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TMI Blog2024 (3) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... nnels. Petitioner purchased a bundle of sports rights from ESPN Star Sports ('ESS ') which enabled it to run 24*7 sports broadcasting channels in India. The value for the bundle of sports rights was determined based on the valuation report of an independent valuer ('original valuation report') at USD 1,211 million. The valuer used an income approach by applying the Discounted Cash Flow ('DCF') method. This value was at a 9.5% discount from the value contracted between ESS and International Sports Bodies ('third party ISBs') at USD 1,338 million, which is an undisputed fact. 3. The Transfer Pricing Officer ('TPO'), while accepting the DCF method, towards the value of the bundle of sports rights primarily made only 2 adjustments - disregardi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n dated 21st April 2022 under Section 254(2) of the Income-tax Act, 1961 ('the Act'). By the said application, petitioner sought consideration of these issues. In the rectification application, petitioner, inter alia, drew attention to the decision of this Court in the case of Coca-Cola India (P.) Ltd. vs. Assistant Registrar representing Income Tax Appellate Tribunal (2014) 52 taxmann.com 399 (Bombay) wherein paragraph 18 reads under: "18... There is no reference at all made by the Tribunal to the adequacy or sufficiency or otherwise of the materials before Commissioner of Income Tax (Appeals) and the Respondent No. 2. It has failed to take note of the report submitted to the Commissioner by the Assessing Officer after remand of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted the rectification application made under Section 254 of the Act by holding that it is not a mistake apparent from the record and that non-adjudication of various grounds would not justify a review applying the ratio of this court in the case of Commissioner of Income Tax Vs. Ramesh Electrical Company Ltd. 203 ITR 497. The Tribunal did not deal with petitioner's submission relying upon Coca-Cola (Supra). 7. We are also informed that for the subsequent assessment year, the Tribunal, vide its order dated 2nd May 2022, agreed with petitioner's contention that it was not a fit case for remitting the case for a fresh valuation exercise and the matter ought to be decided on merits by the Tribunal itself and in accordance with judicial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n fee is not correct. It is not the case of the revenue nor the order of the Tribunal that before the characterization of the fee can be decided, certain facts are to be ascertained. Thus, all facts to decide on the question of law was available with the Tribunal. In the above circumstances, the Tribunal ought to have dealt with the issue itself. By not dealing with an issue which is otherwise ripe for consideration and instead remanding to the TPO, the Tribunal has ensured further litigation and continued uncertainty for both the Revenue and the assessee. This observation of ours with regard to conduct of the Tribunal finds support in the decision of this Court in Coca-Cola India (P) Ltd Vs. Assistant Registrar representing Income Tax Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal, the Tribunal ought to have decided or dealt with the issue itself." 9. As held by this Court, in Coca-Cola India (P.) Ltd. (supra) and Sony Pictures Networks India Pvt Ltd (supra), by not dealing with an issue which is otherwise ripe for consideration and instead remanding to the TPO, the Tribunal has ensured further litigation and continued uncertainty for both the revenue and petitioner. In addition, non-consideration of the above basic submissions made at the hearing as recorded, is clearly a mistake apparent from the record. The Tribunal ought to have allowed the rectification application dated 21st April 2022 and recalled the order dated 25th November 2021 in respect of issues raised in the rectification application for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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