ACIT, Bangalore V. M/s. U L India Pvt. Ltd., Bangalore

ITA 525/BANG/2009

• Counselvise Citation: 52521114 RSA 2009
• Duration Of Justice: 3 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 14-06-2012
• Assessment Year: 2002-2003
• Appeal Filed On: 22-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K AMBASTHA
• Assessee Lawyers: K R VASUDEVAN
• Keywords: Transfer pricing; International transaction
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH A BEFORE SHRI N BARATHVAJA SANKAR, VICE RESIDENT AND SMT. P MADHAVI DEVI, JUDICIAL MEMBER ITA NO.525/BAN G/2009 (ASST. YEAR - 2002-03) THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-12(5), BANGALORE. . APPELLANT VS. M/S U.L INDIA PVT. LTD., 1 ST FLOOR, TITANIUM, NO.135, AIRPORT ROAD, BANGALORE-560 017. . RESPONDENT PAN NO. AAACU2468F. APPELLANT BY : SHRI S.K AMBASTHA, CIT RESPONDENT BY : SHRI K.R VASUDEVAN, ADVOCATE DATE OF HEARING : 03-09-2012 DATE OF PRONOUNCEMENT : 07-09-2012 O R D E R PER P MADHAVI DEVI, JUDICIAL MEMBER : THIS APPEAL IS FILED BY THE REVENUE. THE RELEVANT A SSESSMENT YEAR IS 2002-03. THE APPEAL IS DIRECTED AGAINST TH E ORDER OF THE ITA NO.525/B/09 2 COMMISSIONER OF INCOME-TAX - (APPEALS) IV AT BANG ALORE DATED 26.02.2009. THE APPEAL ARISES OUT OF THE ASSESSMEN T COMPLETED U/S 143(3) OF THE INCOME-TAX ACT, 1961. 2. IN THIS APPEAL, THE REVENUE IS AGGRIEVED BY THE ORDER OF THE CIT(A) IN ACCEPTING M/S CESCON LTD. AS A COMPARABLE WHILE DETERMINING ARMS LENGTH PRICE OF THE INTERNATIONAL TRANSACTION BETWEEN THE ASSESSEE AND ITS ASSOCIATED ENTERPRISE. 3. THOUGH THE REVENUE HAS RAISED AS MANY AS TEN GRO UNDS OF APPEAL, THE MAIN CRUX OF THE GROUNDS IS THAT M/S C ESCON LTD., CAN NOT BE CONSIDERED AS A COMPARABLE. 4. THE LEARNED DR WHILE ARGUING IN SUPPORT OF THE O RDER OF THE AO, HAS ALSO FILED A COPY OF BRIEF SYNOPSIS IN SU PPORT OF THE SAME, WHICH SHOWS THAT THE ASSESSEE HAD TAKEN FOUR COMPA RABLES FOR THE PURPOSE OF ITS TP STUDY WHICH HAS BEEN ACCEPTED BY TPO WITHOUT ANY OBJECTION. IT IS ONLY BEFORE THE TRIBUNAL THAT THE REVENUE IS TAKING UP THIS ISSUE THAT THE SAID COMPANY M/S CESCON LTD. IS NOT A COMPARABLE. WHEN THE TPO HIMSELF HAS NOT TAKEN ANY OBJECTION ON THE ADOPTION OF M/S CESCON AS ONE OF THE COMPARABLES, THE REVENUE I S PRECLUDED FROM ITA NO.525/B/09 3 ` TAKING SUCH A STAND PARTICULARLY AT THIS STAGE. IF THE REVENUE WAS OF THE OPINION THAT THE ORDER OF THE TPO IS NOT CORRECT ON ANY ISSUE, THERE ARE OTHER REMEDIES AVAILABLE UNDER THE ACT, BUT NOT AN APPEAL BEFORE THE TRIBUNAL. IN VIEW OF THE SAME, WE DO NOT SEE ANY MERIT IN THE APPEAL OF THE REVENUE AND IT IS ACCORD INGLY DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 7TH SEPT, 2012. SD/- SD/- (N BARATHVAJA SANKAR) (P MADHAVI DEVI) VICE PRESIDENT JUDIC IAL MEMBER VMS. BANGALORE DATED : 07/09/2012 COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER SR. PRIVATE SECRETA RY, ITAT, BANGALORE.