Dresser Valve India Private Limited, Coimbatore V. DCIT, Mumbai

ITA 1945/CHNY/2010

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68633 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2013
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 05-08-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 18-11-2010
• Court: TRIBUNAL
• Department Lawyers: GURU BHASHYAM
• Keywords: Transfer pricing
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI [BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER] I.T.A. NO. 1945/MDS/2010 ASSESSMENT YEAR : 2006-07 DRESSER VALVE INDIA PRIVATE LIMITED, SF 608, CHETTIPALAYAM ROAD, EACHANARI POST, COIMBATORE-641 021. [PAN: AAACD 2199 L] VS THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-8(1), MUMBAI. (APPELLANT) (RE SPONDENT) APPELLANT BY : SHRI ARVIND P. DATAR, SR.ADVOCATE WITH SHRI SANDEEP BAGMAR R. ADVOCATE RESPONDENT BY : SHRI GURU BHASHYAM, JCIT DATE OF HEARING : 05-08-2013 DATE OF PRONOUNCEMENT : 05-08-2013 O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER THE APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ASSESSMENT ORDER DATED 25-08-2010 PASSED BY THE DEP UTY I.T.A. NO. 1945/MDS/2010 2 COMMISSIONER OF INCOME TAX 8(1) MUMBAI, U/S. 143(3) R.W.S. 144C(13) OF THE INCOME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT). PRIMARILY, FOUR GROUNDS WERE RAISED IN APPEAL BEFORE THE TRIBUNAL. THE ASSESSEE HAD ASSAILED THE ASSESSMENT ORDER ON ACCOUNT OF: I. DIS-ALLOWANCE OF SOFTWARE EXPENSES ` 14,74,969/-; AND II. DIS- ALLOWANCE OF COMMISSION PAID TO THE TUNE OF ` 35,03,377/-. THE OTHER TWO GROUNDS RELATE TO TRANSFER PRICING AD JUSTMENTS MADE U/S. 92CA OF THE ACT. THE TRIBUNAL VIDE ORDER DATED 25-04- 2011, PARTLY ALLOWED THE APPEAL OF THE ASSESSEE AND DELETED THE ADDITIONS MADE ON ACCOUNT OF SOFTWARE EXPENSES AND TRANSFER PRICING ADJUSTMENTS. ON THE ISSUE OF COMMISSION AM OUNTING TO ` 35,03,377/- PAID DURING THE RELEVANT PERIOD, THE TR IBUNAL DECIDED THE ISSUE AGAINST THE ASSESSEE. THEREAFTER, THE AS SESSEE FILED MISCELLANEOUS PETITION NO. 109 OF 2011 FOR RECTIFIC ATION OF THE ALLEGED MISTAKES IN THE ORDER OF THE TRIBUNAL DATED 25-04-2011. I.T.A. NO. 1945/MDS/2010 3 THE SAID MISC.PETITION WAS DISMISSED BY THE TRIBUNA L VIDE ORDER DATED 19-08-2011. AGGRIEVED AGAINST THE ORDER OF THE TRIBUNAL IN APPE AL AS WELL AS IN MISC. PETITION, THE ASSESSEE PREFERRED AN APP EAL BEFORE THE HONBLE JURISDICTIONAL HIGH COURT. THE HONBLE HIG H COURT VIDE ORDER DATED 10-04-2011 IN TAX CASE APPEAL NOS. 89 & 121/2012 REMITTED THE ISSUE BACK TO THE TRIBUNAL FOR CONSIDE RATION OF THE MATERIALS PLACED BY THE ASSESSEE IN M.P. NO. 109 OF 2011. 2. WE HAVE HEARD THE LD. COUNSEL FOR THE ASSESSEE A S WELL AS THE DEPARTMENTAL REPRESENTATIVE. THE ASSESSEE HAS FILED PAPER BOOK CONTAINING SEVERAL DOCUMENTS RELATING TO PAYME NT OF COMMISSION. IN OUR CONSIDERED OPINION, THE ISSUE R ELATING TO THE COMMISSION NEEDS RE-EXAMINATION BY THE ASSESSING OF FICER. ACCORDINGLY, WE REMIT THE FILE BACK TO THE ASSESSIN G OFFICER TO DECIDE THE ISSUE AFRESH BY TAKING INTO CONSIDERATIO N ALL THE MATERIALS PLACED BY THE ASSESSEE BEFORE THE TRIBUNA L. THE ASSESSING OFFICER SHALL GRANT OPPORTUNITY OF HEARIN G TO THE ASSESSEE BEFORE DECIDING THE MATTER AFRESH IN ACCOR DANCE WITH LAW. THE ISSUE OF PAYMENT OF COMMISSION AMOUNTING T O I.T.A. NO. 1945/MDS/2010 4 ` 35,03,377/- IN APPEAL NO. 1945/MDS/2010 RELEVANT TO AY. 2006- 07 IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON MONDAY, THE 5 TH AUGUST, 2013 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) (VI KAS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER DATED: 5 TH AUGUST, 2013 TNMM COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR