DY.COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2),, AHMEDABAD vs. M/S. HAGGLUNDS DRIVES (INDIA) PVT. LTD. (NOW MERGED WITH BOSCH REXROTH (INDIA) LTD., AHMEDABAD

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ITA 391/AHD/2016Status: DisposedITAT Ahmedabad20 March 2024AY 2011-12Bench: SHRI WASEEM AHMED (Accountant Member), Ms MADHUMITA ROY (Judicial Member)2 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue was not maintainable due to low tax effect, as per the CBDT Circular No. 17 of 2019. The Revenue's appeal was dismissed on this ground.

What were the facts?

The Revenue filed an appeal against the deletion of an upward adjustment made by the TPO regarding the Arm's Length Price of an international transaction. The assessee argued that the appeal was hit by a CBDT circular on monetary limits for tax effects.

What were the issues?

Whether the Revenue's appeal is maintainable given the low tax effect as per the CBDT circular. The core issue was the Arm's Length Price of an international transaction.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144(C)(13)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘’ D’’ BENCH, AHMEDABAD

Before: SHRI WASEEM AHMED

Hearing: 13/03/2024Pronounced: 20/03/2024

आदेश/O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER:

1.

The captioned appeal has been filed at the instance of the Revenue against the order of the Joint Commissioner of Income Tax, Transfer Pricing Officer, Ahmedabad, arising in the matter of assessment order passed under s. 143(3) r.w.s. 144(C)(13) the Income Tax Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Year 2011-12.

ITA(TP) no.391/AHD/2016 A.Y. 2011-12 2

2.

The revenue has raised following grounds of appeal: That the Hon’ble DRP has erred in law and on facts in deleting the upward adjustment of Rs. 58,38,170/- made by the TPO, Ahmedabad in respect of Arm’s Length Price of international transaction.

3. At the time of hearing, it was submitted by the Ld. AR for the assessee that appeal filed by the Revenue is hit by recently issued CBDT Circular No. 17 of 2019 dated 08/08/2019 revising the previous thresholds pertaining to tax effects. As per the aforesaid Circular, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs. 50 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs. 50 lakhs and therefore, the appeal of the Revenue is required to be dismissed in limine.

4. The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 17 of 2019. Accordingly, the appeal of the Revenue is dismissed as not maintainable. However, it will be open to Revenue to seek restoration of its appeal within the stipulated time showing the inapplicability of the aforesaid CBDT Circular in any manner.

5. In the result, the appeal of the Revenue is hereby dismissed due to low tax effect.

Order pronounced in the Court on 20/03/2024 at Ahmedabad.

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