2021 (6) TMI 616

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....ds urged before us are ground nos. 2 & 3 which read as under: - 2. That the Ld. CIT(A) has erred in law and on the facts of the case in making an addition of INR 14,89,54,216 to the income of the Appellant simply following the predecessor CIT(A) without appreciating the facts of the case. The addition made by Ld. CIT(A) is based on conjectures, surmises and allegations contrary to the material on record. 3. That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in arbitrarily enhancing the income by INR 148,954,216 which was already offered to tax, thus, leading to taxing he income twice in the hands of the Appellant As evident, the assessee is aggrieved by enhancement of certain i....

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....perusal of the same, it could be seen that the assessee had revenue from operations under service segment for Rs. 1489.54 Lacs and this segment had margin of 77.92%. The Ld. TPO proposed adjustment under manufacturing segment only which is not relevant for this appeal. 4.2 Upon further appeal, Ld. CIT(A) while adjudicating assessee's grounds, observed that the assessee earned management fees of Rs. 1489.54 Lacs from two of its Associated Enterprises (AE) namely Chemtura Sales Europe Gmbh and Chemtura Corporation USA. These transactions were reported in Note No.19 of the audited financial statements. However, the said amount was reflected as Rs. 1002.13 Lacs in Form 3CEB as filed by the assessee along with the return of income. Thus there....

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....he assessee preferred rectification application u/s 154 but the same was also dismissed vide order dated 31/10/2018. Aggrieved, the assessee is in further appeal before us. Our findings & Adjudication 5. Going by the factual matrix, we find that the assessee has earned management fees of Rs. 1489.54 Lacs from two of its Associates Enterprises. The said income has been credited in assessee's Profit & Loss Account as other operating revenues under the head revenue from operations. The same is evident from Note-19 of assessee's financial statements. Similar figure has been reported as earnings in foreign exchange (rendering services) in schedule annexed to and forming part of the Balance Sheet. Similar figure was noted by Ld. TPO whil....