PURATOS FOOD INGREDIENTS INDIA P.LTD, MUMBAI V. DCIT CIR 3(2)(2), MUMBAI

ITA 1659/MUM/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3907 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 10 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: K
• Assessment Year: 2011-2012
• Appeal Filed On: 22-03-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Depreciation; Transfer pricing; Unabsorbed depreciation
• Section: 143(3); 13; 92CA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH J, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER ITA NO.1659/MUM/2016(A.Y.2011-12) PURATOS FOOD INGREDIENTS INDIA PRIVATE LIMITED, LEVEL 4, THE CENTRIUM, PHOENIX MARKET CITY, LBS MARG, KURLA (WEST) MUMBAI 400 070 PAN:AADCP 4743M ...... AP PELLANT VS. DY. COMMISSIONER OF INCOME-TAX, CIRCLE.3(2)(2), 6 TH FLOOR, AAYKAR BHAVAN, M.K.ROAD, MUMBAI- 400 020 ..... RE SPONDENT APPELLANT BY : SHRI KISHORE PATEL (WITHDRAWAL LETTER DT.24/01/2020) RESPONDENT BY : SHRI UODAL RAJ S INGH DATE OF HEARING : 18/02/2020 DATE OF PRONOUNCEMENT : 18/02/2020 ORDER PER VIKAS AWASTHY, JM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ASSESSMENT ORDER DATED 29/01/2016 PASSED UNDER SECTION 143(3) R.W.S .144C(1) AND SECTION 92CA OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT ) FOR THE ASSESSMENT YEAR 2011-12. 2 ITA NO.1659/MUM/2016(A.Y.2011-12) 2. SHRI KISHORE PATEL APPEARED ON BEHALF OF THE AS SESSEE AND FILED A REQUEST LETTER DATED 24/01/2020, SIGNED BY DIRECTOR/AUTHORI ZED SIGNATORY OF THE ASSESSEE COMPANY TO WITHDRAW THE APPEAL. THE REL EVANT EXTRACT OF THE SAME IS REPRODUCED HEREIN BELOW:- RE : PURATOS FOOD INGREDIENTS INDIA PVT. LTD ('COMPA NY' OR 'APPELLANT') APPEAL NO : ITA 1659/M/2016 ASST YEAR : 2011-12 SUB : HEARING FIXED ON 18.02.2020 REQUEST FOR WITH DRAWAL OF APPEAL IN THE ABOVE MATTER, WE STATE AS UNDER: 1) THE ABOVE APPEAL WAS FILED ON 22.03.2016 AGAINST THE TRANSFER PRICING ADJUSTMENTS MADE IN THE ASSESSMENT. 2) WHILE REVIEWING THE SITUATION AT A MACRO LEVEL, WE FIND THAT, AS ON DATE, THE COMPANY HAS SUFFERED LOSSES YEAR AFTER YEAR. THE STATU S OF CARRIED FORWARD LOSSES AS PER THE RETURN OF INCOME FILED FOR AY 2019 -20 IS AS UNDER: ASSESSMENT YEAR UNABSORBED BUSINESS LOSS (RS.) UNABSORBED DEPRECIATION (RS.) TOTAL (RS.) 2010 - 11 - 45,35,057 45,35,057 2011 - 12 2,22,50,915 93,01,096 3,15,52,011 2012 - 13 5,12,7 6,817 85,49,668 5,98,26,485 2013 - 14 3,32,81,430 79,94,220 4,12,75,650 2014 - 15 3,54,97,271 76,49,842 4,31,47,113 2015 - 16 1,62,76,535 99,64,924 2,62,41,459 2016 - 17 42,38,161 6,52,51,497 6,94,89,658 TOTAL 16,28,21,129 11,32,46,304 2 7,60,67,433 3) AS CAN BE OBSERVED FROM THE ABOVE, THERE ARE SUBSTAN TIAL BROUGHT FORWARD LOSSES. THE TRANSFER PRICING ADJUSTMENT MADE IN THE A SSESSMENT IS RS.91,68,285/- (AS PER GROUNDS 2 & 3). THE OUTCOME O F THE APPEAL BEFORE THE ITAT IS NOT GOING TO IMPACT THE COMPANY FINANCIALLY . WHETHER THE OUTCOME OF THE APPEAL BEFORE ITAT IS IN FAVOUR OF THE COMPANY OR AGAINST THE COMPANY, THERE WILL REMAIN SUBSTANTIAL UNABSORBED BUSINESS LOSS AS ON 31.03.2019. IF THE APPEAL IS ALLOWED, THE LOSS FOR AY 2011-12 WILL ONLY INCREASE. HOWEVER, THE UNABSORBED LOSS OF RS.2,22,50,915/- AS INDICATED ABO VE HAS ALREADY LAPSED SINCE 3 ITA NO.1659/MUM/2016(A.Y.2011-12) AY 2019-20 WAS THE LAST YEAR FOR SET OFF. THE ADDITI ON TO LOSS, IF THE APPEAL IS ALLOWED, WILL NOT GIVE ANY ECONOMIC BENEFIT TO THE APPELLANT. IF THE APPEAL IS NOT ALLOWED THEN ALSO THE COMPANY WILL NOT BE WORST OFF SINCE THERE IS THE LOSS OF RS.2,22,50,915/- WHICH HAS LAPS ED. 4) THUS, THE MANAGEMENT OF THE COMPANY, SOLELY ON T HE ECONOMICAL & COMMERCIAL CONSIDERATIONS AND AS PRUDENT MANAGEMENT, HAVE DECIDE D TO REQUEST THE HON'BLE MEMBERS TO PERMIT THE COMPANY TO WITHDRAW THE PRESENT APPEAL. 5) WE WOULD LIKE TO EMPHASIS THAT THE REQUEST FOR WIT HDRAWAL OF THE PRESENT APPEAL IS PURELY AND SOLELY ON ECONOMIC AND COMMERCIA L CONSIDERATIONS, AS EXPLAINED ABOVE, AND IN NO WAY BASED ON THE MERITS O F THE TRANSFER PRICING ADJUSTMENTS MADE. HENCE, THE WITHDRAWAL OF APPEAL SH OULD NOT BE CONSTRUED AS ACCEPTANCE BY THE COMPANY OF THE TRANSFER PRICING ADJU STMENT MADE. 6) WE REQUEST THE HON'BLE MEMBERS TO PERMIT THE COMPAN Y TO WITHDRAW THE PRESENT APPEAL AND ALSO REQUEST THAT THE ABOVE FACTS & SUBMISSIONS BE RECORDED IN THE ORDER THAT MAY BE PASSED BY THE HON'BLE BENCH IN DISPOSING OFF THE PRESENT APPEAL SO THAT ADVERSE INFERENCE IS NOT DRAWN A T A LATER DATE IN ANY PROCEEDINGS BEFORE LOWER AUTHORITIES. THANKING YOU. YOURS FAITHFULLY, FOR PURATOS FOOD INGREDIENTS INDIA PVT LTD. SD/- DIRECTOR/AUTHORISED SIGNATORY 3. SHRI UODAL RAJ SINGH, REPRESENTING THE DEPARTMEN T STATED AT THE BAR THAT THE DEPARTMENT HAS NOT OBJECTION IN ASSESSEE WITHDR AWING THE APPEAL. 4 ITA NO.1659/MUM/2016(A.Y.2011-12) 4. IN VIEW OF THE REQUEST MADE ON BEHALF OF THE A SSESSEE, THE APPEAL IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON TUESDAY THE 18 TH DAY OF FEBRUARY, 2020. SD/- SD/- (G.MANJUNATHA) (VIKAS AWASTH Y) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED 18/02/2020 VM , SR. PS(O/S) 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