TRIBAL FUSION R &D LLP,DELHI V. DCIT, CIRCLE 34(1), DELHI

SA 60/DEL/2026

AI Insights

The case involves Tribal Fusion R & D LLP, the appellant, seeking a stay on the recovery of an outstanding demand assessed under various sections of the Income Tax Act, 1961, for the Assessment Year 2022-23. The demand was primarily due to transfer pricing adjustments related to provisions for software development services and online advertisement support services. The Tribunal considered the arguments from both the assessee and the revenue, ultimately deciding to grant a partial stay on the condition of a deposit of INR 10,00,000.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 835495 (ITAT-DELHI)
• Duration Of Justice: 12 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 11-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2022-2023
• Appeal Filed On: 31-01-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: NIKHIL TIWARI; VC
• Keywords: Transfer pricing; Application of stay
• Section: 143(3)

Judgement Text

"SA No.60/Del/2026 Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “H-FRIDAY” BENCH: NEW DELHI BEFORE SHRI YOGESH KUMAR U.S, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER S.A.No.60/Del/2026 [In IT(TP)A No.8/Del/2026] [Assessment Year : 2022-23] Tribal Fusion R & D LLP, Office No.101, 1st Floor, Ganga Apartments, 1/50, Lalita Park, Laxmi Nagar, East Delhi, New Delhi PAN-AAMFT9610P vs DCIT Circle-34(1) Delhi APPELLANT RESPONDENT Assessee by Shri Nikhil Tiwari, CA (V/C) Revenue by Shri Rajesh Kumar Dhanesta, Sr. DR Date of Hearing 06.02.2026 Date of Pronouncement 11.02.2026 ORDER PER MANISH AGARWAL, AM : This stay application is filed by the applicant/assessee seeking stay on the recovery of outstanding demand of Rs. 1,13,40,520/- created for in terms of the assessment order passed u/s 143(3) r.w.s. 144C(13) r.w.s. 144B of the Income Tax Act, 1961 dt. 17.12.2025 for Assessment Year 2022-23for Assessment Year 2022-23. 2. Ld.AR for the assessee stated that transfer pricing adjustment made by TPO/AO towards Provision for Software development Services of Rs. 1,09,21,325/- and Provision for Online Advertisement Support Services of Rs. 82,94,646/- are made with considering the fact that the margin within the tolerable range therefore, the balance Printed from counselvise.com SA No.60/Del/2026 Page | 2 of convenience is in favour of the assessee. Accordingly, he requested for granting of stay on entire outstanding demand. 3. On the other hand, Ld. Sr. DR for the Revenue stated that at least assessee be directed to deposit 20% of the total outstanding demand. He prayed accordingly 4. Heard both the parties. Considering the overall facts of the case, in our considered opinion assessee has good case for granting the stay. Accordingly, we direct the assessee to deposit a sum of INR 10.00 Lakhs within a period of 15 days from the receipt of this order and the balance outstanding demand is stayed for a period of 180 days or till the disposal of the appeal whichever is earlier. 5. In the result, the present Stay Application of the assessee is allowed in terms of the directions given herein above. Order pronounced in the open Court on 11.02.2026. Sd/- Sd/- (YOGESH KUMAR U.S) JUDICIAL MEMBER Date:-11.02.2026 *Amit Kumar, Sr.P.S* (MANISH AGARWAL) ACCOUNTANT MEMBER Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT 6. Guard File ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "