Sun Pharmaceutical Industries Ltd. v. DCIT, Circle-2(1)(1), Baroda
[Citation -2016-LL-0930-88]

Citation 2016-LL-0930-88
Appellant Name Sun Pharmaceutical Industries Ltd.
Respondent Name DCIT, Circle-2(1)(1), Baroda
Court ITAT-Ahmedabad
Relevant Act Income-tax
Date of Order 30/09/2016
Assessment Year 2009-10
Judgment View Judgment
Keyword Tags imposition of penalty • transfer pricing • stay petition
Bot Summary: It further filed Stay Application No.102/Ahd/2016 seeking stay against recovery of the above quantum demand. It is in this backdrop of facts that assessee has filed the instant stay application. Having heard the rival contentions and having perused material on record, we are of the considered view that this tribunal has the powers to grant stay on finalization of penalty proceedings by the CIT(A) and that it is a fit case for exercise of these powers. A coordinate bench, in assesse s own case for the assessment year 2008-09 has already stayed finalization of identical penalty proceedings. In view of the above, we hereby grant stay on finalization of impugned penalty proceedings by the CIT(A). Learned Departmental Representative is directed to bring this grant of stay to the order of the CIT(A) forthwith so as to ensure that stay is implemented immediately. The assessee s stay petition is allowed in the terms indicated above.


IN INCOME TAX APPELLATE TRIBUNAL AHMEDABAD I BENCH AHMEDABAD BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER, AND SHRI S. S. GODARA, JUDICIAL MEMBER. S. P. No.107/Ahd/2016 [in ITA No. 1666/Ahd/2016] (Assessment Year:2009-10) Sun Pharmaceutical Industries Ltd., SPARC, Tandalja, Baroda Appellant Vs. DCIT, Circle-2(1)(1), 4th Floor, Baroda Respondent PAN: AADCS3124K By Assessee : Shri S. N. Soparkar, A.R. By Revenue : Shri K. Madhusudan, Sr. D.R. Date of Hearing : 30.09.2016 /Date of Pronouncement : 30.09.2016 ORDER PER S. S. GODARA, JUDICIAL MEMBER This assessees stay petition seeks to restrain CIT(A)-II, Baroda from finalizing penalty proceedings initiated u/s.271(1)(c) of Income Tax Act, 1961; in short Act in relation to quantum enhancement of Rs.110, 18,00,019/- comprising of upward transfer pricing additions of Rs.42,68,49,722/- and remuneration of Rs.57,49,50,297/-; respectively. 2. Heard both sides. Case file perused. S.P. No.107/Ahd/2016 (Sun Pharmaceutical Industries Ltd. vs. DC IT) A.Y. 2009-10 -2- 3. perusal of instant case file reveals that Assessing Officer in instant case framed assessment on 25.03.2013 making various additions and computing assessee s income as Rs.2,08,77,90,107/- under normal provisions with book profit u/s.115JB of Rs.2,66,69,14,229/-; respectively. assessee preferred appeal. CIT(A) decided same vide order dated 31.03.2016 thereby making above enhancement. He further sought to penalize assessee u/s.271(1)(c) of Act. assessee preferred its main case appeal ITA No.1666/Ahd/2016. It further filed Stay Application No.102/Ahd/2016 seeking stay against recovery of above quantum demand. coordinate bench in its order dated 16.09.2016 accepted same subject to condition that assessee shall pay sum of Rs.15crore on or before 31st of October, 2016. Ld. coordinate bench restrained department from recovery outstanding dues for period of 180 days. It further observed that facts in main case are identical to very assessee s appeal pending before this tribunal as pertaining to preceding assessment year 2008-09. 4. It is in this backdrop of facts that assessee has filed instant stay application. Ld. counsel states at bar that lower appellate authority proposes to decide consequential penalty proceedings on today itself. Revenue unable to rebut all these facts. 5. Having heard rival contentions and having perused material on record, we are of considered view that this tribunal has powers to grant stay on finalization of penalty proceedings by CIT(A) and that it is fit case for exercise of these powers. We fortify our stand in view of hon ble jurisdictional high court s judgment in case of ACIT vs. GE India Industrial Pvt. Ltd. (2013) 358 ITR 410 (Guj). coordinate bench, in assesse s own case for assessment year 2008-09 has already stayed finalization of identical penalty proceedings. Learned representatives agree that facts of this assessment year, in material respects, are similar. S.P. No.107/Ahd/2016 (Sun Pharmaceutical Industries Ltd. vs. DC IT) A.Y. 2009-10 -3- 6. Shri Madhusudan, however, has apprehension. He submits that grant of stay should not prejudice imposition of penalty in any manner. Shri Soparkar, in reply, submits that his undertaking may be taken on record that neither such prejudice is possible nor assessee will take any plea so as to prejudice rights of CIT(A) on limitation issue. apprehension thus is set at rest. 7. In view of above, we hereby grant stay on finalization of impugned penalty proceedings by CIT(A). This stay will be in operation for six months from today, till further orders or till disposal of related appeals- whichever is earlier. Learned Departmental Representative is directed to bring this grant of stay to order of CIT(A) forthwith so as to ensure that stay is implemented immediately. 8. assessee s stay petition is allowed in terms indicated above. [Pronounced in open Court on this 30th day of September, 2016.] Sd/- Sd/- (PRAMOD KUMAR) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 30/09/2016 True Copy S.K.SINHA Copy of Order Forwarded to:- 1. Revenue 2. Assessee 3. Concerned CIT 4. -CIT (A) 5.DR, ITAT, Ahmedabad 6. Guard file. By order Sun Pharmaceutical Industries Ltd. v. DCIT, Circle-2(1)(1), Baroda
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