Juriscape Legal Research Pvt.Ltd., Ahmedabad V. The Income tax Officer,Ward-4(2), Ahmedabad

ITA 1175/AHD/2013

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 7050 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 year(s) 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 26-04-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Keywords: Transfer pricing; Tax effect

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD ( CONVENED THROUGH VIRTUAL COURT ) BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NOS. 1175/AHD/2013 & 3030/AHD/2014 ( ASSESSMENT YEAR : 2008-09) JURISCAPE LEGAL RESEARCH PVT. LTD. 1001, TENTH FLOOR, GNFC TOWER, S. G. ROAD, AHMEDABAD - 380054 / VS. INCOME TAX OFFICER WARD 4(2), AHMEDABAD ( APPELLANT ) .. ( / RESPONDENT ) & ./ I.T.A. NO. 1314/AHD/2013 ( ASSESSMENT YEAR : 2008-09) THE DCIT (OSD)-I CIRCLE-4, AHMEDABAD NAVJIVAN TRUST BLDG., OFF. ASHRAM ROAD, AHMEDABAD / VS. JURISCAPE LEGAL RESEARCH PVT. LTD. 1001, TENTH FLOOR, GNFC TOWER, S. G. ROAD, AHMEDABAD - 380054 ./ ./ PAN/GIR NO. : AABCJ7308L ( APPELLANT ) .. ( / RESPONDENT ) / ASSESSEE BY : SHRI AMRIN PATHAN, A.R. / REVENUE BY : SHRI LALIT P. JAIN, SR.DR DATE OF HEARING 27/01/2021 !'# / DATE OF PRONOUNCEMENT 28/01/2021 ITA NOS. 1175 & 1314/AHD/13 & 3030/AHD/14 (JURISCAPE LEGAL RESEARCH PVT. LTD.) - 2 - / O R D E R PER BENCH : THE CAPTIONED TWO APPEALS OF ASSESSEE (QUANTUM AND PENALTY) AND ONE APPEAL OF REVENUE, ARISE FROM THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) (CIT(A)) CON CERNING A.Y. 2008-09. 2. THE CAPTIONED ASSESSEE HAS SOUGHT TO WITHDRAW TH E APPEALS LISTED ABOVE ON THE GROUND THAT THEY HAVE OPTED TO AVAIL BENEFITS OF VIVAD SE VISHWAS SCHEME, 2020 (VSV). WHEN THE MA TTER WAS CALLED FOR HEARING, THE LD. COUNSEL FOR THE ASSESSE E AT THE OUTSET HAS SUBMITTED THAT HE DOES NOT SEEK TO PURSUE THE SAID APPEALS OWING TO EXERCISE OF OPTION FOR AVAILING VSV SCHEME AND CONS EQUENTLY REQUESTED THAT THEIR APPLICATIONS FOR WITHDRAWAL OF APPEALS MAY PLEASE BE GRANTED. REFERENCE WAS ALSO MADE TO WRIT TEN REQUESTS IN THIS REGARD. 3. THE LD. DEPARTMENTAL REPRESENTATIVE FOR THE REVE NUE STATED THAT HE HAS NO OBJECTION TO WITHDRAW THE APPEALS IN THE CIRCUMSTANCES NARRATED ON BEHALF OF THE ASSESSEE. 4. IN THE LIGHT OF ORAL/WRITTEN REQUESTS MADE ON BE HALF OF THE CAPTIONED ASSESSEE, BOTH APPEALS OF ASSESSEE IN ITA NOS. 1175/AHD/2013 & 3030/AHD/2014 ARE DISMISSED AS WITH DRAWN. HOWEVER, IN THE EVENT, THE ASSESSEE FAILS TO AVAIL THE BENEFIT OF VSV SCHEME FOR ANY BONAFIDE REASONS, THEN THE ASSESSEE CONCERNED WILL BE AT LIBERTY TO SEEK RESTORATION OF ORIGINAL APPEA LS FOR HEARING BEFORE ITAT IN ACCORDANCE WITH LAW. ITA NOS. 1175 & 1314/AHD/13 & 3030/AHD/14 (JURISCAPE LEGAL RESEARCH PVT. LTD.) - 3 - 5. IN THE RESULT, BOTH APPEALS OF ASSESSE ARE DISMI SSED AS WITHDRAWN. ITA NO. 1314/AHD/2013 (REVENUES APPEAL) 6. THE GROUNDS OF APPEAL RAISED BY THE REVENUE READ HEREUNDER: 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DIRECTING THE A.O. TO REDUCE THE UPWARD ADJUSTMENT MADE U/S 9 2CA(3) OF THE ACT BY THE TPO TO RS.1,19,73,447, OUT OF THE TO TAL ADJUSTMENT OF RS.2,46,24,464/- IN RESPECT OF INTERNATIONAL TRA NSACTIONS AT ARMS LENGTH PRICE. 2. THE LD.CIT(A) ERRED IN REJECTING THE COMPARABLE CASES OF MOLD TEK TECHNOLOGIES LTD. AND CORAL HUB LTD. 3. THE LD.CIT(A) ERRED IN DETERMINING THE ARMS L ENGTH MEAN MARGIN AT 16.36% AS AGAINST 32.89% DETERMINED BY THE A.O. (ON THE BASIS OF TPOS ORDER) WITHOUT ANY BASI S. 7. AT THE TIME OF HEARING, IT IS TRANSPIRED THAT TH E APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISING THE PREVIOUS THRESHOLDS P ERTAINING TO TAX EFFECTS. IT IS INTER ALIA NOTICED THAT THE CBDT VIDE INSTRUCTION NO. F. NO. 279/MISC/M-93/2018-ITJ DT. 20/08/2019 HAS OB SERVED THAT CIRCULAR NO.17/2019 DATED 08/08/2019 RELATING TO EN HANCEMENT OF MONETARY LIMITS IS ALSO APPLICABLE TO ALL PENDING A PPEALS. AS PER AFORESAID CIRCULAR READ WITH INSTRUCTION, ALL PENDI NG APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EXCEEDING RS.50 LAKHS AND THEREFOR E APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED IN LIMINE . 8. THE LEARNED DR FOR THE REVENUE COULD NOT DEMONST RATE IN APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, ITA NOS. 1175 & 1314/AHD/13 & 3030/AHD/14 (JURISCAPE LEGAL RESEARCH PVT. LTD.) - 4 - APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL IN ACCORDANCE WITH LAW ON SHOWING INAPPLICABILITY OF T HE AFORESAID CBDT CIRCULAR IN ANY MANNER. 9. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. 10. IN THE COMBINED RESULT, BOTH APPEALS OF ASSESSE E ARE DISMISSED AS WITHDRAWN. LIKEWISE, REVENUES APPEAL IS ALSO D ISMISSED. SD/- SD/- (RAJPAL YADAV) (PRADIP KUMA R KEDIA) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD: DATED 28/01/2021 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED ON 28/01/2021