Case Law Details
Uber India Systems Pvt. Ltd Vs JCIT (ITAT Mumbai)
So far as the penalty proceedings are concerned, the assessee has made out a prima facie case in favour of the assessee proving that the outcome of the appeal before ITAT will directly impact the proceedings which are hurriedly being finalized by the authorities below, which may entail huge liability by way of penalty on the assessee. In our opinion, so long as the appeal is pending before the Tribunal, the Revenue authorities should be restrained from passing any order imposing penalty on the assessee u/s 271C and 206AA of the Act however the proceedings may continue. While deciding so, we are supported by the decision of the Jurisdictional High Court in the case of CIT vs Wander Pvt. Ltd., (2014) 44 Taxman.com 103 (Bombay) and ACIT vs GE India Technology Pvt. Ltd. (2014) 46 Taxmann.com 374 (Gujarat). We, therefore, respectfully following the decision of the Hon’ble Gujarat High Court, direct the Addl. CIT (TDS)/revenue authorities not to pass orders imposing penalty for a period of six months from the date of this order or disposal of appeal by the tribunal which ever is earlier, however, the proceedings may be continue during this period.
FULL TEXT OF THE ITAT JUDGMENT
By way of these stay applications, assessee seeks the stay of demand of Rs.24,92,16,591/- and Rs.84,13,13,665/- for Assessment Years 2016-17 and 2017-18 respectively.
2. The brief facts of the case are that the assessee is a company incorporated under the provisions of the Companies Act, 1956 on 16.08.2013 and is engaged in the business of providing marketing and support services to Uber B.V. a company incorporated under the laws of 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.
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