TMI Blog2018 (10) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Netherlands and is a tax resident of Netherlands. During the year, Uber B.V has engaged the appellant to provide various services under Inter-Company Service Agreement. On 12.01.2018, a survey was conducted u/s 133A(2A) of the Income Tax Act, 1961 (in short the Act‟) at the registered office of the assessee-company and it was observed that the assessee has not complied with TDS provisions which has resulted in non-compliance of provisions of Sec. 194C of the Act on the payouts/dues to the Driver-Partners. Accordingly, the assessee was treated in default and the above demands were raised on the assessee for two assessment years as referred to above qua which the assessee has moved these stay petitions. 3. The ld. AR vehemently argu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the Driver-Partners have discharged their due taxes or not or whether they are assessable or not. The ld. AR further submitted that even on merit, assessee has all probability to succeed in the appeal before the ITAT as it has a very good case on merits and, therefore, demand raised u/s 201(1) 201(1A) should be stayed pending the hearing of appeal by the hon‟ble tribunal. The ld. AR also invited the attention of the Bench to the penalty proceedings initiated u/s 271C and 206AA of the Act and stated that the JCIT(TDS) is in undue haste to impose the penalty under the said proceedings/provisions even when the application of provisions of tax deduction at source is disputed. The ld. AR prayed that the assessee is apprehending im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 194C of the Act and until and unless the order is reversed by the higher authorities, the demand of tax is lawfully due and the assessee should be asked to deposit the same immediately. On stay of penalty proceedings u/s 271C and 206AA of the Act, the ld. DR prayed that the proceedings are initiated as per the provisions of the Act and it would be premature to stay the proceedings at this stage. 5. We have heard the rival submissions and perused the material on record. It has been pleaded before us that assessee is providing marketing and support services to a foreign company, Uber B.V, which is incorporated in Netherlands. Assessee is collecting the payments on behalf of the said company and making disbursements to Driver-Partners as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case were not properly and thoroughly examined and verified by the lower authorities. We earnestly of the view that the 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. Subject to the above conditions the demand is stayed for a period of 180 days and the assessee would not seek adjournment without any sufficie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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