CIT v. Tata Autocomp Systems Ltd.

J.B. Chemicals and Pharmaceutical Ltd, Mumbai vs. DCIT Cen Cir 2(1), Mumbai

In the result, appeal by the assessee is partly allowed

Bench: Vikas Awasthy & Shri N.K.Pradhanआअसं. 7389/मुं/2016 ("न.व. 2010-11) J.B.Chemicals & Pharmaceuticals Ltd., B Wing, 4Th Floor, Hind Cycle Road, Worli, Mumbai 400 030 Pan: Aaacj1482G ...... अपीलाथ" /Appellant बनाम Vs. The Dy. Cit, Central Circle -2(1), Cgo Building, 8Th Floor, Mumbai 400 020 ..... ""तवाद"/Respondent

…is directed to work out the TP adjustment accordingly. Gr.No.1 to 4 are thus partly allowed.” The above decision of Tribunal has been upheld by the Hon'ble Bombay High Court in an appeal filed by the Revenue, Re: CIT vs. Tata Autocomp Systems Ltd. reported as 374 ITR 516(Bom). 9. In the case of Baba Global Ltd. vs. Dy. CIT 70 taxmann.com 338 (Delhi - Trib.), the Tribunal held that loan having been advanced by assessee to its AE in foreign currency, rate of interest has to be with reference to foreign currency in which loan has been advanced. Similar view has been taken in the case of DCIT vs. Teleperformance Glo…

Essar Investments Ltd, Mumbai vs. ACIT 6(2)(2), Mumbai

In the result, additional ground No

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiassessment Year: 2010-11

…is placed on the decision of High Courts and Tribunal wherein it has been held that for benchmarking interest rate on loan given in foreign currency, interest rate linked with such foreign currency should be considered: a) CIT vs. Tata Autocomp Systems Ltd. (374 ITR 516) (Bom.) b) CIT vs. Cotton Natural (I)(P.) Ltd. (23 1 Taxman 401) 33 M/s. Aaradhana Realities Ltd. (formerly known as Essar Investments Ltd.) (Del.) Accordingly, if price per share is considered in USD terms, the sale price per share received is USD 358.33 (i.e. USD 215,000,000 / 600,000) whereas the average cost price per share is USD 354.89 [i.…

Oriental Aromatics Ltd, Mumbai vs. DCIT Cir 1(2)(2), Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri Vikas Awasthy & Shri N.K.Pradhanआअसं. 96/मुं/2018 ("न.व. 2013-14) M/S.Oriental Aromatics Ltd., 2Nd Floor, 133, Jehangir Building, M.G.Road, Mumbai 400 001 Pan: Aaaco4618F ...... अपीलाथ" /Appellant

…आयकर अपील"य अ"धकरण मुंबई पीठ “ जे ”, मुंबई IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “J”, MUMBAI "ी "वकास अव"थी, "या"यक सद"य एवं "ी नबीन कुमार "धान, लेखा सद"य के सम" BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI N.K.PRADHAN, ACCOUNTANT MEMBER आअसं. 96/मुं/2018 ("न.व. 2013-14) M/s.Oriental Aromatics Ltd., 2nd Floor, 133, Jehangir Building, M.G.Road, Mumbai 400 001 PAN: AAACO4618F ...... अपीलाथ" /Appellant बनाम Vs. The Dy. Commissioner of Income Tax 1(2)(2), Aaykar Bhavan, M.K.Road, Mumbai 400 020 ..... ""तवाद"/Respondent अपीलाथ" "वारा/ Appellant by : Ms. Usha Kadam ""तवाद" "वारा/Respondent by : S…

Laqshya Media Limited, Mumbai vs. Deputy Commissioner of Income Tax-10(2)(1), Mumbai

In the result this ground of appeal is allowed for statistical purposes

Bench: Shri Pawan Singh & Shri M. Balaganesh(Virtual Hearing In Vc No. –Ii) M/S. Laqshya Media Ltd. D C I T - 10(2)(1) Laqshya House Room No. 509/216A Next To Rameshwar Temple, Vs. Aayakar Bhavan, M.K. Road Saraswti Baug, Society Road, Mumbai 400020 Jogeshwari (E), Mumbai 400060 Pan – Aaacl5004C Appellant Respondent Appellant By: Shri Rajan Vora-Ar Respondent By: Shri Anand Mohancit-Dr Date Of Hearing: 08.07.2020 Date Of Pronouncement: 17.07.2020 O R D E R Per Pawan Singhthis Appeal Filed By The Assessee Is Directed Against The Assessment Order Passed By The Assessing Officer Under Section 143(3) R.W.S. 144C(1) Of The Income Tax Act, 1961 (Hereinafter "The Act") Dated 29Th October, 2018, Passed In Pursuance Of The Directions Of Dispute Resolution Penal (Drp) Dated 28Th August, 2018 For A.Y. 2014-15. 2. The Assessee Has Raised The Following Grounds Of Appeal: - “On The Facts & In The Circumstances Of The Case & In Law, The Learned Ao/ Learned Deputy Commissioner Of Income-Tax, Transfer Pricing - 3(1)(1)(Hereinafter Referred To As Tpo')/ Hon'Ble Drp Has: General Ground 1. Erred In Assessing The Total Income At 5,67,38,117As Against Returned Loss Of Rs.8,55,13,089 Computed By The Appellant; Part B -Transfer Pricing Ground: 2. Adjustment Of Rs.20.58.028/- Pertaining To Providing Of Corporate Guarantee (Cg) To Associated Enterprise (Ae)

…ee submits that interest on the loans given to AE to be benchmark by 11 M/s. Laqshya Media Ltd using the prevalent rate in the country where loans utilised for appropriate LOBOR rates as per the decision of Bombay High Court in case of Tata Auto Comp Limited (374 ITR 516 Bom). The loans were ultimately utilised in Dubai. 14. The learned AR of the assessee submits that TPO and ERP made adjustment of ₹ 13.07 crore by disregarding the factual matrix and principal of commercial expediency and real income theory, without undertaking any benchmarking analyses. In his all fairness the learned AR of the assessee submits…

Sabre Asia Pacific Pte Ltd (Earlier Known As M/S.Abacus International Pte Limited), Mumbai vs. DCIT (It) 1(1)(1), Mumbai

Bench: Shri Ravish Sood, Jm & Shri N.K. Pradhan, Am आयकर अपील सं./ I.T.A. No.4968/Mum/2017 (निर्धारण वर्ा / Assessment Year:2013-14) Sabre Asia Pacific Pte. Ltd. Deputy Commissioner Of Income Tax (International Taxation)- 1(1)(1), Room No. (Earlier Known As M/S Abacus International Pte Ltd.), Abacus Plaza, 3 Tampines Central I, 117, 1St Floor, Scindia House, Ballard बिधम/ # 08-01 Singapore 529540 Estate, Mumbai 400 038. Vs. C/O Deloitte Haskins & Sells Llp India Bulls Financial Centre Tower 3, 28Th Floor, Senapati Bapat Marg, Elphinstone (W),Mumbai-400 013. स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aabca6590M (अपीलाथी/Appellant) (प्रत्यथी /Respondent) :

…raised by the ld. A.R before us. We have given a thoughtful consideration and are unable to persuade ourselves to be in agreement with the contention of the ld. D.R that the Hon‟ble High Court of Bombay in the case of CIT Vs. Tata Autocomp Systems ltd. (2015) 374 ITR 516 (Bom) had concluded that ALP in the case of loans advanced to AE was to be determined on the basis of rate of interest being charged in the country where the loan is received/consumed. We have perused the judgment of the Hon‟ble High Court of Bombay in the case of Tata Autocomp Systems Ltd. (supra) and find that the Hon‟ble High Court had as a ma…

DCIT 5(2), Mumbai vs. Mercator Lines Ltd, Mumbai

In the result the ground No

Bench: Shri R.C. Sharma & Shri Pawan Singhdcit 5(2), M/S. Mercator Ltd. (Formerly R. No. 571, 5Th Floor, Known As Mercator Line Ltd. Aayakar Bhavan, M.K. Road, 3Rd Floor, Mittal Tower, Mumbai-400020 B Wing, Nariman Point, Vs. Mumbai-400020. Pan: Aaacm5007A Appellant Respondent M/S. Mercator Ltd. (Formerly Dcit 5(2), Known As Mercator Line Ltd. R. No. 571, 5Th Floor, 3Rd Floor, Mittal Tower, Aayakar Bhavan, M.K. Road, B Wing, Nariman Point, Mumbai-400020 Vs. Mumbai-400020. Pan: Aaacm5007A Appellant Respondent Appellant By : Shri A. Mohan (Dr) Respondent By : Shri M.P. Lohia With Shri Nikhil Tiwari (Ars) Date Of Hearing : 09.01.2020 Date Of Pronouncement : 16.06.2020 Order Under Section 254(1)Of Income Tax Act

…IN THE INCOME-TAX APPELLATE TRIBUNAL “J” BENCH MUMBAI BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER DCIT 5(2), M/s. Mercator Ltd. (formerly R. No. 571, 5th Floor, known as Mercator Line Ltd. Aayakar Bhavan, M.K. Road, 3rd Floor, Mittal Tower, Mumbai-400020 B Wing, Nariman Point, Vs. Mumbai-400020. PAN: AAACM5007A Appellant Respondent M/s. Mercator Ltd. (formerly DCIT 5(2), known as Mercator Line Ltd. R. No. 571, 5th Floor, 3rd Floor, Mittal Tower, Aayakar Bhavan, M.K. Road, B Wing, Nariman Point, Mumbai-400020 Vs. Mumbai-400020. PAN: AAACM5007A Appellant Respondent Appellant…

Positive Packaging P.Ltd, Mumbai vs. DCIT Cir 3(2), Mumbai

In the result this ground of appeal is allowed for statistical purpose

Bench: Shri Shamim Yahya & Shri Pawan Singhm/S Positive Packaging Industries Vs Dcit Circle 3(2), Room No. Ltd, 12A-06, B-Wing, 608, Aayakar Bhawan, Parinee Crescenzo, M.K.Road, C-38/39, G-Block, Mumbai-20 Bandra Kurla Complex, Bandra (E), Mumbai-400 051 Pan : Aaacp2836Q Appellant Respondednt

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “J”, MUMBAI BEFORE SHRI SHAMIM YAHYA ACCOUNTANT MEMBER & SHRI PAWAN SINGH JUDICIAL MEMBER M/s Positive Packaging Industries Vs DCIT Circle 3(2), Room No. Ltd, 12A-06, B-Wing, 608, Aayakar Bhawan, Parinee Crescenzo, M.K.Road, C-38/39, G-Block, Mumbai-20 Bandra Kurla Complex, Bandra (E), Mumbai-400 051 PAN : AAACP2836Q APPELLANT RESPONDEDNT Appellant by Shri Bhaumik Goda (AR) Respondent by Shri Vodal Raj Singh (CIT-DR) Date of hearing 04-02-2020 Date of pronouncement 22-04-2020 O R D E R Per Pawan Singh, Judicial Member: 1. This appeal by assessee is directed a…

Wockhardt Ltd, Mumbai vs. Addl CIT RG 10(1), Mumbai

In the result this ground of appeal is partly allowed

Bench: Shri Pramod Kumar & Shri Pawan Singhm/S Wockhardt Ltd, Vs Additional Commissioner Of Wockhardt Towers, Bandra Income Tax Range -10(1), Kurla Complex Bandra(E), Aayakar Bhawan, Mumbai-400051 M.K. Road, Mumbai -20 Pan:Aaacw2472M Appellant Respondednt

…Ground No. I in assessee’s appeal are interconnected, which relates to Arms Length Price adjustment to income from interest loan advances to subsidiaries. The ld DR for the revenue supported the order of TPO in revenues appeal and ld CIT(A) in assessee’s (374 ITR 516 Bom), Delhi High Court in CIT Vs Cotton Naturals (I) Pvt Ltd (231 Taxman 401 Delhi High Court). In alternative submissions the ld AR 7 for the assessee submits that interest should be charged on the basis of LIBOR. 9. We have considered the rival submissions of the ld. representatives of the parties and perused the order of the lower authoritie…

Sabre Asia Pacific Pte. Ltd, Mumbai vs. DCIT (International Taxation)-4(2)(1), Mumbai

Bench: Shri Ravish Sood, Jm & Shri N.K. Pradhan, Am आयकर अपील सं./ I.T.A. No.664/Mum/2017 (निर्धारण वर्ा / Assessment Year:2012-13) Sabre Asia Pacific Pte. Ltd. Deputy Commissioner Of Income Tax (Earlier Known As M/S Abacus International Pte Ltd.), (International Taxation)- 1(1)(1), Room No. Abacus Plaza, 3 Tampines Central I, 117, 1St Floor, Scindia House, Ballard बिधम/ # 08-01 Singapore 529540 Estate, Mumbai 400 038. Vs. C/O Deloitte Haskins & Sells Llp India Bulls Financial Centre Tower 3, 28Th Floor, Senapati Bapat Marg, Elphinstone (W),Mumbai-400 013. स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aabca6590M (अपीलाथी/Appellant) (प्रत्यथी /Respondent) :

…raised by the ld. A.R before us. We have given a thoughtful consideration and are unable to persuade ourselves to be in agreement with the contention of the ld. D.R that the Hon‟ble High Court of Bombay in the case of CIT Vs. Tata Autocomp Systems ltd. (2015) 374 ITR 516 (Bom) had concluded that ALP in the case of loans advanced to AE was to be determined on the basis of rate of interest being charged in the country where the loan is received/consumed. We have perused the judgment of the Hon‟ble High Court of Bombay in the case of Tata Autocomp Systems Ltd. (supra) and find that the Hon‟ble High Court had as a ma…

Sabre Asia Pacific Pte. Ltd, Mumbai vs. DCIT (It) 1(1)(1), Mumbai

Bench: Shri Ravish Sood, Jm & Shri N.K. Pradhan, Am आयकर अपील सं./ I.T.A. No.664/Mum/2017 (निर्धारण वर्ा / Assessment Year:2012-13) Sabre Asia Pacific Pte. Ltd. Deputy Commissioner Of Income Tax (Earlier Known As M/S Abacus International Pte Ltd.), (International Taxation)- 1(1)(1), Room No. Abacus Plaza, 3 Tampines Central I, 117, 1St Floor, Scindia House, Ballard बिधम/ # 08-01 Singapore 529540 Estate, Mumbai 400 038. Vs. C/O Deloitte Haskins & Sells Llp India Bulls Financial Centre Tower 3, 28Th Floor, Senapati Bapat Marg, Elphinstone (W),Mumbai-400 013. स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aabca6590M (अपीलाथी/Appellant) (प्रत्यथी /Respondent) :

…raised by the ld. A.R before us. We have given a thoughtful consideration and are unable to persuade ourselves to be in agreement with the contention of the ld. D.R that the Hon‟ble High Court of Bombay in the case of CIT Vs. Tata Autocomp Systems ltd. (2015) 374 ITR 516 (Bom) had concluded that ALP in the case of loans advanced to AE was to be determined on the basis of rate of interest being charged in the country where the loan is received/consumed. We have perused the judgment of the Hon‟ble High Court of Bombay in the case of Tata Autocomp Systems Ltd. (supra) and find that the Hon‟ble High Court had as a ma…

Bombay Rayon Holdings Limited, Mumbai vs. ITO-9(2)(2), Mumbai

In the result, appeals of the assessee are partly allowed

Bench: Shri Shamim Yahya & Shri Pawan Singh

…IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No.5987/Mum/2018 (Assessment Year: 2010-11) ITA No.5989/Mum/2018 (Assessment Year: 2012-13) & M/s. Bombay Rayon Holdings Ltd. D-6139, Oberoi Garden Estate Chandivali Farm Road ……………. Appellant Andheri (E) Mumbai – 400 072 PAN NO: AADCB1263A v/s Income Tax Officer – 9(2)(2) Aayakar Bhawan ……………. Respondent Room No.601A, M.K.Road Mumbai – 400 020 Assessee by : Shri. Madhur Agrawal, Shri Ajit Kumar Jain & Shri Siddhesh Chaugale Revenue by : Shri. Anand Mohan Date of Hearing – 1…

DCIT Cen Cir 8(3), Mumbai vs. Jsw Energy Ltd, Mumbai

The appeal stands partly allowed in terms of our above order

Bench: Hon’Ble Shri Pawan Singh, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

…11-12 & 2012-13 Naturals (I) Pvt. Ltd. [55 Taxmann.com 523] while confirming the said view, has observed that there could not be different parameters to benchmark outbound and inbound loans. The Hon’ble Bombay High Court in CIT V/s Tata Autocomp Systems Ltd. [56 Taxmann.com 206] has concluded the issue as under: - 7. We find that the impugned order of the Tribunal inter alia has followed the decisions of the Bombay Bench of the Tribunal in cases of VVF Ltd. v. Dy. CIT [IT Appeal No. 673 (Mum.) of 2006] and Dy. CIT v. Tech Mahindra Ltd. [2011] 12 taxmann.com 132/46 SOT 141 (Mum.) (URO) to reach the conclusion that…