RELIANCE INDUSTRIES LIMITED , MUMBAI V. ASSISTANT COMMISSIONER OF INCOME TAX (LTU), MUMBAI

MA 308/MUM/2017

• Counselvise Citation: [2017] 123 COUNSELVISE.COM (IT) 5567 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-11-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: K
• Assessment Year: 2007-2008
• Appeal Filed On: 20-06-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ARVIND SONDE
• Keywords: Transfer pricing; International transaction
• Section: 43B; 92B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL K , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAVISH SOOD , JM M A NO. 308 / MUM/20 17 (ARISING OUT OF 4379/MUM/2012) (ASSESSMENT YEAR 200 7 - 0 8 ) M A NO. 309/ MUM/20 17 (ARISING OUT OF 796/MUM/2013) (ASSESSMEN T YEAR 200 8 - 0 9 ) M A NO. 310/ MUM/20 17 ( ARISING OUT OF : 1892/MUM/2014 ) (ASSESSMENT YEAR 2009 - 10) M/S. RELIANCE INDUSTRIES LTD., 3 RD FLOOR, MAKER CHAMBER - IV 222, NARIMAN POINT MUMBAI 400 021 VS. ACIT(LTU) MUMBAI PAN/GIR NO.AAACR5055K APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI ARVIND SONDE REVENUE BY SHRI PURUSHOTTAM KUMAR DATE OF HEARING 06 / 10 /201 7 DATE OF PRONOUNCEME NT 23 / 11 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THESE M.A. AROSE OUT OF ITA NO S .4379 /MUM/2017, 796/MUM/2013 AND 1892/MUM/2014 RESPECTIVELY, ARISING OUT OF O RDER OF TRIBUNAL DATED 12/04/2017. 2. IT WAS ARGUED BY LEARNED AR THAT GROUND NO.1, 6B AND 6C WERE NOT ADJUDICATED BY THE TRIBUNAL. IT WAS ALSO POINTED OUT THAT GROUND NO.6 OF ITA NO. 308/MUM/2017 TO 310/MUM/2017 M/S. RELIANCE INDUSTRIES LTD., 2 REVENUE APPEAL IN ITA NO.4361/MUM/2012 WAS ALSO NOT DISPOSED OFF BY THE TRIBUNAL WHICH AMOUNTS TO MISTAKE APPARENT FROM RECORD. 3. WE HAVE GONE THROUGH THE ORDER OF THE TRIBUNAL AND THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE AND FOUND THAT IN GROUND NO.1, ASSESSEE HAS TAKEN AN ALTERNATIVE GROUND REGARDING DEEMED PAYMENT OF SALES TAX, THEREFORE , AMOUNT IS ALLOWABLE AS PER PROVISIONS OF SECTION 43B OF THE INCOME TAX ACT. 4. FROM THE ORDER OF THE TRIBUNAL, WE FOUND THAT SINCE THE MAIN GROUND WAS ALLOWED I N FAVOUR OF THE ASSESSEE, THE ALTERNATIVE GROUND WAS NOT DISPOSED OFF AND DISMISSED IN LIMINI. 5. IN GROUND NO.6B, ASSESSEE WAS AGGRIEVED BY THE ACTION OF THE AO TREATING THE NON - FUNDED GUARANTEE GIVEN BY THE ASSESSEE TO BANK OF AMERICA FOR GIVING LOAN T O ITS ASSOCIATE CONCERN AS INTERNATIONAL TRANSACTION WITHIN MEANING OF SECTION 92B R.W.S.92(1) OF THE INCOME TAX ACT. WE HAD ADJUDIC ATED ON MERIT THAT TRANSFER PRICING ADJUSTMENT IS TO BE MADE WITH RESPECT TO GUARANTEE GIVEN BY ASSESSEE TO THE BANK, THE REFORE, THE GROUND TAKEN BY THE ASSESSEE FOR NOT TREATING THE SAME AS INTERNATIONAL TRANSACTION WAS REJECTED. 6. GROUND NO.6 RELATES TO CONFIRMING THE ADDITION IN RESPECT OF NON - FUNDED GUARANTEE GIVEN FOR ADVANCING LOAN TO ITS ASSOCIATE CONCERN. 7. WE FOU ND THAT TRIBUNAL HAVE ALREADY DEALT WITH THIS ISSUE AND BY FOLLOWING THE ORDER OF THE TRIBUNAL IN EARLIER YEAR RESTRICTED THE ADDITION. THUS, THERE IS NO MISTAKE IN THIS PART OF THE ORDER OF THE TRIBUNAL. ITA NO. 308/MUM/2017 TO 310/MUM/2017 M/S. RELIANCE INDUSTRIES LTD., 3 8. GROUND NO.6 RAISED IN REVENUES APPEAL WAS DISPO SED BY THE TRIBUNAL BY OBSERVING THAT SIMILAR ISSUE HAS BEEN CONSIDERED BY THE TRIBUNAL IN ASSESSEES OWN CASE IN THE A.Y.2005 - 06 AND 2006 - 07, WHEREIN THE ADDITION ON ACCOUNT OF GUARANTEE COMMISSION HAS BEEN RESTRICTED TO 0.385%. IN PARA 84, RATE HAS BEEN MENTIONED AS 0.38%. THERE IS A TYPOGRAPHICAL MISTAKE AND WE DIRECT THE GUARANTEE COMMISSION SHOULD BE RESTRICTED TO 0.385%. 9. SIMILAR GROUND HAS BEEN TAKEN BY THE ASSESSEE IN M.A.NO.309/MUM//2017 AND 310/MUM/2017 . FOLLOWING THE REASONING GIVEN HEREINABO VE, WE DIRECT THE AO TO DISPOSE THE SAME IN TERMS OF DIRECTIONS GIVEN IN THE A.Y.2007 - 08. 10. IN THE RESULT, M.AS FILED BY THE ASSESSEE ARE DISPOSED IN TERMS INDICATED HEREINABOVE. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 23 / 11 /2017 S D/ - ( RAVISH SOOD ) S D/ - ( R.C.SHARMA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 23 / 11 /201 7 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDEN T. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//