HBL Power Systems Limited, Hyderabad, Hyderabad V. DCIT, Circle-2(2), Hyderabad

MA 45/Hyd/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4483 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2012-2013
• Appeal Filed On: 16-07-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Keywords: Right to appeal

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER M.A. NO.45/HYD/2021 (ARISING OUT OF ITA NO.189/HYD/2017) ASSESSMENT YEAR: 2012-13 M/S.HBL POWER SYSTEMS LIMITED, HYDERABAD [PAN: AAACH8421K] VS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P.V.S.S.PRASAD, AR FOR REVENUE : S HR I Y.V.S.T.SAI , CIT - DR DATE OF HEARING : 2 7 - 0 8 - 2021 DATE OF PRONOUNCEMENT : 30 - 0 9 - 2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES INSTANT MISCELLANEOUS APPLICATION FIL ED U/S.254(2) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT] SEEKS TO RECALL/RECTIFY THE TRIBUNALS ORDER DATED 23-04 -2021 UPHOLDING THE ASSESSING OFFICERS ACTION MAKING TRANSF ER PRICING ADJUSTMENT OF INTEREST @12% ON TRADING RECEIVAB LES. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WE NOTICE AT THE OUTSET WITH THE ABLE ASSISTANCE OF BOT H THE PARTIES THAT THE TRIBUNALS FOREGOING ORDER HAD RELIE D UPON THE ASSESSEES ALLEGED LETTER DT.23-11-2016 FILED BEFO RE THE ASSESSING OFFICER IN FURTHERANCE TO DRPS DIRECTIONS D T.31-10- 2016 REGARDING COMPUTATION OF INTEREST. 3. LEARNED CIT-DR FAILS TO DISPUTE THAT THE SAID LETTER H AD BEEN FILED WITHOUT PREJUDICE TO OUR RIGHT OF APPEAL . MEANING MA NO. 45/HYD/2021 :- 2 -: THEREBY THAT THE ASSESSEE HAD NEVER CLOSED ITS OPTION OF CHALLENGING THE IMPUGNED ADJUSTMENT ON ALL FACTUAL AS WELL AS LEGAL ASPECTS. WE THUS HOLD THAT IT IS A FIT INSTANCE WHE REIN OUR ORDER AFFIRMING THE IMPUGNED ADJUSTMENT BASED ON THE S AID LETTER AND WITHOUT TAKING INTO CONSIDERATION THE ASSESSEE S CONDITIONAL SUBMISSION, SUFFERS FROM AN APPARENT ERR OR WHICH DESERVES TO BE RECALLED. WE ACCORDINGLY RECALL OUR ORDER DT.23- 04-2021 PASSED IN THE ASSESSEES APPEAL ITA NO.189/HYD/2017. THIS M.A.NO.45/HYD/2021 IS ACCEPTED. 4. WE NOW REVERT AGAIN TO THE ASSESSEES FOREGOING SOL E SUBSTANTIVE GRIEVANCE AND NOTICE THAT THE TPOS ORDER D T.30- 01-2016 HAD TAKEN THE ASSESSEES AE AS COMPARABLES THA N INDEPENDENT PARTIES IN THE VERY SEGMENT. CASE LAW ADDL. CIT VS. TECHNIMONT ICB INDIA (P) LTD. [138 ITD 23] (ITA T, BOM) (TM) HOLDS THAT AN ASSESSEES AE ITSELF COULD NOT BE TAKEN AS A COMPARABLE SINCE NOT INVOLVING UN-CONTROLLED TRANSA CTIONS . WE APPLY THE VERY RATIO HEREIN TO DELETE THE IMPUGNED ADJ USTMENT PERTAINING TO INTEREST ON RECEIVABLES OF RS.1,69,22,95 7/-. THE ASSESSEE SUCCEEDS IN ITS SOLE SUBSTANTIVE GROUND AS W ELL AS THE MAIN APPEAL ITA NO.189/HYD/2017. 5. THE ASSESSEES M.A.NO.45/HYD/2021 AS WELL AS ITA NO.189/HYD/2017 ARE ALLOWED IN ABOVE TERMS. A COPY O F THIS COMMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH SEPTEMBER, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 30-09-2021 TNMM MA NO. 45/HYD/2021 :- 3 -: COPY TO : 1.M/S.HBL POWER SYSTEMS LIMITED, C/O.PRASAD & PRASA D CHARTERED ACCOUNTANTS, FLAT NO.301, MJ TOWERS, 8-2- 698, ROAD NO.12, BANJARA HILLS, HYDERABAD. 2.THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(2 ), HYDERABAD. 3. DISPUTE RESOLUTION PANEL (DRP), BENGALURU. 4. DIRECTOR OF INCOME TAX (IT & TP), HYDERABAD. 5.ADDL. COMMISSIONER OF INCOME TAX (TRANSFER PRICIN G), HYDERABAD. 6. D.R. ITAT, HYDERABAD. 7. GUARD FILE.