2012 (3) TMI 447 - AT - Income Tax

Summary

Issues Involved: Stay of recovery of outstanding demand u/s 10A deduction and transfer pricing for assessment year 2006-07.

Stay of Recovery of Outstanding Demand: The petitioner, M/s. Huawei Technologies India P. Ltd., sought stay of recovery of outstanding demand of Rs. 2,88,54,145/- till the disposal of the appeal in ITA.1338/Bang/2010. The petitioner had already paid Rs. 2,71,67,139/- out of the total demand of Rs. 5,60,21,286/-. The representative argued that the assessee has a prima facie case regarding transfer pricing and deduction u/s.10A. The balance of convenience was said to be in favor of the assessee since around 50% of the demand had already been paid.

Opposition to Stay: The CIT-DR opposed the granting of stay without the assessee making further payments towards the outstanding demand.

Decision and Conditions for Stay: The Tribunal considered the facts and materials on record, noting the outstanding tax of Rs. 3,87,12,021/- (excluding interest) and the interest amounting to Rs. 1,73,09,265/-. It was decided to grant stay subject to certain conditions:
i) The assessee to pay Rs. 75 lakhs, with Rs. 30 lakhs due by 31.03.2012 and Rs. 45 lakhs by 30.04.2012, providing proof of compliance;
ii) Recovery of remaining outstanding demand stayed till appeal disposal or statutory period expiration;
iii) Appeal to be posted on an expedited basis on 05.06.2012;
iv) No separate notice of hearing required as the order suffices as notice;
v) Assessee to file relevant paper books before the hearing, certified as per ITAT Rules, at least 15 days prior, serving a copy to the other party;
vi) Parties advised against seeking unnecessary adjournments without valid reasons.

Result: The stay petition was allowed based on the specified terms and conditions.