TaxTMI 
TaxTMI 
2023 (9) TMI 1081
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....ivate Limited (formerly known as Clause India Pvt. Ltd.) ("the assessee") for the assessment year 2012-13, under section 143(3) r.w.s. 92CA r.w.s. 144C of the Income Tax Act, 1961 (for short "the Act") assessee filed this appeal. 2. Briefly stated relevant facts are that the assessee is a trader of vegetable seeds in India and has an extensive network of recognized distributors all over India. It is engaged in the business of sale of imported vegetable seeds & research and development of seeds and seeding. It filed its return of income for the assessment year 2012-13 on 21/11/2012 declaring NIL income under the normal provisions of the Act and book loss of Rs. 2,86,36,352/- under the provisions of section 115JB of the Act. 3. Since th....
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....ds Limited as comparables. Assessee also challenged the adjustment on account of exceptional items, working capital adjustment, alternate analysis under Resale Price Method and also charging notional interest on the amount advanced to group companies. 6. Learned AR, however, at the time of arguments submitted that the learned DRP denied the adjustment to operating cost claimed by the assessee on the ground that claim lacks concrete evidence to support the claim of extraordinary events/expenses, which are peculiar to this assessment year, which actually affected margins earned in rejecting the adoption of Resale Price Method (RPM) as the Most Appropriate Method (MOM) on incorrect assumptions and presumptions. Learned AR confined his argum....
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....ncome Tax Rules, 1962 (for short "the Rules"), learned AR contended that RPM is the MAM in this case. 9. Learned DR submitted that the assessee failed to produce any relevant material before the authorities below and, therefore, the view taken by the authorities is justified. He further submitted that without verification of such material, it is not possible to conclude that the authorities committed any error. Learned DR submitted that factual verification is required in respect of material submitted by the assessee by way of additional evidence and, therefore, without such verification, no relief could be granted to the assessee. 10. We have gone through the record in the light of the submissions made on either side. By way of addit....
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....the case that was already put forth and in respect of which the learned DRP observed that sufficient material to substantiate such a claim was not produced. According to the assessee, the collation of the credit notes issued to the customers and the agreement with the suppliers of seeds had taken considerable time. Further, the assessee had to make efforts to collate the comparative price for the financial year 2011-12 vis-à-vis financial year 2010-11 along with the copies of bills of entry and also the details relating to the import related expenses adjustment. 13. Having regard to this factual matrix, we are of the considered opinion that receiving additional evidence does not prejudice the case of the Revenue and on the other h....