Jain Irrigation Systems Ltd, Jalgaon V. Deputy Commissioner of Income-tax, Circle - 2, Jalgaon

MA 55/PUN/2023

AI Insights

The case involves Jain Irrigation Systems Ltd., which filed a miscellaneous application under section 254(2) of the Income Tax Act, 1961, seeking to recall or rectify the Tribunal's earlier order that partly allowed their main appeal concerning the assessment year 2013-2014. The dispute centered on an arm's length price (ALP) adjustment related to a corporate guarantee. The assessee argued for a reconsideration of the actual utilization of the corporate guarantee amount, which differed from what was sanctioned as per the transfer pricing study report. The Tribunal, after hearing both parties, decided that the application was premature as the specific issue had not been addressed in the consequential proceedings by the field authorities.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 138042 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-10-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 05-10-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 22-03-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KUMAR ARVIND BHARDWAJ
• Keywords: Transfer pricing

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE “C” BENCH : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK RIPOTE, ACCOUNTANT MEMBER M.A.No.55/PUN./2023 Arising out of ITA.No.227/PUN./2018 - Assessment Year 2013-2014 Jain Irrigation Systems Ltd., Jain Plastic Park, NH No.6, Jalgaon – 425 001. Maharashtra. PAN AAACJ7163Q vs. The DCIT, Circle-2, Jalgaon. (Applicant) (Respondent) For Assessee : Shri Prashant Maheshwari For Revenue : Shri Kumar Arvind Bhardwaj Date of Hearing : 06.10.2023 Date of Pronouncement : 12.10.2023 ORDER PER SATBEER SINGH GODARA, J.M. This assessee’s miscellaneous application 55/PUN./2023 filed u/s.254(2) of the Income Tax Act, 1961 [in short “the Act”] seeks to recall/rectify the tribunal’s order dated 22.12.2022 partly allowing it’s main appeal ITA.No.227/ PUN./2018. Heard both the parties. Case file perused. 2. The assessee pleads the following substantive grounds in the instant miscellaneous application : 2 M.A.No.55/PUN./2023 3 M.A.No.55/PUN./2023 4 M.A.No.55/PUN./2023 3. Learned counsel submits during the course of hearing that the assessee seeks to rectify/recall our impugned order affirming the learned lower authorities action making arm’s length price [“ALP”] adjustment regarding corporate guarantee to the extent of 0.5% thereby issuing necessary directions to the lower authorities. Learned counsel submitted that the assessee’s limited relief claimed in the instant miscellaneous application is regarding the actual utilization of corporate guarantee amount than that sanctioned as per the transfer pricing study report. We are of the view that once we have directed the learned field authorities to re-compute the impugned adjustment, the assessee’s instant miscellaneous 5 M.A.No.55/PUN./2023 application deserves to be treated as premature only at this stage since not raised before the field authorities in consequential proceedings. We thus dismiss the instant miscellaneous application in very terms with liberty to the assessee to raise it’s appropriate claim in consequential proceedings which shall be considered as per law. Ordered accordingly. 4. This assessee’s miscellaneous application is dismissed in above terms. Order pronounced in the open Court on 12.10.2023. Sd/- Sd/- [DR. DIPAK P. RIPOTE] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated October, 2023 VBP/- Copy to 1. The appellant 2. The respondent 3. The Disputes Resolution Panel-3, Mumbai 4. Pr. CIT-2, Nashik 5. DR, ITAT – “C” Bench, Pune. 5. Guard File. //By Order// Assistant Registrar, ITAT, Pune Benches Pune.