TATA MOTORS EUROPEAN TECHNICAL CENTRE PLC, MUMBAI V. DCIT (IT) 4(1)(2), MUMBAI

ITA 850/MUM/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0349 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 06-02-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JAYANT KUMAR; RIGNESH DAS
• Assessee Lawyers: SRIHARI M IYER
• Keywords: Transfer pricing; International transaction
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES K, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER & SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA NO.850/MUM/2017 ASSESSMENT YEAR : 2012-13 TATA MOTORS EUROPEAN TECHNICAL CENTRE PLC, C/O 3 RD FLOOR, NANAVATI MAHALAYA 18, HOMI MODY STREET, HUTATMA CHOWK, MUMBAI 400 001. PAN AACCT7506K VS . D CIT INTERNATIONAL TAXATION 4(1)(2), MUMBAI (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SRIHARI M IYER RESPONDENT BY : SHRI RIGNESH DAS & SHRI JAYANT KUMA R DATE OF HEARING : 0 6 .0 9 .201 8 DATE OF PRONOUNCEMENT : 12 .0 9 .201 8 O R D E R PER SAKTIJIT DEY, JUDICIAL MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E FINAL ASSESSMENT ORDER, DATED 30.11.2016, PASSED U/S. 143(3) R.W.S. 144C(13) OF THE INCOME TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2012-13, IN PURSUANCE TO THE DIRECTIONS OF THE DISPUTE RESOLUTION PANEL (2) (DRP ), MUMBAI. 2. IN GROUND NO.1 ASSESSEE HAS CHALLENGED THE REJEC TION OF FOREIGN COMPANIES SELECTED AS COMPARABLES BY THE ASSESSEE F OR BENCHMARKING THE INTERNATIONAL TRANSACTIONS WITH ITS ASSOCIATED ENTE RPRISES (AE). AT THE OUTSET, LEARNED AR SUBMITTED THAT IN A.Y. 2008-09, 2009-10 AND 2010-11, THE ITA NO.850/MUM/2017 TATA MOTORS EUROPEAN TECHNICAL CENTRE PLC 2 TRIBUNAL HAS DECIDED THE ISSUE IN FAVOUR OF THE ASS ESSEE. HOWEVER, HE SUBMITTED THE ISSUE HAS BECOME ACADEMIC IN THE IMPU GNED ASSESSMENT YEAR, SINCE, BY VIRTUE OF THE DIRECTIONS OF DRP WITH REGA RD TO OTHER FACETS OF TRANSFER PRICING ADJUSTMENT, ULTIMATELY NO ADDITION ON ACCOUNT OF TRANSFER PRICING ADJUSTMENT HAS BEEN MADE IN THE FINAL ASSES SMENT ORDER. THUS, HE EXPRESSED HIS INTENTION NOT TO PRESS THE GROUND RAI SED. THE LEARNED DR SUBMITTED, SINCE, IN THE FINAL ASSESSMENT ORDER NO ADDITION ON ACCOUNT OF TRANSFER PRICING ADJUSTMENT HAS BEEN MADE, THE ISSU E IN THIS GROUND IS ACADEMIC IN NATURE HENCE, NOT REQUIRED TO BE DECIDE D. 3. WE HAVE CONSIDERED RIVAL CONTENTIONS AND PERUSED MATERIAL ON RECORD. WE FIND, THOUGH, GROUNDS RELATING TO THIS ISSUE WER E RAISED BEFORE THE DRP, HOWEVER, THE DRP DID NOT DECIDE THE ISSUE UPON CONS IDERING THE FACT THAT ON THE BASIS OF ITS DIRECTIONS NO TRANSFER PRICING ADJ USTMENT SURVIVES. THUS, IN ESSENCE, THE ISSUE RAISED IN THIS GROUND IS OF MERE ACADEMIC IMPORTANCE. THEREFORE, THERE IS NO NEED TO DELVE INTO THE ISSUE . SUFFICE TO SAY, THE CONTENTION OF THE ASSESSEE THAT THE TRIBUNAL HAS AC CEPTED THE SELECTION OF FOREIGN COMPARABLES IN A.YS. 2008-09 AND 2009-10 IN ITA 7630/MUM/2012 AND ITA 1698/MUM/2014, ORDER DATED 22.12.2014, IS F OUND TO BE CORRECT. THEREFORE, IN VIEW OF THE AFORESAID DECISION OF THE TRIBUNAL, THE ISSUE RAISED IN THIS GROUND IS KEPT OPEN FOR DECISION, IF NEED B E, IN FUTURE. WITH THE AFORESAID OBSERVATION THIS GROUND IS DISMISSED. ITA NO.850/MUM/2017 TATA MOTORS EUROPEAN TECHNICAL CENTRE PLC 3 4. GROUND NO.2 RAISED BY THE ASSESSEE IS RELATING T O INCORRECT ADJUSTMENTS OF REFUND. AT THE OUTSET, LEARNED AR SUBMITTED THA T IN THE MEANWHILE THE ASSESSING OFFICER HAS RECTIFIED THE MISTAKE AND GRA NTED CORRECT REFUND TO THE ASSESSEE. HENCE, THIS GROUND HAS BECOME INFRUCTUOU S. IN VIEW OF THE AFORESAID SUBMISSIONS OF THE LEARNED AR THIS GROUND IS DISMISSED. 5. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 1 2 TH SEPTEMBER 2018. SD/- SD/- (MANOJ KUMAR AGGARWAL) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED : 12 TH SEPTEMBER, 2018. SA COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE C I T(A), MUMBAI. 4. THE C I T 5. THE DR, K BENCH, ITAT, MUMBAI BY ORDER, //TRUE COPY// (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, MUMBAI