Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2016 (10) TMI 539

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f Income Tax (Appeals) being inconsistent with Transfer Pricing Provisions. We rely on the decision of Supreme Court in the case of Sahara India vs. CIT & Anr. (2008 (4) TMI 4 - Supreme Court ) were held that "an administrative order has to be consistent with the rules of natural justice" and similar view was considered by the Delhi Bench of the Tribunal in the case of GAP International Sourcing India (P) Ltd. vs. DCIT (2010 (12) TMI 94 - ITAT, NEWDELHI ) and M/s. Adobe Systems India Private Ltd. v. Addl. CIT [2011 (1) TMI 933 - ITAT NEW DELHI ], the order passed by the Commissioner of Income Tax (Appeals) is without going into the details of the submissions and should be decided afresh. Considering apparent facts, material evidence and .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of Income Tax (Appeals), passed merely 14 months of the only hearing is opposed to equity. natural justice and fair play and contrary to the instructions of the Board. 3. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the order of the Assessing Officer is without jurisdiction. 4. For that the Commissioner of Income Tax (Appeals) erred in upholding tile transfer Pricing addition of ₹ 5, 15, 11,202/- 5. For that the Commissioner of Income Tax (Appeals) erred in allowing only Rs. 50 lakhs out of Rs. 5,65, 11,202/- claimed by the appellant 6. For that the Commissioner of Income Tax (Appeals) erred in rejecting the TNMM method as the most appropriate method 7. For that the Com .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... notice u/s.92CA of the Act for determination of Arms Length Price in relation to international transactions. The ld. TPO on the basis of the transactions reported in Audit form under 3CEB, found the assessee company has international transaction, on segment wise aggregating to Rs. 40,26,63,930/-. The assessee company has adopted Transactional Net Margin Method (TNMM) and CUP method as most appropriate method and having 15 comparables whose Arithmetic Mean of PLI (Operating Profit /Operating Cost) is 12.30% as against the assessee s PLI at 12.58%. The ld. TPO has issued show cause notice in respect of professional services paid to Acuma Solutions, UK. During the financial year 2008-09, the assessee company paid ₹ 5.65 Crores to its A .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... profits outside the country as the training was provided to the said set of employees and the beneficiary is the Associated Enterprise. The assessee company incurred ₹ 12 crores expenses in two years for training their employees but project obtained was only ₹ 1.25 crores. The ld. TPO relied on the decision of Gemplus India Private Limited, the Bangalore Bench of the Tribunal were held that the assessee company has adopted the TNMM method as MAM which is not appropriate and rejected Arms Length Price determined by the TNMM method. The ld. Authorised Representative filed submissions were the ld. TPO determined Arms Length Price of professional fees as ₹ 50 lakhs as against ₹ 5.7 crores paid by the assessee company. T .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ng of profits and is of the opinion that the addition made by the ld. Assessing Officer is appropriate. Further in respect of corporate grounds raised by the assessee No. 3, 4 5 applying the provisions of Sec. 40(a)(ia) of the Act were the ld. Assessing Officer made an addition of ₹ 50 lakhs for non deduction of TDS of professional payments and confirmed the same. Further, the ld. Commissioner of Income Tax (Appeals) granted partial relief in respect of deduction u/s.10B of the Act in determination of export turnover following the assessee s own case for the assessment years 2002-2003 2003-2004 in 313 ITR 353 and directed the ld. Assessing Officer to recompute the deduction u/s.10B of the Act and on the last ground of disallowance .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ings by the ld. Commissioner of Income Tax (Appeals) in adjudicating the grounds raised before and prayed for allowing the appeal. 6. Contra, ld. Departmental Representative relied on the orders of Commissioner of Income Tax (Appeals) and vehemently opposed to the grounds. 7. We heard the rival submissions, perused the material on records, judicial decisions cited and paper book filed. The ld. Commissioner of Income Tax (Appeals) has passed order overlooking voluminous information filed in the appellate proceedings against the order passed by the ld. Assessing Officer. The Commissioner of Income Tax (Appeals) has to consider every point of dispute of assessee and pass a speaking order. But, the order passed by the Commissioner of Inco .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates