Gulbrandsen Technologies (India) Pvt. Ltd., Baroda V. The CIT-I, Baroda

ITA 1747/AHD/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9157 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 19-01-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 06-06-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 143(3); 92; 10AA; 10B; 201

Judgement Text

I.T.A. NO. 1747 /AHD/201 4 ASSESSMENT Y EAR: 20 0 8 - 09 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD I BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND RAJPAL YADAV JM] I.T.A. NO. 1747 /AHD/201 4 ASSESSMENT Y EAR : 20 0 8 - 09 GULBRANDSEN TECHNOLOGIES (INDIA) PVT. LTD., ... ........... . APPELLANT 405, SYNERGY SQ UARE, KRISHNA INDUSTRIAL ESTATE, GOWRA, VADODARA 390 0 16 . [PAN: AA B C G 9006 E ] VS. COMMISSIONER OF I NCOME TAX - I , BARODA . ..... ............ RESPONDENT APPEARANCES BY MAHAVEER C. JAIN FOR THE APPELLANT SUMAN SHARMA FOR THE RESPONDENT HEARING CONCLUDED ON: 1 9 / 0 1 / 20 17 ORDER PRONOUNCED ON : 16 / 0 2 / 20 1 7 O R D E R PER PRAMOD KUMAR , AM: 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 20 TH MARCH, 2014, PASSED BY THE LEARNED CIT, BARODA IN THE MATTER OF SECTION 263 R.W.S. 143(3) OF THE INCOME TAX ACT, 1 961 , FOR THE ASSESSMENT YEAR 200 8 - 09. 2. THE SHORT POINT THAT WE ARE REQUIRED TO ADJUDICATE IN THIS APPEAL IS WHETHER ALLOWING THE ADDITIONS MADE ON ACCOUNT OF ARM S LENGTH PRICE CO MPUTED UNDER SECTION 92CA(3) TO BE SET OFF AGAINST THE BROUGHT FORWARD LOSSES RENDERS THE ORDER PASSED B Y THE ASSESSING OFFICER ERRONEOUS IN SO FAR AS IT IS PREJUDICIAL TO THE INTEREST OF THE REVENUE UNDER SECTION 263 OF THE ACT. THAT IS THE GROUND ON WHICH, AND THE REASON FOR I.T.A. NO. 1747 /AHD/201 4 ASSESSMENT Y EAR: 20 0 8 - 09 PAGE 2 OF 3 WHICH, LEARNED COMMISSIONER HAS VACATED THE ORDER PASSED BY THE ASSESSING OFFICER AND REMITTED THE MAT T ER BACK TO HIM FOR ADJUDICATION DENOVO. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSI DERED FACTS OF THE CASE IN THE LIGHT OF THE APPLICABLE LEGAL POSITION. 4. WE FIND THAT SECTION 92C(4) OF THE ACT PROVIDES AS FOLLOWS : - (4) WHERE AN ARM S LENGTH PRICE IS DETERMINED BY THE ASSESSING OFFICER UNDER SUB - SECTION (3), THE ASSESSING O FFICER M AY COMPUTE THE TOTAL INCOME OF THE ASSESSEE HAVING REGARD TO THE ARM S LENGTH PRICE SO DETERMINED; PROVIDED THAT NO DEDUCTION UNDER SECTION 10A OR SECTION 10AA OR SECTION 10B OR UNDER CHAPTER VI - A SHALL BE ALLOWED IN RESPECT OF THE AMOUNT OF INCOME BY WHI CH THE T OTAL INCOME OF THE ASSESSEE IS ENHANCED AFTER COMPUTATION OF INCOME UNDER THIS SUB - SECTION. 5. WE DO NOT SEE ANY RESTRICTION ON THE SET OF F OF BUSINESS LOSSES BROUGHT FORWARD AGAINST THE INCOME SO COMPUTED, ON THE BASIS OF ARM S LENGTH PRICE. TH E INCOME SO COMPUTED ESSENTIALLY PERTAINS TO THE SAME SOURCE AS BUSINESS, AND, THEREFORE, AS LONG LOSSES BROUGHT FORWARD AS ELIGIBLE TO SET OFF AGAINST SUCH BUSINESS PROFITS, THESE LOSSES CAN BE SET OFF AGAINST THE PROFIT COMPUTED ON THE BASIS OF THE ARM S LENGTH PRICE. 6. IN VIEW OF THE ABOVE DISCUSSIONS, WE ARE OF THE CONSIDERED VIEW THAT THERE WAS NO INFIRMITY, IN PRINCIPLE, AGAINST THE BUSINESS LOSSES BROUGHT FORWARD BEING SET OFF AGAINST THE PROFITS COMPUTED ON THE BASIS OF ARM S LENGTH PRICE A ND INCLU SIVE OF ALP ADJUSTMENTS. WE, THEREFORE, VACATE THE IMPUGNED REVISION ORDER UNDER SECTION 263. 7 . IN THE RESULT, THE APPEAL IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 16 TH DAY OF FEBRUARY , 2017 . SD/ - SD/ - RA JPAL YADAV PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED: 16 TH DAY OF FEBRUARY, 201 7 . PBN/* I.T.A. NO. 1747 /AHD/201 4 ASSESSMENT Y EAR: 20 0 8 - 09 PAGE 3 OF 3 COPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD