TaxTMI 
TaxTMI 
2025 (12) TMI 1220
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....s the upward adjustment made by Learned AO was not reasonable and unjustifiable. 3. Hon. CIT(A) upheld the addition made by learned AO without consideration of the fact that the Goods Purchased from AE was lying in the closing stock and the same was returned to AE in subsequent year, without any impact on current year profit as well as subsequent year profit to the assessee. 4. The Hon. CIT(A) has erred in law as well as on facts upholding addition made by Learned AO of Rs. 3,98,32,520/- and levying tax with interest of Rs. 2,04,31,273/-. The appellant craves leave to add to, alter, delete or withdraw any of the aforesaid grounds of appeal." 3. The relevant material facts, as culled out from the material on record, are as follows: The assessee, is proprietor of M/s Chandarana and Brothers, and involved in the business of trading and commission agent for Agri Products and partner of M/s. Dhaval Agree Exports. The assessee has filed e-return of income for assessment year (A.Y.) 2016-17, on 05.10.2016, along with Audit Report declaring total income of Rs. 27,90,340/-. The return of income was processed u/s 143(1) of the Income-tax Act on the returned inco....
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.... rejected and adjustment as proposed in show cause notice dated 7/10/2019, amounting to Rs. 3,98,32,520/- is proposed as annexure- 1 attached with this order.7.In view of the above-mentioned discussion an adjustment of Rs. 3,98,32,520/- is hereby proposed." 5. In response to the draft order, the assessee has given his submission, vide letter dated 11.12.2019, wherein the assessee has specifically submitted that he does not want to file any objections with the DRP. The assessee has further submitted that the purchases made by him from the associated enterprises (AE), was at the prevailing market rate and also contended that the TPO has not taken lenient view for the bench marking. The assessee also submitted that the associated enterprises and assessee both are tax neutral and hence no addition is to be made. The assessee also submitted that whole of the purchases made by him was laying in the closing stock, and accordingly the closing stock value, has to be reduced and hence there is no impact on the profitability and there is no point of intention of transfer of profit for the sad transaction. It was further submitted that the goods purchased from associated enterprise is retur....
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....ed Counsel for the assessee, argued, on merit, that the assessee has adopted CUP method (comparable uncontrolled price method) for its specified domestic transactions. However, during the assessment proceedings, the assessing officer has adopted TAMM (Transactional Net Margin Method). The Ld. Counsel for the assessee submitted that the appropriate method, as per the nature of transaction in the assessee`s case is the CUP method. The assessee has been adopting CUP method (comparable uncontrolled price method), for bench marking the specified domestic transaction, and for that the assessee has submitted necessary documentary evidences which are placed in paper-book page nos. 15, 33 and 57, etc. The Ld. Counsel also submitted that the transactions undertaken by the assessee and in that transactions, the value difference between method adopted by the assessing officer and method adopted by the assessee is less than 5%. For that Ld. Counsel for the assessee invited out attention on paperbook page no.72, of the chart, which shows that the additions made by the TPO/assessing officer, that is, price adopted by the assessing officer is less than 5%, in terms of value, therefore no adjustmen....
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.... a rebuttable presumption in law that transfer prices in international transactions or SDTs with the AEs are fixed at variance from Arm's Length Price. The onus is on the assessee to show that the transfer prices are close to or approximate what would have been the prices under the arm's length conditions and the same has been proved by the assessee under consideration by adopting the CUP method. The assessee had furnished four invoices of purchase of sesame seed by its AE, i.e. Dhaval Agri Export amounting to Rs.61 lakhs, as a sample, to demonstrate the arm`s length price. The ld. Counsel for the assessee has further submitted that both the assessee and AE are tax neutral entity, as none of them is enjoying any tax holiday or having any carried forward losses or claiming any deduction from total income. The assessee has also submitted that if the downward adjustment as calculated by the TPO for purchase from AE is considered, then whole of such purchases was lying in the closing stock and accordingly closing stock has to be reduced and hence there is no impact on the profitability. The assessee has also submitted during appellate proceedings that the purchases under consid....
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....fted by the provisions of Section 6(1). If a provision of a statute is unconditionally omitted without a saving clause in favour of pending proceedings, all actions must stop where the omission finds them, and if final relief has not been granted before the omission goes into effect, it cannot be granted afterwards. Savings of the nature contained in Section 6 or in special Acts may modify the position. Thus, the operation of repeal or deletion as to the future and the past largely depends on the savings applicable. In a case where a particular provision in a statute is omitted and in its place another provision dealing with the same contingency is introduced without a saving clause in favour of pending proceedings then it can be reasonably inferred that the intention of the legislature is that the pending proceedings shall not continue but fresh proceedings for the same purpose may be initiated under the new provision." 6. In fact, Coordinate Bench under similar circumstances had examined the effect of omission of sub-section (9) to Section 10B of the Act w.e.f. 01.04.2004 by Finance Act, 2003 and held that there was no saving clause or provision introduced by way of amen....