Invitrogen Bioservices India Private Limited, Bangalore V. DCIT, Bangalore

ITA 248/BANG/2015

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6536 (ITAT-BANGALORE)
• Duration Of Justice: 6 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-04-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 09-03-2021
• Assessment Year: 2010-2011
• Appeal Filed On: 27-02-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Transfer pricing
• Section: 144C; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER IT(TP)A NO.248/BANG/2015 ASSESSMENT YEAR : 2010-11 INVITROGEN BIOSERVICES INDIA PVT. LTD., NO.3, GROUND FLOOR, FIRST TECHNOLOGIES PLACE, EPIP WHITEFIELD, BENGALURU-560 066. PAN AABCI 3134 K VS. THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE-3(1)(1), BENGALURU. APPELLANT RESPONDENT ASSESSEE BY : SHRI SUMEET KHURANA, C.A REVENUE BY : MS. NEERA MALHOTRA, CIT (DR) DATE OF HEARING : 09-03-2021 DATE OF PRONOUNCEMENT : 15-04-2021 ORDER PER BEENA PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY ASSESSEE IS AGAINS T FINAL ASSESSMENT ORDER DATED 18/12/2014 PASSED UNDER SECT ION 143 (3) READ WITH SECTION 144C OF THE ACT. 2. AT THE OUTSET THE LD.AR SUBMITTED THAT ONLY GROU ND NO.4 IS TO BE ADJUDICATED WITH THAT READS AS UNDER: PAGE 2 OF 4 IT(TP)A NO.248/BANG/2015 '4) THAT THE LD. TPO AND THE 14. PANEL ERRED IN NOT RECTTJING THE OPERATING MARGIN COMPUTATION OF ONE OF THE COMPARABLE NAMELY GVK BIOSCIENCES LTD. THOUGH THE CORRECT COMPUTATION AND FINANCIAL STATEM ENTS OF THE COMPARABLES WAS PLACED ON RECORD BEFORE THE DRP. THE LEARNED TRANSFER PRICING OFFICER ('LD. TPO) HAS ERRED IN COMPUTING THE MARGIN OF 0 VK BIOSCIENCES LTD. THROUGH A MINISCULE ERROR WHICH IS A CLEAR MISTAKE APPARENT FROM RECORD. THE APPELLANT HAD FIL ED A RECTIFICATION PETITION U/S 154 BEFORE THE LD. TPO (REFER PAGE 101-103 OF T HE PAPER BOOK) BUT HIS GOOD OFFICE HAD ARBITRARILY REJECTED THE RECTIFICAT ION APPLICATION. THROUGH THIS LETTER, THE APPELLANT IS SUBMITTING TH E COMPARISON OF THE MARGIN AS COMPUTED BY THE LD. TPO UIS--VIS THE CORRECT MA RGIN.' 3. THE LD.AR PLACED RELIANCE ON PAGE 431 OF THE PAP ER BOOK TO PROVE THAT A WRONG FIGURE HAS ENTERED INTO THE COMP UTATION CARRIED OUT BY LD.AO FOR ASCERTAINING THE INCOME TA XABLE IN THE HANDS OF THE ASSESSEE. HE SUBMITTED THAT RECTIFICAT ION APPLICATION DATED 02/12/2014 IS PENDING ON THE SAME BEFORE THE LD.AO WHICH IS NOT YET BEEN DISPOSED OFF. 3. ADMITTEDLY, BOTH SIDES SUBMITTED THAT THE ISSUE NEEDS TO BE REMANDED TO THE LD. AO. 4. WE HAVE PERUSED SUBMISSIONS ADVANCED BY BOTH SID ES IN LIGHT OF RECORDS PLACED BEFORE US. WE NOTE THAT THE RE IS A DIFFERENCE IN THE FIGURE CONSIDERED BY THE LD. AO F OR COMPUTING THE INCOME IN THE HANDS OF ASSESSEE. WE DIRECT ASSE SSEE TO FILE ALL RELEVANT DETAILS BEFORE THE LD. AO IN SUPPORT OF IT S CLAIM. THE LD. AO SHALL VERIFY THE DETAILS AND DISPOSE OF THE PETI TION FILED U/S 154 WHICH IS LONG PENDING SINCE 2014. ACCORDINGLY THIS GROUND RAISED BY ASSESSEE STANDS A LLOWED FOR STATISTICAL PURPOSES. PAGE 3 OF 4 IT(TP)A NO.248/BANG/2015 6. NOTHING HAS BEEN ARGUED BY ASSESSEE IN RESPECT O F THE OTHER GROUNDS AND ACCORDINGLY THEY ARE DISMISSED. IN THE RESULT APPEAL FILED BY ASSESSEE STANDS ALLOW ED PARTLY FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH APRIL, 2021 SD/- SD/- (CHANDRA POOJARI) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL ME MBER BANGALORE, DATED, THE 15 TH APRIL, 2021. /VMS/ COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE PAGE 4 OF 4 IT(TP)A NO.248/BANG/2015 DATE INITIAL 1. DRAFT DICTATED ON ON DRAGON SR.PS 2. DRAFT PLACED BEFORE AUTHOR -4-2021 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -4-2021 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -4-2021 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS -4-2021 SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON -4-2021 SR.PS 7. DATE OF UPLOADING THE ORDER ON WEBSITE -4-2021 SR.PS 8. IF NOT UPLOADED, FURNISH THE REASON -4-2021 SR.PS 9. FILE SENT TO THE BENCH CLERK -4-2021 SR.PS 10. DATE ON WHICH FILE GOES TO THE AR 11. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 12. DATE OF DISPATCH OF ORDER. 13. DRAFT DICTATION SHEETS ARE ATTACHED NO SR.PS