Harting (India) Pvt. Ltd., CHENNAI V. DCIT, CHENNAI

ITA 762/CHNY/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7452 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 19-07-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 28-03-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SRINIVASA RAO CITD R
• Assessee Lawyers: T BANUSEKARC A
• Keywords: Transfer pricing; Opportunity of being heard; Principle of natural justice

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI S.JAYARAMAN , ACCOUNTANT MEMBER ./ I.T.A.NO.762/CHNY/2017 / ASSESSMENT YEAR : 2012-13 M/S.HARTING (INDIA) PVT LTD ., 7 TH FLOOR (WEST WING), CENTRAL SQUARE-II, UNIT NO.B-19,PAR,B 20 & 21, TVK INDUSTRIAL ESTATE, GUINDY,CHENNAI 600 032. VS. DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-2(2), CHENNAI. [PAN AABCH 5464 R ] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.T.BANUSEKAR,C.A !' /RESPONDENT BY : MR.SRINIVASA RAO, CIT,D.R # $ %& / DATE OF HEARING : 02 - 0 7 - 201 8 '( %& / DATE OF PRONOUNCEMENT : 02 - 0 7 - 201 8 !' / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER THIS APPEAL CONTESTS THE ORDER OF THE LEARNED DIS PUTE RESOLUTION PANEL (DRP) VIDE F.NO.30/DRP-2/BNG/2016- 17 DATED 02.12.2016. 2. MR.T.BANUSEKAR REPRESENTED ON BEHALF OF THE ASS ESSEE AND MR.SRINIVASA RAO REPRESENTED ON BEHALF OF THE REV ENUE. ITA NO.762/CHNY/2017 :- 2 -: 3. IT WAS SUBMITTED BY LD.A.R THAT IN THE COURSE O F PROCEEDINGS BEFORE THE TPO, THE ASSESSEE HAD BEEN UNABLE TO FIL E THE COPY OF THE MARKETING SERVICES AGREEMENTS ENTERED INTO BETWEEN THE ASSESSEE AND ITS ASSOCIATED ENTERPRISES (A.E). IT WAS A SUBMISS ION THAT ASSESSEE HAD ATTEMPTED TO FILE THE SAID AGREEMENTS (TWO SETS ) BEFORE THE HONBLE DRP. THE DRP REFUSED TO ENTERTAIN THE SAID AGREEMENTS. IT WAS THE PRAYER THAT THE ISSUE MAY BE RESTORED TO TH E FILE OF LD. TRANSFER PRICING OFFICER (TPO) FOR RE-ADJUDICATION AFTER GRANTING ASSESSEE ADEQUATE OPPORTUNITY TO PRODUCE ALL THE DE TAILS & AGREEMENTS IN THE COURSE OF BEING HEARD BEFORE THE LD.TPO. 4. IN REPLY, LD.D.R VEHEMENTLY SUPPORTED THE ORDER OF FINAL ASSESSMENT ORDER AND THE HONBLE DRP. IT WAS A SUBM ISSION THAT ANOTHER OPPORTUNITY SHOULD NOT BE GRANTED TO THE AS SESSEE TO PRODUCE DOCUMENTS. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PE RUSED THE MATERIALS AVAILABLE ON RECORD. THE ASSESSEE HAVING BEEN UNABLE TO PRODUCE CERTAIN DOCUMENTS BEFORE THE TPO, THE TP O MAY ALSO HAVE BEEN ABLE TO ADJUDICATE THE ISSUES WITHOU T NECESSARY EVIDENTIARY DOCUMENTS. ADMITTEDLY, THE ASSESSEE HAS ALSO SUFFERED THE CONSEQUENCE OF NOT PRODUCING THE DOCUMENTS BEFORE T HE TPO. THIS BEING SO, IN THE INTEREST OF NATURAL JUSTICE, WE AR E OF THE VIEW THAT THE ITA NO.762/CHNY/2017 :- 3 -: ISSUE IN THIS APPEAL MUST BE RESTORED TO THE FILE O F LD.TPO FOR RE- ADJUDICATION AND LIBERTY IS GRANTED TO THE ASSESSEE TO PRODUCE ALL SUCH DOCUMENTS, IF IT FEELS NECESSARY, TO SUBSTANTIATE I TS CASE. THE LD. TPO SHALL ADJUDICATE THE ISSUE AFTER GRANTING ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD AND FOR PRODUCING ALL SUCH DOCUMENTS AS ARE DEEMED NECESSARY BY THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 02 ND JULY, 2018, AT CHENNAI. SD/ - SD/ - ( ) (S. JAYARAMAN) # !$ /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) % !$ / JUDICIAL MEMBER ) $ / CHENNAI * / DATED: 02 ND JULY, 2018. K S SUNDARAM + !%,- . -% / COPY TO: 1 . / APPELLANT 3. # /% () / CIT(A) 5. -23 !%4 / DR 2. !' / RESPONDENT 4. # /% / CIT 6. 35 6$ / GF