Cowi India Pvt. Ltd, Gurgaon V. ACIT, Gurgaon

ITA 5052/DEL/2010

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2725 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 16-11-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUDHA KUMAR
• Keywords: Transfer pricing

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B : NEW DELHI BEFORE SHRI G. D. AGARWAL, HONBLE VICE PRESIDENT AND SHRI A. T. VARKEY, JUDICIAL MEMBER ITA NO. 5052 /DEL/ 2010 (ASSESSMENT YEAR: 200 6 - 0 7 ) COWI INDIA PVT. LTD., 121, PHASE I, UDYOG VIHAR, GURGAON PAN: AAACK0921H VS. ACIT GURGAON CIRCLE - 1, (NWR - C - 53 - 1) GURGAON (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SUDHA KUMAR, CIT DR O R D E R PER A. T. VARKEY , JUDICIAL MEMBER A PERUSAL OF RECORDS REVEALS THAT THIS APPEAL WAS EARLIER DECIDED ON 19 TH APRIL 2012 BY THIS TRIBUNAL . 2. HOWEVER, AN MA NO. 206/DEL/2012 WAS PREFERRED BY THE ASSESSEE, CONTENDING THAT ISSUE S RAISED IN THE AFORESAID APPEAL VIDE GROUND NO. 6 AND 7 WERE NOT DEALT WITH BY THE TRIBUNAL IN ITS DECISION PASSED ON 19 TH APRIL 2012. 3. ON 3 RD MAY 2013 THE TRIBUNAL HEARD THE MA AND RESTORED THE INSTANT APPEAL ONLY TO DECIDE THE LIMITED ISSUES I.E. IN RESPECT OF GROUND NO. 6 AND 7 RAISED THEREIN . 4. THE GROUNDS OF APPEAL THAT WERE RESTORED BY THE ORDER DATED 3 RD MAY 2013 ARE THE FOLLOWING: - GROUND NO.6: THAT ON FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE DRP ERRED IN DISREGARDING: A) THE RE - COMPUTATION OF APPELLANT OPERATING PROFIT MARGIN ON COSTS (BASED ON CERTAIN LEGITIMATE EXCLUSIONS) SUBSTANTIATING THE ARMS LENGTH NATURE OF PRICING; AND B) COMPARISON OF PROFITABILITY OF EXPORT TRANSACTIONS WITH ASSOCIATED ENTERPRISES VIS - - VIS PROFITABILITY OF COMPARABLE COMPANIES. (GROUNDS OF APPEAL A TTACHED AS ANNEXURE2) PAGE NO. 2 GROUND NO.7: THAT ON FACTS AND CIRCUM STANCES OF THE CASE AND IN LAW, LEARNED TPO/LEARNED DRP ERRED IN APPLYING TRANSFER PRICING ADJUSTMENT TO THE ENTIRE TURNOVER ENTERED INTO BY THE APPELLANT INCLUDING TRANSACTIONS WITH NON - A E . 5. NOW ON 27.06.2014 WHEN THE MATTER WAS TAKEN UP FOR HEARING, THE LD AR HAS MOVED A LETTER DATED 25.04.2014 FOR WITHDRAWING THE APPEAL. LD DR HAS NO OBJECTION TO THE SAID REQUEST OF THE ASSESS E E . 6 . WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE RECO RDS. WE FIND THAT THE APPEAL WAS RESTORED ONLY TO DECIDE THE LIMITED GROUNDS NO. 6 AND 7, WHICH WERE NOT DECIDED BY THE ORDER, DATED 19.04.2012. WHEN THE MATTER WAS TAKEN UP FOR HEARING THE SAID TWO GROUNDS, THE LD AR BROUGHT TO OUR ATTENTION THE LETTER OF THE AS SESSEE DATED 25.04.2014 FOR WITHDRAWAL OF THE APPEAL. 7. IN THE LIGHT OF THE PRAYER OF THE LD AR TO WITHDRAW THE APPEAL BY LETTER DATED 25.04.2014, WE ARE INCLINED TO ALLOW THE SAME FOR THE ISSUES WHICH ARE PENDING AS ON DATE FOR ADJUDICATION BEFORE US , AND, SO THE PRAYER OF THE ASSESSEE TO WITHDRAW THE APPEAL IS LIMITED TO THE 2 ISSUES WHICH ARE NOT ADJUDICATED BY THE TRIBUNAL VIDE ORDER D ATED 19.04.2012 6. WE CLARIFY THAT THE EARLIER ORDER PASSED IN THIS APPEAL VIDE ORDER DATED 19.04.2012 WILL NOT BE AFF ECTED BY THIS WITHDRAWAL SOUGHT BY THE ASSESSEE VIDE LETTER DATED 25.04.2014. 8 . IN THE RESULT WE ALLOW THE REQUEST OF THE ASSESSEE TO WITHDRAW GROUND NOS. 6 AND 7 RAISED IN THE INSTANT APPEAL AND THE SE ISSUES MAY BE TREATED AS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 30 . 07 .2014. - SD/ - - SD/ - ( G. D. AGARWAL ) (A. T. VARKEY) VICE PRESIDENT JUDICIAL MEMBER DATED :30 / 07 / 2014 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI