M/s. Kadimi Tools Manufacturing Co. Pvt. Ltd., Gurgaon V. DCIT, New Delhi

ITA 4623/DEL/2016

• Counselvise Citation: [2019] 114 COUNSELVISE.COM (IT) 2184 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 30-08-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Transfer pricing; International transaction
• Section: 143(3); 144C; 154

Judgement Text

PAGE | 1 INCOME TAX PPELLATE TRIBUNAL DELHI BENCH D: NEW DELHI BEFORE SHRI G.S. PANNU, HONBLE VICE PRESIDENT AND SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER ITA NO.4623/DEL/2016 (ASSESSMENT YEAR: 2012-13) M/S KADIMI TOOL MANUFACTURING CO. P. LTD., 118, UDYOG VIHAR, PHASE-1, DUNDAHERA, GURGAON. PAN: AAACK1016F VS. DCIT, CIRCLE 14(1), NEW DELHI. APPELLANT RESPONDENT REVENUE BY : SHRI VIJAY KUMAR KATARIA, SR. DR ASSESSEE BY: SHRI R.K. KAPOOR, CA SHRI ANUBHAV JAGGI, CA DATE OF HEARING: 05.11.2019 DATE OF PRONOUNCEMENT: 18.11.2019 O R D E R PER K. NARASIMHA CHARY, JM THE PRESENT APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER DATED 29.7.2016 PASSED BY THE LEARNED ASSESSING OFF ICER (LD. AO) PURSUANCE TO THE DIRECTIONS OF THE DISPUTE RESOLUTI ON PANEL -2 (DRP), NEW DELHI. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND SELLIN G OF THREAD ROLLING DIES UNDER JOINT VENTURE WITH PRECISION CAS T PARTS PAGE | 2 CORPORATION, USA. FOR THE YEAR UNDER CONSIDERATION, THE ASSESSEE FILED ITS RETURN OF INCOME ON 22.11.2016 DECLARING TOTAL INCOME OF RS.12,16,37,580/- UNDER NORMAL PROVISIONS OF THE IN COME-TAX ACT, 1961(THE ACT) AND RS.12,18,13,376/- UNDER MAT. A SSESSEE PAID THE TAX UNDER NORMAL PROVISIONS OF THE ACT, BUT CLA IMED TAX CREDIT FOR THE TAXES PAID UNDER MAT FOR EARLIER YEARS. 3. IN VIEW OF THE INTERNATIONAL TRANSACTION OF THE ASSESSEE WITH THE ASSOCIATED ENTERPRISES (AE), DETERMINATION OF A LP WAS REFERRED TO THE LEARNED TPO, WHO ENHANCED THE INCOME OF THE ASSESSEE BY RS.1,76,173/- AND ACCORDINGLY DRAFT ASSESSMENT ORDE R DATED 26.2.2016 WAS PASSED. 4. AGGRIEVED BY THE DRAFT ASSESSMENT, ASSESSEE FILE D OBJECTIONS BEFORE THE LD. DRP AND THE LD. DRP BY DIRECTION DAT ED 6.6.2016 DELETED THE TP ADJUSTMENT OF RS.1,76,173/-. FINAL ASSESSMENT ORDER WAS PASSED ACCEPTING THE RETURN OF INCOME BY THE ASSESSEE.HOWEVER, LD. AO WHILE COMPUTING ALLEGED DE MAND OF RS.7,58,760/- IN ITNS, DID NOT GIVE CORRECT MAT CRE DIT TO THE EXTENT OF OF RS.1,50,93,197/-. 5. ASSESSEE, THEREFORE, PREFERRED THIS APPEAL CHALL ENGING THE COMPUTATION OF DEMAND AT RS.7,58,760/- AS PER NOTIC E OF DEMAND ISSUED U/S 156 OF THE ACT. 6. WE HAVE HEARD THE COUNSEL ON BOTH SIDES. IT IS CLEAR FROM THE SUBMISSIONS THAT THE ONLY ISSUE INVOLVED IN THIS AP PEAL IS MAT CREDIT PAGE | 3 CLAIMED BY THE ASSESSEE AT RS. 1,50,93,197/-, BEING THE DIFFERENCE BETWEEN THE GROSS TAX LIABILITY INCLUDING SURCHARGE AND CESS AS PER THE NORMAL PROVISIONS AND TAX UNDER MAT PROVISIONS. THE ASSESSEE CLAIMED THE MAT AS PER THE FORMULA EMBEDDED IN THE STATUTORY INCOME TAX RETURN FORM WHEREAS MAT ALLOWED TO THE A SSESSEE AS PER ORDER U/S 143(3) READ WITH SECTION 144C WAS RS. 1,39,55,799/-, WHICH IS THE DIFFERENCE BETWEEN THE BASE TAX AS PER NORMAL AND MAT PROVISIONS DUE TO WHICH THE TAX DEMAND INCLUDIN G INTEREST HAS BEEN DETERMINED AT RS.7,58,760/- 7. IT IS SUBMITTED BY THE LEARNED AR THAT THE ASSES SEE FILED THE APPLICATION U/S 154 OF THE ACT ON 10.8.2016 AND 31. 8.2016 AND THE SAME WAS PENDING. 8. LEARNED DR, HOWEVER, SUBMITTED THAT THE SAID APP LICATION OF THE ASSESSEE FILED U/S 154 OF THE ACT WAS ALLOWED B Y THE LD. AO, WHICH RESULTED IN REFUND OF SOME AMOUNT TO THE ASSE SSEE, WHICH WAS PROPOSED TO BE ADJUSTED TOWARDS THE TAX FOR THE NEXT YEAR. ASSESSEE IS NOT DISPUTING THE SUBMISSIONS MADE BY T HE LEARNED DR ACROSS THE BAR, AND SUBMITS THAT IN THAT EVENT, NO DISPUTE SURVIVES FOR ADJUDICATION IN THIS APPEAL AND THE APPEAL HAS BECOME INFRUCTUOUS.RECORDING THE SAME, WE FIND THAT THE TH E APPEAL HAS BECOME INFRUCTUOUS AND THE SAME IS LIABLE TO BE DIS MISSED. PAGE | 4 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED AS INFRUCTUOUS. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH NOVEMBER, 2019. SD/- SD/- ( G.S. PANNU) (K. NARASIMHA CHARY) VICE PRESIDENT JUDICI AL MEMBER DATED: 18 TH NOVEMBER, 2019. VJ COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI DATE OF DICTATION 05.11.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 05.11.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 06.11.2019 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/ PS 20.11.2019 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 20.11.2019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 20.11.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 20.11.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 20.11.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER