ROBERTSHAW CONTROLS INDIA PRIVATE LIMITED, PUNE V. ACIT, Circle-5, Pune

MA 210/PUN/2022

AI Insights

The case involves Robertshaw Controls India Private Limited, which filed a Miscellaneous Application seeking rectification of a previous Tribunal order that did not address a specific ground related to Transfer Pricing adjustments. The Tribunal had initially overlooked this ground, which argued that any Transfer Pricing adjustments should only apply to transactions with Associated Enterprises (AEs) and not to the total turnover of the company. The Tribunal acknowledged the oversight and corrected the mistake by referencing a relevant High Court judgment that supported the assessee's position.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133035 (ITAT-PUNE)
• Duration Of Justice: 9 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 05-01-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 05-04-2022
• Other Referred Cases: CIT Vs. Phoenix Mecano (India) Pvt. Ltd. (2019) 414 ITR 704 (Bom.), CIT Vs. Phoenix Mecano (India) Pvt. Ltd. (2018) 402 ITR 32 (St.)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Transfer pricing
• Section: 13

Judgement Text

आयकर अपीलीय अधिकरण “सी” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER धिधिि आिेदन सं. / MA No.210/PUN/2022 (Arising out of ITA No.2034/PUN/2019) धनिाारण िर्ा / Assessment Year : 2015-16 Robertshaw Controls India Private Limited, Survey No. 197, Viman Nagar, Nagar Road, Pune – 411014 PAN : AACCF3590M ......अपीलार्थी / Appellant बनाम / V/s. Assistant Commissioner of Income Tax, Circle – 5, Pune ......प्रत्यर्थी / Respondent Assessee by : Shri Nikhil Pathak Revenue by : Shri Suhas Kulkarni सुनवाई की तारीख / Date of Hearing : 06-01-2023 घोषणा की तारीख / Date of Pronouncement : 06-01-2023 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : By this Miscellaneous Application the assessee seeks to rectify the mistake apparent in the order dated 27-01-2022 passed by this Tribunal in ITA No. 2034/PUN/2019 for A.Y. 2015-16. 2 MA No. 210/PUN/2022, A.Y. 2015-16 2. The ld. AR submitted that while disposing of the appeal, the Tribunal omitted to consider the ground No. 13 raised in the memorandum of appeal. The ld. DR objected to the Miscellaneous Application. 3. Heard both the sides and perused the material available on record. It is seen that the assessee raised ground No. 13 in its memorandum of appeal which reads as under : “13]. The learned A.O./DRP erred in not appreciating that if at all, any adjustment on account of Transfer Pricing was warranted, the same should have been restricted to the AE transactions and not on the total turnover of the assessee.” 4. It is undisputed that this ground remained to be disposed of by the Tribunal in the order u/s. 254(1) of the Act. Non-adjudication of a ground constitutes a mistake on record of requiring necessary rectification to that extent. 5. The subject matter of ground No. 13 is that the Transfer Pricing adjustment should be restricted only to the transactions with the Associated Enterprises and not the entity level transactions. This issue is no more res-integra in view of the judgment of Hon’ble Jurisdictional High Court in CIT Vs. Phoenix Mecano (India) Pvt. Ltd. (2019) 414 ITR 704 (Bom.) deciding such issue in favour of the assessee. The SLP against this judgment has since been dismissed in CIT Vs. Phoenix Mecano (India) Pvt. Ltd. (2018) 402 ITR 32 (St.). In view of the foregoing discussion, we modify the impugned order passed u/s. 254(1) of the Act by holding that the Transfer Pricing addition should be restricted only in respect of the 3 MA No. 210/PUN/2022, A.Y. 2015-16 transactions with the Associated Enterprises and not Non-Associated Enterprises. Impugned order is modified to this extent. 6. In the result, the Miscellaneous Application filed by the assessee is allowed. Order pronounced in the open court on 06 th January, 2023. Sd/- Sd/- (R.S. Syal) (S.S. Viswanethra Ravi) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; दिनाांक / Dated : 06 th January, 2023. रदव आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A)-13, Pune 4. The Pr. CIT-5, Pune 5. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, “सी” बेंच, पुणे / DR, ITAT, “C” Bench, Pune. 6. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आिेशानुसार / BY ORDER, वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune