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TMI Blog2018 (4) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 with sub-grounds no.1.1 to 1.18, the assessee has raised a number of issues concerning transfer pricing adjustment. However, at the time of hearing, the learned Authorised Representative appearing for the assessee wanted to press ground no.1.1 only and restricted his arguments only in respect of this ground 4. Brief facts are, the assessee an Indian company in the relevant previous year entered into the following international transactions with its Associated Enterprise (A.E). S.no. Particulars F.Y. 2010-11 Method Used 1. Purchase of automotive parts 40.24 TNMM 2. Purchase of finished goods 0.17 TNMM 3. Payment of royalty for technical know-how 2.67 TNMM 4. Interest on ECB loan 0.14 TNMM/CUP 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchases of Rs. 142.04 crore, the Assessing Officer worked out the proportionate downward adjustment of Rs. 1,92,64,430, to the value of international transaction shown by the assessee with A.E. In terms of the transfer pricing adjustment proposed by the Transfer Pricing Officer, the Assessing Officer passed the assessment order making addition of the transfer pricing adjustment. 6. The assessee challenged the transfer pricing adjustment before the first appellate authority, inter-alia, on the ground that the price paid by the assessee towards purchase of automotive parts being within the range of +/-5% of the arm's length price determined by the Transfer Pricing Officer, no adjustment should have been made. However, the aforesaid gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Commissioner (Appeals). He, therefore submitted, no adjustment is required to be made in case of the assessee in view of the specific provisions contained under the second proviso to section 92C(2) of the Act. 9. Learned Departmental Representative, though, agreed in principle that in terms with second proviso to section 92C(2), no adjustment is required to be made if the difference in the price shown by the assessee and arm's length price determined is within +/-5% as applicable for the relevant period, however, the Assessing Officer / Transfer Pricing Officer may be directed to verify the computation furnished by the assessee and decide the issue in terms with the said provision. 10. We have heard rival submissions and perused ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee's appeal is allowed for statistical purposes. ITA no.6885/Mum./2016 Revenue's Appeal 12. The only ground raised by the Revenue is as under:- "On the facts and in the circumstances of the case and in law, the learned Commissioner (Appeals) erred in directing the A.O. to increase the value of opening stock by Rs. 1,90,66,965 on account of addition made to closing stock for A.Y. 2010-2011 being unutilized modvat credit which is contrary to the direction given by CIT(A) to A.O, to determine the value of opening stock purchase sales and closing stock as per provision of section 145A of the Act, while deciding ground number 2." 13. Brief facts are, during the assessment proceedings, the Assessing Officer noticing that there is clos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1,90,66,965 for the addition made to closing stock of assessment year 2010-11 while making adjustment of modvat credit of Rs. 1,73,52,615 to the value of closing stock. Thus, this ground of appeal is treated as allowed." 15. We have heard rival submissions and perused materials available on record. Undisputedly, in assessment year 2010-11, the Assessing Officer has disallowed unutilized MODVAT credit of Rs. 1,90,66,965 and added to the closing stock of the impugned assessment year. It is held by the Hon'ble Jurisdictional High Court in CIT v/s Mahalaxmi Glass Works Ltd., ITA no.192 of 2009 dated 1st April 2009, as per section 145A of the Act, if there is any change in the closing stock at the end of the year then there must necess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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