DDIT, New Delhi V. M/s. Nipro Asia Pte. Ltd., Satara

ITA 4079/DEL/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6565 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2017
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: I1
• Next Hearing Date: 15-02-2017
• Assessment Year: 2004-2005
• Appeal Filed On: 02-07-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : I-1 : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.4079/DEL/2013 ASSESSMENT YEAR : 2004-05 DDIT, CIRCLE-2(1), INTERNATIONAL TAXATION, NEW DELHI. VS. NIPRO ASIA PTE LTD., C/O NIPRO INDIA CORPORATION PVT. LTD., E-1, KESURDI MIDC, KHANDALA, SATARA. PAN: AABCN8824B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI KISHOR PHADKE, CA DEPARTMENT BY : SHRI NEERAJ KUMAR, SR. DR DATE OF HEARING : 15.02.2017 DATE OF PRONOUNCEMENT : 16.02.2017 ORDER PER R.S. SYAL, AM: THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 29.04.2013 IN RELATION TO THE ASSESSMENT YEAR 2004-05. ITA NO.4079/DEL/2013 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE ATTRIBUTION OF INCOME BY THE LD. CIT(A) AT A MARK-UP OF 15% ON COS TS INCURRED AS AGAINST THE ASSESSING OFFICER'S PROFIT ATTRIBUTION TO SALES ACTIVITY IN INDIA AT 40% OF THE PROFIT FROM SALES MADE IN INDIA. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. APPEAL OF THE ASSESSEE FOR THE A.Y. 2003-04 WAS FIXED FOR HEARING ALONG WITH THIS APPEAL. BOTH THE SIDES HAVE MADE ELABORATE ARGUMENTS FOR THE A.Y. 2003-04. IT WAS FA IRLY ADMITTED THAT FACTS AND CIRCUMSTANCES OF THE INSTANT APPEAL ARE MUTATIS MUTANDIS SIMILAR TO THOSE OF THE PRECEDING YEAR. IN FACT, NO SEPARATE ARGUMENT WAS MADE BY THE EITHER SIDE. 4. WE HAVE PASSED A SEPARATE ORDER FOR THE A.Y. 2003-04 HOLDING THAT 10% OF THE TOTAL SALES MADE BY THE ASSESSEE IN INDI A, WHETHER DIRECTLY OR THROUGH ITS BRANCH OFFICE IN INDIA, SHOULD BE TAKEN AS OVERALL PROFIT. THEN WE HAVE ATTRIBUTED 30% OF SUCH PROFIT TO THE MARKET ING EFFORT PUT IN BY THE INDIAN BRANCH OFFICE. THAT IS HOW, 3% OF THE TO TAL SALES HAS BEEN DETERMINED AS THE TOTAL INCOME OF THE ASSESSEE. FOL LOWING THE SAME VIEW, ITA NO.4079/DEL/2013 3 THE AMOUNT OF SALES IN INDIA COMES TO RS.17,21,31,7 71 (USD 39,24,573 * RS.43.86) AND TOTAL INCOME CHARGEABLE TO TAX AT T HE RATE OF 3% OF SUCH AMOUNT OF SALES IS DETERMINED AT RS.51,63,953. WE O RDER ACCORDINGLY. 5. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 16.02.201 7. SD/- SD/- [KULDIP SINGH] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 16 TH FEBRUARY, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.