ITAT allowed stay applications directing AO to adjust demand against refund
ITAT allowed stay applications directing AO to adjust demand against refund
De Beers UK Ltd, a UK resident, sold diamonds. It entered into consultive services contracts with Indian entities. As it did not have PE in India it treated its income as 'business profits', not taxable in India. AO assessed assessee’s income, and imposed penalty u/s 271(1)(c) (of Income Tax Act, 1961). De Beers filed stay applications. ITAT allowed applications with directions to AO to adjust demand against tax refund, and not to adopt coercive measures for recovery.-500735
1. De Beers UK Ltd, a tax resident in UK, was involved in selling rough diamonds to world wide Sightholders.
2. It entered into contracts with Indian entities to render services, which were consultive in nature.
3. It did not have PE in India and treated its income as 'business profits', not taxable in India.
4. AO assessed assessee’s income, and imposed penalty u/s 271(1)(c) (of Income Tax Act, 1961).
5. It filed three stay applications seeking stay on the recovery of outstanding demand of Rs. 25,78,50,597.
The ITAT held as under:
6. The assessee is directed to approach the Assessing Officer on this aspect and the Assessing Officer shall consider the position of income tax refund in various years and it would be permissible for him to adjust it against the outstanding demand.
7. In so far as the demand remaining after adjustment of such refunds if any, is concerned no coercive measures shall be adopted by the Assessing Officer for its recovery.
8. The aforesaid direction shall operate for a period of six months from today or upto the date of the order of the Tribunal in the appeals of the assessee, whichever is earlier.
Case Reference - De Beers UK Ltd Vs. The Asstt. Commissioner (Intl. Taxn.)
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH "D", MUMBAI
BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER
AND SHRI RAMLAL NEGI, JUDICIAL MEMBER
S.A. NO.332,333& 334/MUM/2015
(Arising out of ITA No.5526,5527&5528/Mum/2015,
Assessment Years 2006-07, 2007-08 & 2008-09)
×
