Modern Biri Suppliers, Kolkata V. CIT - 14, Kolkata , Kolkata

ITA 1691/KOL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5875 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 20-07-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: G MALLIKARJUNA
• Keywords: Transfer pricing
• Section: 263

Judgement Text

, C , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C KOLKATA BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 1691 / KOL / 20 17 ASSESSMENT YEAR :2014-15 MODERN BIRI SUPPLIERS, C/O S.L. KOCHAR, ADVOCATE, 86, CANNING STREET, KOLKATAA-700 001 [ PAN NO.AAEFM 7607 H ] V/S . PR. COMMISSIONER OF INCOME TAX-14, 3, GOVT. PLACE WEST, KOLKATA /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI ANIL KOCHAR, ADVOCATE /BY RESPONDENT SHRI G. MALLIKARJUNA, CIT-DR /DATE OF HEARING 09-07-2018 /DATE OF PRONOUNCEMENT 27-07-2018 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15 ARISES AGAINST PR. COMMISSIONER OF INCOME TAX-14, KOLKATAS ORDER DATE D 22.06.2017 DIRECTING THE ASSESSING OFFICER TO FRAME A FRESH ASSESSMENT A FTER HOLDING THAT ITS EARLIER REGULAR ASSESSMENT FRAMED ON 07.12.2016 HAD NOT MAD E ANY INQUIRY BY NOT MAKING REFERENCE TO THE TRANSFER PRICING OFFICER, I N PROCEEDINGS U/S. 263 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASES FILE PERUSED. 2. IT EMERGES AT THE OUTSET THAT THERE IS NO DISPUT E BETWEEN THE PARTIES ABOUT THE ASSESSEE HAVING UNDERTAKEN ITS SPECIFIED DOMESTIC TRANSACTIONS AS ITA NO.1691/KOL/2017 A.Y. 2014-15 MODERN BIRI SUPPLIERS VS. PR. CIT-14, KOL. PAGE 2 PER FORM 3CEB WITH ITS ASSOCIATE ENTERPRISE. THE AS SESSING OFFICER HAD ADMITTEDLY NOT MADE ANY INQUIRY REGARDING THE SAME HIMSELF NOR DID HE MAKE STATUTORY REFERENCE FOR DETERMINING ARMS LENGTH PR ICE THEREOF TO THE TRANSFER PRICING OFFICER. THIS MADE THE PR.CIT TO PROPOSE EX ERCISE OF SECTION 263 REVISION JURISDICTION AFTER TERMING THE ABOVE REGUL AR ASSESSMENT FRAMED ON 07.12.2016 TO BE BOTH ERRONEOUS AS WELL AS PREJUDIC IAL TO THE INTEREST OF THE REVENUE. THE PCIT HEARD THE ASSESSEE THEREAFTER AS PER ITS WRITTEN SUBMISSIONS AND DIRECTED THE ASSESSING OFFICER TO F RAME AFRESH ASSESSMENT AS PER LAW QUA THE ABOVE ISSUE. 3. LEARNED AUTHORIZED REPRESENTATIVES ONLY SUBMISS ION IS THAT DURING THE COURSE OF HEARING IS THAT ASSESSING OFFICER HAD FRA MED HIS ASSESSMENT INVOLVING AS PER CASS SCRUTINY LIMITED TO THE SPEC IFIED ISSUES NOT INVOLVING ITS DOMESTIC TRANSACTIONS IN QUESTION. LEARNED CIT-DR P LACES BEFORE US A COPY OF THE RELEVANT CASS REASONS IN ASSESSEES CASE CLEARL Y INDICATING THE SAME TO BE CONSISTING OF THE IMPUGNED LARGE SPECIFIED DOMES TIC TRANSACTIONS AS WELL. THE SAME HAS GONE UNREBUTTED FROM THE ASSESSEES SI DE. THERE IS NO OTHER ARGUMENT RAISED AT THE TAXPAYERS BEHEST BEFORE US. WE THEREFORE CONCLUDE THAT THE PCIT TO HAVE RIGHTLY ASSUMED SECTION 263 R EVISION JURISDICTION ON ACCOUNT OF THE ASSESSING OFFICERS FAILURE IN CONDU CTING THE RELEVANT ENQUIRY(IES) QUA ASSESSEES LARGE SPECIFIED DOMESTIC TRANSACTIONS I N QUESTION WHICH FORMULA SUFFICIENT REASON FOR INVOKING REVISI ON JURISDICTION AS HELD IN HON'BLE APEX COURTS LANDMARK DECISION IN MALABAR INDUSTRIAL CO LTD. VS. CIT 243 ITR 83 (SC). 4. THIS ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 27/07/2018 SD/- SD/- ( %) (' %) (DR. A.L. SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) KOLKATA, *DKP, SR.P.S (- 27 / 07 /201 8 ITA NO.1691/KOL/2017 A.Y. 2014-15 MODERN BIRI SUPPLIERS VS. PR. CIT-14, KOL. PAGE 3 / COPY OF ORDER FORWARDED TO:- 1 . /APPELLANT-MODERN BIRI SUPPLIERS C/O S.L. KOCHAR, A DVOCATE,86, CANNING STREET, K OLKATA-700001 2 . /RESPONDENT-PR. CIT-14, 3 GOVT. PLACE WEST, KOLKATA 3. 3 4 / CONCERNED CIT KOLKATA 4. 4- / CIT (A) KOLKATA 5 . 7 ''3, 3, / DR, ITAT, KOLKATA 6. < / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY, HEAD OF OFFICE/DDO 3,