PURATOS FOOD INGREDIENTS INDIA P.LTD,MUMBAI vs. DCIT CIR 3(2)(2), MUMBAI

This appeal by the assessee is directed against the assessment order dated 29/01/2016 passed under section 143(3) r.w.s.144C(1) and section 92CA of the Income Tax Act, 1961 (in short ‘the Act’) for the assessment year 2011-12.

(A.Y.2011-12) 2. Shri Kishore Patel appeared on behalf of the assessee and filed a request letter dated 24/01/2020, signed by Director/authorized Signatory of the assessee company to withdraw the appeal. The relevant extract of the same is reproduced herein below:-

“Re : Puratos Food Ingredients India Pvt. Ltd ('Company' or 'Appellant') Appeal No : ITA 1659/M/2016 Asst Year : 2011-12 Sub : Hearing fixed on 18.02.2020 — Request for withdrawal of appeal In the above matter, we state as under:

1) The above appeal was filed on 22.03.2016 against the transfer pricing adjustments made in the assessment.

2) While reviewing the situation at a macro level, we find that, as on date, the Company has suffered losses year after year. The status of carried forward losses as per the Return of Income filed for AY 2019-20 is as under:

Assessment Unabsorbed Unabsorbed Total (Rs.) Year Business Loss (Rs.) Depreciation (Rs.) 2010-11 - 45,35,057 45,35,057 2011-12 2,22,50,915 93,01,096 3,15,52,011 2012-13 5,12,76,817 85,49,668 5,98,26,485 2013-14 3,32,81,430 79,94,220 4,12,75,650 2014-15 3,54,97,271 76,49,842 4,31,47,113 2015-16 1,62,76,535 99,64,924 2,62,41,459 2016-17 42,38,161 6,52,51,497 6,94,89,658 TOTAL 16,28,21,129 11,32,46,304 27,60,67,433 3) As can be observed from the above, there are substantial brought forward losses. The transfer pricing adjustment made in the assessment is Rs.91,68,285/- (as per Grounds 2 & 3). The outcome of the appeal before the ITAT is not going to impact the Company financially. Whether the outcome of the appeal before ITAT is in favour of the Company or against the Company, there will remain substantial unabsorbed business loss as on 31.03.2019. If the appeal is allowed, the loss for AY 2011-12 will only increase. However, the unabsorbed loss of Rs.2,22,50,915/- as indicated above has already lapsed since

(A.Y.2011-12) AY 2019-20 was the last year for set off. The addition to loss, if the appeal is allowed, will not give any economic benefit to the Appellant. If the appeal is not allowed then also the Company will not be worst off since there is the loss of Rs.2,22,50,915/- which has lapsed.

4) Thus, the management of the Company, solely on the economical & commercial considerations and as prudent management, have decided to request the Hon'ble Members to permit the Company to withdraw the present appeal.

5) We would like to emphasis that the request for withdrawal of the present appeal is purely and solely on economic and commercial considerations, as explained above, and in no way based on the merits of the transfer pricing adjustments made. Hence, the withdrawal of appeal should not be construed as acceptance by the Company of the transfer pricing adjustment made.

6) We request the Hon'ble Members to permit the Company to withdraw the present appeal and also request that the above facts & submissions be recorded in the Order that may be passed by the Hon'ble Bench in disposing off the present appeal so that adverse inference is not drawn at a later date in any proceedings before lower authorities.

Thanking you.