LEWEK ALTAIR SHIPPING PRIVATE LIMITED,KAKINADA vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-1, KAKINADA

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ITA 147/VIZ/2021Status: DisposedITAT Visakhapatnam23 January 2023AY 2013-14Bench: SHRI DUVVURU RL REDDY, HON’BLE (Judicial Member), SHRI S BALAKRISHNAN, HON’BLE (Accountant Member)11 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the findings of the TPO and the Dispute Resolution Panel (DRP), concluding that the assessee failed to provide sufficient explanation for the high lease rentals and management fees paid to its AE. Adjustments made by the tax authorities were deemed justified.

What were the facts?

The assessee, a subsidiary of a Singaporean company, leased vessels from its Associate Enterprise (AE) and paid charter rentals and ship management fees. The Assessing Officer (AO) referred the international transactions to the Transfer Pricing Officer (TPO) to determine the Arm's Length Price (ALP).

What were the issues?

The primary issues were the determination of the Arm's Length Price (ALP) for bareboat charter rentals and ship management services paid to Associate Enterprises, and whether the expenses incurred were justified and deductible.

Which sections of the Income-tax Act were involved?

Section 92CA,Section 143(3),Section 144C,Section 37

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE

For Appellant: Shri Jitendra Singh, AR
Hearing: 21.11.2022Pronounced: 23.01.2023

आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. अपीलधथी / The Appellant –Lewek Altair Shipping Private Ltd., #3-16- 193/1, Srividya Colony, Suryaraopet, Kakinada - 533003 2. प्रत्यधथी / The Respondent–The DCIT, Circle-1, Kakinada 3. The Commissioner of Income Tax, DRP-1, Bengaluru. 4. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR, ITAT, Visakhapatnam 5. गधर्ाफ़धईल / Guard file

आदेशधनुसधर / BY ORDER

Sr. Private Secretary ITAT, Visakhapatnam

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