VOLVO CE INDIA PRIVATE LIMITED,BANGALORE V. ACIT/DCIT CIRCLE - 7(1)(1), BANGALORE

SA 58/BANG/2025

AI Insights

The case involves M/s. Volvo CE India Pvt. Ltd., which filed a stay application (SA No.58/Bang/2025) seeking an extension of the stay on an outstanding tax demand for the assessment year 2021-22. The original stay was granted by a coordinate bench in 2025. The assessee argued that the delay in the disposal of the appeal was not their fault and highlighted that their case is covered under an Advance Pricing Agreement (APA). The Departmental Representative (D.R.) contended that the bank guarantee provided by the assessee was set to expire soon, suggesting the need for the assessee to deposit the tax amount. However, the assessee assured the tribunal of renewing the bank guarantee. The tribunal, considering the circumstances and the compliance of the assessee with the conditions of the original stay, decided in favor of extending the stay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708815 (ITAT-BANGALORE)
• Appeal Type: Stay Application
• Pronouncement Date: 18-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2021-2022
• Other Referred Cases: CIT & Ors V. M/s Roca Bathroom Products Pvt. Ltd. (2022) 445 ITR 537
• Laws Referred To: Advance Pricing Agreement, Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N. BALUSAMY
• Assessee Lawyers: T. SURYANARAYAN
• Keywords: Application of stay; Extension of stay

Judgement Text

"SA No.58/Bang/2025 Volvo CE India Private Limited, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “C’’ BENCH: BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE PRESIDENT AND SHRI KESHAV DUBEY, JUDICIAL MEMBER SA No.58/Bang/2025 (Arising out of IT(TP)A No.2377/Bang/2024 Assessment Year: 2021-22 M/s. Volvo CE India Private Limited Plot No.7 & 8 Phase -1 Peenya Industrial Area Peenya Bangalore 560 058 Karnataka PAN NO : AAGCV4943G Vs. DCIT Circle 7(1)(1) Bangalore APPELLANT RESPONDENT Appellant by : Sri T. Suryanarayan, A.R. Respondent by : Sri N. Balusamy, D.R. Date of Hearing : 18.07.2025 Date of Pronouncement : 18.07.2025 O R D E R PER KESHAV DUBEY, JUDICIAL MEMBER: The present Stay Application No.58/Bang/2025 filed by M/s. Volvo CE India Pvt. Ltd., Bangalore (The assessee/Applicant) for assessment year 2021-22 in IT(TP)A No.2377/Bang/2024 seeking extension of the stay originally granted by the order of the coordinate bench on 6.1.2025 in SA No.79/Bang/2024 for the reason that the assessee’s assessment year is a covered year in the Advance Pricing Agreement (“APA”) filed by the assessee as well as the assessee has raised a ground of limitation based on the decision of Hon’ble Madras High Court in the case of CIT & Ors V. M/s Roca Bathroom Products Pvt. Ltd. Reported in (2022) 445 ITR 537. SA No.58/Bang/2025 Volvo CE India Private Limited, Bangalore Page 2 of 3 2. The outstanding recovery of demand of Rs.59,00,16,069/- was directed to be kept in abeyance till (i) the decision on the APA is reached; (ii) 180 days from the date of this order; or (iii) disposal of this appeal, whichever is earlier. It was also subject to the condition that the assessee shall furnish a bank guarantee to the satisfaction of the AO of Rs.6 Crores which is being 20% of the above outstanding demand. At page 475 of the petition, assessee has submitted a copy of the bank guarantee issued by The HongKong & Shanghai Banking Corporation Ltd. in favour of the AO. 3. The ld. Counsel submitted that the delay in disposal of the appeal is not on account of the assessee, the Advance Pricing Agreement is pending, and the assessee has complied with the condition of the original stay granted and therefore, assessee deserves extension of stay. 4. The ld. D.R. submitted that the bank guarantee issued by “The Hongkong & Shanghai Banking Corporation Ltd.” is due to expire on 31.7.2025 and therefore, the assessee may be directed to deposit the amount of tax. 5. The ld. A.R. submitted that the assessee would undertake to renew the bank guarantee prior to its expiry and would submit the same to the satisfaction of the AO. 6. We have carefully perused the order of the coordinate bench dated 6.1.2025 in SA No.79/Bang/2024 for the assessment year 2021-22. We have also perused the conditions on which the stay was granted. The assessee has already given a bank guarantee of the amount directed in the stay petition which is due to expire on 31.7.2025. Therefore, the assessee is directed to submit a renewed bank guarantee for a further period of 180 days to the satisfaction of SA No.58/Bang/2025 Volvo CE India Private Limited, Bangalore Page 3 of 3 the AO. As the delay in disposal of the appeal is not on account of the assessee and therefore, the assessee deserves an extension of stay. In view of the above, we direct the ld. AO to keep the recovery of the above demand in abeyance till further period of 180 days or till disposal of the appeal or acceptance of the Advance Pricing Agreement by the assessee, whichever is earlier. 7. In the result, stay petition filed by the assessee is allowed. Order pronounced in the open court on 18th July, 2025 Sd/- (Prashant Maharishi) Vice President Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated 18th July, 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. "