COMMISSIONER OF INCOME TAX vs. TEREX INDIA PVT LTD

T.C.A.Nos.928 & 929 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED 10.08.2022 CORAM THE HON'BLE Mr. JUSTICE R. MAHADEVAN AND THE HON'BLE Mr. JUSTICE MOHAMMED SHAFFIQ T.C.A.Nos.928 and 929 of 2019 The Commissioner of Income Tax ACIT Circle I, Hosur (previously assessed at New Delhi) .. Appellant in both T.C.As Vs. Terex India Private Limited 5th Floor, West Wing, E-City, Tower-2 #94/2 & 95/2, Electronic City, Phase-I Hosur Main Road, Bangalore 560 100 PAN : AACCT6500D

.. Respondent in both T.C.As Tax Case Appeals filed under Section 260-A of the Income Tax Act, 1961, against the order dated 26.03.2019 passed by the Income Tax Appellate Tribunal 'I-2', New Delhi, in respective I.T.A.Nos.6775/Del/2015 and 6783/Del/2015. For Appellant in both T.C.As Mr.M.Swaminathan Mrs.V.Pushpa Standing Counsels For Respondent in both T.C.As Mr.Karthik Sundaram 1/5 https://www.mhc.tn.gov.in/judis T.C.A.Nos.928 & 929 of 2019 C O M M O N J U D G M E N T (Judgment was delivered by R. MAHADEVAN, J.) These Tax Case Appeals arise from the common order dated 26.03.2019 passed by the Income Tax Appellate Tribunal 'I-2', New Delhi, in respective I.T.A.Nos.6775/Del/2015 and 6783/Del/2015, relating to the assessment year 2011-12. 2. By order dated 20.11.2019, this court admitted the aforesaid tax case appeals on the following substantial questions of law: “(1)Whether the Income Tax Appellate Tribunal was right in upholding the decision of DRP in a Business Support Services Segment in excluding - Global Procurement Consultant Ltd as comparable when the Global Procurement Consultant Ltd is not a 100% per cent Government owned company? (2)Whether the Income Tax Appellate Tribunal was right in confirming the decision of Dispute Resolution Panel In the Engineering Design Support Services Segment in selective screening of three (3) comparables when they are not 100% Government owned company? (3)Whether the Income Tax Appellate Tribunal was right in directing TPO to exclude the seven (7) comparables in the Engineering Design Support Services Segment when the FAR of these comparables 2/5 https://www.mhc.tn.gov.in/judis T.C.A.Nos.928 & 929 of 2019 are essentially similar to that of assessee as confirmed by the Dispute Resolution Panel? (4)Whether on the facts and circumstances of the case and in law, the Hon'ble Tribunal is legally correct in directing the TPO to restrict the adjustment on account of capacity to the material purchased from the AE and consumed during the year, when such adjustment is not permissible under the Transfer Pricing regulations? (5)Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding the loss of Rs.2,04,92,202/- arising out of Foreign Exchange fluctuation on purchase of capital assets is a revenue expenditure?” 3. When these matters were taken up for consideration, the learned counsel appearing for the respondent/assessee submitted that during the pendency of these tax case appeals, the assessee has availed the benefit conferred under the Direct Tax Vivad Se Vishwas Act, 2020, and filed necessary declarations, which were accepted and Form-5/order for full and final settlement of tax arrears, was also issued by the Income tax department, on 24.11.2021. The learned counsel has also filed Form-5 dated 24.11.2021 to that effect. 4. The aforesaid submission made by the learned counsel for the 3/5 https://www.mhc.tn.gov.in/judis T.C.A.Nos.928 & 929 of 2019 respondent/assessee has also been fairly conceded by the learned Standing Counsels appearing for the appellant/ Revenue. 5. In view of the subsequent development, this court is of the opinion that nothing survives for adjudication in these appeals. Recording the submission so made by the learned counsel on either side, these Tax Case Appeals stand disposed of. No costs. [R.M.D,J.] [M.S.Q, J.] gya 10.08.2022

To 1.The Commissioner of Income Tax ACIT Circle I, Hosur 2.The Income Tax Appellate Tribunal 'I-2' New Delhi 3.The Deputy Commissioner of Income Tax Circle-25(1) C.R.Building, New Delhi R. MAHADEVAN, J. AND 4/5 https://www.mhc.tn.gov.in/judis T.C.A.Nos.928 & 929 of 2019 MOHAMMED SHAFFIQ, J. gya T.C.A.Nos.928 & 929 of 2019 10.08.2022 5/5 https://www.mhc.tn.gov.in/judis