Corteva Agriscience Services India Private Limited(Formerly Known as E.I .Dupont Services Center India Private Limited), Hyderabad V. Asst. Commissioner of Income Tax, Circle-१७(1), Hyderabad

ITA 2185/Hyd/2017

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 7437 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2013-2014
• Appeal Filed On: 05-08-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Transfer pricing
• Section: 143(3)

Judgement Text

ITA No.2185/Hyd/2017 1 IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ B ‘ Bench, Hyderabad (Through Video Conferencing) Before Shri S.S. Godara, Judicial Member AND Shri Laxmi Prasad Sahu, Accountant Member ITA No.2185/Hyd/2017 Assessment Year: 2013-14 Corteva Agriscience Services India Private Limited (Formerly known as E.I. DuPont Service Centre India Private Limited), 8 th , 9 th Floor, Tower 2.1, Waverock Building, SYNo.115(P), Nanakramguda Village, Serlingampally, Hyderabad, Rangareddy, Telangana. PAN : AACCE0509M. Vs. The Asst. Commissioner of Income Tax, Circle 17(1), Hyderabad. (Appellant) (Respondent) Assessee by: Shri K.R. Vasudevan. Revenue by : Sri Rohit Mujumdar – CIT DR. Date of hearing: 24/11/2021 Date of pronouncement: 26/11/2021 O R D E R Per S. S. Godara, J.M. This assessee’s appeal for A.Y 2013-14 arises from the Commissioner of Income Tax (Appeals) – 5, Hyderabad’s order dated 31.10.2017 in case No.0520/2016-17/CIT(A)-5 involving proceedings under section 143(3) r.w.s. 92CA(3) of Income Tax Act, 1961 (in short, “the Act”). ITA No.2185/Hyd/2017 2 Heard both sides. Case file perused. 2. We straight away come to the assessee’s sole substantive grievance canvassed in the instant appeal challenging correctness of both the lower authorities’ action making arms length price adjustment of Rs.59,45,094/- in the assessment order going by S.B.I’s 14.45% interest rate; and that too, without adopting any segmental comparable in the assessee’s segment of business support services. 3. We next note with able assistance of both the parties that the Transfer Pricing Officer’s order dated 31.10.2016 in para 6.5 to 6.5.3 has relied on assessee’s alleged inter-company agreements executed with its associated enterprise only for determining the corresponding credit period in the business transactions as 30 days only. We thus make it clear that the learned lower authorities have not adopted any segmental comparable whilst arriving at the impugned adjustment. 4. Faced with this situation, we quote Tecnimont Icb Pvt Ltd., Mumbai Vs. ACIT (2012) 138 ITD 23 (Mumbai) and Sabic Innovative Plastic India Pvt Ltd Vs. DCIT (2013) 59 SOT 138 (Ahmedabad) holding that an associate enterprise itself would not to be taken as a comparable since lacking the independent nature of an uncontrolled transaction in forming hallmark of Chapter X of the Act. We thus delete the impugned arms length price adjustment on receivables for this precise reason alone. ITA No.2185/Hyd/2017 3 5. All the other pleadings on merits are rendered infructuous. 6. This assessee’s appeal is allowed in above terms. Order pronounced in the Open Court on 26 th November, 2021. Sd/- Sd/- (LAXMI PRASAD SAHU) ACCOUNTANT MEMBER (S.S. GODARA) JUDICIAL MEMBER Hyderabad, dated 26 th November, 2021. TYNM/sps Copy to: S.No Addresses 1 Corteva Agriscience Services India Private Limited (Formerly known as E.I. DuPont Service Centre India Private Limited), 8 th , 9 th Floor, Tower 2.1,Waverock Building, SYNo.115(P), Nanakramguda Village, Serlingampally, Hyderabad, Rangareddy, Telangana. 2 The Asst. Commissioner of Income Tax, Circle 17(1), Hyderabad. 3 CIT (A)-5, Hyderabad 4 Pr. CIT – 5, Hyderabad 5 DR, ITAT Hyderabad Benches 6 Guard File By Order