TMI Blog2013 (8) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany can be used as a comparable, since all the international Companies close their accounts on dates other than 31st March each year & most international Companies use calendar year as their year end. Based on the above, financial data of MacMillan India Ltd. can be used as a comparable. On a perusal of the order of the DRP it has to be set aside as finding support from the judgement of Vodafone Essar Ltd. which has very categorically held that when a quasi Judicial Authority like the DRP deals with lis u/s 144C then it is obligatory on its part to ascribe cogent and germane reasons as reasons are the heart and soul of the matter and facilitate the appreciation of the order when the order is called in question either before a superior forum or an Appellate forum. It is an admitted position on record that in support of its comparables various assertions and facts have been made which has been not dealt with by the DRP. Accordingly, the DRP's order along with the impugned order is set aside and the issue is restored back to the file of the DRP with the direction to pass a speaking order in accordance with law - in favour of assessee for statistical purposes. - I.T.A .No.-5642/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... information showed that the company had paid Rs.24,89,799/- to Galaxy Auto Pvt. Ltd. and Prime Honda, Delhi for purchase of cars. On the basis of audit report furnished by the assessee, the matter was referred to the TPO for determining the Arm's Length Price of the transaction. The TPO vide his order dated 30.09.2009 determined a sum of Rs.2,84,01,593/- being the difference between the arm's length margin. Accordingly a show-cause notice was issued why an addition, of the said amount not to be made to the assessee's income. The assessee moved the alternative dispute resolution panel against the additions proposed by the TPO. The objections of the assessee were not allowed; consequently the impugned assessment order was passed. Aggrieved by this, the assessee is in appeal before the Tribunal. 3. Ld. AR, at the time of hearing submitted that the objections passed by the assessee were disposed by the DRP in a cursory manner and various objections on facts and law were raised before the DRP. The comparables which were suggested by the assessee namely M/s HT Media Ltd. and M/s MacMillan India Ltd. were not accepted by the TPO and the assessee had addressed copious arguments in suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... '. Ht Media Ltd. is reporting its Revenues from Printing Sale of Newspapers Sale of magazines/ Publications under one segment, which is confirmed from its note no.-4 to the Notes to the Accounts as reproduced below: Segment Information The Company is engaged in the Printing and Publication of Newspapers and Periodicals. The entire operations are governed by the same set of risk and returns, hence, the same has been considered as representing a single primary segment. The said treatment is in accordance with the guiding principles enunciated in the Accounting Standard -17 on Segment Reporting. On Objection No.3.2: Rejection of Comparables :- 14. MacMillan India Ltd as a comparable was rejected by the learned TPO for the simple reason that the financials of Macmillan India Ltd were for the year ended 31st December 2005 whereas the Financials of the tested party are for 31st March 2006. We would like to reiterate that the annual closure of the companies can in no way hamper the comparability of the results as long as the results are for a uniform period. In this case the Annual results of both the Companies are for a period of 12 months as such both the companies have gone t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... guishing the business being different from the assessee's and in the case of MacMilan India Ltd., he has been pointed out the differences in accounting period. The other comparable of the assessee has been accepted by the TPO and the arm's length price has been worked out on that basis. We, therefore, do not find any infirmity in the draft order and decide that no interference with the proposed order is warranted." 5.2. Section 144C of the Act envisages that the DRP shall act in the following manner:- "[Reference to dispute resolution panel] 144C. (1) ****************************** (2) ************************************ (3) ************************************ (4) ************************************ (5) The Dispute Resolution Panel shall, in a case where any objection is received under sub-section (2), issue such directions, as it thinks fit, for the guidance of the Assessing Officer to enable him to complete the assessment. (6) The Dispute Resolution Panel shall issue the directions referred to in sub-section (5), after considering the following, namely:- (a) draft order; (b) objections filed by the assessee; (c) evidence furnished by the assessee; (d) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Resolution Panel and expeditious disposal of the objections filed under sub-section (2) by the eligible assessee. ------------------------------- The following sub-section (14A) shall be inserted after sub-section (14) of section 144C by the Finance Act, 2012, w.e.f. 1-4-2013:- (14A) The provisions of this section shall not apply to any assessment or reassessment order passed by the Assessing Officer with the prior approval of the Commissioner under sub-section (12) of section 144BA. ------------------------------ 5.3. On a perusal of the order of the DRP which has been reproduced in the earlier part of this order. We are of the view that in the peculiar facts and circumstances of the case and position of law, the impugned order which has been passed consequent to the DRP's order has to be set aside. We find support from the judgement of the Hon'ble High Court in the case of Vodafone Essar Ltd. which has very categorically held that when a quasi Judicial Authority like the DRP deals with lis u/s 144C of the Act then it is obligatory on its part to ascribe cogent and germane reasons as reasons are the heart and soul of the matter and facilitate the appreciation of the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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