Addl. CIT, New Delhi V. M/s Giesecke & Devrient Pvt. Ltd., Gurgaon

ITA 1159/DEL/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0959 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2006-2007
• Appeal Filed On: 28-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURENDER PAL; F R MEENA
• Keywords: Transfer pricing; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH I-1, NEW DELHI BEFORE SH. KUL BHARAT, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA NO. 1159/DEL/2017 : ASSTT. YEAR : 2006-07 ITA NO. 2051/DEL/2017 : ASSTT. YEAR : 2007-08 ADDL. CIT, SPECIAL RANGE-4, NEW DELHI VS M/S GIESECKE & DEVRIENT PVT. LTD., 5 TH FLOOR, TOWER-D, GLOBAL BUSINESS PARK, M.G. ROAD, GURGAON-122022 (APPELLANT) (RESPONDENT) PAN NO. A A CBG4223D ASSESSEE BY : SH. HARPREET SINGH AJMANI, ADV. REVENUE BY : SH. SURENDER PAL, CIT DR & SH. F. R. MEENA, SR. DR DATE OF HEAR ING: 05 . 07 .20 2 1 DATE OF PRONOUNCEMENT: 08 .07 .20 2 1 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEALS HAVE BEEN FILED BY THE REVENUE AGAINST THE ORDERS OF THE LD. CIT(A)-19, NEW DELHI DATED 15.12.2016 AND 09.01.2017. 2. SINCE, THE ISSUES INVOLVED IN BOTH THE APPEALS A RE IDENTICAL, THEY WERE HEARD TOGETHER. 3. IN ITA NO. 2051/DEL/2017, FOLLOWING GROUNDS HAVE BEEN RAISED BY THE REVENUE: 2. ON FACTS AND CIRCUMSTANCES OF THE CASE, THE L D. CIT(A) ERRED IN DELETING THE ADDITION ON ACCOUNT OF TRANSFER PRICING ADJUSTMENTS IGNORING THE FACT THAT ITA NOS. 1159 & 2051/DEL/2017 GIESECKE & DEVRIENT PVT. LTD. 2 DURING THE REMAND PROCEEDINGS, THE TPO ONLY VERIFIE D THE GENUINENESS OF THE DOCUMENTS AND DID NOT BENCHMARKED THE TRANSACTION OR DETERMINED THE ALP. 4. THE RELEVANT FACTS AND ADJUDICATION IS AS UNDER: 1. THE ASSESSMENT ORDER IN THIS CASE HAS BEEN PASSED O N 30.09.2010 FOR THE ASSESSMENT YEAR 2006-07 AND ON 24.10.2011 FOR THE ASSESSMENT YEAR 2007-08 2. THIS IS A SECOND ROUND OF APPEAL BEFORE THE TRIBUNA L. 3. THE CO-ORDINATE BENCH OF ITAT VIDE ORDER DATED 15.03.2013 IN ITA NO. 5735/DEL/2011 RESTORED THE ISSUE OF ADJUSTMENT OF MANAGEMENT & CONSULTANCY FEE , PURCHASE OF FINISHED GOODS TO THE FILE OF THE AO. 4. THE AO REFERRED THE MATTER TO THE TPO. 5. TPO REFUSED TO ENTERTAIN THE REQUEST OF THE AO STAT ING THAT THE TPO HAS NO JURISDICTION OVER THE DIRECTION S GIVEN BY THE ITAT. 6. THE ASSESSING OFFICER HELD THAT THE TPO IS HIMSELF CONFUSED ABOUT THE JURISDICTION OVER THE TP MATTER AND WISELY REPEATED THE ADDITION MADE IN THE ORIG INAL ORDER IN THE SET ASIDE PROCEEDINGS.(PARA 3.3 OF THE AO) 7. THE LD. CIT (A), HOWEVER, CALLED FOR A REMAND REPOR T FROM THE TPO-2(1)(1) AND RECEIVED REPLY ON 19.12.2016. 8. HAVING GONE THROUGH THE REMAND REPORT, THE LD. CIT (A) HAS DELETED THE ADDITION. 9. AGGRIEVED WITH THE ORDER OF THE LD. CIT (A), THE LD . PCIT HAS APPROVED FILING OF FURTHER APPEAL BEFORE T HE TRIBUNAL. ITA NOS. 1159 & 2051/DEL/2017 GIESECKE & DEVRIENT PVT. LTD. 3 10. ON MERITS OF THE SUBJECT, WE FIND THAT THE ISSUE INVOLVES FURTHER ADJUSTMENT ON ACCOUNT OF MANAGEMEN T & CONSULTANCY FEE FOR WHICH NO SEPARATE ADDITION IS REQUIRED FOR MARK UP WHEN THE TPO HAS ALREADY ADOPTED TNMM. TO THAT EXTENT, THE MERIT OF THE ADDITION HAS BEEN RIGHTLY DEALT BY THE LD. CIT(A). 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08/07/2021. SD/- SD/- (KUL BHARAT) ( DR. B. R. R. KUMAR) JUDICIAL MEMBER AC COUNTANT MEMBER DATED: 08/07/2021 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR