TATA CONSUMER PRODUCTS LIMITED,KOLKATA vs. DCIT, CIR.-4(1), KOLKATA

ITA 373/KOL/2021Status: DisposedITAT Kolkata17 September 2024AY 2015-16Bench: SHRI SONJOY SARMA (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)39 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal partly allowed the appeal for AY 2014-15. For AY 2015-16, the Tribunal directed the AO to apply 0.5% as corporate guarantee fee instead of 2% and dismissed other grounds as not pressed. The grounds related to Section 50C were dismissed, and the 15% variation for Section 50C was rejected for the impugned assessment years.

What were the facts?

The assessee challenged the adjustment made by the Assessing Officer (AO) and Transfer Pricing Officer (TPO) on account of corporate guarantee fees and the re-computation of Long-Term Capital Gain (LTCG) under Section 50C. The assessee also claimed deduction for education cess and secondary higher education cess as business expenditure.

What were the issues?

Whether corporate guarantee fees are taxable as an international transaction and whether Section 50C is applicable for capital gains computation on property transfer, considering stamp duty valuation and permissible variations.

Which sections of the Income-tax Act were involved?

Section 92B,Section 50C,Section 48,Section 43(6),Section 37(1)

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Income Tax Appellate Tribunal, “C” BENCH KOL-

Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA

For Respondent: DR Manoj Kumar Pati, Addl. CIT
Hearing: 20.06.2024Pronounced: 17.09.2024

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

These appeals filed by the assessee are against the two separate orders both dated 30/07/2021 of the Ld. Commissioner of Income Tax (Appeals), Kolkata-22 [hereinafter referred to as “the Ld. CIT(A)”] passed Tata Consumer Products Ltd. {erstwhile Tata Global Beverages Ltd.} AYs: 2014-15 & 2015-16

u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AYs 2014-15 and 2015-16. As both the appeals involve a common issue, the same were heard together and are being disposed of vide this common order for the sak

The order continues below.

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