M/S.JOY ALUKKAS INDIA P. LTD,COCHIN vs. THE ACIT, COCHIN

ITA 38/COCH/2017Status: DisposedITAT Cochin08 September 2025AY 2012-13Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER IT (TP) A No. 119/Coch/2016 (Assessment Year: 2011-12) And IT (TP) A Nos. 38 & 643/Coch/2017 (Assessment Years :2012-13 & 2013-14) M/s. Joyalukkas (India)Pvt. Ltd. Palace Road, Trichur-680020 [PAN: AABCJ 1087 G] vs. Appellant Asst. Commissioner of Income Tax Respondent Corporate Circle-1(2), Ernakulam. Appellant by: Smt. Parvathy Ammal, CA Respondent by: Shri Sanjit Kumar Das, CIT-DR Date of Hearing: 18.08.2025 1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the issue of interest on borrowed funds for leasehold improvements was covered by previous judgments in the assessee's own case, allowing it as revenue expenditure. The disallowance of advertisement expenditure was also found to be revenue in nature and allowed.

What were the facts?

The assessee company engaged in manufacturing and trading gold ornaments, textiles, etc., reported international transactions with associated enterprises. The Transfer Pricing Officer (TPO) rejected the assessee's transfer pricing study and proposed adjustments, which were largely confirmed by the Dispute Resolution Panel (DRP).

What were the issues?

Whether the transactions with associated enterprises were correctly benchmarked by the TPO and whether interest on borrowed funds and advertisement expenses were correctly treated as capital expenditure.

Which sections of the Income-tax Act were involved?

Section 92A,Section 92B,Section 36(1)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH :: COCHIN

Before: SHRI INTURI RAMA RAO, AM& SHRI RAHUL CHAUDHARY

For Appellant: Smt. Parvathy Ammal, CA
For Respondent: Shri Sanjit Kumar Das, CIT-DR
Hearing: 18.08.2025Pronounced: 08.09.2025

Per Inturi Rama Rao, AM: These are the appeals filed by the assessee-company directed against the different final assessment orders dated 29/01/2016, 27/12/2016 & 30/10/2017 passed u/s. 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (for short, 'the Act') for Assessment Years (AY) 2011-12, 2012-13 & 2013-14 respectively.

2 IT (TP) A No. 119/Coch/2016 & IT (TP) A Nos. 38 & 643/Coch/2017 M/s. Joyalukkas India Pvt. Ltd.

2.

Since identical issues and facts are involved in all these appeals and the appeals are heard together and disposed of vide this common order.

3.

For the sake

The order continues below.

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