M/S.BNY MELLON TECHNOLOGY PR vs. THE DEPUTY COMMISSIONER OF I

Judgment dt.23.10.2019 in TCA No.803 of 2019 BNY Mellon Technology Private Limited vs The Deputy Commissioner of Income Tax IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 23.10.2019 CORAM : The Hon'ble Dr.VINEET KOTHARI, ACTING CHIEF JUSTICE AND The Hon'ble Mr.JUSTICE C.SARAVANAN TCA No.803 of 2019 and CMP No.22329 of 2019 BNY Mellon Technology Private Limited (formerly known as iNautix Technologies India Private Limited), 10th Floor, TIDEL pARK, 4, Canal Bank Road, Tarmani, Chennai – 600 113 .... Appellant

-vs- The Deputy Commissioner of Income Tax, Corporate Circle – 1(2), Room No.613, 6th floor, Wanaparthy Block, 121, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034

.. Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the Order of the Income Tax Appellate Tribunal, Madras “D” Bench, dated 27.08.2019 in SP No.244/CHNY/2019. age 1 of 6 http://www.judis.nic.in Judgment dt.23.10.2019 in TCA No.803 of 2019 BNY Mellon Technology Private Limited vs The Deputy Commissioner of Income Tax For Appellant : Mr.N.V. Balani For Respondent : Mr.T. Ravikumar Sr.Standing Counsel * * * * * JUDGMENT (Order of the Court was made by the Hon'ble Acting Chief Justice) The appellant/assessee M/s BNY Mellon Technology Private Limited, (formerly known as iNautix Technologies India Private Limited), Chennai has filed this Appeal under Section 260A of the Income Tax Act, 1961 aggrieved by the Interim Order passed by the Income Tax Appellate Tribunal for the Assessment Year 2014-2015 on 27.08.2019, where by, the Income Tax Appellate Tribunal, modified its earlier order passed on 09.11.2018 in S.P.No.350/CHNY/2018 and directed the appellant/assessee to deposit the entire balance amount of tax for the Assessment Year 2014-2015. 2. Mr.N.V.Balaji,

the

learned

counsel

for

the appellant/assessee submits that their appeal for the Assessment Year 2011-2012 was already heard on 03.04.2019 and once that order is pronounced, it might set precedence for certain common issues in appeal for the subject Assessment Year. The learned counsel further age 2 of 6 http://www.judis.nic.in Judgment dt.23.10.2019 in TCA No.803 of 2019 BNY Mellon Technology Private Limited vs The Deputy Commissioner of Income Tax added that he understood that the Order of the Income Tax Appellate Tribunal for the Assessment Year 2011-2012 was referred to a third member and it is still pending. The learned counsel further submits that there was no justification for vacating the stay by directing the appellant/assessee to deposit the entire amount, but, in any case, under the Interim Order, the appellant/assessee has already paid a sum of Rs.19,20,08,644/-(Rupees Nineteen Crores twenty lakhs eight thousand six hundred forty four only) against total outstanding due of Rs.40.89 crores and therefore, the appeal itself deserves to be heard on merits without directing the appellant/assessee to pay the balance amount of tax. 3. Learned Standing Counsel appearing for the Revenue submits that the substantial amount of demand deserves to be paid by the assessee, subject to the result of the appeal. 4. Having regard to the submissions made by the learned counsel on either side, we are of the opinion that though normally against the interim order passed by the Income Tax Appellate Tribunal, the intervention of this Court under Section 260-A is not required to be age 3 of 6 http://www.judis.nic.in Judgment dt.23.10.2019 in TCA No.803 of 2019 BNY Mellon Technology Private Limited vs The Deputy Commissioner of Income Tax made as no substantial question of law involved in this case. However, the circumstances under which the learned Tribunal appears to have vacated the earlier stay order is required to be taken into account. We, therefore, direct the appellant/assessee to deposit a further sum of Rs.5,00,00,000/-(Rupees Five Crores only) against the disputed demand of Assessment Year 2014-2015 with the Income Tax Department within a period of six weeks from the date of receipt of a copy of this order (besides the amounts already deposited by the Assessee). If such deposit of Rs.5,00,00,000/-(Rupees five crores only) is made, the learned Income Tax Appellate Tribunal may proceed to decide the appeal, on merits and in accordance with law as expeditiously as possible. 5. With the above observation, the Tax Case Appeal is disposed of. No costs. Consequently, connected Miscellaneous Petition is closed. (V.K., ACJ.) (C.S.N., J.) 23.10.2019 Speaking Order/Non-Speaking Order Index : Yes/No sr age 4 of 6 http://www.judis.nic.in Judgment dt.23.10.2019 in TCA No.803 of 2019 BNY Mellon Technology Private Limited vs The Deputy Commissioner of Income Tax To The Deputy Commissioner of Income Tax, Corporate Circle – 1(2), Room No.613, 6th floor, Wanaparthy Block, 121, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034 age 5 of 6 http://www.judis.nic.in Judgment dt.23.10.2019 in TCA No.803 of 2019 BNY Mellon Technology Private Limited vs The Deputy Commissioner of Income Tax The Hon'ble Acting Chief Justice and C.Saravanan, J. sr TCA No.803 of 2019 23.10.2019 age 6 of 6 http://www.judis.nic.in