Assistant Commissioner of Income-tax, Circle - 12, Pune V. Yazaki India Private Limited, Pune

ITA 2562/PUN/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2105 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 11-11-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 07-11-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: DANESH BAFNA
• Keywords: Principle of natural justice; Tax effect; Set aside
• Section: 201; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, PUNE BEFORE SHRI R.S.SYAL, VP AND SHRI PARTHA SARATHI CHAUDHURY , JM . / I TA NO.1366 /PUN/20 16 / ASSESSMENT YEAR : 2006 - 07 YAZAKI INDIA PRIVATE LIMITED (FORMERLY KNOWN AS TATA YAZAKI AUTOCOMP LIMITED) ATTN. MR. SANJAY VAMBURKAR, ONYX TOWER, 5 TH FLOOR, NORTH MAIN ROAD, NEAR WESTIN HOTEL, KOREGAON PARK, PUNE - 411 001. PAN : AAACT5570F ....... / APPELLANT / V/S. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 7, PUNE. / RESPONDENT . / ITA NO. 1513 /PUN/20 16 / ASSESSMENT YEAR : 2006 - 07 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 12 , PUNE. ....... / APPELLANT / V/S. YAZAKI INDIA PRIVATE LIMITED (FORMERLY KNOWN AS TATA YAZAKI AUTOCOMP LIMITED) ONYX TOWER, 5 TH FLOOR, NORTH MAIN ROAD, NEAR WESTIN HOTEL, KOREGAON PARK, PUNE - 411 001. PAN: AAACT5570F / RESPONDENT 2 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 . / ITA NO. 1367/ PUN/20 16 / ASSESSMENT YEAR : 2007 - 08 YAZAKI INDIA PRIVATE LIMITED (FORMERLY KNOWN AS TATA YAZAKI AUTOCOMP LIMITED) ATTN. MR. SANJAY VAMBURKAR, ONYX TOWER, 5 TH FLOOR, NORTH MAIN ROAD, NEAR WESTIN HOTEL, KOREGAON PARK, PUNE - 411 001. PAN: AAACT5570F ....... / APPELLANT / V/S. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 7, PUNE. / RESPONDENT . / ITA NO.1514 /PUN/20 16 / ASSESSMENT YEAR : 2007 - 08 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 12 , PUNE. ....... / APPELLANT / V/S. YAZAKI INDIA PRIVATE LIMITED (FORMERLY KNOWN AS TATA YAZAKI AUTOCOMP LIMITED) ONYX TOWER, 5 TH FLOOR, NORTH MAIN ROAD, NEAR WESTIN HOTEL, KOREGAON PARK, PUNE - 411 001. PAN: AAACT5570F / RESPONDENT 3 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 . / ITA NO. 325 /PUN/20 15 / ASSESSMENT YEAR : 2010 - 11 YAZAKI INDIA PRIVATE LIMITED (FORMERLY KNOWN AS YAZAKI INDIA LIMITED) ONYX TOWER, 5 TH FLOOR, NORTH MAIN ROAD, NEAR WESTIN HOTEL, KOREGAON PARK, PUNE - 411 001. PAN: AAACT5570F ....... / APPELLANT / V/S. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 12 , PUNE. / RESPONDENT . / ITA NO. 551/PUN/2015 / ASSESSMENT YEAR : 2010 - 11 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 12 , PUNE. ....... / APPELLANT / V/S. M/S. TATA YAZAKI AUTOCOMP LTD. GATE NO. 93, S. NO.166, HIGH CLIFF INDUSTRIAL ESTATE, WAGHOLI - RAHU ROAD, KESNAND, PUNE - 411 016. PAN: AAACT5570F / RESPONDENT 4 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 . / ITA NO. 424/PUN/2017 / ASSESSMENT YEAR : 2011 - 12 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 12 , PUNE. ....... / APPELLANT / V/S. YAZAKI INDIA PRIVATE LIMITED ONYX TOWER, 5 TH FLOOR, NORTH MAIN ROAD, NEAR WESTIN HOTEL, KOREGAON PARK, PUNE - 411 001. PAN: AAACT5570F / RESPONDENT . / ITA NO. 2562/PUN/2017 / ASSESSMENT YEAR : 2012 - 13 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 12 , PUNE. ....... / APPELLANT / V/S. YAZAKI INDIA PRIVATE LIMITED ONYX TOWER, 5 TH FLOOR, NORTH MAIN ROAD, NEAR WESTIN HOTEL, KOREGAON PARK, PUNE - 411 001. PAN: AAACT5570F / RESPONDENT A SSESSEE BY : SHRI DANESH BAFNA REVENUE BY : SHRI AASIF KARMAL I 5 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 / DATE OF HEARING : 06 .12 .2019 / DATE OF PRONOUNCEMENT : 09 .12 .2019 / ORDER PER BENCH : THIS BUNCH OF APPEAL S PREFERRED BY BOTH , THE ASSESSEE AS WELL AS THE REVENUE EMANATES FROM THE RESPECTIVE ORDERS/ DIRECTIONS OF THE LD. CIT(APPEALS)/ LD. DISPUTE RESOLUTION PANEL (DRP) FOR THE ASSESSMENT YEAR S 2006 - 07, 2007 - 08, 2010 - 11, 2011 - 12 AND 2012 - 13 AS PER THE GROUNDS OF APPEAL ON RECORD. 2. BOTH THE PARTIES HAVE AGREED THAT FACTS AND ISSUES RAISED FOR ALL THESE CASES ARE SIMILAR AND THEREFORE, THESE CASES WERE HEARD TOGET HER. SINCE FACTS COMMON AND ISSUES ARE SIMILAR, THESE CASES ARE BEING DISPOSED OF VIDE THIS CONSOLIDATED ORDER. FIRST, WE WOULD ADJUDICATE THE ISSUES RAISED IN APPEAL FOR ASSESSMENT YEAR 2006 - 07. ITA NO.1513/PUN/2016 (BY REVENUE) A.Y.2006 - 07 3. IT IS BROUGHT TO OUR NOTICE BY THE LD. COUNSEL FOR THE ASSESSEE THAT SO FAR AS THE REVENUES APPEAL IS CONCERNED, TAX EFFECT INVOLVED IN THE APPEAL IS RS.31,64,399/ - I.E. BELOW RS.50 LAKHS. THE LD. AR OF THE ASSESSEE FURTHER SUBMITTED THAT THE APPEAL OF REVENUE ARE LIABLE TO BE DISMISSED ON ACCOUNT OF 6 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 LOW TAX EFFECT IN TERMS OF RECENT CBDT CIRCULAR NO.17/2019 [F NO.279/MISE.142/2007 - ITJ (PT)], DATED 08.08.2019 READ WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018 REVISING THE UPWARD MONETARY LIMITS FOR FILING OF APPE ALS IN INCOME TAX CASES BEFORE VARIOUS APPELLATE FORUMS. THE EARLIER CBDT CIRCULAR NO.03/2019 DATED 11.07.2018 FIXED MONETARY LIMIT FOR FILING OF APPEALS BEFORE THE TRIBUNAL AT RS.20 LAKHS. SUCH LIMIT HAS BEEN ENHANCED IN THE RECENT CBDT CIRCULAR DATED 08. 08.2019 FROM RS.20 LAKHS TO RS. 50 LAKHS. THUS, THE TAX EFFECT ON THE ADDITION IS LESS THAN RS.50 LAKHS. 4. THE LD. DR FAIRLY ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS.50 LAKHS. 5 . BOTH SIDES HEARD. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR NO.17/2019 [F NO.279/MISE.142/2007 - ITJ (PT)] DATED 08 - 08 - 2019 READ WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018 FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR DATED 08.08.2019 (SUPRA.) HAS AMENDED PARA 3 OF CIRCULAR NO.3 OF 2018 DATED 11.07.2018 THEREBY ENHANCING MONETARY LIMIT OF TAX EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FILIN G APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEAL, IN VIEW OF THE CBDT CIRCULAR (SUPRA), WE DISMISS THE APPEAL FILED BY THE REVENUE. 6 . BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SH ALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE MATERIAL TO 7 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR DATED 11 - 07 - 2018 AND ITS AMENDMENT DATED 20 - 08 - 2018. 7 . IN T HE RESULT, THE APPEAL OF THE REVENUE IN ITA NO.1513/PUN/2016 IS DISMISSED . ITA NO.1366/PUN/2016 (BY ASSESSEE) A.Y.2006 - 07 8. THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET SUBMITTED THAT THEY ARE NOT PRESSING THE ASSESSEES APPEAL DUE TO SMALLNESS OF AMOUNT. CONSIDERING THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE, THE APPEAL OF THE ASSESSEE IS DISMISSED BEING NOT PRESSED . 9. IN THE RESULT, APPEAL OF THE ASSESSEE IN ITA NO.1366/PUN/2016 IS DISMISSED AS NOT PRESSED . ITA NO.151 4 /PUN/2016 (BY REVENUE) A.Y.2007 - 08 10. IN THIS REVENUES APPEAL, THE ONLY ISSUE IS WITH REGARD TO ALLOWABILITY OF ASA CHARGES PAID TO TACO U/S.40A(2)(B) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT), PAYMENT AMOUNTING TO 0.99% OF THE NET SALES. 11. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS ISSUE IS COVERED BY THE DECISION OF PUNE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2009 - 10 IN THE CASE OF YAZAKI INDIA PVT. LTD. VS. DCIT, ITA 8 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 NO.621/PUN/2014 AND T HE ISSUE IS DISCUSSED AT PARA 2 TO 8 OF THE TRIBUNALS ORDER AND IT IS IN FAVOUR OF THE ASSESSEE. 12. PER CONTRA, THE LD. DR SUBMITTED THAT IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2009 - 10 (SUPRA.) ON WHICH THE LD. COUNSEL FOR THE ASSESSEE HAS REFERRE D TO, THEREIN, THE ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE BUT AFTER ANALYZING OF ENTIRE EVIDENCES THEREIN FOR RENDITION OF THE ADMINISTRATIVE SUPPORT SERVICES AND THE ENTIRE DISCUSSION HAS BEEN MADE AT PARA 5 OF THE SAID ORDER OF THE TRIBUNAL WHERE AS FOR THE PRESENT YEAR , THE LD. COUNSEL FOR THE ASSESSEE HAS NOT BROUGHT ANY EVIDENCES REGARDING RENDITION OF SERVICES. THEREFORE, IT CANNOT BE SAID THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE EARLIER ORDER OF THE TRIBUNAL AS REFERRED TO BY THE LD. COUNSEL OF THE ASSESSEE. 13. WE HAVE PERUSED THE CASE RECORDS AND HEARD THE RIVAL CONTENTIONS. WE HAVE ALSO ANALYZED THE FACTS AND CIRCUMSTANCES IN THIS CASE. THE ISSUE HEREIN IS WITH REGARD TO THE DISALLOWANCE MADE BY THE ASSESSING OFF ICER U/S.40A(2)(B) OF THE ACT WITH REGARD TO PAYMENT OF ADMINISTRATIVE SUPPORT SERVICE CHA RGE. THE CASE OF THE ASSESSING OFFICER IS THAT THE ASSESSEE COULD NOT FURNISH ANY EVIDENCES OF RECEIPT OF SERVICES FOR WHICH THE INSTANT PAYMENT HAS BEEN MADE. IT IS THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THIS ISSUE IS COVERED BY THE DECISION OF PUNE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2009 - 10 (SUPRA.). WHEN WE PERUSE THE SAID ORDER AT PARA 5 AS PER THE SUBMISSIONS OF T HE LD. DR, WE FIND THAT ENTIRE TRAIL OF EVIDENCES WHICH WERE FURNISHED BY THE ASSESSEE DURING THAT YEAR DEMONSTRATING THE RENDITION OF SUCH ADM INISTRATIVE SUPPORT SERVICES WERE 9 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 PLACED ON RECORD THEREIN. IT CAN BE PERUSED FROM PAGE 5 , PARA 5 OF THE ORDER WH ICH IS REPRODUCED AS UNDER: 5. CONSIDERATION HAS BEEN SET OUT IN PARA 2.2 OF THE SAME ARTICLE AS AN AMOUNT EQUAL TO 5% OF NET PROCESSING FEES OF ALL PRODUCTS PROCESSED, ASSEMBLED AND MANUFACTURED. THE TERM NET PROCESSING FEES HAS BEEN DEFINED UND ER ARTICLE 1 TO MEAN THE: `COMPANYS INVOICED PRICES FOR THE PRODUCTS LESS MATERIAL AND COMPONENTS, LESS PACKING AND WAREHOUSE CHARGES, TAXES AND DUTIES TO THE EXTENT SET FORTH ON THE INVOICE. ON GOING THROUGH ARTICLE 2 OF THE ASA, IT IS BORNE OUT THAT TA CO AGREED TO PROVIDE SUPPORT SERVICES TO THE ASSESSEE IN VARIOUS FIELDS, SUCH AS, ADMINISTRATION, FINANCING, LEGAL, HRD, MARKETING AND DISTRIBUTION, LIAISON WITH GOVERNMENT AUTHORITIES AND VENDOR DEVELOPMENT ETC. OUR ATTENTION HAS BEEN DRAWN TOWARDS E - MAI L CORRESPONDENCE BETWEEN TACO AND ASSESSEE, COPIES OF WHICH HAVE BEEN PLACED AT PAGE 305 ONWARDS OF THE PAPER BOOK. PAGE 305 IS AN E - MAIL FROM SH. G.K. RAMESH OF TACO TO SH. SUDHEENDRA MUDIKERI OF THE ASSESSEE COMPANY IN RESPECT OF CERTAIN CORRECTIVE ACTI ONS TO BE TAKEN FOR NCS. IT HAS FURTHER BEEN WARNED THAT: `IF THE ACTIVITIES ARE NOT COMPLETED, WE MAY LOSE THE EMS CERTIFICATE. PAGE 306 IS AN E - MAIL OF R.S. THAKUR OF TACO TO SH. PRASHANTH NAYAK OF THE ASSESSEE COMPANY ON AUDIT REPORT. IN THIS E - MAI L ALSO, CERTAIN CONCERNS HAVE BEEN RAISED ABOUT MATERIAL CONSUMPTION VARIANCE. PAGE 312 OF THE PAPER BOOK IS AN E - MAIL UNDER WHICH SCOPE OF INTERNAL AUDIT OF THE ASSESSEE COMPANY HAS BEEN APPROVED BY THE AUDIT COMMITTEE. IT HAS BEEN EMPHASIZED THAT THE S AME NEEDS TO BE STARTED AS SOON AS POSSIBLE. IN THE SAME FASHION, SUCH E - MAILS OF CORRESPONDENCE BETWEEN THE ASSESSEE AND TACO ARE GOING ON FROM PAGES 305 TO PAGE 422 OF THE PAPER BOOK. PAGES 423 TO 429 ARE COPIES OF EXTRACTS OF THE MINUTES OF THE BOARD O F DIRECTORS MEETINGS HELD ON 08 - 07 - 2008 AND 30 - 09 - 2008 SUBSTANTIATING RECEIPT OF ADMINISTRATIVE SUPPORT SERVICES. ON PAGE 424 OF THE PAPER BOOK, THE BOARD OF DIRECTORS IN THEIR MEETING HELD ON 08 - 07 - 2008 DISCUSSED ABOUT FRAMING OF COPPER HEDGING POLICY O N THE BASIS OF INITIAL TRIALS AND DISCUSSION WITH THE TACO. PAGE 425 RECORDS MINUTES OF MEETING OF BOARD OF DIRECTORS HELD ON 30 - 09 - 2008 DISCUSSING STATUS OF ACTION POINTS IN WHICH THERE IS REFERENCE TO THE HELP RECEIVED FROM TACO. ITEM AT SR. NO.15 OF T HE MINUTES OF THE BOARD MEETING IS THAT: THE BOARD WAS INFORMED THAT THE COMPANY MANAGEMENT HAD RECEIVED DIRECTIVES FROM TACO TO BE FOLLOWED WHILE DECIDING THE PRICES OF NEW MODELS WITH THE CUSTOMERS SO ON AND SO FORTH. AS AGAINST THE AOS RECORDING THA T THE ASSESSEE DID NOT FURNISH ANY EVIDENCE OF SERVICES, WE FIND THAT THE ASSESSEE DID FURNISH SUCH DETAILS TO THE AO, WHICH IS FORTIFIED BY THE ASSESSEES LETTER DATED 19 - 02 - 2013 ADDRESSED TO THE AO, WHOSE COPY HAS BEEN PLACED AT PAGE 299 ONWARDS OF THE P APER BOOK. IN THIS LETTER, IT HAS BEEN MENTIONED THAT THE ASSESSEE SUBMITTED SEVERAL DOCUMENTS IN RESPECT OF RECEIPT OF SERVICES FROM TACO, SUCH AS COPIES OF E - MAIL COMMUNICATIONS, COPIES OF INVOICES, EXTRACTS OF THE MINUTES OF MEETINGS OF BOARD OF DIRECTO RS HELD ON 08 - 07 - 2008 AND 30 - 09 - 2008. IN VIEW OF THE AFORESAID FACTUAL PANORAMA, IT IS MANIFEST THAT TACO DID PROVIDE ADMINISTRATIVE SUPPORT SERVICES TO THE ASSESSEE, FOR WHICH THERE IS AMPLE EVIDENCE. THE IMPUGNED ORDER IS OVERTURNED TO THIS EXTENT. 10 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 H OWEVER, FOR THIS RELEVANT ASSESSMENT YEAR EXCEPT THE CONTENTION THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE PUNE BENCH OF THE TRIBUNAL IN EARLIER YEAR, NO DIRECT EVIDENCE HAS BEEN BROUGHT ON RECORD BY THE LD. COUNSEL FOR THE ASSESSEE TO DEMONSTRATE ACTUAL RENDITION OF ADMINISTRATIVE SUPPORT SERVICES. THE LD. AR SUBMITTED THAT THOUGH SUCH EVIDENCE HAS NOT BEEN PLACED ON RECORD BUT THE SAME IS AVAILABLE. IN THE INTEREST OF JUSTICE, WE DEEM IT FIT AND PROPER TO REMIT THIS ISSUE B ACK TO THE FILE OF THE ASSESSING OFFICER/TPO TO ADJUDICATE THE MATTER IN THE LIGHT OF THE DECISION GIVEN IN ASSESSEES OWN CASE IN ASSESSMENT YEAR 2009 - 10 AND IN THIS BACKGROUND ANALYZING ALL THE EVIDENCES REGARDING RENDITION OF ADMINISTRATIVE SUPPORT SERV ICES DURING THAT YEAR. THE ASSESSEE IS DIRECTED TO FURNISH ALL SUCH RELEVANT DOCUMENTS/EVIDENCES BEFORE THE ASSESSING OFFICER/TPO IN ORDER TO SUBSTANTIATE THE ADMINISTRATIVE SUPPORT SERVICE CHARGES. NEEDLESS TO SAY, THE ASSESSING OFFICER SHALL FOLLOW THE PRINCIPLE OF NATURAL JUSTICE WHILE ADJUDICATING THIS ISSUE. WE THEREFORE, SET A SIDE THE ORDER OF THE LD. CIT(A) ON THIS ISSUE AND REMIT THE MATTER BACK TO THE FILE OF ASSESSING OFFICER/ TPO AS INDICATED ABOVE. 14. IN THE RESULT, APPEAL OF THE REVENUE IN ITA NO.1514/PUN/2016 IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 1367 /PUN/2016 (BY ASSESSEE) A.Y.200 7 - 08 15 . THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET SUBMITTED THAT THEY ARE NOT PRESSING THE ASSESSEES APPEAL DUE TO SMALLNESS OF AMOUNT. 11 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 CON SIDERING THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE, THE APPEAL OF THE ASSESSEE IS DISMISSED BEING NOT PRESSED . 16 . IN THE RESULT, APPEAL OF THE ASSE SSEE IN ITA NO.1367 /PUN/2016 IS DISMISSED AS NOT PRESSED . ITA NO.551/PUN/2015 (BY REVENUE) A.Y.2010 - 11 17. IT IS BROUGHT TO OUR NOTICE BY THE LD. COUNSEL FOR THE ASSESSEE THAT SO FAR AS THE REVENUES APPEAL IS CONCERNED, TAX EFFECT INVOLVED IN THE APPEAL IS RS.28,17,342/ - I.E. BELOW RS.50 LAKHS. THE LD. AR OF THE ASSESSEE FURTHER SUBMITTED THA T THE APPEAL OF REVENUE ARE LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF RECENT CBDT CIRCULAR NO.17/2019 [F NO.279/MISE.142/2007 - ITJ (PT)], DATED 08.08.2019 READ WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018 REVISING THE UPWARD MONETARY LI MITS FOR FILING OF APPEALS IN INCOME TAX CASES BEFORE VARIOUS APPELLATE FORUMS. THE EARLIER CBDT CIRCULAR NO.03/2019 DATED 11.07.2018 FIXED MONETARY LIMIT FOR FILING OF APPEALS BEFORE THE TRIBUNAL AT RS.20 LAKHS. SUCH LIMIT HAS BEEN ENHANCED IN THE RECENT CBDT CIRCULAR DATED 08.08.2019 FROM RS.20 LAKHS TO RS. 50 LAKHS. THUS, THE TAX EFFECT ON THE ADDITION IS LESS THAN RS.50 LAKHS. 18. THE LD. DR FAIRLY ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS.50 LAKHS. 12 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 19. BOTH SIDES HEARD. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR NO.17/2019 [F NO.279/MISE.142/2007 - ITJ (PT)] DATED 08 - 08 - 2019 READ WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018 FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR DATED 08.08.2019 (SUPRA.) HAS AMENDED PARA 3 OF CIRCULAR NO.3 OF 2018 DATED 11.07.2018 THEREBY ENHANCING MONETARY LIMIT OF TAX EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FILIN G APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEAL, IN VIEW OF THE CBDT CIRCULAR (SUPRA), WE DISMISS THE APPEAL FILED BY THE REVENUE. 20. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR DATED 11 - 07 - 2018 AND ITS AMENDMENT DATED 20 - 08 - 2018. 21. IN THE RESULT, THE APPEAL OF THE REVENUE IN ITA NO.551/PUN/2015 IS DISMISSED . ITA NO .325 /PUN/2015 (BY ASSESSEE ) A.Y.2010 - 11 22. IN THIS ASSESSEES APPEAL, THE ONLY ISSUE IS WITH REGARD TO ALLOWABILITY OF ASA CHARGES PAID TO TACO U/S.40A(2)(B) OF THE ACT, PAYMENT AMOUNTING TO 1.22% OF THE NET SALES. 13 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 23. BOTH THE PARTIES HEREIN AGREED THAT THIS ISSUE IS SIMILAR TO THE ISSUE RAISED IN REVENUES APPEAL IN ITA NO.1514/PUN/2016 FOR ASSESSMENT YEAR 2007 - 08 AND THAT FACTS AND CIRCUMSTANCES ARE ALSO SIMILAR. AFTER HEARING THE SUBMISSIONS OF BOTH THE PARTIES, SINCE FACTS COMMON AND ISSUES ARE SIMILAR, OUR DECISION RENDERED IN ITA NO.1514/PUN/2016 FOR ASSESSMENT YEAR 2007 - 08 SHALL MUTATIS - MUTANDIS APPLY IN ITA NO.32 5/PUN/2015 FOR ASSESSMENT YEAR 2010 - 11. THEREFORE, IN THIS APPEAL ALSO, WE SET ASIDE THE DIRECTIONS OF THE LD. DRP ON THIS ISSUE AND REMIT THE MATTER BACK TO THE FILE OF ASSESSING OFFICER/ TPO AS PER DIRECTIONS MENTIONED IN ITA NO.1514/PUN/2016. 24. IN THE RESULT, APPEAL OF THE ASSESSEE IN ITA NO.325/PUN/2015 IS ALLOWED FOR STATISTICAL PURPOSES . ITA NO .424/PUN/2017 (BY REVENUE ) A.Y.2011 - 12 2 5 . IN THIS REVENUE S APPEAL, THE ONLY ISSUE IS WITH REGARD TO ALLOWABILITY OF ASA CHARGES PAID TO TACO U/S.40A(2)(B) OF THE ACT, PAYMENT AMOUNTING TO 1.38 % OF THE NET SALES. 26 . BOTH THE PARTIES HEREIN AGREED THAT THIS ISSUE IS SIMILAR TO THE ISSUE RAISED IN REVENUES APP EAL IN ITA NO.1514/PUN/2016 FOR ASSESSMENT YEAR 2007 - 08 AND THAT FACTS AND CIRCUMSTANCES ARE ALSO SIMILAR. AFTER HEARING THE SUBMISSIONS OF BOTH THE PARTIES, SINCE FACTS COMMON AND ISSUES ARE SIMILAR, OUR DECISION RENDERED IN ITA NO.1514/PUN/2016 FOR ASSES SMENT YEAR 2007 - 08 SHALL MUTA TIS - MUTANDIS APPLY IN ITA NO.424 /PUN/201 7 FOR ASSESSMENT YEAR 2011 - 1 2 . THEREFORE, IN THIS APPEAL ALSO, WE SET ASIDE THE ORDER OF THE LD. 14 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 CIT(A) ON THIS ISSUE AND REMIT THE MATTER BACK TO THE FILE OF ASSESSING OFFICER/ TPO AS PE R DIRECTIONS MENTIONED IN ITA NO.1514/PUN/2016. 2 7 . IN THE RESULT, APP EAL OF THE REVENUE IN ITA NO.424 /PUN/201 7 IS ALLOWED FOR STATISTICAL PURPOSES . ITA NO .2562 /PUN/201 7 (BY REVENUE ) A.Y.2012 - 13 2 8 . IN THIS REVENUES APPEAL, THE ONLY ISSUE IS WITH REGARD TO ALLOWABILITY OF ASA CHARGES PAID TO TACO U/S.40A(2)(B) OF THE ACT, PAYMENT AMOUNTING TO 1.23% OF THE NET SALES. 29 . BOTH THE PARTIES HEREIN AGREED THAT THIS ISSUE IS SIMILAR TO THE ISSUE RAISED IN REVENUES APPEAL IN ITA NO.1514/PUN/2016 FOR ASSESSMENT YEAR 2007 - 08 AND THAT FACTS AND CIRCUMSTANCES ARE ALSO SIMILAR. AFTER HEARING THE SUBMISSIONS OF BOTH THE PARTIES, SINC E FACTS COMMON AND ISSUES ARE SIMILAR, OUR DECISION RENDERED IN ITA NO.1514/PUN/2016 FOR ASSESSMENT YEAR 2007 - 08 SHALL MUTATIS - MUTANDIS APPLY IN ITA NO.2562/PUN/2017 FOR ASSESSMENT YEAR 2012 - 13. THEREFORE, IN THIS APPEAL ALSO, WE SET ASIDE THE ORDER OF THE LD. CIT(A) ON THIS ISSUE AND REMIT THE MATTER BACK TO THE FILE OF ASSESSING OFFICER/ TPO AS PER DIRECTIONS MENTIONED IN ITA NO.1514/PUN/2016. 30 . IN THE RESULT, APPE AL OF THE REVENUE IN ITA NO.2562/PUN/2017 IS ALLOWED FOR STATISTICAL PURPOSES . 15 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 3 1 . TO SUM UP, ORDER PRO NOUNCED ON 09 TH DAY OF DEC EMBER , 201 9 . SD/ - SD/ - R.S.SYAL PARTHA SARATHI CHAUDHURY VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 09 TH DECE MBER , 2019 . SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS) - 13, PUNE. 4. THE PR. CIT - 5, PUNE. 5 . , , , / DR, ITAT, C BENCH, PUNE. 6 . / GUARD FILE. // TRUE COPY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, PUNE . ITA NO. REMARK 1513 /PUN/2016 DISMISSED 1366/PUN/2016 DISMISSED 1514/PUN/2016 ALLOWED FOR STATISTICAL PURPOSES 1367/PUN/2016 DISMISSED. 551/PUN/2015 DISMISSED 325/PUN/2015 ALLOWED FOR STATISTICAL PURPOSES 424/PUN/2017 ALLOWED FOR STATISTICAL PURPOSES. 2562/PUN/2017 ALLOWED FOR STATISTICAL PURPOSES 16 YAZAKI INDIA PRIVATE LIMITED A.Y S . 2006 - 07 , 2007 - 08, 2010 - 11, 2011 - 12 & 2012 - 13 DATE 1 DRAFT DICTATED ON 0 6 . 12 .2019 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 06 .12 .201 9 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER