Micro Inc Ltd. v. ACIT

DCIT Cen Cir 8(1), Mumbai vs. Allcargo Logistics Ltd, Mumbai

In the result the appeal filed by the revenue is dismissed

Bench: Shri G. S. Pannu & Shri Pawan Singhdcit. Cc -8(1), M/S Allcargo Logistics Ltd. Room No. 656, 6Th Floor, 5Th Floor, Diamond Square, Cst Aayakar Bhavan, M. K. Road, Vs. Ropad, Kalina, Santacruz(E), Mumbai-400020 Mumbai-400098 Pan: Aacca2894D (Appellant) (Respondent)

…e Bombay High Court in CIT v/s Everest Kento Cylinders Ltd. [2015] 378 ITR 57/232 Taxman 307/58 taxmann.com 254 (Bom.) and the decision of Delhi Tribunal in 11 ITA No.4786/M/2015 & C.O. 108/M/2016- M/s Allcargo Logistics Ltd. Bharti Airtel Ltd. vs. ACIT (63 SOT 113). In the rejoinder argument, the ld. DR for the Revenue fairly conceded on factual position. The ld. AR of the assessee would argue that in case the grounds of appeal raised by Revenue is dismissed, the assessee would not press the grounds raised in cross objection that guarantee commission is not an international transaction. However, the issue…

ACIT 2(1), Mumbai vs. Bombay Dyeing & Manufacturing Co, . Ltd, Mumbai

In the result, ground of appeal raised by Revenue is dismissed

Bench: Shri R.C. Sharma & Shri Pawan Singhacit -2(1) M/S Bombay Dyeing & Mfg. Co. Aayakar Bhavan, M.K. Road, Ltd. Neville House, J N Heredia Room No. 575, 5Th Floor, M.K. Vs. Marg, Ballard Estate, Road, Mumbai-20. Mumbai-400001 Pan:Aaact2328K (Appellant) (Respondent) M/S Bombay Dyeing & Mfg. Co. Acit -2(1) Ltd. Neville House, J N Heredia Aayakar Bhavan, M.K. Road, Marg, Ballard Estate, Mumbai-20. Vs. Mumbai-400001 Pan:Aaact2328K (Appellant) (Respondent) Acit -2(1) M/S Bombay Dyeing & Mfg. Co. Room No. 561, 5Th Floor, Ltd. Neville House, J N Heredia Vs. Aayakar Bhavan, M.K. Road, Marg, Ballard Estate, Mumbai-20. Mumbai-400001 Pan:Aaact2328K (Appellant) (Respondent) M/S Bombay Dyeing & Mfg. Co. Acit -2(1) Ltd. Neville House, J N Heredia Aayakar Bhavan, M.K. Road, Mumbai-20. Marg, Ballard Estate, Vs. Mumbai-400001 Pan:Aaact2328K (Appellant) (Respondent)

…rantee given to third party in favour of Associate Enterprises is not an international transaction as envisaged under section 92 of the Act. In support of his submission, the Ld. AR of the assessee relied upon the decision of Bharti Airtel Ltd. v. Addl CIT (63 SOT 113( (Del.), Siro Clinpharm Private Ltd. v DCIT (ITA No. 2618 of 2014)(Mum.), Marico Ltd. v. ACIT (70 taxmann.com 214) (Mum.) & Videocon Industries Ltd. v. Addl. CIT (55 taxmann.com 263)(Mum.).On the other hand, the Ld. DR for the Revenue fairly conceded to the submission of Ld. AR of the assessee. 27. We have considered the submission of the partie…

Addl CIT 2(1), Mumbai vs. Bombay Dyeing & Mfg Co. Ltd, Mumbai

In the result, ground of appeal raised by Revenue is dismissed

Bench: Shri R.C. Sharma & Shri Pawan Singhacit -2(1) M/S Bombay Dyeing & Mfg. Co. Aayakar Bhavan, M.K. Road, Ltd. Neville House, J N Heredia Room No. 575, 5Th Floor, M.K. Vs. Marg, Ballard Estate, Road, Mumbai-20. Mumbai-400001 Pan:Aaact2328K (Appellant) (Respondent) M/S Bombay Dyeing & Mfg. Co. Acit -2(1) Ltd. Neville House, J N Heredia Aayakar Bhavan, M.K. Road, Marg, Ballard Estate, Mumbai-20. Vs. Mumbai-400001 Pan:Aaact2328K (Appellant) (Respondent) Acit -2(1) M/S Bombay Dyeing & Mfg. Co. Room No. 561, 5Th Floor, Ltd. Neville House, J N Heredia Vs. Aayakar Bhavan, M.K. Road, Marg, Ballard Estate, Mumbai-20. Mumbai-400001 Pan:Aaact2328K (Appellant) (Respondent) M/S Bombay Dyeing & Mfg. Co. Acit -2(1) Ltd. Neville House, J N Heredia Aayakar Bhavan, M.K. Road, Mumbai-20. Marg, Ballard Estate, Vs. Mumbai-400001 Pan:Aaact2328K (Appellant) (Respondent)

…rantee given to third party in favour of Associate Enterprises is not an international transaction as envisaged under section 92 of the Act. In support of his submission, the Ld. AR of the assessee relied upon the decision of Bharti Airtel Ltd. v. Addl CIT (63 SOT 113( (Del.), Siro Clinpharm Private Ltd. v DCIT (ITA No. 2618 of 2014)(Mum.), Marico Ltd. v. ACIT (70 taxmann.com 214) (Mum.) & Videocon Industries Ltd. v. Addl. CIT (55 taxmann.com 263)(Mum.).On the other hand, the Ld. DR for the Revenue fairly conceded to the submission of Ld. AR of the assessee. 27. We have considered the submission of the partie…

The Bombay Dyeing & Mfg. Co. Ltd, Mumbai vs. DCIT RG 2(1)(1), Mumbai

Bench: Sri Mahavir Singh, Jm & Sri N K Pradhan, Am The Bombay Dyeing & Mfg. Co. Dy. Commissioner Of Limited Income Tax, Range- Neville House, J.N. Heradia Marg, 2(1)(1), Mumbai Vs. Ballard Estate, Mumbai-400 001 Room No.561, Aayakar Pan No.Aaact2328K Bhavan, Mumbai-400 020

…ign subsidiary defaults in making the payment of loan to the bank. Therefore, section 92(1) of the Act would, primarily, not be applicable at all, till the guarantee is invoked. 16. We find that Delhi Tribunal in the case of Bharti Airtel Ltd. v. ACIT [2014] 63 SOT 113 (Delhi - Trib.), held as under: "There can be number of situations in which an item may fall within the description set out in clause (c) of Explanation to Section 92B, and yet it may not constitute an international transaction as the condition precedent with regard to the 'bearing on profit, income, losses or assets' set out in Section 92B(1) ma…

Taurian Iron & Steel Co. P.Ltd, Mumbai vs. Addl CIT RG 4(3), Mumbai

In the result, appeal of the assessee is partly allowed, in terms indicated hereinabove

…it is not permissible for revenue authorities to re-characterize the transaction unless the same is shown to be sham or bogus transaction. , therein relied on a host of orders of different benches of the Tribunal, as under:- (i). Bharti Airtel India Vs. ACIT (63 SOT 113)(Del) (ii). Aditya Birla Vs. DCIT (69 SOT 18)(Mum) (iii) Allcargo Global Logistics Ltd.Vs. ACIT (150 ITD 651 )(Mum) (iv) Parle Biscuits (P) Ltd. Vs. DCIT (46 taxmann.coml 1)(Mum) (v). Vijay Electricals Ltd. Addl. CIT (60 SOT 77)(Hyd) (vi). Micro Inks Ltd. Vs. ACIT (144 ITD 610)(Ahd) (vii).Prithvi Information Solutions Ltd. Vs. ACIT (49 Taxmann.com…

Rusabh Diamonds, Mumbai vs. Asst CIT 15(1), Mumbai

In the result, the appeal of the assessee is allowed and appeal of the revenue is dismissed as infructuous

…in 2012 cannot be applied retrospectively as transfer pricing amendments can only be prospective in effect. In this regard, reliance is placed on the observations made by a coordinate bench of this Tribunal in the case of Bharti Airtel Limited Vs ACIT [(2014) 63 SOT 113 (Del)] Learned counsel also placed reliance on the submissions made before the authorities below. On the strength of, inter alia, these submissions, learned counsel urged us to delete the impugned ALP adjustment in respect of delayed realization of export proceeds from the AEs. 9. Learned Departmental Representative contends that the Finance Act…

Sterling Oil Resources Ltd, Mumbai vs. ITO 9(3)(2), Mumbai

In the result, the appeal of the Assessing Officer is dismissed and the appeal of the assessee is allowed

…nature of quasi capital, whereas in the present case the payment was right from the initial stage towards subscription for shares. While on this issue, we may usefully refer to a co-ordinate bench decision in the case of Bharti Airtel Limited Vs ACIT [(2014) 63 SOT 113 (Del)] which has, inter alia, observed as follows: 47. We find that in the present case the TPO has not disputed that the impugned transactions were in the nature of payments for share application money, and thus, of capital contributions. The TPO has not made any adjustment with regard to the ALP of the capital contribution. He has, however, tr…

ITO 9(3)(2), Mumbai vs. Sterling Oil Resources P.Ltd, Mumbai

In the result, the appeal of the Assessing Officer is dismissed and the appeal of the assessee is allowed

…nature of quasi capital, whereas in the present case the payment was right from the initial stage towards subscription for shares. While on this issue, we may usefully refer to a co-ordinate bench decision in the case of Bharti Airtel Limited Vs ACIT [(2014) 63 SOT 113 (Del)] which has, inter alia, observed as follows: 47. We find that in the present case the TPO has not disputed that the impugned transactions were in the nature of payments for share application money, and thus, of capital contributions. The TPO has not made any adjustment with regard to the ALP of the capital contribution. He has, however, tr…