FOSTER WHEELER BENGAL PVT. LTD., (MERGED WITH AMEE FOSTER WHEELER INDIA PVT. LTD.,),KOLKATA vs. ACIT, CIRCLE - 2(1), KOLKATA, KOLKATA

This appeal is directed against the final assessment order passed under Section (in short u/s) 143(3) read with Section 144C(1) of the Income Tax Act, 1961 (in short ‘the Act’) dated 30.09.2016 by the Ld. ACIT, Circle-2(1), Kolkata (in short ‘the ld. AO’) pursuant to the directions issued by the ld. Dispute Resolution Panel (in short ‘ld. DRP’) u/s 144C(5) of the Act dated 17.08.2017 for the assessment year 2012-13.

The Ground Nos. 1 & 12 raised by the assessee were stated to be not pressed by the ld AR at the time of hearing. The same is reckoned as a statement from the Bar and accordingly Ground Nos. 1 & 12 raised by the assessee are dismissed as not pressed.

The Ground No. 2 raised by the assessee is general in nature and does not require any specific adjudication.

The Ground Nos 3 to 11 raised by the assessee are with regard to adjustment made to Arm’s Length Price of international transactions carried out by the assessee. At the outset, we find that the ld senior counsel for the assessee before us argued that the comparables stated by the assessee were not considered by the ld TPO / ld DRP and requested for setting aside of the issue to the file of ld TPO for denovo adjudication. The ld DR before us fairly agreed to the same. Having heard the rival submissions , in the facts and circumstances of the case, we deem it fit and appropriate, in the interest of justice and fairplay, to remand this issue of adjustment made to ALP of international transactions for denovo adjudication by the ld TPO in accordance with law, uninfluenced by earlier decision taken by him or by ld DRP in this issue. The assessee is hereby directed to co-operate with the ld TPO by submitting the necessary documentation in support of its contentions. The assessee is also at liberty to adduce fresh evidences in support of its contentions. Accordingly, all the grounds relating to transfer pricing adjustment numbering from 3 to 11 raised by the assessee are allowed for statistical purposes.

The Ground No. 13 raised by the assessee is with regard to the action of the ld AO in not granting set off of unabsorbed depreciation amounting to Rs 1,47,02,303/- as directed by ld DRP. Since the main issue involved in the appeal of the assessee is set aside to the file of ld AO/ ld TPO, we deem it fit to hold that this issue also requires de novo adjudication by the ld AO. Accordingly, the Ground No. 13 raised by the assessee is allowed for statistical purposes.

The Ground No. 15 raised by the assessee is with regard to initiation of penalty u/s 271(1)( c) of the Act which would be decided afresh by the ld AO in accordance with law while giving effect to this order.

In the result, the appeal of the assessee is partly allowed for statistical purposes.