DCIT RG 9(1)(1), MUMBAI V. ADVANCE POWER DISPLAY SYSTEMS LTD, MUMBAI

ITA 489/MUM/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 8896 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: K
• Assessment Year: 2010-2011
• Appeal Filed On: 21-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N K CHAND
• Assessee Lawyers: Y P TRIVEDI
• Keywords: Depreciation; Transfer pricing; International transaction

Judgement Text

, , , , INCOME-TAX APPELLATE TRIBUNAL -KBENCH MUMBAI , ,, , , , , , , ,, , BEFORE S/SHRI RAJENDRA,ACCOUNTANT MEMBER AND SAKTIJIT DEY,JUDICIAL MEMBER / ITA NO.489/MUM/2015 : /ASSESSMENT YEAR-2010-11 DCIT-RANGE-9(1)(1) ROOM NO.260A, 2 ND FLOOR, AAYAKAR BHAVAN, M.K. ROAD MUMBAI-400 020. VS. M/S. ADVANCE POWER DISPLAY SYSTEMS LIMITED UNIT NO.8, SDF-1, SEEPZ, ANDHERI (E) MUMBAI-400 096. PAN:AAACA 5970 G (APPELLANT) (RESPON DENT) REV ENUE BY: SHRI N.K. CHAND -CIT ASS ESSEE BY: SHRI Y.P. TRIVEDI / DATE OF HEARING: 18.10.2016 / DATE OF PRONOUNCEMENT: 04.01.2017 ,1961 254(1) ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) , / PER RAJENDRA A.M. - CHALLENGING THE DIRECTIONS OF THE DISPUTE RESOLUTIO N PANEL (DRP),DATED 08/10/2014,THE ASSESSING OFFICER (AO) HAS FILED THE PRESENT APPEAL .ASSESSEE-COMPANY, ENGAGED IN THE BUSINESS OF MANUFACTURING AND HUNDRED PERCENT EXPOR TER OF POWER SUPPLIES,FILED ITS RETURN OF INCOME ON 09/10/2010,DECLARING LOSS OF RS.5.99 CROR ES.THE AO FOUND THAT THE ASSESSEE HAD ENTERED IN TO INTERNATIONAL TRANSACTIONS(IT.S) WITH ITS AE.FOR DETERMINING THE ALP OF THE IT.S.,HE MADE A REFERENCE TO THE TRANSFER PRICING O FFICER(TPO)WHO MADE UPWARD-ADJUSTMENT. ACCORDINGLY,THE AO ISSUED A DRAFT ORDER PROPOSING T HE ADJUSTMENT.THE ASSESSEE FILED ITS OBJECTIONS BEFORE THE DRP.THE AO COMPLETED THE ASSE SSMENT UNDER SECTION 143 (3) READ WITH SECTION 144C (13) OF THE ACT ON 27/11/2014. 2. FIRST GROUND OF APPEAL IS ABOUT DIRECTIONS ISSUED B Y THE DRP TO THE TPO TO WORK OUT THE PLI AFTER TAKING INTO ACCOUNT THE ADJUSTMENT FOR ACCELE RATED DEPRECIATION. DURING THE COURSE OF HEARING BEFORE US,REPRESENTATIVES OF BOTH THE SIDES AGREED THAT THE IDENTICAL ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL, WHILE DE CIDING THE APPEALS FOR THE ASSESSMENT YEAR 2008-09(ITA/6490/MUM/2012,DTD. 29.11.2013.RESPECTFU LLY,FOLLOWING THE ABOVE ORDER OF THE TRIBUNAL,WE DECIDE GROUND NO.1 AGAINST THE AO. 3. SECOND GROUND PERTAINS TO INCLUSION OF M/S.VOLTAMP TRANSFORMERS IN THE FINAL LIST OF THE COMPARABLES.BEFORE US,THE DEPARTMENTAL REPRESENTATI VE(DR)AND AUTHORISED REPRESENTATIVE STATED THAT WHILE DECIDING THE CROSS-APPEALS FOR TH E AY.2003-04(ITA.S.6732 AND 6542/ 489/M/15-ADVANCE POWER DISPLAY SYS. 2 MUM/2011,DTD.08.05.2013)THE TRIBUNAL HAD DECIDED IN FAVOUR OF THE ASSESSEE.WE FIND THAT,WITH REGARD TO SELECTION OF VOLTAMP TRANSFORME R AS A COMPARABLE,THE TRIBUNAL HAD HELD IT WAS NOT A GOOD COMPARABLE AND SAME HAD TO BE E XCLUDED FROM THE LIST OF THE COMPARABLES. RESPECTFULLY, FOLLOWING THE ABOVE JUDG MENT OF THE TRIBUNAL,WE DECIDE THE SECOND GROUND OF APPEAL AGAINST THE AO. AS A RESULT,APPEAL OF THE AO STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 04 TH JANUARY, 2017. 04 , 2017 SD/- SD/- ( / SAKTIJIT DEY ) ( / RAJENDRA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 04.01.2017. JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR A BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.