9911796707
TMI Blog2022 (5) TMI 1519X X X X Extracts X X X X X X X X Extracts X X X X ..... eing disposed of by this common order, for the sake of convenience. 2. In all the five years, the assessee is challenging the decision of Ld CIT(A) in confirming the transfer pricing adjustment made in respect of fee paid for management services determining the ALP as NIL. In AY 2012-13 and 2013-14, the assessee is challenging the decision of Ld CIT(A) in confirming the disallowance of writing of loose tools. 3. The assessee is engaged in the business of manufacture and sale of Carbon Blocks and brushes, fuses and heat exchangers and also trading in fuses. The assessee was formerly known as Carbon Lorraine India P Ltd and it is subsidiary of Le Carbone Lorraine S.A, France. The assessee has entered into several international transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the taxpayer from the alleged services and consequent payment of management/maintenance fees of Rs.91,51,375/- and consequently did not prove the arm's length nature of management fees paid to its AE." 4. The Ld CIT(A) accepted Arm's Length Price in respect of five items and confirmed the decision of TPO in respect of remaining three items. It is pertinent to note that the revenue has not filed appeals challenging the relief granted by Ld CIT(A) in respect of all the five years and hence the said issue has attained finality. The assessee is contesting the transfer pricing adjustment confirmed by the Ld CIT(A) in respect of following three items in all the five years:- Assessment year Strategy & General management (Rs.) Marketing, C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. Hence the revenue could not have taken a different stand in the years under consideration. (v) the Ld CIT(A) was not justified in confirming the action of the TPO in respect of above said three services. In support of above said contentions, the Ld A.R placed his reliance on host of case laws. 6. We heard Ld D.R and perused the record. We notice that the TPO has accepted that the international transactions at "entity level" is at arm's length. We also notice that the management fee paid by the assessee formed part of operative expenses. Hence the Ld A.R has contended that the TPO could not have benchmarked management fee paid by the assessee separately. We also notice that the TPO has determined ALP of management fee payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... every year for identical services provided by AE and the revenue has taken a particular stand with regard to the services so provided by the AE, in our view, there is no scope for applying the principle of res-judicata in other years for this matter for taking different stand in others for the identical payments made by the assessee. However, it is not clear as to whether the decision rendered by AAR against the assessee has attained finality or not. 8. Accordingly, on a conspectus of the matter, we are of the view that the issue relating to transfer pricing adjustment in respect of three types payments referred in the table issue needs to be examined in the light of contentions of the assessee discussed supra at the end of TPO/AO. The tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ording to the Assessing Officer, it has to be grouped under the head Block of Assets and depreciation to be claimed at applicable rate. The Assessing Officer disallowed the amount and granted depreciation @ 10%. On appeal, the CIT(Appeals) confirmed the action of the Assessing Officer on this issue. Aggrieved by the assessee, the assessee is in appeal before us. 11. We have heard the rival contentions, perused and carefully considered the material on record. The learned Authorised Representative submitted that the loose tools is nothing but inventories and have no span of life and the loose tools to be considered as inventories awaiting to use in product process and same to be accounted at cost or net realizable value whichever is lower ..... X X X X Extracts X X X X X X X X Extracts X X X X
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