ASSISTANT COMMISSIONER OF INCOME TAX-6(1)(1), MUMBAI V. M/S. EXXON MOBILE COMPANY INDIA PVT LTD., MUMBAI

MA 536/MUM/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6749 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-05-2024
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: K
• Next Hearing Date: 29-02-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 08-09-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Transfer pricing; Tax effect; Tax effect
• Section: 143(3); 40(a)(ia); 201; 22; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM M A N o . 5 36/ M u m/ 20 2 3 (A ri s i n g ou t o f I TA N o. 201 6 /M u m / 20 22 ( A ss e s s me n t Y e a r: 2012 -1 3 ) Asst. CIT-6(1)(1) Room No. 504, 5 th Floor, Aayakar Bhavan, Mumbai-400 020 V s. M/s. Exxon Mobile Company India Pvt. Ltd. Kalpatru Point, Plot No. 107, Road No. 8, Sion (E), Mumbai-400 022 P A N / G I R N o. AA A CE 3 15 7 H (Assessee) : (Respondent) Assessee by : None Respondent by : Shri H. M. Bhatt D a te o f H e a r i n g : 01.03.2024 D ate of P ro n ou n ce me n t : 31.05.2024 O R D E R Per Kavitha Rajagopal, J M: The present miscellaneous application has been filed by the Revenue for rectification of mistake apparent on record emanating from the impugned order of the Tribunal dated 08.12.2022, pertaining to the Assessment Year (‘A.Y.’ for short) 2012-13. 2. As there was no representation on behalf of the assessee, we hereby dispose of this miscellaneous application by hearing the learned Departmental Representative ('ld.DR' for short) and on perusal of the materials available on record. 3. The facts of the miscellaneous application are that the assessee filed its return of income for A.Y. 2012-13 dated 29.11.2012, declaring total income of Rs.76,03,89,600/-. 2 M A N o . 5 3 6 / M u m / 2 0 2 3 ( A . Y . 2 0 1 2 - 1 3 ) Asst. CIT vs. M/s. Exxon Mobile Company India Pvt. Ltd. The assessee’s case was selected for scrutiny and draft assessment order dated 07.03.2016 was passed by the Assessing Officer (A.O. for short) u/s. 143(3) r.w.s 144C(1) of the Act. Pursuant to this, the final assessment order dated 28.04.2016 was passed by the A.O. by making the addition/disallowance on transfer pricing adjustment on international transaction on provision of back office services, amounting to Rs.90,07,259/- and disallowance u/s. 40(a)(ia) out of global support service charges amounting to Rs.3,57,44,189/-. 4. The assessee filed an appeal before the first appellate authority. The ld. CIT(A) excluded M/s. Excel Infoways and M/s. Universal Print Systems Ltd. as comparables on the ground that their activities are not functionally similar to that of the assessee company. Further to this, the ld. CIT(A) directed to grant working capital adjustment to the assessee, amounting to Rs.1,17,00,866/-. 5. The Revenue was in appeal before the Tribunal and the Tribunal vide order dated 08.12.2023 had dismissed the appeal filed by the Revenue on the ground of low tax effect as per CBDT Circular No. 21/2015 dated 10.12.2015. 6. The Revenue has filed the present miscellaneous application on the ground that the tax effect specified in Form No. 36 had erroneously specified only the transfer pricing adjustment made by the ld. Transfer Pricing Officer ('TPO' for short) without specifying the grounds of disallowance made u/s. 40(a)(ia) of the Act and the interest u/s. 234 of the Act. 3 M A N o . 5 3 6 / M u m / 2 0 2 3 ( A . Y . 2 0 1 2 - 1 3 ) Asst. CIT vs. M/s. Exxon Mobile Company India Pvt. Ltd. 7. The learned Departmental Representative ('ld.DR' for short) prayed that the order of the Tribunal be recalled on the ground of inadvertent error in computing the tax effect in Form No. 36. 8. We have heard the ld. DR and perused the materials available on record. it is observed that the Revenue has challenged the order of the ld. CIT(A) on the grounds of deleting the addition on transfer pricing adjustment of Rs.90,07,259/- and disallowance u/s. 40(a)(ia) of the Act amounting to Rs.3,57,44,189/- which aggregate to Rs.4,47,51,448/- for which the tax effect is Rs.1,44,84,076/-. It is further observed that Form No. 36 filed by the Revenue has inadvertently mentioned the tax effect for the said grounds to be Rs.14,84,076/-. This mistake in computing the tax effect was not brought to the knowledge of the bench at the time of disposal of the said appeal. It is evident that there has been an error crept in the order of the Tribunal in disposing of the said appeal on the grounds of low tax effect as per CBDT Circular No. 21/2015 dated 10.12.2015. Therefore, in the interest of justice, we deem it fit to recall the order of the Tribunal vide order date 08.12.2022 in ITA No. 2016/Mum/2022. 9. In the result, the miscellaneous petition filed by the Revenue is allowed. Order pronounced in the open court on 31.05.2024 Sd/- Sd/- (Prashant Maharishi) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 31.05.2024 Roshani , Sr. PS 4 M A N o . 5 3 6 / M u m / 2 0 2 3 ( A . Y . 2 0 1 2 - 1 3 ) Asst. CIT vs. M/s. Exxon Mobile Company India Pvt. Ltd. Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT - concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai