Tca/803/2019 Of M/S.bny Mellon Technology Private Ltd v. The Deputy Commissioner Of Income Tax

IN THE HIGH COURT OF JUDICATURE AT MADRAS The Hon'ble Mr.JUSTICE C.SARAVANANTCA No.803 of 2019and CMP No.22329 of 2019 BNY Mellon Technology Private Limited(formerly known as iNautix TechnologiesIndia Private Limited),10[th] Floor, TIDEL pARK,4, Canal Bank Road,Tarmani,Chennai – 600 113.... Appellant/ Appellant -vs- The Deputy Commissioner of Income Tax, Corporate Circle – 1(2), Room No.613, 6[th] floor, Wanaparthy Block, 121, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034 .. Respondent/ Respondent Tax Case Appeal filed under Section 260A of the IncomeTax Act, 1961 against the Order of the Income Tax AppellateTribunal, Madras “D” Bench, dated 27.08.2019 in SPNo.244/CHNY/2019 Against the order of the DeputyCommissioner of Income Tax corporate circle 2(2), chennai34, dated 22.11.2017 in PAN NO.AAC 16177 K against theDeputy commisioner of Income tax Transfer pricing officer 2(1), chennai dated 31.10.2017 F.NO.1-524-2(1), TPO 2(1)/AY2014-2015 Assessment Year 2014-2015. JUDGMENT (Order of the Court was made by the Hon'ble Acting ChiefJustice) The appellant/assessee M/s BNY Mellon TechnologyPrivate Limited, (formerly known as iNautix TechnologiesIndia Private Limited), Chennai has filed this Appeal underSection 260A of the Income Tax Act, 1961 aggrieved by theInterim Order passed by the Income Tax Appellate Tribunalfor the Assessment Year 2014-2015 on 27.08.2019, where by,the Income Tax Appellate Tribunal, modified its earlierorder passed on 09.11.2018 in S.P.No.350/CHNY/2018 anddirected the appellant/assessee to deposit the entirebalance amount of tax for the Assessment Year 2014-2015. 2.Mr.N.V.Balaji, the learned counsel for theappellant/assessee submits that their appeal for theAssessment Year 2011-2012 was already heard on 03.04.2019and once that order is pronounced, it might set precedencefor certain common issues in appeal for the subjectAssessment Year. The learned counsel further added that heunderstood that the Order of the Income Tax AppellateTribunal for the Assessment Year 2011-2012 was referred toa third member and it is still pending. The learned counselfurther submits that there was no justification forvacating the stay by directing the appellant/assessee todeposit the entire amount, but, in any case, under theInterim Order, the appellant/assessee has already paid asum of Rs.19,20,08,644/-(Rupees Nineteen Crores twentylakhs eight thousand six hundred forty four only) againsttotal outstanding due of Rs.40.89 crores and therefore, theappeal itself deserves to be heard on merits withoutdirecting the appellant/assessee to pay the balance amountof tax. 3.Learned Standing Counsel appearing for the Revenuesubmits that the substantial amount of demand deserves tobe paid by the assessee, subject to the result of theappeal. 4.Having regard to the submissions made by thelearned counsel on either side, we are of the opinion thatthough normally against the interim order passed by theIncome Tax Appellate Tribunal, the intervention of thisCourt under Section 260-A is not required to be made as no substantial question of law involved in this case. However,the circumstances under which the learned Tribunal appearsto have vacated the earlier stay order is required to betaken into account. We, therefore, direct theappellant/assessee to deposit a further sum ofRs.5,00,00,000/-(Rupees Five Crores only) against thedisputed demand of Assessment Year 2014-2015 with theIncome Tax Department within a period of six weeks from thedate of receipt of a copy of this order (besides theamounts already deposited by the Assessee). If suchdeposit of Rs.5,00,00,000/-(Rupees five crores only) ismade, the learned Income Tax Appellate Tribunal may proceedto decide the appeal, on merits and in accordance with lawas expeditiously as possible. substantial question of law involved in this case. However,the circumstances under which the learned Tribunal appearsto have vacated the earlier stay order is required to betaken into account. We, therefore, direct theappellant/assessee to deposit a further sum ofRs.5,00,00,000/-(Rupees Five Crores only) against thedisputed demand of Assessment Year 2014-2015 with theIncome Tax Department within a period of six weeks from thedate of receipt of a copy of this order (besides theamounts already deposited by the Assessee). If suchdeposit of Rs.5,00,00,000/-(Rupees five crores only) ismade, the learned Income Tax Appellate Tribunal may proceedto decide the appeal, on merits and in accordance with lawas expeditiously as possible. 5.With the above observation, the Tax Case Appeal isdisposedof.Nocosts.Consequently,connectedMiscellaneous Petition is closed. Sd/- Assistant Registrar(CS VIII) //True Copy// Sub Assistant RegistrarsrTo The Deputy Commissioner of Income Tax, Corporate Circle – 1(2), Room No.613, 6[th] floor, Wanaparthy Block, 121, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034 2. The Deputy Commissioner of Income Tax corporate circle 2(2), chennai 34 3.The Deputy commisioner of Income tax Transfer pricingofficer 2(1), chennai+1cc to Mr.N.V.Balaji , Advocate SR.No.88652 +1cc to Mr.T.Ravi kumar , Advocate SR.No. 88564TCA No.803 of 2019pvs (CO)A.SK(25/11/2019)