S.R.A.Systems Ltd., CHENNAI V. ACIT, CHENNAI

MA 37/CHNY/2014

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 1829 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-05-2014
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 13-03-2014
• Court: TRIBUNAL
• Department Lawyers: T N BETGERI
• Assessee Lawyers: T BANUSEKAR
• Keywords: Transfer pricing

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER M.P. NO. 37/MDS/2014 ( IN ITA NO. 1547/MDS/2012 ) ASSESSMENT YEAR : 2008-09 S.R.A. SYSTEMS LTD., 100, VALLUVAR KOTTAM HIGH ROAD, NUNGAMBAKKAM, CHENNAI-600 034 [PAN: AAECS 7014 H] (PETITIONER) VS ASST. COMMISSIONER OF INCOME TAX, COMPANY CIRCLE-VI(1), CHENNAI (RESPONDENT) PETITIONER BY : SHRI T.BANUSEKAR , CA., RESPONDENT BY : SHRI T.N.BETGERI , J CIT DATE OF HEARING : 11-04-2014 DATE OF PRONOUNCEMENT : 23-05-2014 O R D E R PER VIKAS AWASTHY, J.M: THE MISCELLANEOUS PETITION HAS BEEN FILED BY THE A SSESSEE IN ITA NO.1547/MDS/2012 ON THE GROUND THAT THE TRIB UNAL HAS NOT ADJUDICATED GROUND NO.9 RAISED IN THE APPEAL. THE SAME IS RE-PRODUCED HEREIN BELOW: M.P. NO. 37/MDS/2014 :- 2 -: 9.FOR THAT THE ASSESSING OFFICER ERRED IN ADJUSTIN G NON AE SALES TO THE TUNE OF ` 4.95 CRORES INSTEAD OF THE TOTAL NON AE REVENUE OF ` 7.18 CRORES IN COMPUTING THE ADJUSTMENT TO THE ARMS LENGTH PRICE. 2. THE LD.AR SUBMITTED THAT THE ASSESSING OFFICER W HILE COMPUTING ALP HAS ALSO TAKEN INTO CONSIDERATION NON AE SALES. THE TRIBUNAL HAS NOT DIRECTED THE ASSESSING OFFICER TO CONSIDER ONLY ASSOCIATE ENTERPRISES (AE) SALES AND NOT TOTAL SALES. THE LD.DR HAS STRONGLY OBJECTED TO THE PETITION FIL ED BY THE ASSESSEE. THE LD.DR SUBMITTED THAT THERE IS NO ERR OR IN THE ORDER OF THE TRIBUNAL. THEREFORE, THE PETITION OF THE AS SESSEE IS LIABLE TO BE DISMISSED. 3. BOTH SIDES HEARD. THE TRIBUNAL WHILE ADJUDICATI NG THE ISSUES RAISED IN APPEAL HAS RELIED ON THE ORDER OF THE CO-ORDINATE BENCH OF THE TRIBUNAL IN ITA NO.1813/MDS/2011 FOR T HE AY.2007- 08 DECIDED ON 08-01-2013 IN THE CASE OF THE ASSESSE E. THE APPEAL OF ASSESSEE HAS BEEN ALLOWED FOR STATISTICAL PURPOSES WITH A DIRECTION TO THE ASSESSING OFFICER TO RE-CALCULAT E THE QUANTUM OF ALP BY ADOPTING PLI @ 7%. IT IS QUITE OBVIOUS THAT WHILE M.P. NO. 37/MDS/2014 :- 3 -: DETERMINING THE QUANTUM OF ALP, ONLY AE SALES HAVE TO BE TAKEN INTO CONSIDERATION FOR WHICH NO SEPARATE DIRECTION IS REQUIRED. WE DO NOT FIND ANY MERIT IN THE PETITION OF THE ASSESS EE. THE SAME IS DISMISSED. ORDER PRONOUNCED ON FRIDAY, THE 23 RD MAY, 2014 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) (VIK AS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER DATED: 23 RD MAY, 2014 TNMM COPY TO: (1) PETITIONER (4) CIT(A) (2) RESPONDENT (5) D.R. (3) CIT (6) G.F.