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Vodafone India Services Ltd. v. ACIT (2021) / 212 TTJ 760 / 204 DTR 89 (Mum.)(Trib.)

S. 254(2A) : Appellate Tribunal-Stay-Demand on account of ALP adjustment for assignment of call or put options vested by assessee to its Mauritius based group concern, inasmuch as it put said group concern at an undue advantage of buying Vodafone India shares at a price much below market rate without any corresponding benefit to assessee-Stay granted on impugned tax demand subject to deposit of 20 per cent tax and furnishing of corporate guarantee from AE. [S. 220]

The Tribunal granted a stay on collection of the impugned tax and interest demands on the following conditions:-

(i) the assessee will pay approximately 20% of the disputed tax demand, within 30 days;

(ii) the assessee will furnish a corporate guarantee from an associate company, which has unencumbered assets in India in excess of the balance disputed demands;

(iii) the assessee will fully cooperate in expeditious disposal of the appeal in question, as also other appeals which are tagged and clubbed with this appeal, and in case of any lapses on the part of the assessee in this regard, this stay shall stand vacated. (AY. 2014-15)