ITAT Allows Further Extension of Stay for 6 months for Collecting out-standing Tax Demand against Google India

ITAT Allows Further Extension of Stay for 6 months for Collecting out-standing Tax Demand against Google India

The Income Tax Appellate Tribunal (ITAT), Bangalore Bench, on 12 March 2021, in the case titled M/s. Google India Pvt. Ltd. (Appellant) v. ACIT Circle (Respondent) allowed the further extension of stay of collection of outstanding tax demand of Rs.1260.56 crore against Google India for 6 months.

The ITAT Coram comprising of George George K. and B.R. Baskaran extended the stay of collection of outstanding demand for 6 months from the date of the order or till the date of disposal of the appeal, whichever period expires earlier.

Originally the stay was granted by the Tribunal for a period of six months. The appellant was directed to pay Rs.15 crore towards the outstanding tax demand within a period of one month from the date of receipt of the order.

The appellant had complied with the conditions mentioned by the Tribunal for the grant of stay. Later, the stay against recovery of outstanding tax arrears was extended.

It was submitted by the appellant that the appeal was adjourned to 5 January 2021, and it further extended to 9 February 2021, at the behest of the Bench to await the outcome of appeals pending before the High Court of Karnataka in the appellant's case for the preceding years, involving identical issues.

It was urged by the appellant before the ITAT that the non-disposal of appeal is not due to its' fault and it prayed for an extension of the stay.

The ITAT relied on the judgments rendered by Delhi High Court Pepsi Foods Pvt. Ltd. 376 ITR 87 (Delhi) and the decision rendered by the coordinate bench in the case of SAP Labs (I) Pvt. Ltd. 67 Taxmann.com 78 and allowed the stay petition by granting an extension of 6 months.

It further ordered that the appellant shall not seek adjournment on the date of hearing without reasonable cause failing which the present stay order shall be subjected to review by the division bench hearing the appeal.