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2016 (5) TMI 96 - ITAT HYDERABAD

2016 (5) TMI 96 - ITAT HYDERABAD - TMI - Stay - Penalty under section 271C - tds u/s 194H - whether the assessee is required to make any TDS under section 194H is pending adjudication before the Hon’ble Supreme Court of India as divergent views have been expressed by various High Courts in India? - Held that:- The appeals on merits are coming up for hearing before the Hon’ble Supreme Court in the month of April, 2016 and taking due note of the same, this Tribunal has already granted stay of coll .....

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the demand of penalty under section 271C of the I.T. Act, we are satisfied that balance of convenience is in favour of the assessee. Therefore, we deem it fit and proper to stay the balance of the demand for a period of 180 days from today or till the disposal of the appeals whichever is earlier. The Registry is directed to post the appeals for hearing on 8th June, 2016. Since the date is announced in the open Court before both the parties, no fresh notice is need be given. Accordingly, stay pe .....

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Ys. 2010-2011 to 2014-2015. 2. The total demand of penalty for all the relevant assessment years before us put together is ₹ 11,95,84,931 after payment of ₹ 2,98,98,234 being the 20% of the demand under section 271C of ₹ 14,94,81,165. It is stated by the Ld. Counsel for the assessee that the assessee company has filed these stay applications seeking stay of the outstanding demand of penalty levied under section 271C of the I.T. Act, 1961. 3. As regards the issue on which the pe .....

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r transfer the same to the ultimate consumer and at each level of the distribution, party distributing the right to pre-paid services retains margin for its efforts and the risks assumed. It is submitted that transfer of the right to pre-paid services by the assessee to distributors is at a discount, part of it in turn, is passed-on by the distributors to retailers/subscriber and that since the assessee is not required to make any payment to its distributors towards the discount extended to them .....

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t and hence, the assessee is not liable to make any TDS in relation to such discount. It is submitted that there was a survey under section 133A of the Act conducted in the premises of the assessee on 15th December, 2010 in order to verify the liability of the assessee to deduct the taxes on the discounts given to the distributors of pre-paid services. Subsequently, for the A.Y. 2010-2011, the assessments of the assessee were taken-up for extensive verification under section 201(1) and 201(1A) o .....

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ppeal before us. The Ld. Counsel for the assessee, submitted that on merits though the decision of the jurisdictional High Court is against the assessee, the decision of the Hon ble High Court of Karnataka is in favour of the assessee and the issue is now before the Hon ble Supreme Court of India and matter is listed for final hearing in the month of April, 2016. He submitted, that taking the above into consideration, Hon ble High Court of A.P. & Telangana in W.P.No.2456, 2460, 2464 of 2015 .....

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and of tax till June, 2016 by observing that the appeal on merits is pending adjudication before the Hon ble Supreme Court of India. He submitted that when the quantum appeals holding the assessee to be assessee-in-default under section 201(1) and 201(1A) are pending adjudication, the A.O. has levied the penalty under section 271C of the I.T. Act and the assessee has paid 20% of the demand and is seeking stay of the balance outstanding demand of penalty. He submitted that the appeals on merits w .....

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