TaxTMI 
TaxTMI 
2022 (11) TMI 1246
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....e Investigation Wing and the inference are based on actual findings and evidence gathered during the course of survey action.". 2. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in appreciating the fact that the assessee has failed to discharge its onus to furnish the evidences in support of its claim to negate the finding of the Investigation Wing and the Assessing Officer of M/s Anitas Exports Pvt. Ltd.. 3. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary." 3. We have heard rival submissions and perused the materials available on record. It is pertinent to mention that the ld. DR on earlier occasion i.e. on 25/05/2022 sought adjournment on the ground that the Revenue would like to file revised grounds of appeal. On his request the case was adjourned to 21/07/2022. On 21/07/2022 similar request was made by the ld. DR and the case was adjourned to 19/09/2022. On 19/09/2022 also the Revenue sought adjournment stating the same reason. Final opportunity was granted to the Revenue to file the revised ground of appeal and the case was adjourned to 20/09/2022. On 20/09/2022, th....
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....s. Anitas Exports Pvt. Ltd., had sold FFS Machines to Parenteral Drugs (India) Ltd., (assessee herein) for a consideration of Rs.20 Crores which is inflated, whereas the sale value determined by the department is Rs.12,09,99,594/- . Thus, it was concluded by the present AO that assessee had claimed excess depreciation @15% of inflated value of Rs.7,90,00,406/- (Rs.20,00,00,000 - Rs.12,09,99,594) which comes to Rs.1,18,50,060/- and additional depreciation @20% of Rs.7,90,00,406/- i.e. 1,58,00,081/- on these inflated purchases of FFS Machines. Accordingly, the ld. AO disallowed the excess depreciation of Rs.2,76,50,141/- in the second re-assessment proceedings. The assessee furnished the entire list of machineries purchased from M/s. Anitas Exports Pvt. Ltd., which is a sister concern of the assessee. It was submitted that the said machines were duly put to use for the purpose of business of the assessee and depreciation and additional depreciation claim thereon. The arm's length pricing of FFS Machines acquired by the assessee was established by the detailed TEV study reports of D.K. Jain and Co., and MITCON. These documents were furnished before the ld. AO vide letter dated 02/12/2....
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.... FFS machines purchased by it complies with the provisions of the Act in the matter of arm's length price thereon. The assessee also placed on record the fact that M/s. Anitas Exports Pvt. Ltd., sold FFS machines to Goa Formulations Ltd., which is a third party. Within a year of sale, the entire plant and machinery at Goa Formulations Ltd., including FFS machines bought from M/s. Anitas Exports Pvt. Ltd., were sold under a slump sale agreement dated 15/02/2013 to M/s. Fresenius Kabi India Pvt. Ltd., global leader in the business of IV Fluids at the very same price that they were acquired, which provides yet another proof of the bonafides and genuineness of the sale price of the machines sold by M/s. Anitas Exports Pvt. Ltd., to the assessee. The said slump sale agreement also was enclosed before the ld. AO. 3.5. The ld. CIT(A) observed that as per the provisions of Section 43(1) of the Act, the actual cost means the actual cost of assets to the assessee reduced by that portion of the cost thereof, if any, as has been met directly or indirectly by any other person or authority. In the case of the assessee, even if the cost of machinery is presumed to be inflated due to collusion,....
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....or the sake of convenience, the relevant operative portion of the said order is reproduced hereunder:- 11. The Tribunal considered the previous findings of certain group companies of Weizmann being involved and on inquiry, it was found that the commission/fees paid by NEG Micon was not received by the assessee. M/s. Samrat Spinner and M/s. Kakatiya Industries had paid Rs.115 lacs and Rs.303 lacs to M/s. Suhami Traders (presently known as Suhami Power & Finance Corporation), whose address is the same as that of the present assessee. According to the Assessing Officer, the commission paid by NEG Micon to Suhami was thus received by a Weizmann group company. Therefore, the excess money paid for the windmills was routed back to Weizmann Group, while the assessee, also a Weizmann group company claimed 100% depreciation. The collusion between NEG Micon and Weizmann group it is alleged was in order to deprive the Revenue. 12. A comparative chart has been prepared of the transactions entered into by the Respondent as well as Precot Mills Ltd. claiming difference in prices of windmills pegged at about Rs.98 lacs. However, comparison with companies like Rajasthan State Powe....