TaxTMI 
TaxTMI 
TaxTMI 
2023 (11) TMI 1389
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....nal dated 03.08.2022 and relevant contents of Miscellaneous Application filed by the Revenue are reproduced as under: MA No. 8/Chny/2023 filed by the Revenue in ITA No. 1834/Chny/2017 for AY 2013- 14: In the above case, the assessee filed original return of income electronically for the Assessment Year 2013-14 on 30.11.2013 admitting NIL income. The same was processed u/s 143(1). The case was selected for scrutiny. As the assessee company entered into international transaction, the case was referred to Transfer Pricing Officer. The Transfer Pricing Officer vide order in C.R. No. 1515/TPO-2(1)/AY 2013-14 dt. 25.10.2016 passed an order with a downward adjustment to the tune of Rs. 5,54,61,825/-. Draft assessment order was passed on 08.12.2016. The assessee filed objection on 06.01.2017 before DRP. The Hon'ble Dispute Resolution Panel-2, Bangalore issued directions on 28.04.2017 upholding the TP adjustments. Aggrieved, the assessee preferred appeal before the Hon'ble ITAT, Chennai. The Hon'ble ITAT vide its order in ITA No. 1834/Chny/2017, dt. 03.08.2022 set aside the issue of custom duty and working capital adjustments to the files of the TPO and w.....
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....i dt. 29.07.2013 for A.Y. 2007-08 in ITAT No. 2112/Mds/2011, dt. 14.08.2013, wherein it has been decided that for getting the benefit of custom duty adjustments, the assessee should be able to demonstrate that higher import content was necessitated by any extra ordinary circumstances beyond their control. In the light of the above facts, the Department is filing Miscellaneous Petition praying that the Hon'ble Tribunal may be pleased to reconsider the issue for fresh verification. MA No. 10/Chny/2023 filed by the Revenue in IT (TP) A No. 53/Chny/2019 for AY 2015-16: In the above case, the assessee filed original return of income electronically for the Assessment Year 2015-16 on 30.11.2015 admitting loss of Rs. 1,30,99,144/-. The same was processed u/s 143(1). The case was selected for scrutiny. As the assessee company entered into international transaction, the case was referred to Transfer Pricing Officer. The Transfer Pricing Officer vide order No. 18-IT-19/TPO-2/AY 2015-16 dt. 26.10.2018 passed an order with a downward adjustment to the tune of Rs. 2,52,88,940/-. Draft assessment order was passed on 22.11.2018. The assessee filed objection on....
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....n-operating in nature. The relevant extracts from the Grounds of Appeal is provided below :- AY 2013-14 Ground of Appeal 2.7 - "Erred in computing the Net Operating Margin of the Appellant by treating foreign exchange losses as operating in nature" AY 2014-15 Ground of Appeal 2.6 - "Erred in computing the Net Operating Margin of the Appellant by treating foreign exchange losses as operating in nature" However, in its order dated 3rd August 2022, Para 3.2, the Honorable Bench has recorded the arguments of the Appellant erroneously as under: Para 3.2 - The learned Counsel of the Assessee prayed that the foreign exchange loss should be treated as operating in nature. As observed from the Grounds of Appeal and the ITAT order above, while the prayer of the Petitioner was to treat the foreign exchange loss as non-operating in nature, the Honorable Bench has recorded the argument of the Appellant erroneously to treat foreign exchange loss as operating in nature. b) Entity level adjustment. The Petitioner had raised the below Ground with respect to computation of transfer pricing adjustment at the entity level. AY 2014-15 Ground of Appeal 2.8 Erred in law and on facts i....
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....ing the claim of additional depreciation of INR 13,426,943 on new Plant & Machinery made during the course of assessment proceedings by stating that the claim was not supported by a revised return." Ground of Appeal 3.2 - "The Learned AO has failed to appreciate that the Appellant is eligible for claim of additional depreciation in accordance with Explanation 5 to Clause (1) of Section 32 of the Act irrespective of whether the Appellant has claimed the same in computing its income as per the return of income." In its order dated 3rd August 2022, the ITAT has provided the below findings with respect to this issue. Para 7. The learned Counsel of the Assessee also argued that the allow-ability of additional depreciation in the computation of the return, the Assessee did not claim this deduction in the return and however the issue was not agitated properly before the Bench and has set aside to the file of the learned AO. In light of the above observation, the Petitioner highlights that it has submitted the documents in relation to claim of additional depreciation before the Assessing officer during the course of assessment proceedings as well as the same forms part of paperbook....
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....he Assistant Commissioner of Income Tax (OSD), Chennai in I.T.(TP).A. No.83/Chny/2018 dated 31.03.2021 has set aside to the file of the learned TPO. In light of the above observation, the Petitioner highlights that in the case of Doosan Power Systems referred to in the order of the Honorable ITAT, the issue of entity level adjustment has been decided in favor of the taxpayer. The relevant extract of the ruling is provided below :- Para 9 :- Hence, we direct the Ld. TPO to restrict TP adjustment in respect of international transactions of the assessee with its associated enterprises. A copy of the aforesaid ruling is enclosed as Annexure 2. c) Disallowance under section 43A of the Act The Petitioner had raised a Ground for AY 2014-15 to allow the foreign exchange loss pertaining to buyer's credit which being revenue in nature is allowable under section 37(1) of the Act. The relevant extracts from the Grounds of Appeal is provided below :- AY 2014-15 Ground of Appeal 3.3 - "Failed to appreciate that the aforesaid total forex loss includes INR 134,951,732 pertaining to buyer's credit which is revenue in nature." Ground of Appeal 3.4 - "Failed to appreciate that....