-22 Synamedia India Private Limited Block 9A & 9B 7th Floor, Pritech Park SEZ, Survey No.51-64/4 Sarjapur Outer Ring Road Bellandur Village Bengaluru 560 103 PAN NO : AACCN1140K Vs. DCIT Circle-6(1)(1) Bengaluru APPELLANT RESPONDENT Appellant by : Shri Sudhindra, A.R. Respondent by : Shri Swaroop Mannava, D.R. Date of Hearing : 09.06.2025 Date of Pronouncement : 11.06.2025 O R D E R PER PRAKASH CHAND YADAV, JUDICIAL MEMBER: Present stay application has been filed by the assessee in respect of IT(TP)A No.2609/Bang/2024. 2. At the outset, ld. Counsel for the assessee pointed out that the total demand raised in this case is Rs.20,30,09,300/- and 20% of this demand would come to Rs.4,06,01,860/-. Counsel for the assessee pointed out that assessee is entitled for a refund of Rs.20,44,91,343/- for AY 2013-14. In support, the counsel for the assessee filed a letter dated 8.1.2025 issued from the office of DCIT Circle 6(1)(1), Bengaluru, which is a rectification order u/s 154 of the Income Tax Act, 1961 (in short “The Act”) for the AY 2013-14, which SP No.82/Bang/2024 Synamedia India Pvt. Ltd., Bengaluru Page 2 of 3 shows that the assessee is entitled for a refund of Rs.20,44,91,343/- In the backdrop of these facts, counsel for the assessee stated that the department is at liberty to retain 20% of the present outstanding demand of Rs.20,30,09,300/- in lieu of the refund due to the assesse. Lastly the counsel for the assessee argued that assessee has strong prima-facie case as evident from the fact that issues involved in the present case are by enlarge covered by the order of the ITAT in assessee’s own case for AY 2020-12 decided vide IT(TP) number - 1354/Bang/ 2024 dated 10.03.2025. 3. Ld DR vehemently oppose the petition/ prayer of the assessee for the grant of stay. 4. After considering the rival submissions, we observe that the assessee is entitled for a refund of Rs.20.44 crores for assessment year 2013-14, which refund has not been granted to the assessee till date. Further, as per the proviso to sub-section 2A of section 254 of the Act, if an assessee deposits 20% of the amount of tax due to him, then the ITAT, exercising it’s discretion, has power to grant stay for 180 days or till the disposal of appeal, whichever is earlier. Further, the assessee has also demonstrated that the assessee is having strong prima facie case and the balance of convenience lies in favour of the assessee. Further ld. D.R. could not dispute the factum of refund entitled by the assessee. Therefore, considering the totality of the facts, we hereby grant stay to the assessee for 6 months or till the disposal of appeal, whichever is earlier. Department is free to adjust 20% of the disputed demand against the refund of AY 2013- 14. SP No.82/Bang/2024 Synamedia India Pvt. Ltd., Bengaluru Page 3 of 3 5. In the result, stay petition filed by the assessee stands allowed as indicated above. Order pronounced in the open court on 11th June, 2025 Sd/- (Waseem Ahmed) Accountant Member Sd/- (Prakash Chand Yadav) Judicial Member Bangalore, Dated 11th June, 2025. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. "