M/s Yokogawa India Limited, Bangalore V. Assistant Commissioner of Income Tax, LTU, Circle-1, Bangalore

MA 329/BANG/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6746 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 29-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PADMAMEENAKSHI J
• Keywords: Transfer pricing; International transaction

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, B ENGALURU BEFORE S HRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER MISC. PETN.NO.329/BANG/201 7 (IN IT(TP)A NO. 342/BANG/2015 ) (ASSESSMENT YEAR: 20 10 - 11 ) M/S.YOKOGAWA INDIA LTD., PLOT NO.96, HOSUR ROAD, ELECTRONIC CITY, BENGALU RU - 560100. PAN:AAACY 084 P VS. PETITIONER ASST.COMMISSIONER OF INCOME - TAX,LTU CIRCLE 1 , BENGALURU. RESPONDENT PETITIONER BY : SHRI NAGESHWAR RAO, ADVOCATE. RESPONDEN T BY : SMT. PADMA MEENAKSHI, JCIT(DR) DATE OF HEARING : 01 / 06 /201 8 DATE OF PRONOUNCEMENT : 08 / 0 6 /201 8 O R D E R PER I NTURI RAMA RAO, AM : THIS MISCELLANEOUS PETITION (MP) IS FILED BY THE ASSESSEE - COMPANY SEEKING MODIFICATION OF PARA.4 OF THE OR DER PASSED BY THIS TRIBUNAL IN IT (TP) A NO .342/BANG/2015 DATED 09/06/2017. IT IS SUBMITTED THAT THE FOLLOWING SENTENCE IN PARA.4 AT PAGE 8 OF THE TRIBUNAL ORDER, IS INCONGRUOUS, AS THE ALLOCATION OF OPERATING COST REQUIRES TO BE DONE BETWEEN AE AND NON - AE T RANSACTIONS APPLYING THE TURNOVER ELEMENT AS A KEY OF ALLOCATION : HENCE, WE SET ASIDE THE ENTIRE ISSUE OF DETERMINATION OF ALP AND TP ADJUSTMENT TO THE RECORD OF THE TPO/AO FOR CARRYING OUT FRESH EXERCISE OF DETERMINATION OF ALP IN RESPECT OF INTERNATION AL TRANSACTION BY CONSIDERING THE PAYMENT IN RESPECT OF MANAGEMENT FEES AND GLOBAL SALE AND MARKETING ACTIVITY FEES AS PART OF THE OPERATING COST AND ALLOCATING THE SAME IN THE RATIO OF THE TURNOVER OF THE OTHER INTERNATIONAL TRANSACTIONS. MP 329 /BANG/ 2017 PAGE 2 OF 2 2. WE HEARD RIVAL SUBMISSIONS AND PERUSED MATERIAL ON RECORD. WE FIND MERIT IN THE MP FILED BY THE ASSESSEE - COMPANY. ACCORDINGLY, WE SUBSTITUTE THE FOLLOWING SENTENCE : HENCE, WE SET ASIDE THE ENTIRE ISSUE OF DETERMINATION OF ALP AND TP ADJUSTMENT TO THE RECORD OF THE TPO/AO FOR CARRYING OUT FRESH EXERCISE OF DETERMINATION OF ALP IN RESPECT OF INTERNATIONAL TRANSACTION BY CONSIDERING THE PAYMENT IN RESPECT OF MANAGEMENT FEES AND GLOBAL SALE AND MARKETING ACTIVITY FEES AS PART OF THE OPERATING COST AND ALLOCATING THE SAME IN THE RATIO OF THE TURNOVER BETWEEN AE AND NON - AE. ACCORDINGLY, THE TRIBUNAL ORDER STANDS MODIFIED TO THE EXTENT INDICATED ABOVE. 3. IN THE R ESULT, THE MP IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH JUNE, 2018 SD/ - SD/ - (SUNIL KUMAR YADAV) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BENGALURU. D A T E D : 08/06/2018 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE