TEEJAY INDIA PRIVATE LIMITED,VISAKHAPATNAM V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-5(1), VISAKHAPATNAM

SA 27/VIZ/2025

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Teejay India Private Limited filed a stay application against the recovery of an outstanding demand arising from a Transfer Pricing (TP) adjustment. The assessee argued that the assessment order was barred by limitation, referencing judgments from the Madras and Bombay High Courts. The assessee also highlighted that the TP issue had been previously decided in their favor for earlier assessment years. The Department of Revenue opposed the stay, noting the assessee had not paid 20% of the outstanding demand and the appeal had been pending for over a year. The tribunal considered the regular functioning of the Visakhapatnam Bench and the readiness of the assessee to argue the case in the upcoming hearing before deciding to reject the stay application.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826714 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 17 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 09-01-2026
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2021-2022
• Appeal Filed On: 23-12-2025
• Other Referred Cases: CIT vs. Roca Bathroom Products (P.) Ltd., [2022] 445 ITR 537 (Madras), Shelf Drilling Ron Tappmeyer Ltd. vs. ACIT, International Taxation [2023] 457 ITR 161 (Bombay)
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI
• Assessee Lawyers: DARPAN KIRPALANI
• Keywords: Application of stay

Judgement Text

" आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH : VISAKHAPATNAM THROUGH VIRTUAL HEARING BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER S.A.No.27/Viz./2025 Arising out of आ.अपी.सं /ITA No.533/Viz./2024 – A.Y. 2021-2022 Teejay India Private Limited, Achutapuram, VISAKHAPATNAM. PIN – 531 011. Andhra Pradesh. PAN AAACO9452H vs. The DCIT, Circle-5(1), Visakhapatnam. (Applicant) (Respondent) िनधाŊįरती Ȫारा /Assessee by: Sri Darpan Kirpalani, CA [Hybrid] राज̾ व Ȫारा /Revenue by: Dr. Aparna Villuri, Sr. AR सुनवाई की तारीख/Date of hearing: 09.01.2026 घोषणा की तारीख/Pronouncement: 09.01.2026 आदेश/ORDER PER VIJAY PAL RAO, VICE PRESIDENT : By way of this application, the assessee is seeking the stay against the recovery of the outstanding demand arising from the TP adjustment. Printed from counselvise.com 2 SA.No.27/VIZ./2025 2. The learned Authorised Representative of the Assessee has submitted that the assessee has raised additional ground in the appeal challenging the validity of the assessment order being barred by limitation in view of Judgment of Hon’ble Madras High Court in the case of CIT vs., vs., Roca Bathroom Products (P.) Ltd., [2022] 445 ITR 537 (Madras) as well as the Judgment of Hon’ble Bombay High Court in the case of Shelf Drilling Ron Tappmeyer Ltd., vs., ACIT, International Taxation [2023] 457 ITR 161 (Bombay). Thus, the assessee is having a good prima facie case on merits on the legal issue as well as on merits as the TP issue was already considered and decided by this Tribunal in assessee’s own case for the assessment years 2017-2018 and 2018-2019. The learned Authorised Representative of the Assessee has pointed out that the appeal of the assessee is now fixed for hearing on 04.02.2026 and assessee is ready to argue the case. However, since the Visakhapatnam Bench is not functioning regularly, the assessee is seeking protection against the recovery. The learned Authorised Representative of the Assessee has Printed from counselvise.com 3 SA.No.27/VIZ./2025 submitted that the Assessing Officer has recovered the outstanding demand @ Rs.20 lakhs per month. Thus, he has pleaded that the recovery of the outstanding demand may be stayed. 3. On the other hand, the learned DR has submitted that the assessee’s appeal is pending for the last more than one year and matter has been adjourned from time to time at the request of the assessee. She has opposed the stay against the recovery of the demand without even making the payment of 20% of the total outstanding demand. 4. We have considered the rival submissions as well as relevant material on record. The outstanding demand in the case is Rs.11.86 crores arising from the TP adjustment which is challenged by the assessee in the appeal. Now the assessee has also filed an application under Rule-11 of ITAT Rules, 1963 for admission of the additional ground challenging the validity of the order passed by the Assessing Officer being barred by limitation. Since this issue was raised now by the assessee and to be taken into consideration in the appeal of the assessee, therefore, until and unless the Printed from counselvise.com 4 SA.No.27/VIZ./2025 additional issue is admitted for adjudication, it would have no bearing on the proceedings of the stay application. The appeal of the assessee is pending adjudication since 2024 and now fixed for hearing on 04.02.2026. The learned Authorised Representative of the Assessee has stated that the assessee is ready to argue the appeal on the next date of hearing. It is pertinent to note that the Visakhapatnam Bench is not functioning regularly and depend upon the availability of the Judicial Member sent on tour by Head Office. Now the Bench is functioning from 09.02.2026 to 20.02.2026. Accordingly, in the facts and circumstances of the case, the hearing of the appeal is postponed to 09.02.2026 and parties are directed not to take any adjournment of the hearing. The Registry is directed to fix the appeal of the assessee on 09.02.2026 in the category of ‘Stay rejected matters’. Accordingly, the stay is rejected, and the Assessing Officer is directed not to take any coercive action till the next date of hearing. 5. In the result, stay application of the Assessee is rejected. Out of turn hearing is granted. Printed from counselvise.com 5 SA.No.27/VIZ./2025 6. Order pronounced in the open court on the conclusion of the hearing i.e., on 09.01.2026. Sd/- Sd/- [MADHUSUDAN SAWDIA] [VIJAY PAL RAO] ACCOUNTANT MEMBER VICE PRESIDENT Hyderabad, Dated 09th January, 2026 VBP Copy to: 1. Teejay India Private Limited, Plot Nol.15, Brandix APSEZ, Pudimadaka Road, Achutapuram, VISAKHAPATNAM – 531 011. Andhra Pradesh. 2. The DCIT, Circle-5(1), Visakhapatnam. 3. The Pr. CIT, Visakhapatnam 4. The DR, ITAT, Visakhapatnam Bench, Visakhapatnam. 5. Guard file. BY ORDER //True copy// Printed from counselvise.com "