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2018 (10) TMI 488 - AT - Income TaxStay of demand - TDS u/s 194C - scope of the term "person responsible for paying" u/s 204 - assessee is engaged in the business of providing marketing and support services to Uber B.V. a company incorporated under the laws of Netherlands - tds on payouts/dues to the Driver-Partners - whether assessee is providing only support services and acting as collection and remittance agent and disburses the payment as per the instructions from Uber B.V? - Held that:- During the course of hearing, the assessee submitted that the modus operandi of collecting the payments by the assessee on behalf of the Netherland company which are made by way of debit or credit cards or collecting by the Driver-Partners directly from the customers. It was also stated that there are practical difficulties as it is not possible for the assessee to collect TDS on the cash payments received by the Driver-Partners directly. During the hearing the assessee proved that the facts of the case were not properly and thoroughly examined and verified by the lower authorities. Thus demand raised by the revenue should be stayed subject to deposit of ₹ 20.00 Cr till the disposal of appeal by the tribunal so that the business of the assessee is not adversely impacted. We, therefore, are staying the demand for both the years subject to payment of ₹ 20 crores to be paid in three installments two ₹ 6.5 Cr on 15.10.2018 and 15.11.2018 and ₹ 7.00 Cr on 15.12.2018. The case of the assessee is also listed on an out-of-turn hearing on 11.12.2018. Penalty u/s 271C - Held that:- The assessee has made out a prima facie case in favour of the assessee proving that the outcome of the appeal before ITAT will directly impact the proceedings which are hurriedly being finalized by the authorities below, which may entail huge liability by way of penalty on the assessee. In our opinion, so long as the appeal is pending before the Tribunal, the Revenue authorities should be restrained from passing any order imposing penalty on the assessee u/s 271C and 206AA of the Act however the proceedings may continue
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