SL Lumax Limited, Sriperambudur V. ACIT, CHENNAI

MA 190/CHNY/2012

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 9277 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-11-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 14-09-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JUNIOR
• Assessee Lawyers: R VIJAYARAGHAVAN
• Keywords: Transfer pricing; Rectification of order; International transaction

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER .. M.P. NO. 190/MDS/2012 (IN I.T.A. NO. 1915/MDS/2011) ASSESSMENT YEAR : 2007-08 M/S SL LUMAX LIMITED, G-15, SIPCOT INDUSTRIAL PARK, IRRUNGATTUKOTTAI, SRIPERUMBUDUR 602 105. PAN : AAACL1857B (PETITIONER) V. THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE VI(1), CHENNAI - 600 034 . (RESPONDENT) PETITIONER BY :SHRI R. VIJAYARAGHAVAN, ADVOCATE RESPONDENT BY :SHRI K.E.B. RENGARAJAN, JUNIOR STANDING COUNSEL DATE OF HEARING : 16.11.2012 DATE OF PRONOUNCEMENT: 16.11.2012 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : THROUGH THIS MISCELLANEOUS PETITION, ASSESSEE PLEA DS FOR A DIRECTION TO A.O./ TPO FOR RE-COMPUTATION OF ALP BA SED ON PROPORTION OF AE COST TO TOTAL COST AND THUS RENDER JUSTICE. M.P. NO. 190/MDS/2012 2 2. FACTS APROPOS ARE THAT ON ASSESSEES APPEAL, THE ORDERS OF AUTHORITIES BELOW WERE SET ASIDE AND ISSUE REGARDIN G COMPUTATION OF ALP IN RESPECT OF COMPONENTS PURCHASED BY ASSESSEE FROM ITS ASSOCIATE ENTERPRISE, WAS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER FOR CONSIDERATION AFRESH. AS PER THE ASSES SEE, DURING FRESH PROCEEDING, TPO MISINTERPRETED THE DIRECTIONS OF TH E TRIBUNAL AND APPORTIONED THE OTHER COST BASED ON AE MATERIAL COS T TO TOTAL MATERIAL COST, FOR ARRIVING AT THE ARM'S LENGTH PRICE. AS P ER THE ASSESSEE, THE METHOD OF COMPUTATION ADOPTED BY THE TPO WHILE GIVI NG EFFECT ORDER OF THE TRIBUNAL, WAS NOT IN ACCORDANCE WITH PROVISI ONS OF RULE 10B(1)(E)(I) OF INCOME-TAX RULES, 1962. LEARNED A. R. SUBMITTED THAT THIS TRIBUNAL HAD SET ASIDE THE ASSESSMENT TO THE F ILE OF THE A.O., AND THE TPO IN THE FRESH PROCEEDING, HAD COMPLETELY MIS UNDERSTOOD THE DIRECTION OF THE TRIBUNAL. 3. PER CONTRA, LEARNED D.R. SUBMITTED THAT ASSESSEE WAS UNABLE TO SHOW ANY MISTAKE IN THE ORDER OF THE TRIBUNAL WA RRANTING RECTIFICATION UNDER SECTION 254(2) OF INCOME-TAX AC T, 1961 (IN SHORT 'THE ACT'). M.P. NO. 190/MDS/2012 3 4. WE HAVE PERUSED THE ORDERS AND HEARD THE RIVAL SUBMISSIONS. GRIEVANCE OF THE ASSESSEE IS THAT TPO WHILE RE-COMP UTING THE ARM'S LENGTH PRICE OF INTERNATIONAL TRANSACTION FOR PURCH ASE OF COMPONENTS FROM THE ASSOCIATE ENTERPRISE, HAD WRONGLY INTERPRE TED THE DIRECTIONS OF THE TRIBUNAL. IN OUR OPINION, THE ISSUE RAISED BY THE ASSESSEE IS A GRIEVANCE AGAINST THE RE-COMPUTATION OF ALP DONE BY THE TPO. NO DOUBT, THE ASSESSING OFFICER/ TPO WOULD HAVE ATTEMP TED SUCH RE- COMPUTATION BASED ON SETTING ASIDE THE ORDER OF THI S TRIBUNAL, ON ASSESSEES APPEAL. HOWEVER, POWERS OF THE TRIBUNAL UNDER SECTION 254(2) ARE VERY LIMITED. THE POWERS ARE ONLY WITH REGARD TO RECTIFICATION OF MISTAKE APPARENT IN THE ORDER OF T HE TRIBUNAL. ASSESSEE HAS NOT BEEN ABLE TO SHOW ANY MISTAKE APPA RENT FROM RECORD. A LOOK AT RULE 34A OF APPELLATE TRIBUNAL R ULES, 1963, WOULD SHOW THAT EVERY APPLICATION UNDER SECTION 254(2) SH OULD CLEARLY AND CONCISELY STATE THE MISTAKE APPARENT FROM THE RECOR D ON WHICH A RECTIFICATION IS SOUGHT. IN OUR OPINION, NO SUCH M ISTAKE HAS BEEN BROUGHT TO THE NOTICE OF THE TRIBUNAL BY THE ASSESS EE THROUGH THIS MISCELLANEOUS PETITION. REMEDY OF THE ASSESSEE LIE S ELSEWHERE. WE, THEREFORE, FIND NO MERIT IN THE MISCELLANEOUS P ETITION FILED BY THE ASSESSEE. M.P. NO. 190/MDS/2012 4 5. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE IS DISMISSED. THE ORDER WAS PRONOUNCED IN THE COURT ON FRIDAY, TH E 16 TH NOVEMBER, 2012, AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 16 TH NOVEMBER, 2012. KRI. COPY TO: (1) PETITIONER (2) RESPONDENT (3) CIT(A) (4) CIT (5) D.R. (6) GUARD FILE