Interim Relief to Infosys: ITAT grants Extension of Stay Order for Recovery of Income Tax Demand of Rs. 1500 Cr [Read Order]

In an interim relief to Infosys, the Income Tax Appellate Tribunal (ITAT), Bangalore bench has extended the stay order for six months in a case involving approx.. Rs. 1535 crores income tax demand.

The assessee contended before the Tribunal that out of the total demand of RS.1564,20,96,950, the assessee has already paid a sum of Rs.535 crores which amounts to 34.20% of the total demand and the appeallate proceedings are not yet completed for the reasons not attributable to the assessee.

Shri. Sudheendra, Advocate contended that the extension of stay was earlier granted by the Tribunal in this case vide order dated 29.10.2021 for a period of six months. Consequently the appeals were listed for hearing before the Tribunal on various occasions from 26.3.2018 to 13.04.2022 and was either adjourned by the Bench or adjourned at the instance of the Department and therefore the delay in non-disposal of the appeal is not attributable to the assessee. The facts and circumstances for extending the stay in the last occasion on 29.10.2021 remains the same. It was accordingly prayed that extension of stay in these cases may be granted.

The Tribunal bench comprising Shri N. V. Vasudevan, Vice President and Ms. S. Padmavathy, Accountant Member observed that the appeals were listed for hearing and adjourned. The delay for non-disposal of the appeals is not attributable to the assessee. There is no change in the facts and circumstances from the earlier order of the Tribunal extending the stay by order dated 25.10.2021.

“Considering the overall facts and circumstances of the case and following the decision rendered by Hon’ble Delhi High Court in the case of Pepsi Foods Pvt. Ltd. 376 ITR 87 (Delhi) which was confirmed by the Hon’ble Supreme Court in [2021] 126 taxmann.com 69 (SC) and the decision rendered by the coordinate bench in the case of SAP Labs (I) Pvt. Ltd. 67 Taxmann.com 78, we grant extension of stay for a period of six months from the date of this order, or till the disposal of the appeal, whichever is earlier. The assessee shall not seek adjournment and cooperate in the hearing of the appeal,” the Tribunal said.

To Read the full text of the Order CLICK HERE

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