ILJIN AUTOMOTIVE PRIVATE LIMITED, Kancheepuram V. DCIT CORPORATE CIRCLE 2(2), CHENNAI

MA 231/CHNY/2022

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 5652 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-11-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 02-11-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 01-09-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SANDEEP BAGMAR.R
• Keywords: Depreciation; Transfer pricing; International transaction; Additional depreciation; Working capital adjustments; Set aside

Judgement Text

आयकर अपीलीय अिधकरण, ’डी’ यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI ी वी. दुगा राव, माननीय ाियक सद एवं ी मंजूनाथा.जी, माननीय लेखा सद के सम BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA.G, HON’BLE ACCOUNTANT MEMBER Miscellaneous Application Nos.8, 9 & 10/Chny/2023 (in ITA No.1834/Chny/2017, IT (TP) A No.60/Chny/2018 & IT (TP) A No.53/Chny/2019) िनधा रण वष /Assessment Years: 2013-14, 2014-15 & 2015-16 The Dy. Commissioner – of Income Tax (OSD), Corporate Cirlce-2(2), Chennai. v. M/s.Iljin Automotive- Pvt. Ltd., Plot No.B1 & B2, SIPCOT Industrial Park, Irungattukottai, Sriperumbudur, Kanchipuram-602 105 [PAN: AAACI 2641 E] (अपीलाथ /Appellant) ( यथ /Respondent) Miscellaneous Application Nos.230 & 231/Chny/2022 ( in ITA No.1834/Chny/2017 & IT (TP) A No.60/Chny/2018) िनधा रण वष /Assessment Years: 2013-14 & 2014-15 M/s.Iljin Automotive- Pvt. Ltd., Plot No.B1 & B2, SIPCOT Industrial Park, Irungattukottai, Sriperumbudur, Kanchipuram-602 105. [PAN: AAACI 2641 E] v. The Dy. Commissioner – of Income Tax (OSD), Corporate Cirlce-2(2), Chennai. (अपीलाथ /Appellant) ( यथ /Respondent) Department by : Shri P. Sajit Kumar, JCIT Assessee by : Shri Sandeep Bagmar.R, Adv. सुनवाई क तारीख/Date of Hearing : 03.11.2023 घोषणा क तारीख /Date of Pronouncement : 03.11.2023 MA Nos.8-9 /Chny/2023 MA Nos.230 & 231/Chny/2022 :: 2 :: आदेश / O R D E R PER MANJUNATHA.G, AM: This bunch of ‘five’ Miscellaneous Applications filed by the assessee as well as the Revenue u/s.254(2) of the Income Tax Act, 1961, against the order of the Tribunal in ITA No.1834/Chny/2017, in IT (TP) A No.60/Chny/2018 & in IT (TP) A No.53/Chny/2019 dated 03.08.2022, and pertains to assessment years 2013-14, 2014-15 & 2015-16. 2. The Revenue has narrated the facts of its case and mistakes stated to be apparent on record from the order of the Tribunal dated 03.08.2022 and relevant contents of Miscellaneous Application filed by the Revenue are reproduced as under: MA No.8/Chny/2023 filed by the Revenue in ITA No.1834/Chny/2017 for AY 2013- 14: In the above case, the assessee filed original return of income electronically for the Assessment Year 2013-14 on 30.11.2013 admitting NIL income. The same was processed u/s 143(1). The case was selected for scrutiny. As the assessee company entered into international transaction, the case was referred to Transfer Pricing Officer. The Transfer Pricing Officer vide order in C.R.No.1515/TPO-2(1)/AY 2013-14 dt.25.10.2016 passed an order with a downward adjustment to the tune of Rs.5,54,61,825/-. Draft assessment order was passed on 08.12.2016. The assessee filed objection on 06.01.2017 before DRP. The Hon'ble Dispute Resolution Panel-2, Bangalore issued directions on 28.04.2017 upholding the TP adjustments. Aggrieved, the assessee preferred appeal before the Hon'ble ITAT, Chennai. The Hon'ble ITAT vide its order in ITA No. 1834/Chny/2017, dt.03.08.2022 set aside the issue of custom duty and working capital adjustments to the files of the TPO and w.r.t. disallowance of additional depreciation to the files of Assessing officer. It is submitted that the order of the Hon'ble ITAT has been received in this office on 17.08.2022. Further, it is humbly submitted that the Hon'ble ITAT while passing the order has neither discussed nor distinguished the Jurisdictional ITAT's decision in the case of Mobis India Ltd. Vs DCIT, LTU Chennai dt. 29.07.2013 for A.Y, 2007-08 in ITAT No. 2112/Mds/2011, dt.14.08.2013, wherein it has been decided that for getting the benefit of custom duty MA Nos.8-9 /Chny/2023 MA Nos.230 & 231/Chny/2022 :: 3 :: adjustments, the assessee should be able to demonstrate that higher import content was necessitated by any extra ordinary circumstances beyond their control. In the light of the above facts, the Department is filing Miscellaneous Petition praying that the Hon'ble Tribunal may be pleased to reconsider the issue for fresh verification. MA No.9/Chny/2023 filed by the Revenue in IT (TP) A No.60 /Chny/2018 for AY 2014-15: In the above case, the assessee filed original return of income electronically for the Assessment Year 2014-15 on 30.11.2014 admitting loss of Rs.27,81,93,291/-. The same was processed u/s.143(1). The case was selected for scrutiny. As the assessee company entered into international transaction, the case was referred to Transfer Pricing Officer. The Transfer Pricing Officer vide order No.I-523/TPO-2/AY2014-15 dt.23.10.2017 passed an order with a downward adjustment to the tune of Rs.25,77,10,467/-. Draft assessment order was passed on 16.11.2017. The assessee filed objection on 22.12.2017 before DRP. The Hon'ble Dispute Resolution Panel-2, Bangalore issued directions on 10.08.2018 upholding the TP adjustments. Aggrieved, the assessee preferred appeal before the Hon'ble ITAT, Chennai. The Hon'ble ITAT vide its order in IT (TP) No. 60/Chny/2018, dt.03.08.2022 set aside the issue of custom duty and working capital adjustments to the files of the TPO and w.r.t. disallowance of additional depreciation to the files of Assessing officer. It is submitted that the order of the Hon'ble ITAT has been received in this office on 17.08.2022. Further, it is humbly submitted that the Hon'ble ITAT while passing the order has neither discussed nor distinguished the Jurisdictional ITAT's decision in the case of Mobis India Ltd. vs DCIT, LTU Chennai dt. 29.07.2013 for A.Y. 2007-08 in ITAT No. 2112/Mds/2011, dt.14.08.2013, wherein it has been decided that for getting the benefit of custom duty adjustments, the assessee should be able to demonstrate that higher import content was necessitated by any extra ordinary circumstances beyond their control. In the light of the above facts, the Department is filing Miscellaneous Petition praying that the Hon'ble Tribunal may be pleased to reconsider the issue for fresh verification. MA No.10/Chny/2023 filed by the Revenue in IT (TP) A No.53/Chny/2019 for AY 2015-16: In the above case, the assessee filed original return of income electronically for the Assessment Year 2015-16 on 30.11.2015 admitting loss of Rs.1,30,99,144/-. The same was processed u/s 143(1). The case was selected for scrutiny. As the assessee company entered into international transaction, the case was referred to Transfer Pricing Officer. The Transfer Pricing Officer vide order No.18-IT-19/TPO-2/AY 2015-16 dt.26.10.2018 passed an order with a downward adjustment to the tune of Rs.2,52,88,940/-. Draft assessment order was passed on 22.11.2018. The assessee filed objection on 03.12.2018 before DRP. The Hon'ble Dispute Resolution Panel-2, Bangalore issued directions on 29.03.2019 upholding the TP adjustments. Aggrieved, the assessee preferred appeal before the Hon'ble ITAT, Chennai. The Hon'ble ITAT vide its order in IT (TP) No. 53/Chny/2019, dt.03.08.2022 set aside the issue of custom duty and working capital adjustments to the files of the TPO and w.r.t. disallowance of additional depreciation to the files of Assessing officer. It is submitted that the order of the Hon'ble ITAT has been received in this office on 17.08.2022. Further, it is humbly submitted that the Hon'ble ITAT while passing the order has neither discussed nor distinguished the Jurisdictional ITAT's decision in the case of Mobis India Ltd. MA Nos.8-9 /Chny/2023 MA Nos.230 & 231/Chny/2022 :: 4 :: Vs DCIT, LTU Chennai dt. 29.07.2013 for A.Y. 2007-08 in ITAT No. 2112/Mds/2011, dt. 14.08.2013, wherein it has been decided that for getting the benefit of custom duty adjustments, the assessee should be able to demonstrate that higher import content was necessitated by any extra ordinary circumstances beyond their control. In the light of the above facts, the Department is filing Miscellaneous Petition praying that the Hon'ble Tribunal may be pleased to reconsider the issue for fresh verification. 3. The assessee has narrated the facts of its case and mistakes stated to be apparent on record from the order of the Tribunal dated 03.08.2022 and relevant contents of Miscellaneous Application filed by the assessee are reproduced as under: MA No.230/Chny/2022 filed by the assessee in ITA No.1834/Chny/2017 for AY 2013-14: MA Nos.8-9 /Chny/2023 MA Nos.230 & 231/Chny/2022 :: 5 :: MA Nos.8-9 /Chny/2023 MA Nos.230 & 231/Chny/2022 :: 6 :: MA Nos.8-9 /Chny/2023 MA Nos.230 & 231/Chny/2022 :: 7 :: MA No.231/Chny/2022 filed by the assessee in IT (TP) A No.60/Chny/2018 for AY 2014-15: MA Nos.8-9 /Chny/2023 MA Nos.230 & 231/Chny/2022 :: 8 :: MA Nos.8-9 /Chny/2023 MA Nos.230 & 231/Chny/2022 :: 9 :: MA Nos.8-9 /Chny/2023 MA Nos.230 & 231/Chny/2022 :: 10 :: 4. The Ld.Counsel for the assessee, Shri Sandeep Bagmar.R, Advocate, referring to the order of the Tribunal dated 03.08.2022 submitted that the Tribunal by an inadvertent error captured incorrect facts and also not adjudicated certain specific grounds taken by the assessee for both assessment years. Therefore, he submitted that, order of the Tribunal needs to be recalled. 5. The Ld.Sr.DR, Shri P. Sajit Kumar, JCIT fairly agreed that the order of the Tribunal in ITA No.1834/Chny/2017, in IT (TP) A No.60/Chny/2018 & in IT (TP) A No.53/Chny/2019 dated 03.08.2022, needs to be recalled in total, because, as claimed by the Ld.Counsel for the assessee, the facts captured by the Tribunal are contrary to the arguments advanced by both the parties and further, certain grounds were not specifically adjudicated. 6. We have heard the assessee and the Revenue in light of order of the Tribunal dated 03.08.2022 and after considering relevant arguments, we find that certain specific grounds taken by the assessee as well as the Revenue are not specifically adjudicated by an inadvertent error. In so far as the issue of forex loss is concerned, the arguments of the Ld.Counsel for the assessee was that said forex loss is not operating in nature, whereas, the Tribunal has recorded that forex loss is operating in nature. In our considered view, the findings of the Tribunal in not recording correct facts and also not adjudicating specific grounds of appeal, filed by both the parties, amounts to mistake apparent on record, which needs to be rectified MA Nos.8-9 /Chny/2023 MA Nos.230 & 231/Chny/2022 :: 11 :: u/s.254(2) of the Act. Since, there is an error in the order of the Tribunal dated 03.08.2022, and further, both parties have agreed for recalling the order in total for three assessment years, we recall the order of the Tribunal in ITA No.1834/Chny/2017, in IT (TP) A No.60/Chny/2018 & in IT (TP) A No.53/Chny/2019 dated 03.08.2022. The Registry is directed to list the appeals for hearing in due course and intimate both the parties. 7. In the result, the Miscellaneous Applications filed by the Revenue as well as the assessee are allowed. Order pronounced on the 03 rd day of November, 2023, in Chennai. Sd/- (वी. दुगा राव) (V. DURGA RAO) याियक सद य/JUDICIAL MEMBER Sd/- (मंजूनाथा.जी) (MANJUNATHA.G) लेखा सद य/ACCOUNTANT MEMBER चे ई/Chennai, दनांक/Dated: 03 rd November, 2023. TLN आदेश क ितिलिप अ ेिषत/Copy to: 1. अपीलाथ /Appellant 3. आयकर आयु /CIT 5. गाड फाईल/GF 2. यथ /Respondent 4. िवभागीय ितिनिध/DR