ITO- Ward -3(2) (JCIT(OSD), Circle -3(1)), Hyderabad V. M/s Raspoly Build Products Pvt Ltd, Hyderabad

ITA 238/HYD/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4798 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2013
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 14-02-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R LAKSHMAN
• Assessee Lawyers: A V RAGHURAM
• Keywords: Transfer pricing

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO.238/HYD/12 : ASSESSMENT YEAR 2005 - 06 INCOME - TAX OFFICER, WARD 3(2), (NOW JOINT COMMISSIONER OF INCOME - TAX (OSD) CIRCLE 3(1)), HYDERABAD V/S. M/S. RASPOLY BUILD PRODUCTS PVT. LTD., HYDERABAD (PAN AABCR 4564 Q) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.LAKSHMAN DR RESPONDENT BY : SHRI A.V.RAGHURAM DATE OF HEARING 29.08.2013 DATE OF PRONOUNCEMENT 29.08.2013 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: TH IS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) IV HYDERABAD DATED 14.11.2012 FOR THE ASSESSMENT YEAR 2009 - 10. 2. EFFECTIVE G ROUNDS OF THE REVENUE IN THIS APPEAL READ AS FOLLOWS - ( I ) THE HONBLE CIT(A) GUNTUR ERRED IN LAW AND ON FACTS IN ALLO W IN G THE ASSESSEES APPEAL. ( II ) THE HONBLE CIT(A) OUGHT TO HAVE UPH E L D THE ADDITION MADE BY THE A.O. TO THE TUN E OF RS.35,75,495 BEIN G THE DIFFERENCE IN ALP DETERMINED BY THE ASSESSEE AS PER FORM SCEB AND THAT ADMITTED IN P&L ACCOUNT. 3. WE HEARD BOTH PARTIES AND PERUSED THE IMPUGNED ORDERS OF THE LOWER AUTHORITIES AND OTHER MATERIAL ON RECORD. IT IS THE CONTENTION OF THE LEARNED DEPARTMENTAL REPRESENTATIVE BEFORE US THAT THE CIT(A) WRONGLY ASSUMED CERTAIN FACTS THAT THE ASSESSEE HAS CONSIDERED THE ALP AT RS.6,33,42,057 BASED ON CAL C U L ATION SHEET ANNEXED TO REPORT OBTAINED BY ITA NO. 238 / HYD/201 2 M/S. RASPOLY BUILD PRODUCTS PVT. LTD., HYDERABAD 2 THE ASSESSEE IN FORM 3CEB, WHICH IS NOT BORNE OUT OF THE RECORD, AND WHICH REQUIRES TO BE EXAMINED BY THE ASSESSING OFFICER. AS AGAINST THIS CONTENTION OF THE LEARNED DEPARTMENTAL REPRESENTATIVE, THE LEARNED AUT HORISED REPRESENTATIVE SUBMITTED THAT HE HAS NO OBJECTION IF THE MATTER IS SET ASIDE TO THE FILE OF THE ASSESSING OFFICER FOR VERIFYING TH AT ASPECT OF THE MATTER , AND ACCORDINGLY REDECIDING THE ALLOWABILITY OF THE CLAIM OF THE ASSESSEE . IN THIS VIEW OF TH E MATTER, WE SET ASIDE THE IMPUGN E D ORDER OF THE CIT(A), AND R E STORE THE MA T TER TO THE FILE OF THE ASSESSING OFFICER, WITH A DIRECTION TO THE ASSESSING OFFICER TO VERIFY THE CORRECTNESS OF THE FACT THAT THE ASSESSEE HAS DETERMINED THE ARMS LENGTH PRICE AT RS.6,33,42,057 B A SED ON THE CALCULATION SHEET ANNEXED TO FORM 3CEB OBTAINED BY THE ASSESSEE. THE ASSESSING OFFICER SHALL ACCORDINGLY REDETERMINE THIS ISS U E IN ACCORDANCE W ITH LAW AND AFTER GIVING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE TO SUBSTA NTIATE ITS CLAIM. 4. IN THE RESULT, REVENUES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 29.8.2013 SD/ - SD/ - ( ASHA VIJAYARAGHAVAN ) (CHANDRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED/ - 30T H AUGUST, 2013 COPY FORWARDED TO: 1 M/S. RASPOLY BUILD PRODUCTS PVT. LTD., B - 87 3 RD ROAD, 3 RD LANE, BEGUMPET, HYDERABAD 2 INCOME - TAX OFFICER, WARD 3(2), (NOW JOINT COMMISSIONER OF INCOME - TAX (OSD) CIRCLE 3(1)), HYDERABAD 3 COMMISSIONER OF INCOME - TAX(APPEALS) I V , HYDERABAD 4 COMMISSIONER OF INCOME - TAX III , HYDERABAD 5 DEPARTMENTAL REPRESENTATIVE ITAT, HYDERABAD B.V.S