M/s. Oceans Connect India Pvt.Ltd, Pune V. Deputy Commissioner of Income tax,

ITA 162/PUN/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9874 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 24-01-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED
• Keywords: Transfer pricing; International transaction

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER . / ITA NO.162/PUN/17 / ASSESSMENT YEAR : 2010-11 M/S. OCEANS CONNECT INDIA PVT. LTD., COMMERZONE, 501, 5 TH FLOOR, BUILDING NO.6, YERAWADA, PUNE 411 006 PAN : AAGCS0318E VS. DCIT, CIRCLE -1(2), PUNE (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASS ED BY THE CIT(A)-13, PUNE ON 10-10-2016 IN RELATION TO THE ASSES SMENT YEAR 2010-11. 2. FOLLOWING GROUNDS HAVE BEEN SET OUT IN THE MEMORANDUM OF APPEAL : (I) TRANSFER PRICING : 1. THE LEARNED CIT(A) ERRED IN GIVING PARTIAL RELIEF WITH RESPECT TO THE ADJUSTMENT TO THE ARMS LENGTH PRICE AS PER SECTION 92CA(4) OF THE INCOME-TAX ACT, 1961. APPELLANT BY NONE RESPONDENT BY SHRI SUDHENDU DAS DATE OF HEARING 02-04-2019 DATE OF PRONOUNCEMENT 03-04-2019 ITA NO.162/PUN/2017 M/S. OCEANS CONNECT INDIA PVT. LTD., 2 2. THE LEARNED CIT(A) ERRED IN CONFIRMING THE ARMS LENGTH PRICE (ALP) BY ADOPTING THE TRANSACTION NET MARGIN METHOD (TNMM) BEING COST PLUS 20.39%, INSTEAD OF COST PLUS 12%, AS IS DONE BY THE APPELLANT. 3. THE LEARNED CIT(A) ERRED IN CONFIRMING THE ARMS LENGTH PRICE BY DISREGARDING THE FACT THAT HIGH TURNOVER COMPANIES, KPO, LOSS MAKING COMPANIES AND COMPANIES DOING MEDICAL TRANSCRIPTS BUSINESS, CANNOT BE TAKEN AS A COMPARABLE FOR ARRIVING AT THE ALP (EG. ACCENTIA TECHNOLOGIES, ETC.) THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND THE GROUNDS OF APPEAL AT OR BEFORE THE HEARING OF THE APPEAL. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESS EE REPORTED CERTAIN INTERNATIONAL TRANSACTIONS. ON A REFERENCE MADE BY THE ASSESSING OFFICER (AO) U/S.92CA(1) OF THE INCOME- TAX ACT, 1961 (HEREINAFTER ALSO CALLED `THE ACT), THE TRANSFER PRICIN G OFFICER (TPO), VIDE ORDER U/S.92CA(3) OF THE ACT, RECOMME NDED TRANSFER PRICING ADJUSTMENT OF RS.2,06,90,628/-. THE A O, WHILE FINALIZING THE ASSESSMENT U/S.143(3) R.W.S.144C(1), INCLUDE D THIS SUM IN THE TOTAL INCOME. THE LD. CIT(A) ALLOWED PART RELIEF. THE ASSESSEE HAS COME UP IN APPEAL BEFORE THE TRIBUNAL TO TH E EXTENT OF THE ADDITION CONFIRMED IN THE FIRST APPEAL. 4. WE HAVE HEARD THE LD. DR AND GONE THROUGH THE RELEVA NT MATERIAL ON RECORD. THERE IS NO APPEARANCE FROM THE SIDE OF THE ASSESSEE. THE CASE WAS INITIALLY FIXED FOR HEARING ON ITA NO.162/PUN/2017 M/S. OCEANS CONNECT INDIA PVT. LTD., 3 22-01-2019. NONE APPEARED ON BEHALF OF THE ASSESSEE. THE CASE WAS ADJOURNED TO 02-04-2019 AND A NOTICE WAS SENT ONCE AGAIN. TODAY AGAIN NEITHER ANYONE HAS APPEARED IN PERSON NOR FILED ADJOURNMENT APPLICATION ON BEHALF OF THE ASSESSEE. NOTICE S ENT THROUGH REGISTERED POST HAS BEEN RETURNED BY THE POSTAL AUTHO RITIES WITH THE REMARKS COMPANY LEFT WITHOUT ADDRESS . IN VIEW OF THESE FACTS, IT PRIMA FACIE APPEARS THAT THE ASSESSEE IS NOT INTERESTED IN PROSECUTION OF THE APPEAL. 5. HAVING GONE THROUGH THE IMPUGNED ORDER VIS--VIS THE ASSESSMENT ORDER AND THE TPOS ORDER ON MERITS, WE ARE S ATISFIED THAT THE ADDITION SUSTAINED IN THE FIRST APPEAL IS IN ORDER AND DO ES NOT REQUIRE ANY FURTHER INTERFERENCE. NO REASONS HAVE B EEN ADVANCED BEFORE THE TRIBUNAL WARRANTING INTERFERENCE IN THE IMPUGNED ORDER. WE, THEREFORE, UPHOLD THE SAME. 6. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 03 RD APRIL 2019. SD/- SD/- (VIKAS AWASTHY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESID ENT PUNE; DATED : 03 RD APRIL, 2019 ITA NO.162/PUN/2017 M/S. OCEANS CONNECT INDIA PVT. LTD., 4 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-13, PUNE 4. 5. THE PR. CIT-1, PUNE , , B / DR B, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE DATE 1. DRAFT DICTATED ON 02-04-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 02-04-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *