Google Case: ITAT Grants Conditional Stay on Income Tax Demand

Google India P. Ltd Vs DCIT (ITAT Bangaluru);

We find that there are no distinguishing facts in the present stay petitions and relevant appeals pending adjudication before this Tribunal in I.T.A Nos.69/Bang/2014, 68/Bang/2015, 559/Bang/2016 & 987/Bang/2017 from the stay petition disposed by the tribunal on 07.11.2017 arising in appeal no. ITA. 1190/Bang/2014 (supra). We also find that Hon’ble Jurisdictional High Court has directed the assessee to maintain 20% of disputed demand as balance in the bank account of the assessee although in that year, the assessee had already made payment to the extent of 55% of the disputed demand. Therefore, it is seen that as per this judgment of Hon’ble Jurisdictional High Court, for granting stay to the present assessee, payment of 55% of disputed demand and in addition to that maintenance of 20% of disputed demand as balance in the bank account of the assessee is just & proper condition. Hence, respectfully following this judgment of Hon’ble Jurisdictional High Court, we deem it appropriate to direct the assessee to deposit a further amount of Rs 175 crores so as to make it 55% ( 500 crores approx) of the impugned total demand of Rs. 910.61 Crores in respect to all these four assessment years i.e. 2009-10 to 2012-13, on or before 15.12.2017. We also direct the assessee to retain balance of another 20% in account No. 0037238007, maintained with CITI Bank, M.G.Road Branch, Bengaluru-560 001 which comes to Rs.182 crores, during the pendency of these appeals before the Tribunal in addition to depositing further amount of Rs 175 crores . In terms of conditions mentioned herein above, stay orders earlier granted are extended for a period of three months from the date of this order or till the date of disposal of the appeals, whichever is earlier subject to compliance of the above directions. The other conditions mentioned in the earlier orders for grant of stay shall continue to apply against the parties.

Full Text of the ITAT Order is as follows:-

The present four stay petitions are filed by the assessee for the assessment years 2009-10 to 2012-13, seeking extension of the stay earlier granted by the Tribunal on various occasions.

02. In this regard, it was pointed out by the Ld. AR that the assessee had made the following payments out of the total demand, for the assessment years 2009-10 to 2012-13 :

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