IN INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI RAJPAL YADAV, JUDICIAL MEMBER Stay Application No.102 Ahd 2016 (in ITA No. 1666 Ahd 2016) Assessment Year : 2009-2010 Sun Pharmaceutical Industries V s. DCIT, Limited, Circle-2(1)(1), SPARC, Tandalja, Baroda Baroda PAN No. AADCS 3124 K (Applicant) .. (Respondent) Assessee(s) by : Shri S. N. Soparkar, AR Revenue by : Shri K. Madhusudan, Sr DR Date of Hearing : 16 09 2016 Date of Pronouncement : 16 09 2016 ORDER PER RAJPAL YADAV, JUDICIAL MEMBER: present stay application is directed at instance of assessee for grant of ad interim stay of outstanding demand amounting to Rs.73,04,88,400 -. 2. Ld. Counsel for assessee has placed on record details in tabular form exhibiting date of assessment order, tax demand raised by Assessing Officer, taxes paid by assessee, how order was revised by ld. CIT(A) exercising powers u s 263 and assessee has paid demand raised against it by virtue of these proceedings. ld. CIT(A) thereafter made enhancement which has given rise this demand. Such details read as under:- SP No. 102 Ahd 2016 Sun Pharmaceutical Ind. Ltd vs DCIT AY 2009-2010 -2- Order Date of Tax Tax paid Balance Interest u s Remark passe order demand refund 234B&D d u s adjusted 143(3) 25.03.2013 53,54,05,148 27,00,00,000 26,54,05,148 14,45,74,705 balance demand is included while passing demand raised u s 263 143(3) 27.03.2015 31,23,06,250 31,23,83,850 (77,330) 1,52,11,259 We have paid full r.w.s tax demand raised 263 under u s 143(3) & 263 250 15.06.2016 73,04,88,400 - 73,04,88,400 48,23,93,282 This demand was raised after giving credit of tax paid refund adjusted against S. No.1 & 2 above. Stay application for above said demand of Rs.73.04 crores was submitted to AO and pending for disposal. No payment was made till date against above said demand of Rs.73.04 crores. 3. With assistance of learned Representatives, we have gone through record carefully. As far as demand raised by AO is concerned, assessee has already paid that demand, but demand outstanding is demand which has been raised by ld. CIT(A). major component of it is sum of Rs.57,49,50,297 - . This issue has been discussed by ld. CIT(A) from paragraph 13 on page 189 to 221 of impugned order. 4. Brief facts are that assessee is flagship company of Sun Pharma Group. It was carrying out Research and Development (R&D) work for SP No. 102 Ahd 2016 Sun Pharmaceutical Ind. Ltd vs DCIT AY 2009-2010 -3- entire Sun Pharma Group including product manufactured by Sun Pharmaceutical Industries (SPI) having manufacturing unit at Jammu and Dadra. assessee is partner in SPI holding 97.5% shares therein. income of SPI was fully exempt from taxation and according to Revenue, in order to avoid taxes, assessee was claimed entire R&D expenses without allocating same to SPI. Thus, dispute relates to allocation of research and development expenses amounting to Rs.53,02,95,255 -. ld. CIT(A), after making detailed analysis, made addition of Rs. 57,49,50,297 -. Similarly, other additions enhanced by ld. CIT(A) relate to TP adjustments. On perusal of record, we find that these additions have been made by relying upon order of ld. CIT(A) passed in AY 2008-09. appeal for AY 2008-09 is already on Board. It has been brought to our notice that this appeal was heard for period of 2-3 days and now listed in first week of October, 2016. Tribunal has stayed demand in AY 2008-09. Considering all these aspects and similarity of issue involved in AY 2008-09, we deem it proper to stay outstanding demand subject to following conditions:- a) assessee shall pay sum of Rs.15 crores on or before 31st October 2016. b) recovery of remaining outstanding dues will remain stayed for period of 180 days or till disposal of appeal whichever event occurs first. c) assessees shall not seek any adjournment unless unavoidable circumstances warrant so. SP No. 102 Ahd 2016 Sun Pharmaceutical Ind. Ltd vs DCIT AY 2009-2010 -4- Registry is directed to list appeal for hearing on 24th November 2016. 5 In result, Stay Petition is allowed as per terms indicated above. Order pronounced in Court on 16th September, 2016 at Ahmedabad. Sd - Sd - (PRAMOD KUMAR) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad, Dated 16 09 2016 *Biju T. Copy of Order forwarded to : 1. Appellant 2. Respondent. 3. Concerned CIT 4. CIT(A) 5.DR, ITAT, Ahmedabad 6. Guard file. BY ORDER, TRUE COPY (Dy. Asstt.Registrar) , ITAT, Ahmedabad Sun Pharmaceutical Industries Limited v. DCIT, Circle-2(1)(1), Baroda