DCIT International Taxation 1(1), CHENNAI V. Damro Exports Private Limited , CHENNAI

MA 73/CHNY/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 7020 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-08-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 09-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MRS S VIJAYA PRABHA
• Assessee Lawyers: B RAMAKRISHNAN
• Keywords: Transfer pricing

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: CHENNAI . . . , . , $ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER MISCELLANEOUS PETITION NO. 73 / CHNY /20 18 (IN ITA NO.1821/CHNY/2017) % % /ASSESSMENT YEAR: 2014-15 THE DY. COMMISSIONER OF - INCOME TAX, INTERNATIONAL TAXATION-1(1), CHENNAI. VS. M/S.DAMRO EXPORTS PVT. LTD., C/O.CNGSN & ASSOCIATES LLP, SWATHI COURT, FLAT C& D, NO.22, VIJAYARAGHAVAN ROAD, T.NAGAR, CHENNAI-600 017. [PAN: AABCD 8514 G ] ( ( /APPELLANT) ( )*( /RESPONDENT) DEPARTMENT BY : MRS.S.VIJAYAPRABHA, JCIT ASSESSEE BY : MR.B.RAMAKRISHNAN, CA , /DATE OF HEARING : 22.06.2018 , /DATE OF PRONOUNCEMENT : 07.08.2018 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER : THE REVENUE HAS FILED THE PRESENT MISCELLANEOUS PE TITION ON THE GROUND THAT THERE IS AN ERROR IN THE ORDER OF THIS TRIBUNAL. 2. MRS.S.VIJAYAPRABHA, DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT IN RESPECT OF THE FOREIGN TOUR EXPENDITURE, THIS TRIBU NAL REMITTED BACK THE ISSUE TO THE FILE OF THE TRANSFER PRICING OFFICER. MP NO.73/CHNY/2018 (IN ITA NO.1821/CHNY/2017) :- 2 -: 3. ACCORDING TO THE LD.REPRESENTATIVE, THE ASSESSEE IS A BRANCH OF SRILANKAN COMPANY ENGAGED IN THE BUSINESS OF TRADIN G AND FURNITURE. THEREFORE, THE SAID FOREIGN TOUR EXPENDITURE, INCUR RED BY THE ASSESSEE MAY NOT FALL WITHIN THE PURVIEW OF TRANSFER PRICING . ACCORDING TO THE LD.DR, FOREIGN TOUR EXPENDITURE HAS TO BE DETERMINE D ONLY BY THE AO NOT BY THE TPO. THEREFORE, THE MATTER NEEDS TO BE REMI TTED BACK TO THE FILE OF THE AO AND NOT TO THE TPO. 4. WE HEARD SHRI B. RAMAKRISHNAN, LD.REPRESENTATIVE FOR THE ASSESSEE. LD. REPRESENTATIVE FOR THE ASSESSEE FAIRLY CONCEDED THAT THE FOREIGN TOUR EXPENDITURE DOES NOT INVOLVE ANY TRANSFER PRICING I SSUE. THEREFORE, THE MATTER NEEDS TO BE EXAMINED BY THE AO NOT BY THE TP O. 5. WE HAVE CONSIDERED RIVAL SUBMISSIONS ON EITHER S IDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. AS RIGHT LY THE LD.DR AND THE LD.REPRESENTATIVE FOR THE ASSESSEE FOREIGN TOUR EXP ENDITURE HAS NOTHING TO DO WITH TRANSFER PRICING ISSUE. HENCE, THE AO IS E XPECTED TO DECIDE THE SAME AND NOT THE TPO. THEREFORE, THE ORDER OF THIS TRIBUNAL, IN WHICH, THE MATTER WAS REMITTED BACK TO THE FILE OF THE TPO IS AN ERROR WHICH NEEDS TO BE RECTIFIED. ACCORDINGLY, ORDER OF THIS TRIBUNAL DATED 13.10.2017 IS RECTIFIED AS FOLLOWS: MP NO.73/CHNY/2018 (IN ITA NO.1821/CHNY/2017) :- 3 -: THE FOLLOWING SHALL BE DELETED FROM PARA NO.9 OF T HE ORDER DATED 13.10.2017: THE AO SHALL REFER THE MATTER ONCE AGAIN TO THE TP O FOR RE-CONSIDERATION ON THE BASIS OF THE ADDITIONAL MATERIAL FILED BY THE ASSES SEE. THE TPO SHALL EXAMINE THE MATTER ON THE BASIS OF THE ADDITIONAL MATERIAL FILE D BY THE ASSESSEE AND DECIDE THE ISSUE IN ACCORDANCE WITH LAW AFTER GIVING A REASONA BLE OPPORTUNITY TO THE ASSESSEE. INSTEAD, THE FOLLOWING SHALL BE INSERTED: THE AO SHALL DECIDE THE MATTER AFRESH ON THE BASIS OF THE ADDITIONAL MATERIAL THAT MAY BE FILED BY THE ASSESSEE AND DECIDE AFRESH IN A CCORDANCE WITH LAW AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 6. THE ORDER OF THIS TRIBUNAL DATED 13.10.2017 IS R ECTIFIED ACCORDINGLY. THE OTHER PART OF THE ORDER SHALL REMAIN AS SUCH. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT IN AUGUST 07, 2 018, IN CHENNAI. SD/- SD/- ( . ) ( A. MOHAN ALANKAMONY ) /ACCOUNTANT MEMBER ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER /CHENNAI, 1 /DATED: AUGUST 07, 2018. TLN , )23 43 /COPY TO: 1. ( /APPELLANT 4. 5 /CIT 2. )*( /RESPONDENT 5. 3 ) /DR 3. 5 ( ) /CIT(A) 6. % /GF