PER B. RAMAKOTAIAH, A.M. By this stay application assessee is seeking stay of payment of Rs.1,28,63,574 consisting of tax of Rs.82,83,186 and interest of Rs.45,80,388.

2. Ld. Counsel submitted that assessee has filed return declaring income of Rs.6,21,34,880 and A.O. made an addition of Rs.2,61,64,283 and raised demand of Rs.1,28,63,574. After this, pending stay application before the ITAT, as A.O. was insisting for payment immediately, assessee has discharged further amount of Rs. 42 lakhs and therefore, the outstanding demand has come down to Rs.86,63,574. It was submitted that A.O. made an addition of Rs.1,60,66,825 as interest on overdue receivables from AEs. It was submitted that assessee has no practice of charging SA.No.95/Hyd/2014 in ITA.No.1416/Hyd/2014 Syniverse Mobile Solutions P. Ltd., Hyderabad interest on any amount outstanding either with the AEs or non- AEs and so action of A.O. in charging interest from the AE is not correct. Further, it was submitted that A.O. also charged interest beyond the accounting period and therefore, their contention on calculation as well as rate of interest adopted are also to be considered. It was also submitted that assessee is a debt free company and there was no interest liability at all, therefore, calculation of interest notionally is not permitted. Assessee relied on the judgment of Honble Bombay High Court in the case of CIT vs. Indo American Jewellery Ltd., ITA.No.1053 of 2012 dated

08.01.2013 and Coordinate Bench decision of Mumbai Tribunal in the case of Evonik Degussa India P. Ltd., vs. ACIT ITA.No.7653/Mum/2011 dated 21.11.2012 for the above propositions. With reference to other addition of Rs.1,00,97,458 i.e., T.P. adjustment on provision for software development services and ITES, it was submitted that TPO has taken some comparables which are in product development and if these companies are excluded, the arms length price determined will be within the range of the assessee. Therefore, there will be no need for any adjustment. It was prayed that since assessee has discharged 50% of the tax demand already, the balance amount may be stayed. It was also submitted that the case is originally posted on 30 th December, 2014 but since company would be closed during that period, Ld. Counsel requested for posting on 07.01.2015.

3. Learned D.R. further relied on the orders of the A.O.

4. After considering the submissions of Ld. Counsel and perusing the orders on record, we are convinced that assessee has made out a prima facie case and balance of convenience in its favour. Considering the fact that 50% of the tax demand has been SA.No.95/Hyd/2014 in ITA.No.1416/Hyd/2014 Syniverse Mobile Solutions P. Ltd., Hyderabad discharged after stay application has been filed before this Forum, we are inclined to grant stay of the balance of the demand till the disposal of the appeal or for a period of six months whichever is earlier. Assessee should not seek any adjournment without any valid reason and if any paper book is to be filed, the same should be filed before date of posting as per the Rules. Case is posted for hearing on 07.01.2015. Since the date is announced in the open Court, Registry is dispensed with issuing of fresh notice. Ordered accordingly.

5. In the result, stay application of the assessee is allowed. Order pronounced in the open Court on 26 .09.2014. Sd/- Sd/- (SAKTIJIT DEY) (B.RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated 26th September, 2014 VBP/- Copy to

1. Syniverse Mobile Solutions P. Ltd., (Earlier known as M/s. MACH Mobile Solutions P. Ltd.,) iLabs Centre, Lobby Floor, Plot No.18, Madhapur, Hyderabad-500008

2. DCIT, Circle 16(2), Aayakar Bhavan, Basheer Bagh, Hyderabad.

3. Disputes Resolution Panel, 2 nd Floor, I.T. Towers, 10-2-3, A.C. Guards, Hyderabad 500 004.

4. CIT(A)-1, Hyderabad

5. D.R. ITAT, B Bench, Hyderabad.