While granting an interim relief to the Vodafone Idea Ltd, the Income Tax Appellate Tribunal (ITAT), Chandigarh has asked the Company to pay an amount of Rs. 60 lakhs for staying the demands in respect of the eight assessment years from 2005-06 from 2012-13.
The department was of the view that the discount extended to the prepaid distributors falls within the scope of Section 194H of the Income Tax Act,1961. Before the Tribunal, the assessee has relied on the various judgments and argued that the balance of convenience is in their favour.
The Tribunal noticed the revised guidelines issued by the CBDT regarding the stay of demand while the appeal is pending before the CIT(A).
It was also noted that out of the total demand of Rs. 21,77,18,132, Rs. 13,39,98,711 has been already paid by the assessee.
The counsel appeared for the company contended that in the eventuality of grant of stay and early hearing he is ready to argue the appeal on any date in the month of May itself. It was also submitted that there may be departmental appeal pending as the CIT(A) in these years as deleted the addition proposed by the A.O within the scope of Section 194J. He requested the Tribunal to list the appeal for hearing in July 2019 alongwith other appeals pending adjudication on a near similar issue right from 2005-06 A.Y. onwards.
Considering the above arguments, the Tribunal issued the following directions.,