Cairn India Ltd., Gurgaon V. DCIT, Gurgaon

ITA 263/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3981 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: I1
• Next Hearing Date: 01-06-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 16-01-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SH
• Assessee Lawyers: AJAY VOHRA SR SHRI RAVI SHARMA; PIYUSH AHUJA
• Keywords: Depreciation; Transfer pricing; International transaction; Additional depreciation
• Section: 143(3); 234B; 14A; 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : I-1 : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA NO.263/DEL/2017 ASSESSMENT YEAR : 2012-13 CAIRN INDIA LTD., DLF ATRIA BUILDING, JACARANDA MARG, N BLOCK, DLF CITY PHASE II, GURGAON. PAN: AACCC8799D VS. DCIT, CIRCLE-1(1), GURGAON. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI AJAY VOHRA, SR. ADVOCATE, SHRI RAVI SHARMA, ADVOCATE & SHRI PIYUSH AHUJA, CA, DEPARTMENT BY : SHRI AMRENDRA KUMAR, CIT, DR, SHRI NEERAJ KUMAR, SR. DR & SHRI KUMAR PRANAV, SR. DR DATE OF HEARING : 04.10.2017 DATE OF PRONOUNCEMENT : 09.10.2017 ORDER PER R.S. SYAL, VP: THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE FINA L ASSESSMENT ORDER DATED 12.01.2017 PASSED BY THE ASSESSING OFFICER (A O) UNDER SECTION ITA NO.263/DEL/2017 2 143(3) READ WITH SECTION 144C OF THE INCOME-TAX ACT , 1961 (HEREINAFTER ALSO CALLED THE ACT) IN RELATION TO THE ASSESSMEN T YEAR 2012-13. 2. IT IS RELEVANT TO MENTION THAT THE INSTANT APPEA L OF THE ASSESSEE WAS FIXED FOR HEARING ALONG WITH ITS APPEAL FOR THE A.Y . 2011-12. THE APPEAL FOR THE A.Y. 2011-12 WAS ARGUED AT LENGTH BY BOTH S IDES. A COMMON SUBMISSION HAS BEEN MADE BEFORE US THAT ALL THE SUB STANTIAL GROUNDS RAISED IN EXTANT APPEAL ARE SIMILAR TO THOSE RAISED IN THE APPEAL FOR ASSESSMENT YEAR 2011-12 AND THE VIEW TAKEN IN THE E ARLIER YEAR BE FOLLOWED HERE. 3. WE HAVE PASSED A SEPARATE ORDER TODAY FOR T HE AY 2011-12 -DELETING THE ADDITION MADE U/S 14A IN THE COMPUTAT ION OF BOOK PROFIT U/S 115JB OF THE ACT. -UPHOLDING DISALLOWANCE UNDER SECTION 14A PARTLY IN THE COMPUTATION OF INCOME UNDER THE NORMAL PROVISIONS B Y DELETING THE ADDITION MADE RULE 8D(2)(II) AND SUSTAINING THE ADD ITION UNDER RULE 8D(2)(III). ITA NO.263/DEL/2017 3 -UPHOLDING THE GRANTING ADDITIONAL DEPRECIATION UND ER CLAUSE (IIA) READ WITH CLAUSE (II) OF SECTION 32(1). -DELETING ADDITION OF `DEPLETION IN EXCESS OF THE RATES SPECIFIED IN SCHEDULE XIV OF THE COMPANIES ACT, 1956, IN THE CO MPUTATION OF `BOOK PROFIT UNDER SECTION 115JB OF THE INCOME-TAX ACT, 1961. - REMITTING THE MATTER OF TRANSFER PRICING ADDITION FROM THE INTERNATIONAL TRANSACTION OF PAYMENT FOR INTRA GROU P SERVICES TO THE AO/TPO FOR FRESH ADJUDICATION. - REMITTING TO THE AO/TPO THE TRANSFER PRICING ADDI TION ON ACCOUNT OF INTEREST ON REDEEMABLE PREFERENCE SHARES OF CAIR N INDIA LTD. RE- CHARACTERISED AS UNSECURED LOAN ADVANCED TO THE AE, FOR A FRESH DECISION. - DIRECTING TO ALLOW CREDIT FOR TDS AND ADVANCE TAX AFTER VERIFICATION. 4. IN VIEW OF THE RIVAL BUT COMMON SUBMISSIONS, WE SET ASIDE THE IMPUGNED ORDER AND REMIT THE MATTER TO THE FILE OF ASSESSING ITA NO.263/DEL/2017 4 OFFICER/TPO FOR DECIDING THE ISSUES RAISED IN THE G ROUNDS TAKEN FOR THE INSTANT YEAR IN CONFORMITY WITH THE VIEW TAKEN BY T HE TRIBUNAL IN ITS ORDER FOR ASSESSMENT YEAR 2011-12, AS HAS BEEN BRIE FLY SET OUT ABOVE. 5. IN ADDITION TO THE GROUNDS WHICH ARE COMMON FOR BOTH THE YEARS, THE ASSESSEE HAS RAISED FRESH GROUNDS ON INTEREST U /S 234B AND U/S 234C. IT WAS ADMITTED THAT INTEREST U/S 234B IS CONSEQUEN TIAL. AS REGARDS INTEREST U/S 234C, WE DIRECT THAT THE SAME BE COMPU TED WITH REFERENCE TO THE RETURNED INCOME AND NOT THE ASSESSED INCOME. 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 09.10.201 7. SD/- SD/- [SUDHANSHU SRIVASTAVA] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 09 TH OCTOBER, 2017. DK ITA NO.263/DEL/2017 5 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.