Valeo India Private Limited, CHENNAI V. DCIT Corporate Circle 3(2), CHENNAI

ITTPA 35/CHNY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3782 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 04-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 22-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M SRINIVASA RAO
• Assessee Lawyers: AJITH KUMAR CHORADIA
• Keywords: Transfer pricing; Opportunity of being heard
• Section: 143(3)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER & SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A. (TP) NOS.35 & 36/CHNY/2019 / ASSESSMENT YEAR :2011-12 & 2012-13 M/S. VALEO INDIA PRIVATE LIMITED (FORMERLY KNOWN AS VALEO LIGHTING SYSTEMS INDIA PRIVATE LIMITED) (SUCCESSOR OF ERSTWHILE VALEO INDIA PRIVATE LIMITED), CEEDEEYES IT PARK, BLOCK I, NO.63, RAJIV GANDHI SALAI (OMR) NAVALUR, CHENNAI 600 130 [PAN: AACCV 7701J] VS. THE DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX CORPORATE CIRCLE 3 (2) CHENNAI 600 034 ( /APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI AJITH KUMAR CHORADIA, C.A /RESPONDENT BY : SHRI M. SRINIVASA RAO, CIT / DATE OF HEARING : 23.10.2019 /DATE OF PRONOUNCEMENT : 04 . 1 1 .201 9 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THESE TWO APPEALS FILED BY THE SAME ASSESSEE ARE DIRECTED AGAINST THE DIFFERENT ORDERS OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-7, CHENNAI BOTH DATED 15.02.2019 RELEVANT TO THE ASSESSMENT YEARS 2011-12 & 2012-13. BESIDES CHALLENGING TRANSFER PRICING ISSUES AS WELL AS CORPORATE TAX ISSUES, THE ASSESSEE MAINLY CHALLENGED EX-PARTE ORDER PASSED BY THE LD. CIT(A) WITHOUT ADJUDICATING THE MATTER ON MERITS. I.T.(TP)A. NOS. 35 & 36/CHNY/2019 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURNS OF INCOME FOR THE ASSESSMENT YEAR 2011-12 & 2012-13 ON 12.06.2012 & 30.11.2012 ADMITTING A LOSS OF .30,42,82,795/- & .45,61,36,125/-, WHICH WERE TAKEN UP FOR SCRUTINY AND AFTER VERIFICATION OF THE DETAILS FILED AGAINST STATUTORY NOTICES, THE ASSESSMENTS WERE COMPLETED UNDER SECTION 143(3) R.W.S.92(CA)/144C(5) OF THE INCOME TAX ACT, 1961 (ACT IN SHORT) RESPECTIVELY BY MAKING VARIOUS ADDITIONS. 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE LD. CIT(A). DESPITE ISSUANCE OF VARIOUS NOTICES, NONE APPEARED ON BEHALF OF THE ASSESSEE AND HENCE THE LD. CIT(A) DISMISSED BOTH THE APPEALS FILED BY THE ASSESSEE. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL FOR BOTH THE ASSESSMENT YEAR BEFORE THE TRIBUNAL. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE LD. CIT(A) HAS NOT ADJUDICATED THE ISSUES RAISED IN BOTH THE APPEALS ON MERITS AND PRAYED THAT THE LD. CIT(A) MAY BE DIRECTED TO ADJUDICATE THE ISSUES ON MERITS BY GIVING ONE MORE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE FOR PRESENTING ITS CASE BEFORE THE APPELLATE AUTHORITY. ON THE OTHER HAND, THE LD. DR DID NOT SERIOUSLY OBJECTED TO THE SUBMISSIONS OF THE LD. COUNSEL. 5. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. AGAINST THE ADDITIONS, THE ASSESSEE PREFERRED FURTHER APPEAL BEFORE THE LD. CIT(A). ON PERUSAL OF THE APPELLATE ORDER, WE FIND THAT THE LD. CIT(A) ISSUED NOTICE OF HEARING ON 08.08.2016, WHICH WAS RETURNED UNSERVED. THE NEXT NOTICE ISSUED ON I.T.(TP)A. NOS. 35 & 36/CHNY/2019 3 12.12.2018 WAS ALSO RETURNED UNSERVED BUT THE AR OF THE ASSESSEE CONFIRMED RECEIPT OF SUBSEQUENT NOTICE POSTING THE APPEAL FOR HEARING ON 12.02.2019. SINCE, THERE WAS NO RESPONSE FROM ASSESSEE AFTER RECEIPT OF HEARING NOTICE, THE LD. CIT(A) CONCLUDED THE APPELLATE ORDER THAT THE ASSESSMENT ORDER NEEDS NO INTERFERENCE. EXCEPT REPRODUCING THE GROUNDS RAISED BY THE ASSESSEE, THE LD. CIT(A) HAS NOT DISCUSSED ANYTHING ABOUT THE GROUNDS RAISED OR ADJUDICATED THE ISSUES ON MERITS. THUS, WE REMIT THE MATTER BACK TO THE FILE OF THE LD. CIT(A) TO ADJUDICATE THE ISSUES ON MERITS BY AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AS PRAYED BEFORE THE TRIBUNAL. 6. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 04 TH NOVEMBER, 2019 AT CHENNAI. SD/- SD/- (S JAYARAMAN) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, THE 04.11.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.