PR. COMMISSIONER OF INCOME TAX-2 vs. M/S CONTIENENTAL AUTOMOTIVE COMPONENTS (INDIA) PVT LTD.,

PR. COMMISSIONER OF INCOME TAX-2, KORAMANGALA, BANGALORE.

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2(1)(1), KORMANGALA, BANGALORE. …APPELLANTS (BY SRI. SANMATHI E I.,ADVOCATE) AND:

M/S CONTIENENTAL AUTOMOTIVE COMPONENTS (INDIA) PVT LTD., AUTOMOTIVE COMPONENTS (INDIA) PVT LTD., PLOT NO.53B, BOMMASANDRA INDUSTRIAL AREA, HOSUR ROAD, ATTIBELE HOBLI, BNEGALURU - 560099. …RESPONDENT (BY SMT TANMAYEE RAJKUMAR, ADVOCATE)

The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 (for short, ‘the Act’) questioning the correctness and legality of order dated 17.08.2023 passed by the Income Tax Appellate Tribunal, ‘B’ Bench, Bengaluru (for short, ‘Appellate Authority’) in IT(TP).No.390/Bang/2021 for the assessment year 2009-10.

This

Whether on the facts and in the circumstances of the case, the Tribunal’s order is perverse in nature in directing Transfer Pricing Officer to exclude M/s.Sasken Communication Technologies Ltd., L & T Infotech Ltd. On the basis of turnover filter ignoring that turnover filter is not relevant criteria deciding the comparability as per Rule 10B of I.T. Rules?

Whether on the facts and in the circumstances of the case, the Tribunal’s order is perverse in nature in setting aside Transfer Pricing Officer Adjustment determined by Transfer Pricing Officer ignoring the findings and materials brought on record by said officer?

Learned counsel for the assessee submits that the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal should not be entertained at the instance of the revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue.

On the other hand, learned counsel for the revenue submits that he be granted liberty to revive the appeal in case the matter falls within the exceptions under the aforesaid Circular dated 17.09.2024 and Circular No.5/2024 dated 15.03.2024.

In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned counsel for the revenue. However, the question of law is kept open to be adjudicated in an appropriate proceeding.