TaxTMI 
TaxTMI 
2024 (9) TMI 21
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncome-Tax Act, 1961 (for short, "the Act") questioning the correctness and validity of the order dated 07.03.2016 in ITA.No.967/Bang/2015 passed by the Income Tax Appellate Tribunal, "A" Bench, Bengaluru (for short, "the Appellate Tribunal") for the assessment year 2010-11 in respect of the respondent-assessee. 2. Brief facts of the case are that, respondent-company incorporated under the provisions of the Companies Act claims to be engaged in the business of trading of power tool products. For the assessment year 2010-11, after scrutiny, assessment was completed. During the course of assessment, it was found that assessee-company had entered into international transaction. Therefore, matter was referred to Transfer Pricing Officer (for ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....3. The above appeal was admitted to consider the following substantial questions of law: 1. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in confirming the directions of DRP to rectify its earlier direction by taking recourse to section 154 of the IT Act, when the section cannot be invoked for changing opinion on any issue already decided? 2. Whether on the facts and in the circumstances of the case, the Tribunal is right in confirming the directions of DRP to reexamine an issue based on certain material on record, which tantamount to error of judgment and cannot be considered to be a mistake apparent from record and the Tribunal erred in considering the case on merits.? 4. Hear....
X X X X Extracts X X X X
X X X X Extracts X X X X
....enses, without noticing that respondent-assessee had placed on record specific details and facts pertaining to the nature of alleged AMP expenses before the TPO as well as during the personal hearing before the DRP. Learned senior counsel referring to Section 154 of the Act would contend that Section 154 of the Act permits rectification of any mistake apparent from the record. Non-consideration of material on record would amount to mistake apparent and hence it is submitted that exercise of power under Section 154 of the Act by DRP is proper and correct. Thus, he prays for dismissing the appeal by answering the substantial questions of law in favour of the respondent-assessee. 7. The respondent-assessee claims to be engaged in the busine....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... its order dated 31.12.2014 directing the Assessing Officer/TPO to exclude sales discounts warranty expenses and packing expenses from the ambit of advertisement, marketing and promotion expenses for the purpose of transfer pricing comparison and adjustment, if any. 8. Section 154 of the Act empowers the Income Tax Authority referred to in Section 116 to rectify any mistake apparent from the record. It is not disputed that the assessee though had not filed any objection or explanation before the TPO while raising objections to the draft order under Section 144 (c) of the Act had placed before the DRP, the necessary and specific details pertaining to the nature of alleged AMP expenses, selling expenses such as trade and other discount on ....