2023 (4) TMI 202

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....for the assessment year 2012-13. The revenue has raised the following substantial questions of law for consideration: (i) Whether the Learned Income Tax Appellate Tribunal erred in law in determining the payment under the head of management support service at Arm's Length Price when the provision of Section 92C of the Income Tax Act, 1961, and read with rule 10B & Rule 10C of the Income Tax Rules, 1962, allows for "Reliable and accurate adjustment" to account for difference between intonated transaction and comparable uncontrolled transactions ? (ii) Whether the Learned Income Tax Appellate Tribunal erred in law in allowing the depreciation on Intellectual property rights under Section 32 of the Income Tax Act, 1961, considering Intel....

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....el assisted for the appellant/revenue and Mr. Asim Choudhury, learned counsel assisted by Mr. Soham Sen, learned advocate for the respondent/assessee. The above substantial questions of law can be grouped into four categories. The substantial questions of law (i) and (iv) are on the same issue, substantial questions of law (ii) and (v) are on the same issue, substantial questions of law (iii) and (vi) are on the same issue and (vii) is an individual question. So far as substantial questions of law (i) and (iv) are concerned, it is a recurrent issue and in the assessee's own case for the financial years 2007-08, 2008-09 and 2012-13, the Tribunal has held in favour of the assessee and those orders have become final. In the impugned order, t....

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....cially acceptable methods and the Tribunal also found that the valuation of the cost to be in accordance with AS-2 issued by the ICAI being one of the standards recognised under Section 145(2) of the Act wherein the closing stock is to be value at lower of cost or not realizable value. The Tribunal also took note of the decision of the Hon'ble Delhi High Court in the case of CIT vs. Hotline Teletube & Components Ltd. reported in (2008) 175 taxmann 286 (Delhi) wherein the Court took note of the more or less identical factual circumstances and dismissed the appeal filed by the revenue on the ground of no substantial question of law arises for consideration as the Tribunal has returned the finding of fact. In our view, the Tribunal having exam....