J.P.MORGAN INDIA PRIVATE LTD., MUMBAI V. ACIT.,RANGE-4(3), MUMBAI

ITA 1441/MUM/2012

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9798 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: K
• Next Hearing Date: 30-09-2014
• Assessment Year: 2003-2004
• Appeal Filed On: 02-03-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JAYANT KUMAR
• Assessee Lawyers: HARDIK KHOWALA
• Keywords: Transfer pricing; Revenue expenditure
• Section: 37

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES K , MUMBAI BEFORE S HRI SHAMIM YAHYA (AM) AND SHRI RAM LAL NEGI (JM) ITA NO. 1441 /MUM/20 1 2 ASSESSMENT YEAR - 2003 - 04 M/S J.P. MORGAN INDIA PRIVATE LTD., J.P. MORGAN TOWERS, OFF CST ROAD, KALINA SANTACR UZ (EAST) MUMBAI - 400098 PAN: AAACJ1022G VS. THE ASSISTANT COMMISSIONER OF INCOME TAX RANGE - 4(3), AAYAKAR BHAVAN, M.K. ROAD, MUMBAI (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI HARDIK KHOWALA (AR) RESPONDENT BY : SHRI JAYANT KUMAR ( DR) DATE OF HEARING: 24 /07 /201 7 DATE OF PRONOUNCEMENT: 24 / 0 7 /201 7 O R D E R PER RAM LAL NEGI, JM THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST ORDER DATED 21/11/2011 PASSED BY THE LD. CIT (A) - 1 5, MUMBAI, WHEREBY THE LD. CIT (A) HAS PARTLY ALLOWED THE APPEAL FILED BY THE ASSESSEE AGAINST ASSESSMENT ORDER PASSED U/S 143 (3) OF THE INCOME TAX ACT, 1961 . THE ASSESSE E HAS CHALLENGED THE IMPUGNED ORDER ON THE FOLLOWING EFFECTIVE GROUNDS: 1. DISA LLOWING LOSS ON ACCOUNT OF ERROR TRADES AMOUNTING TO RS. 571,747/ - . 2. DISALLOWING PROFESSIONAL FEES AMOUNTING TO RS. 5,275,857/ - INCURRED IN CONNECTION WITH THE SALE OF BUSINESS ASSET, AS REVENUE EXPENDITURE UNDER SECTION 37 (1) OF THE ACT. 2 ITA NO. 1441/MUM/2012 ASSESSMENT YEAR: 2003 - 04 3. IN COMPUTING TH E ARMS LENGTH PRICE FOR THE TRANSACTION PERTAINING TO BROKING SERVICES FOR DELIVERY V/S PAYMENT TRADES AT RS. 36,935,666/ - . 4. NOT ACCEPTING THAT THE TRANSACTIONAL NET MARGIN METHOD AS THE MOST APPROPRIATE METHOD AND CONCLUDING THAT THE COMPARABLE UNCONTROL LABLE PRICE (CUP) METHOD MAY BE APPLIED TO DETERMINE THE ARMS LENGTH PRICE IN RESPECT OF THE BROKING SERVICES PROVIDED BY THE APPELLANT. WITHOUT PREJUDICE, NOT GRANTING ANY ADJUSTMENTS TO THE RATES CHARGED BY JPMIPL TO RELATED AND UNRELATED PARTIES WHILE APPLYING CUP METHOD TO DETERMINE THE ARMS LENGTH PRICE IN RESPECT OF THE BROKING SERVICES PROVIDED BY THE APPELLANT. SINCE, THE ASSESSEE HA D ALREADY MOVED THE APPLICATION DATED 09/03/2017 FOR PERMISSION TO WITHDRAW THE PRESENT APPEAL, THE LD. COUNSEL , AT THE VERY OUTSET SUBMITT E D THAT THE ASSESSEE WANTS TO WITHDRAW THE APPEAL KEEPING IN VIEW THE SMALLNESS OF THE VALUE OF THE ADJUSTME N T S , TO AVOID PROTRACTED LITIGATION AND BUY PEACE OF MIND. THE RELEVANT PARAS OF THE APPLICATION READ AS UNDER: WE REFE R TO THE CAPTIONED APPEAL SCHEDULED FOR HEARING ON 14 TH MARCH, 2017 PREFERRED BY OUR CLIENT, JPMIPL, FOR A.Y. 2003 - 04 AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX APPEAL - 15 [ CIT (A)]. IN THIS CONNECTION, ON BEHALF OF AND UNDER THE INSTRUCTIONS OF OUR CLIENT, JPMIPL, WE WISH TO SUBMIT THAT, ON A COST BENEFIT ANALYSIS, THE MONETARY IMPACT OF THE ADJUSTMENT INVOLVED IN THE CAPTIONED APPEAL IS LESSER THAN THE COST INVOLVED FOR LITIGATION. ACCORDINGLY, JPMIPL WISHES TO WITHDRAW THE APPEAL GIVEN THE SMALLNESS OF THE VALUE OF ADJUSTMENT AND TO AVOID PROTRACTED LITIGATION AND BUY PEACE OF MIND. WE REQUEST YOUR HONOURS TO KINDLY PERMIT US TO WITHDRAW THE APPEAL FOR AY 2003 - 04 AND OBLIGE. 3 ITA NO. 1441/MUM/2012 ASSESSMENT YEAR: 2003 - 04 THE LD. DEPARTMENTAL REPRESENTATIVE ( DR) DID NOT OPPOSE THE APP LICATION FOR WITHDRAWAL OF THE APPEAL, FILED ON BEHALF OF THE ASSESSEE. IN VIEW OF THE SUBMISSION MADE BY THE LD. COUNSEL FOR THE ASSESSEE IN THE LIGHT OF THE APPLICATION D ATED 0 9 /03/2017, FILED ON BEHALF OF THE ASSESSEE, WE GRANT PERMISSION TO WITHDRAW THE PRESENT APPEAL AND DISMISS THE SAME AS W ITHDRAWN. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2003 - 04 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH JULY , 2017 . SD/ - SD/ - ( SHAMIM YAHYA ) ( RAM LAL NEGI ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED: 24 / 0 7 / 2017 ALINDRA PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI