M/s Meritor HVS India Pvt Ltd , Mysore V. Assistant Commissioner of Income Tax Circle-1(1), Mysore

ITA 295/BANG/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1543 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 10 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 04-12-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 09-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VIDYA KURUP
• Keywords: Transfer pricing; Opportunity of being heard; International transaction; TDS; Set aside
• Section: 13

Judgement Text

ITA NO. 295 (B)/201 7 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES : B , BANGALORE BEFORE SHRI B.R.BASKARAN , ACCOUNTANT MEMBER AND S MT. BEENA PILLAI, JUDICAL MEMBER ITA NO. 295 (BANG)/201 7 (ASSESSMENT YEAR : 20 0 8 - 0 9 ) M/S MERITOR HVS (INDIA) LTD., PLOT NO.36, HOOTGALLI INDUSTRIAL AREA, MYSURU. PAN NO. AA BCM8911G APPELLANT VS THE ASST. C OMMISSIONER OF INCOME TAX , CICLE - 1 (1) , MYSORE . RESPONDENT APPELLANT BY : S MT. VIDYA KURUP, ADVOCATE REVENUE BY : MS. NEERA MALHOTRA, CIT - DR DATE OF HEARING : 0 4 - 1 2 - 2019 DATE OF PRONOUNCEMENT : 13 - 12 - 2019 O R D E R PER SMT BEENA PILLAI , JUDICIAL MEMBER : P RESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST FINAL ASSESSMENT ORDER DATED 10/12/14 PASSED BY LD. ACIT, CI RCLE 1 (1), MYSORE FOR ASSESSMENT YEAR 2008 - 09. ITA NO. 295 (B)/201 7 2 2. AT THE OUTSET LD.AR SUBMITTED THA T ONLY DISPUTE RAISED BY LD. TPO IS IN RESPECT OF PAYMENT OF DEVELOPMENT FEES (TECHNICAL FEES)/INTRAGROUP SERVICES. IT HAS BEEN SUBMITTED THAT THOUGH ASSESSEE FILED ALL RELEVANT DETAILS SHOWING RENDERING OF SERVICES AND THE NEED OF SUCH TECHNICAL ASSISTANCE FROM ITS AE AGAINST WHICH THE PAYMENT S HAVE BEEN MADE LD. TPO OBSERVED AND RECORDED WRONG FINDING IN PARA 2 OF HIS ORDER IN THE GARB OF WHICH , ADDITION HAS BEEN MADE WITHOUT FOLLOWING DUE PROCESS OF LAW. 3. LD.AR FURTHER SUBMITTED THAT DRP WHILE CONSIDERING THE ISSUE FOLLOWED THEIR OWN PREDEC ESSOR ORDER FOR ASSESSMENT YEAR 2007 - 08 WHEREIN , A LP FOR SERVICES RENDERED WERE FOUND TO BE AT NIL THEREBY UPHOLDING ADJUSTMENT PROPOSED BY LD. TPO. LD.AR SUBMITTED THAT THIS T RIBUNAL IN ASSESSEES OWN CASE FO R ASSESSMENT YEAR 2007 - 08, REMANDED THE ISSUE BACK TO LD. TPO WITH DIRECTION TO EXAMINE THE ISSUE AFRESH BY CONSIDERING DETAILS/EVIDENCES SUBMITTED BY ASSESSEE AND OTHER SUBMISSIONS , WHICH WE RE ALREADY ON RE CORD. HE THUS SUBMITTED THAT ISSUE MAY BE SET - ASIDE TO LD. TPO FOR RECONSIDERING THE ISSUE AFRE SH ON THE BASIS OF DETAILED SUBMISSIONS FILED BY ASSESSEE WHICH IS ALREADY PLACED ON RECORD. 4. LD. CIT DR DID NOT OBJECT FOR ISSUE BEING SET ASIDE TO LD. TPO AS ALP HAS NOT BEEN COMPUTED BY FOLLOWING THE PROCEDURE LAID DOWN IN LAW. 5. WE HAVE PERUSED SUBMI SSIONS ADVANCED BY BOTH SIDES IN LIGHT OF RECORDS PLACED BEFORE US. ITA NO. 295 (B)/201 7 3 IT IS OBSERVED THAT DRP FOLLOWED THEIR PREDECESSOR OBSERVATION FOR ASSESSMENT YEAR 2007 - 08, WHICH ALREADY STAND SET ASIDE BY ORDER DATED 28/08/19 PASSED BY THIS TRIBUNAL IN ASSESSEES OWN CASE IN ITA (TP) A NO.173 AND 174/BANG/2014. WE THEREFORE SET ASIDE PRESENT APPEAL BACK TO LD.TPO TO CONSIDER THE ISSUE AFRESH. NEEDLESS TO SAY THAT ASSESSEE SHALL BE GRANTED ADEQUATE AND REASONABLE OPPORTUNITY OF BEING HEARD AND ASSESSEE SHALL FILE A LL RELEVANT DETAILS REQUIRED TO SUBSTANTIATE ITS CLAIM. IT IS FURTHER DIRECTED THAT LD.TPO SHALL DETERMINED ALP OF INTERNATIONAL TRANSACTION ON THE BASIS OF DOCUMENTS FILED BY ASSESSEE AND FOLLOWING METHOD IN ACCORDANCE WITH LAW, BY DETERMINING MOST APPRO PRIATE AND COMPARABILITY ANALYSIS. ACCORDINGLY , GROUNDS RAISED BY ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. IN THE RESULT , APPEAL FILED BY ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 13 - 12 - 2019. SD/ - SD/ - ( B.R.BASKARAN ) ( BEENA P ILLAI ) ACCOUNTANT MEMB ER JUDICIAL MEMBER DATED: 13 - 12 - 2019 *AM COPY OF THE ORDER FORWARDED TO: 1.APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5. DR 6. ITO (TDS) 7.GUARD FILE BY ORDER ASST. REGISTRAR