ACIT, CHENNAI V. Dong-A India Automotive Pvt Ltd., Kancheepuram

ITA 796/CHNY/2014

• Counselvise Citation: 79621714 RSA 2014
• Duration Of Justice: 1 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2015
• Appeal Filed By: Department
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 02-04-2014
• Court: TRIBUNAL
• Department Lawyers: JOE SEBASTIAR
• Assessee Lawyers: S RAGHUNATHAN
• Keywords: Transfer pricing; Rule of consistency; Bad and doubtful debts; Capital receipt

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI ... , . , , BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.796 /MDS./2014 ( !' #' / ASSESSMENT YEAR :2009-10) ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE I(4), CHENNAI 600 034. VS. M/S.DONG A INDIA AUTOMOTIVE PVT. LTD., 55,THANDALAM VILLAGE, SIPERUMBUDUR, KANCHEEPURAM 602 105. PAN AABCD 4973 B ( / APPELLANT ) ( / RESPONDENT ) $% & ' / APPELLANT BY : MR.JOE SEBASTIAR, CIT D.R ()$% & ' /RESPONDENT BY : MR.S.RAGHUNATHAN,ADVOCATE * + & ,- / DATE OF HEARING : 27.05.2015 .# & ,- /DATE OF PRONOUNCEMENT : 22.07.2015 / O R D E R ITA NO.796 /MDS/2014 2 PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE REVENUE, AGGRIEVED BY THE DIRECTION OF THE DISPUTE RESOLUTION PANEL(DRP), CHENNAI DATED 20.12.2013 IN F.NO.DRP/CHE/14/2012-13 PASSED UNDER SEC.144C(5) RE AD WITH SECTION 144C(8) OF THE ACT. 2. THE REVENUE HAS RAISED THREE ELABORATE GROUNDS IN ITS APPEAL; HOWEVER THE CRUX OF THE ISSUE IS THAT THE REVENUE I S AGGRIEVED BY THE DIRECTION OF THE DRP WHO HAD DIRECTED THE TPO TO EX CLUDE THE FOREX LOSS FROM THE COMPUTATION OF OPERATING COST OF THE ASSESSEE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSE SSEE IS A COMPANY, ENGAGED IN THE BUSINESS OF MANUFACTURING ENGINE GA S CUTS AND GENERAL RUBBER PARTS., FILED ITS RETURN OF INCOME F OR THE ASSESSMENT YEAR 2009-10 ON 30.09.2009 ADMITTING ITS LOSS AS ` 8,14,65,712/-. THE LD. ASSESSING OFFICER REFERRED THE ASSESSEES CASE U/S.92CA(1) OF THE ACT TO THE TRANSFER PRICING OFFICER (TPO) FOR D ETERMINING THE ARMS LENGTH PRICE (ALP). IN THE TRANSFER PRICING COMPUTA TION THE LD.TPO INCLUDED PROFITS AND GAINS OF FOREX FLUCTUATION WHI LE DETERMINING THE ITA NO.796 /MDS/2014 3 OPERATING COST. HOWEVER THE LD.DRP CONSIDERING THE RULE OF CONSISTENCY DIRECTED THE LD.A.O TO EXCLUDE THE PROF ITS AND GAINS OF FOREX FLUCTUATION WHILE COMPUTING THE OPERATING COS T. AGGRIEVED BY THE ORDER OF THE LD.DRP THE REVENUE IS NOW IN APPEA L BEFORE US. 4. THE LD.AR SUBMITTED BEFORE US THAT IN THE EA RLIER ASSESSMENT YEAR 2008-09 THE ASSESSEE COMPANY HAD INCLUDED THE FOREIGN GAIN OF ` 1.36 CRORES AS A PART OF OPERATING INCOME, HOWEVER WHILE COMPUTING THE PROFIT LEVEL INDICATOR ( PLI) FOR ASSESSMENT YEAR 2009-10 THE ASSESSEE COMPANY DID NOT CONSIDER THE FOREIGN EXCHA NGE LOSS OF ` 5.76 CRORES AS A PART OF OPERATING COST. THEREFORE, THE LD. TPO WAS OF THE VIEW THAT THE ASSESSEE COMPANY HAD OVERRULED THE PRINCIPLES OF CONSISTENCY WHILE COMPUTING THE PLI FOR THE ASSE SSMENT YEAR 2008-09 AND ADJUSTMENTS WERE MADE ACCORDINGLY DURIN G THAT ASSESSMENT YEAR BY EXCLUDING THE PROFITS AND GAINS OF FOREX FLUCTUATION WHILE COMPUTING THE OPERATING COST. HO WEVER, FOR THE RELEVANT ASSESSMENT YEAR 2009-10, THE LD. TPO INCLU DED THE FOREIGN EXCHANGE LOSS WHILE COMPUTING THE OPERATING COST. O N APPEAL HE LD.DRP AGREED TO THE VIEW THAT THE ACTION OF THE LD . TPO IS AGAINST ITA NO.796 /MDS/2014 4 THE PRINCIPLES OF CONSISTENCY AND THEREFORE DIRECTE D THE LD. A.O TO EXCLUDE THE FOREIGN EXCHANGE LOSS WHILE COMPUTING T HE OPERATING COST, AGAINST WHICH THE REVENUE IS IN APPEAL. SINCE THE LD.DRP HAD ONLY FOLLOWED THE ORDERS OF THE REVENUE FOR THE EAR LIER ASSESSMENT YEAR WHICH THE ASSESSEE HAD ACCEPTED IT WAS PLEADED THAT THE ORDER OF THE LD.DRP MAY BE CONFIRMED. THE LD.D.R ON THE O THER HAND ARGUED IN SUPPORT OF THE ORDER OF THE LD.TPO. 5. AT THE OUTSET, WE FIND THAT THIS ISSUE IS SQUAR ELY COVERED BY DECISION OF THE CHENNAI BENCH OF THE TRIBUNAL IN TH E CASE OF M/S.INFAC INDIA PVT LTD., IN ITA NO.983/MDS./2014 VIDE ORDER DATED 17.07.2015 WHEREIN THE TRIBUNAL FOLLOWING THE DECISIONS OF VAR IOUS OTHER ORDERS OF THE TRIBUNAL AS WELL AS THE SPECIAL BENCH OF THE TR IBUNAL HAD HELD THAT PROFITS OR LOSS ARISING OUT FOREIGN EXCHANGE F LUCTUATION HAS TO BE TAKEN INTO CONSIDERATION WHILE ARRIVING AT THE OPER ATING COST IN THE TRANSFER PRICING MATTERS. THE RELEVANT PORTION OF T HE ORDER IS EXTRACTED BELOW FOR REFERENCE:- ITA NO.796 /MDS/2014 5 7. WE HAVE HEARD THE RIVAL SUBMISSIONS, CAREFUL LY PERUSED THE DECISIONS CITED BY BOTH THE PARTIES AND ARGUMENTS A DVANCED BY THEM. IN TRANSFER PRICING MATTERS, COMPARISONS ARE DRAWN IN REGARD TO TRANSACTIONS MADE BY THE ASSESSEE WITH ITS ASSOCIATED ENTERPRISE S (AE) AND TRANSACTIONS BETWEEN THE BUSINESS ENTITIES WHO ARE UNRELATED PARTIES. IN THAT CONTEXT OPERATING COST OF THE ASSESSEE COMPANY WHICH HAS TRANSACTIONS WITH ITS AES IS COMPARED WITH OPERATIN G COST OF BUSINESS ENTITIES THAT ARE NOT RELATED TO EACH OTHER. WHILE DETERMINING THE OPERATING COST, VARIOUS FACTORS COME INTO PLAY, WHICH MAY BE BOTH INTERNAL AS WELL AS EXTERNAL. THE DECISIONS OF EACH ENTITY IN RESPECT O F VARIOUS FACTORS CONTROLLING THE COST WILL AFFECT THE OPERATING COST . VARIOUS RISK FACTORS ARE TAKEN INTO CONSIDERATION WHILE MAKING FINANCIAL COM MITMENTS, ONE AMONG THEM IS RISK PERTAINING TO FOREIGN EXCHANGE FLUCTUA TIONS. SINCE THE HOLDING PERIOD WITH RESPECT TO SUNDRY CREDITORS WHO ARE RAW MATERIALS SUPPLIERS OR DEBTORS ARISING OUT OF SALE TRANSACTIONS IS WITH TH E MANAGEMENT WHICH EXPOSES THE ENTITIES TO FOREX RISKS. THEREFORE, THE PROFIT OR LOSS ARISING OUT OF FOREIGN EXCHANGE FLUCTUATIONS WILL BE DIRECTLY ATTR IBUTABLE TO THE OPERATIONAL COST WHICH HAS TO BE ESSENTIALLY TAKEN INTO CONSIDE RATION WHILE ARRIVING AT THE OPERATING COST OF THE ENTITIES WHILE COMPUTING THE PROFIT LEVEL INDICATOR (PLI) IN TRANSFER PRICING MATTERS. UNLESS THERE IS AN ABNORMAL SITUATION RESULTING IN ABNORMAL FOREX FLUCTUATIONS, THE PROFI T OR LOSS ARISING DUE TO FOREX FLUCTUATIONS CANNOT BE IGNORED WHILE ARRIVING AT TH E OPERATING COST FOR DERIVING THE PLI IN TRANSFER PRICING MATTERS. IT IS PERTINENT TO MENTION HERE THAT IN ARRIVING AT THE OPERATING COST IN TRANSFER PRICING MATTERS THE PRINCIPLES OF COST ACCOUNTING WILL NOT BE STRICTLY APPLICABLE WHERE COST OF FINANCE MAY BE TREATED DIFFERENTLY. FOR THE AFORE-STATED REASON S WE DO NOT FIND ANY MERIT IN THE ARGUMENTS ADVANCED BY THE LD. A.R. FURTHER IN THE FOLLOWING DECISIONS IT IS MADE CLEAR THAT PROFITS OR LOSS ARI SING OUT OF FOREIGN EXCHANGE ITA NO.796 /MDS/2014 6 FLUCTUATIONS OUGHT TO BE TAKEN INTO CONSIDERATION W HILE ARRIVING AT THE OPERATION COST IN TRANSFER PRICING MATTERS. 1. M/S. WESTFALIA SEPARATOR INDIA PVT. LTD. VS. ACIT [ ITA NO.4446/DEL/2007] 4.1. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSE D THE RELEVANT MATERIAL ON RECORD. THE FOREX GAIN OR LOSS IS THE D IFFERENCE BETWEEN THE PRICE AT WHICH AN IMPORT OR EXPORT TRANSACTION WAS RECORDED IN THE BOOKS OF ACCOUNT ON THE BASIS OF RATE OF FOREIGN EXCHANGE TH EN PREVAILING AND THE AMOUNT ACTUALLY PAID OR RECEIVED AT THE RATE OF FOR EIGN EXCHANGE PREVAILING AT THE TIME OF ACTUAL PAYMENT OR RECEIPT. SINCE SUC H FOREX LOSS OR GAIN IS A DIRECT OUTCOME OF THE PURCHASE OR SALE TRANSACTION, IT PARTAKES OF THE SAME CHARACTER AS THAT OF THE TRANSACTION TO WHICH IT RE LATES. THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF ACIT VS. PRAKASH I. SHAH (2008) 115 ITD 167 (MUM) (SB) HAS HELD THAT FOREIGN EXCHANGE FLUCT UATION GAIN IS A PART OF EXPORT TURNOVER. THOUGH SUCH DECISION WAS R ENDERED IN THE CONTEXT OF SECTION 80HHC, BUT THE SAME LOGIC APPLIE S GENERALLY AS WELL. THE ESSENCE OF THE MATTER IS THAT ANY GAIN OR LOSS ARISING OUT OF CHANGE IN FOREIGN CURRENCY RATE IN RESPECT OF TRANS ACTION FOR IMPORT OR EXPORT OF GOODS IS NOTHING, BUT INHERENT PART OF TH E PRICE OF IMPORT OR THE VALUE OF EXPORT. THE HONBLE SUPREME COURT IN SUTLEJ COTTON MILLS LT D. VS. CIT 116 ITR 1 (SC) HAS HELD THAT : WHERE PROFIT OR LOSS ARISES TO AN ASSSESSEE ON ACCOUNT OF APPRECIATION OR DEPRECIATIO N IN THE VALUE OF FOREIGN CURRENCY HELD BY IT, ON CONVERSION INTO ANO THER CURRENCY, SUCH PROFIT OR LOSS WOULD ORDINARILY BE TRADING PROFIT OR LOSS IF THE FOREIGN CURRENCY IS HELD BY THE ASSESSEE ON REVENUE ACCOUNT OR AS A TRA DING ASSET OR AS PART OF CIRCULATING CAPITAL EMBARKED IN THE BUSINESS. WHEN WE READ THE RATIO OF THE CASE OF SUTLEJ COTTON (SC)(SUPRA) IN JUXTAPO SITION TO THAT OF THE SPECIAL BENCH IN CASE OF PRAKASH I SHAH (SUPRA), TH ERE REMAINS NO DOUBT THAT FOREX GAIN OR LOSS FROM A TRADING TRANSA CTION IS NOT ONLY AN ITEM OF REVENUE NATURE, BUT IS, IN FACT, A PART OF THE PRICE OF IMPORT OR VALUE OF EXPORT TRANSACTION, AS THE CASE MAY BE. OP ERATING EXPENSE IS ORDINARILY AN EXPENSE THAT A BUSINESS INCURS AS A RESULT OF PERFORMING ITS NORMAL BUSINESS OPERATIONS. AS THE BUSINESS OF ASSEMBLY DONE BY THE ASSESSEE UNDER THIS SEGMENT IS NOT POSSIBLE WITHOUT PURCHASES AND FOREX GAIN IS IN RELATION TO SUCH PURCHASE TRANSACTIONS, WE HAVE NO HESITATION IN HOLDING THAT IT IS AN ITEM OF OPERATING COST. 2. M/S. CISCO SYSTEMS SERVICES B.E. INDIA BRANCH VS. A DIT [ITA(TP) NO.270/BANG/2014], ITA NO.796 /MDS/2014 7 17. WE HAVE PERUSED THE ORDERS AND HEARD THE RIVA L CONTENTIONS. THE TPO HAD CONSIDERED FOREIGN EXCHANGE FLUCTUATION GAINS TO BE NON-OPERATIONAL IN NATURE. THIS VIEW WAS CONFIRMED BY THE DRP STATING THAT THE FOREIGN EXCHANGE FLUCTUATIONS HAD NOTHING TO DO WITH THE BUSINESS OP ERATIONS OF A TAX PAYER. THE DRP HAD REFUSED TO FOLLOW THE DECISION OF M/S. SAPL AP INDIA (P) LTD (SUPRA). NONE OF THE AUTHORITIES HAVE GIVEN ANY FINDING THAT FOREIGN EXCHANGE FLUCTUATION GAINS WERE RELATABLE TO ANY CAPITAL RECEIPTS OR OUT GOES. ASSESSEE HAD GIVEN A BREAK UP OF FOREIGN EXCHANGE GAIN IN WHICH IT HAD S PECIFICALLY EXCLUDED THE EXCHANGE LOSS ON PURCHASE OF FIXED ASSETS. WE ARE OF THE OPINION THAT THE FOREIGN EXCHANGE FLUCTUATION GAIN ARISING TO THE AS SESSEE ON REALIZATION OF TRADE DEBTORS, PAYMENT TO CREDITORS ETC., WERE NOT HING BUT OPERATIONAL INCOME.. 3. M/S CSR INDIA PVT. LTD. VS. THE ITO [IT(TP)A NO.119 /BANG/2011] 3.6 THE TRIBUNAL IN THE CASE OF TRILOGY E-BUSINES S HAD DIRECTED THAT THE FOREIGN EXCHANGE GAIN OR LOSS SHOULD BE CONSIDERED AS OPERA TING REVENUE OR COST WHILE COMPUTING THE OPERATING MARGIN OF THE ASSSESSEE AS WELL AS THE COMPARABLE. THE RELEVANT FINDING OF THE TRIBUNAL READ AS FOLLOWS: 79 (B) . AS FAR AS FOREIGN EXCHANGE GAIN/LOSS BEING CONSIDE RED AS NOT FORMING PART OF THE OPERATING COST, THE REASONING OF THE REVENUE IS THA T SUCH LOSS OR GAIN CANNOT BE SAID TO BE ONE REALIZED FROM INTERNATIONAL TRANSACT ION THOUGH THEY MAY FORM PART OF THE GAIN/LOSS OF THE ENTERPRISE AND THEREFORE TH EY SHOULD BE EXCLUDED WHILE DETERMINING OPERATING COST. ON THE ABOVE ISSUE WE F IND THAT THE BANGALORE BENCH OF ITAT IN THE CASE OF SAP LABS INDIA (P) LTD. VS. ACIT (2011) 44 SOT 156 (BANG.) HAS TAKEN THE VIEW THAT FOREIGN EXCHANGE FL UCTUATION GAINS ARE REQUIRED TO BE ADDED TO OPERATING REVENUE. FOLLOWING THE SAM E, THE AO IS DIRECTED TO ACCEPT THE CLAIM OF THE ASSESSEE IN THIS REGARD . 3.6.1 IN CONFORMITY WITH THE ABOVE FINDING, WE DIRE CT THE AO/TPO TO CONSIDER THE FOREIGN EXCHANGE GAIN OR LOSS AS PART OF THE OPERATING COST OR REVENUE, AS THE CASE MAY BE, FOR BOTH THE ASSESSEE AS WELL FOR THE COMPARABLE COMPANIES. ITA NO.796 /MDS/2014 8 4. M/S S NARENDRA VS. ADDL CIT [ITA NO. 6839/MUM/2 012] 11. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISS IONS IN THE LIGHT OF MATERIAL PLACED BEFORE US. THE PROPOSITION THAT GAIN ON FOREIGN EXCHANGE IF IT RELATES TO THE BUSINESS OF THE ASSES SEE IS PART AND PARCEL OF OPERATING INCOME IS WELL ESTABLISHED BY T HE AFORE-MENTIONED DECISIONS OF THE COORDINATE BENCHES. IN THE PRESENT CASE, NOTHING HAS BEEN BROUGHT ON RECORD TO SUGGEST THAT THE GAIN MAD E BY THE ASSESSEE ON FLUCTUATION OF FOREIGN EXCHANGE WAS NOT ON ACCOUNT OF BUSINESS TRANSACTIONS OF THE ASSESSEE. IN ABSENCE OF ANY SUCH MATERIAL, F OLLOWING THE AFORE- MENTIONED DECISIONS OF THE TRIBUNAL, IT HAS TO BE H ELD THAT THE FOREIGN EXCHANGE GAIN OF THE ASSESSEE IS TO BE CONSIDERED A S PART AND PARCEL OF THE PROFIT OF THE ASSESSEE AND THEREFORE SHOULD BE INCL UDED FOR THE PURPOSE OF COMPUTING THE PROFIT MARGIN OF THE ASSESSEE. 5. M/S TRILOGY E-BUSINESS SOFTWARE INDIA PVT. LTD. VS. DCIT [ITA NO. 1054/BANG/2011] 79 A 1. TREATING FOREIGN EXCHANGE GAIN OR LOSS AND PROVISIO N FOR BAD DEBTS AS NON- OPERATING IN NATURE AND FRINGE BENEFIT TAX AS PART OF OPERATING COST: AS FAR A FOREIGN EXCHANGE GAIN/LOSS BEING CONSIDERED AS NOT FORMING PART OF THE OPERATING COST, THE REASONING OF THE REVENUE IS THA T SUCH LOSS OR GAIN CANNOT BE SAID TO BE ONE REALIZED FROM INTERNATIONA L TRANSACTION THOUGH THEY MAY FORM PART OF THE GAIN/LOSS OF THE ENTERPRI SE AND THEREFORE THEY SHOULD BE EXCLUDED WHILE DETERMINING OPERATING COST . ON THE ABOVE ISSUE WE FIND THAT THE BANGALORE BENCH OF ITAT IN THE CAS E OF SAP LABS INDIA (P) LTD. VS. ACIT (2011) 44 SOT 156 (BANG.) H AS TAKEN THE VIEW THAT FOREIGN EXCHANGE FLUCTUATION GAINS ARE REQUIRE D TO BE ADDED TO OPERATING REVENUE. FOLLOWING THE SAME, THE AO IS DI RECTED TO ACCEPT THE CLAIM OF THE ASSESSEE IN THIS REGARD. 6. M/S SAP LABS INDIA (P) LTD. VS. ACIT [2011, 44 SO T 156, BANG] 42. WE CONSIDERED THE ISSUE CAREFULLY. THE FOREIG N EXCHANGE FLUCTUATION GAINS IS NOTHING BUT AN INTEGRAL PART OF THE SALES PROCEEDS OF AN ASSESSEE CARRYING ON EXPORT BUSINESS. THIS PROPOSITION HAS B EEN TIME AND AGAIN ITA NO.796 /MDS/2014 9 CONSIDERED IN CASES ARISING IN THE CONTEXT OF SECTI ON 80HHC. THE COURTS AND TRIBUNALS HAVE HELD THAT FOREIGN EXCHANGE FLUCT UATION GAINS FORM PART OF THE SALE PROCEEDS OF EXPORTER-ASSESSEE. USEFUL REFE RENCE MAY BE MADE TO THE DECISIONS OF BOMBAY HIGH COURT IN THE CASE OF S HAH BROS. V. CIT, [2003] 259 ITR 741; THAT OF GUJARAT HIGH COURT IN T HE CASE OF CIT V. AMBA IMPEX [2006] 282 ITR 144 AND THAT OF MUMBAI ITAT SP L. BENCH IN THE CASE OF ASSTT. CIT V. PRAKASH L. SHAH [2008] 306 ITR (AT ) 1. IN ALL THE ABOVE CASES, THE DOMINANT QUESTION CONSIDERED WAS THE YEA R OF DEDUCTION ON THE ACCEPTED PROPOSITION THAT THE FOREIGN EXCHANGE FLUC TUATION GAINS COMPUTED BY AN ASSESSEE IN A RELEVANT PREVIOUS YEAR SHOULD B E TREATED AS PART OF THE OPERATING INCOME AND THEREBY IT WOULD CONTRIBUTE TO THE OPERATING MARGIN OF THE ASSESSEE-COMPANY. THE FOREIGN EXCHANGE FLUCTUATIONS INCOME CANNOT BE EXCLUDED FROM THE COMPUTATION OF THE OPER ATING MARGIN OF THE ASSESSEE-COMPANY. THIS CONTENTION OF THE ASSESS EE IS ACCEPTED . THEREFORE FOLLOWING THE DECISION OF THE TRIBUNAL AN D THE SPECIAL BENCH OF THE TRIBUNAL AND FOR THE REASONS DISCUSSED HEREINAB OVE, WE HEREBY HOLD THAT PROFITS OR LOSS ARISING OUT OF FOREIGN EXCHANG E FLUCTUATIONS HAS TO BE TAKEN INTO CONSIDERATION WHILE ARRIVING AT THE OPER ATION COST IN TRANSFER PRICING MATTERS. ACCORDINGLY, WE HEREBY SET ASIDE T HE ORDER OF THE LD.DRP AND UPHOLD THE ORDER OF THE LD. ASSESSING OFFICER W HO HAS ONLY ADOPTED THE ORDER OF THE LD.TPO. THEREFORE, FOLLOWING THE ORDER OF THE CHENNAI BENCH OF THE TRIBUNAL CITED SUPRA, WE HEREBY DIRECT THE REVENUE TO INCLUD E THE PROFITS OR ITA NO.796 /MDS/2014 10 LOSS ARISING OUT OF FOREIGN EXCHANGE FLUCTUATION WH ILE ARRIVING AT THE OPERATIONAL COST. 5. IN THE RESULT, THE APPEAL OF REVENUE IS ALLOWED. ORDER PRONOUNCED ON 22 ND JULY, 2015 AT CHENNAI. SD/- SD/- ( . . . ) ( N.R.S.GANESAN ) ( . '#$ %' ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 22 ND JULY, 2015. K S SUNDARAM. & (,/0 1 0#, /COPY TO: 1. $% /APPELLANT 2. ()$% /RESPONDENT 3. * 2, ( ) /CIT(A) 4. * 2, /CIT 5. 05 (,6! /DR 6. ' 7+ /GF