M/S SAKATA INX (INDIA) LTD., Alwar V. ACIT, Alwar

MA 27/JPR/2015

• Counselvise Citation: [2015] 124 COUNSELVISE.COM (IT) 3246 (ITAT-JAIPUR)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 23-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEENA JEPH JCIT DHK
• Assessee Lawyers: PIYUSH SINGH
• Keywords: Transfer pricing; International transaction

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH VH-VKJ-EHUK] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI T.R. MEENA, AM M.A. NO. 27/JP/2015 (ARISING OUT OF VK;DJ VIHY LA-@ ITA NO. 376/JP/2012) FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08 M/S. SAKATA INX (INDIA) LTD. 1245/1246, RIICO, INDL. AREA, BHIWADI, ALWAR CUKE VS. THE ACIT CIRCLE- 2 ALWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AACCS 4797 D VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI PIYUSH SINGH, ADVOCATE JKTLO DH VKSJ LS@ REVENUE BY :SMT. NEENA JEPH, JCIT LQUOKBZ DH RKJH[K@ DATE OF HEARING : 22/05/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 12 /06/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS ASSESSEES MISCELLANEOUS APPLICATION ARISI NG OUT OF THE ORDER OF ITAT DATED 14-11-2014 U/S 254(2). 2.1 ASSESSEE COUNSEL SHRI PIYUSH SINGH, ADVOCATE CO NTENDS THAT IN PARA 2.7 OF THE ITAT ORDER, SOME TYPOGRAPHICAL MIST AKES OF FACTS HAVE CREPT IN. THEY DO NOT HAVE ANY EFFECT ON THE OUTCOM E OF THE APPEAL, HOWEVER TO BRING THE CORRECT FACTS, THIS MA IS FILE D FOR RECTIFICATION. M.A. NO. 27/JP/2015 M/S. SAKATA INX (INDIA) LTD. VS. ACIT, CIRCLE- 2, A LWAR . 2 I. IN PARA 2.7 OF THE ORDER THERE IS A MISTAKEN REFERE NCE TO WRITTEN SUBMISSION FROM ADIT (INTERNATIONAL TAXATIO N), IN FACT LD. CIT(DR) MADE ORAL SUBMISSION. II. ASSESSMENT HAS BEEN FRAMED AT RS. 5,31,80,980/- AS AGAINST RETURNED INCOME OF RS. 3,17,59,819/-. III. BY MISTAKE SOFTWARE DEVELOPMENT SERVICES TO AE IS MENTIONED WHEREAS CORRECT FACT OF ASSESSEES ROYALT Y PAYMENT TO AE FOR USE OF PRINTING INK TECHNOLOGY HA S BEEN MENTIONED IN GROUNDS AND PARAS 2.1 & 2.2. THIS FACT MAY BE ACCORDINGLY CORRECTED. IV. SUB PARA (IX) REFERS TO COMPARISON OF RISK BEARING ENTITIES, WHEREAS THE SUBMISSION WAS FOR APPLYING WRONG COMPARABLES. 2.2 THE LD. DR CONTENDS THAT MISCELLANEOUS APPLICAT ION AMOUNTS TO REVIEW OF THE ORDER. 2.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD AND FIND MERIT IN THE CONTENTIO NS OF THE LD. AR ABOUT THESE MISTAKES WHICH ARE APPARENT FROM THE RECORD. CONSEQUENTLY THESE MISTAKES ARE RECTIFIED AND SUB PARAS (I); (II), (IX ) & (X) OF PARA 2.7 OF THIS ORDER SHOULD BE SUBSTITUTED BY RECTIFIED SUB PARAS AS UNDER:- M.A. NO. 27/JP/2015 M/S. SAKATA INX (INDIA) LTD. VS. ACIT, CIRCLE- 2, A LWAR . 3 2.7 THE LD. CIT-DR RELIED ON THE ORDER OF THE AO AND TPO AND CONTENDS THAT CUP METHOD WAS RIGHTLY APPLIE D AND LD. CIT(A) ERRED IN:- (I) ASSESSING TOTAL INCOME AT RS. 5,31,80,980/- AS AGAINST RS. 3,17,59,819/-. (II) MARKING TRANSFER PRICING ADJUSTMENT BY REJECTI NG THE ANALYSIS UNDERTAKEN BY THE APPELLANT TO DETERMINE A LP FOR ITS INTERNATIONAL TRANSACTIONS PERTAINING TO PROVIS ION OF PAYMENT OF ROYALTY FOR SERVICES RENDERED BY AE. (IX) COMPARING THE ENTITIES WHICH ARE NOT COMPARABL E WITH ASSESSEE. (X) COMPUTING THE ALP OF SERVICES RENDERED AS THE M EAN ALP DETERMINED WITHOUT TAKING INTO ACCOUNT THE LOWE R 5% VARIATION FROM THE MEANS ALP DETERMINED. 2.4 IT IS MADE CLEAR THAT BY ALLOWING THIS MA THERE IS NO EFFECT WHATSOEVER ON THE RESULT OF OUR ORDER. IN VIEW THER EOF, THE MISCELLANEOUS APPLICATION OF THE ASSESSEE IS ACCORDINGLY ALLOWED. M.A. NO. 27/JP/2015 M/S. SAKATA INX (INDIA) LTD. VS. ACIT, CIRCLE- 2, A LWAR . 4 3.0 IN THE RESULT, THE MISCELLANEOUS APPLICATION OF THE ASSESSEE IS ALLOWED SD/- SD/- VH-VKJ-EHUK VKJ-IH-RKSYKUH (T.R. MEENA) (R.P.TOLANI) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 12/06/2015 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. SAKATA INX (INDIA) LTD., ALWAR 2. IZR;FKHZ@ THE RESPONDENT- THE ACIT, CIRCLE-2, ALWAR 3. VK;DJ VK;QDRVIHY@ THE CIT(A). 4. VK;DJ VK;QDR@ THE CIT 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (MA NO.27/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR