Renishaw Metrology Systems Limited, Pune V. Deputy Commissioner of Income tax, Pune

MA 105/PUN/2021

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 5403 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-01-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 17-02-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अपीऱीय अधिकरण “सी” न्यायपीठ प ु णे म ें । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, PUNE (Through Virtual Court) BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER विविि आिेदन सं. / MA No.105/PUN/2021 (Arising out of ITA Nos.2664 & 2557/PUN/2016) ननिाारण िर्ा / Assessment Year : 2011-12 Renishaw Metrology Systems Limited, S. No. 283, Hissa No. 2, S. No. 284, Hissa No. 2 & 3A, Raisoni Estate, Village Mann, Taluka-Mulshi, District-Pune-411057 PAN : AABCR6361F ......अऩीऱाथी / Appellant बनाम / V/s. Deputy Commissioner of Income Tax, Circle – 5, Pune ......प्रत्यथी / Respondent Assessee by : Shri Ajit Jain Revenue by : Shri Piyush Kumar Singh Yadav स ु नवाई की तारीख / Date of Hearing : 07-01-2022 घोषणा की तारीख / Date of Pronouncement : 07-01-2022 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : By this Miscellaneous Application the assessee intends to rectify the alleged mistake apparent in the order dated 28-01-2021 passed by this Tribunal in ITA Nos.2664 & 2557/PUN/2016 for A.Y. 2011-12. 2 MA No. 105/PUN/2021, A.Y. 2011-12 2. The ld. AR, Shri Ajit Jain submits that the assessee raised the issue of incorrect computation of margin of comparable companies and also not allowing working capital adjustment by the AO/TPO through ground Nos. 3.3 and 3.4 of the grounds of appeal. It was submitted that this Tribunal while passing the order did not adjudicate the issue raised in ground Nos. 3.3 and 3.4 and drew our attention to Para No. 5 and also Para No. 25 of the order. He contended that its only a direction to the AO for his consideration to compute correctly the operating margins of comparable companies and allowing working capital adjustment. The ld. DR submits that before the CIT(A) the assessee itself submitted that if four comparables are excluded and the assessee will not prosecute the issue raised through ground Nos. 3.3 and 3.4 before the Tribunal. We note that, admittedly, this Tribunal did not adjudicate the issues raised in ground Nos. 3.3 and 3.4 though which were pressed for adjudication by the ld. AR which is evident from Para No. 5. On perusal of consolidated order passed by this Tribunal, we note that the Tribunal discussed the issue raised in ground No. 2 from Para Nos. 6 to 25 and in Para No. 26 the Tribunal held the appeal of assessee is allowed. Therefore, it is clear the Tribunal did not adjudicate the ground Nos. 3.3 and 3.4 which are part and parcel of appeal memo and since, it is a direction to the AO as rightly pointed by the ld. AR, we deem it proper to issue direction to the AO/TPO to compute the correct margin for comparable companies and allow working capital adjustment to the assessee. Thus, we answer the assessee’s contention as indicated above and the above direction shall become part and parcel of the order dated 28-01-2021 in ITA Nos. 2664 & 2557/PUN/2016 for A.Y. 2011-12 and may be read as 25A hereafter. 3. The next issue raised by the assessee is pertaining to adjustment of carry forward losses available for set-off. We note that the assessee 3 MA No. 105/PUN/2021, A.Y. 2011-12 challenged the action of lower authorities regarding incorrect set-off of carry forward losses against the total assessed income through ground No. 6 of appeal memo. It was pointed by the ld. AR that this Tribunal did not adjudicate the same. On perusal of the order we note that the issue raised in ground No. 6 was not adjudicated upon since it is a consequential direction, we deem it proper to direct the AO/TPO to give benefit of set-off of carry forward losses as per law. Therefore, the above direction as indicated above to the AO/TPO may be read as Para No. 25B of the order dated 28-01-2021 hereafter. 4. In the result, the Miscellaneous Application filed by the assessee is allowed. Order pronounced in the open court on 07 th January, 2022. Sd/- Sd/- (R.S. Syal) (S.S. Viswanethra Ravi) VICE PRESIDENT JUDICIAL MEMBER ऩ ु णे / Pune; ददनाांक / Dated : 07 th January, 2022. रवव आदेश की प्रनिलऱवप अग्रेवर्ि / Copy of the Order forwarded to : 1. अऩीऱाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT(A)-13, Pune 4. The Pr. CIT-3, Pune 5. ववभागीय प्रतततनधध, आयकर अऩीऱीय अधधकरण, “सी” बेंच, ऩ ु णे / DR, ITAT, “C” Bench, Pune. 6. गार्ड फ़ाइऱ / Guard File. //सत्यावऩत प्रतत// True Copy// आदेशान ु सार / BY ORDER, वररष्ठ तनजी सधचव / Sr. Private Secretary आयकर अऩीऱीय अधधकरण ,ऩ ु णे / ITAT, Pune