TaxTMI 
TaxTMI 
TaxTMI 
2019 (4) TMI 636
X X X X Extracts X X X X
X X X X Extracts X X X X
....('Act'). As far as the TP adjustment is concerned, the Income Tax Appellate Tribunal has passed a series of orders relating to AYs 2009-10, 2012-13 and 2013-14, dated 10.04.2017, 16.03.2018 and 16.03.2018, respectively, wherein the identical adjustment has been considered and remanded back to the Assessing Officer for re-doing de novo. The Tribunal, in its most recent order, states thus in this regard: ' 4. Aggrieved by the order of the Assessing Officer u/s. 143(3) r.w.s. 144(C)(13) of the Act in pursuance of DRP directions the assessee has filed an appeal before the Tribunal. Before us, the Ld. AR argued the grounds on the Transfer Pricing adjustments that the DRP confirmed the ALP on commission paid to the AE's as Nil. The Ld. AR submitted that such commission was allowed earlier in the assessment year 2001-02 and there is no disallowance of commission by the Revenue for the assessment years 2002-03 to 2007-08. The Ld. AR referred to the agency Commission agreement on transactions with the joint venture companies on commission payments. The Ld. AR drew attention to the Page No. 179 of the paper book, where the details of shareholders of joint venture partners holding st....
X X X X Extracts X X X X
X X X X Extracts X X X X
....M/s. Mas International Pvt Ltd., Sri Lanka. Assessee entered into an agreement with M/s. Triumph International. an international company engaged in the marketing of lingerie, for marketing the goods. It was' stipulated that every year M/s. Triumph International will get the information on yearly projections assessee could make the annual capacity plan for the subsequent year. It. was also agreed that M/s. Triumph. International: will fill up the capacity of the factory by giving the actual orders every month. M/s. Triumph International also gave projections fat the rest of the year by way of reservations by coordinating with the customers depending upon the market trend to facilitate the production planning department to plan the actual capacity on, an on-going basis. M/s. Triumph also did designing the product to suit the customer requirements, checking on the design suggested by the customer and giving alterations to suit the customer. It also did the market research independently on the new styles with regard to designs. 11. Learned counsel for the assessee did file some documents to demonstrate the volume of services rendered by M/s. Triumph International. Assessee had pa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ordance with law after providing adequate opportunity to the assessee of being heard." We respectfully following the co-ordinate bench decision and in the interest of justice, we remit the disputed issue to the file of the Assessing Officer to decide the matter afresh based on the available supporting material and evidence and the assessee shall be provided adequate opportunity of hearing to substantiate its claim before passing the order on merits and allowed the ground of the assessee for statistical purpose.' 4. The learned revenue counsel also wishes to obtain instructions from the Assessing Officer as to the whether the assessments, post the set-aside, have been re-done. 5. While this is so, the petitioner has filed an application dated 06.09.2018 seeking a stay of recovery of the disputed demand arising from the assessment in question before the Assessing Officer, on 06.09.2018, wherein he specifically brings to the notice of the Assessing Officer that the TP issue has been dealt with by the Tribunal for earlier years and the matter remanded to the Assessing Officer. Despite the same and after a lapse of six months, the Assessing Officer passes an order under Section 2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on Industries Ltd. (2007) 2 SCC 326, the Supreme Court held: When an order is passed by a higher authority, the lower authority is bound thereby keeping in view the principles of judicial discipline. The Supreme Court drew support from Bhopal Sugar Industries Ltd. v. ITO wherein it was held: If a subordinate tribunal refuses to carry out directions given to it by a superior tribunal in the exercise of its appellate powers, the result will be chaos in the administration of justice.... It was further observed in Bhopal Sugar Industries: The Judicial Commissioner was not sitting in appeal over the Tribunal and we do not think that in the circumstances of this case it was open to him to say that the order of the Tribunal was wrong and, therefore, there was no injustice in disregarding that order. As we have said Page 1517 earlier such a view is destructive of one of the basic principles of administration of justice. 14. Similarly, in Triveni Chemicals v. Union of India and Anr. , the Supreme Court reiterated the principle that adjudicating authorities are bound by the doctrine of judicial discipline. 15. Following the view laid down by the Supreme Court, we are faced with....