M/s. Bobst India Private Limited,, Pune v. Deputy Commissioner of Income tax,, Pune

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH C PUNE BEFORE SHRI R.S. SYAL VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY JUDICIAL MEMBER . / ITA NOS.2922/PUN/2016 1451/PUN/2017 & 1325/PUN/2018 / ASSESSMENT YEARS : 2012-13 2013-14 & 2014-15 M/S. BOBST INDIA PRIVATE LIMITED PLOT NO.82 126-132 VILLAGE KASAR AMBOLI POST : AMBADVET GHOTAVADE ROAD TAL. MULSHI DIST. PUNE 412 108 PAN : AAACB7295F VS. DCIT CIRCLE-1(1) PUNE (APPELLANT) (RESPONDENT) / ORDER PER BENCH : THESE THREE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINS T THE SEPARATE ASSESSMENT ORDERS DATED 28-11-2016 26-04-201 7 & 25-06- 2018 PASSED BY THE RESPECTIVE ASSESSING OFFICERS U/S.143( 3) R.W.S.144C(13) OF THE INCOME-TAX ACT 1961 (HEREINAFTER CALLED THE ACT) IN RELATION TO THE ASSESSMENT YEARS 2012-13 2013-14 & 2014- 15. ASSESSEE BY SHRI RAJENDRA AGIWAL REVENUE BY SHRI T. VIJAYA BHASKAR REDDY DATE OF HEARING 18-11-2019 DATE OF PRONOUNCEMENT 19-11-2019 M/S. BOBST INDIA PRIVATE LIMITED A.YRS. 2012-13 TO 2014-15 2 2. BEFORE US THE ASSESSEE HAS FILED A LETTER DATED 22-10- 2019 SEEKING WITHDRAWAL OF THE APPEALS. THE RELEVANT CONTENTS OF SUCH WITHDRAWAL LETTER READ AS UNDER : IN THIS REGARD BOBST INDIA WISHES TO BRING TO YOU R HONOURS' KIND NOTICE THAT IT HAS ENTERED INTO A UNILATERAL ADVANC ED PRICING AGREEMENT ('UAPA') ON 04 OCTOBER 2019 WITH THE CENT RAL BOARD OF DIRECT TAXES ('CBDT') FOR A PERIOD FROM FINANCIAL Y EAR ('FY') 2014-15 TO FY 2018-19 (RELEVANT TO AY 2015-16 TO AY 2019-20 ) ALONG WITH ROLLBACK YEARS FROM FY 2011-12 TO FY 2013-14 (RELEV ANT TO AY 2012- 13 TO AY 2014-15) (I.E. APA YEARS). A SIGNED COPY O F THE SAID APA AGREEMENT IS ENCLOSED FOR YOUR HONOURS' READY REFER ENCE (REFER PAGE NO. 18 TO PAGE NO. 62). BOBST INDIA WISHES TO DRAW YOUR HONOUR'S KIND ATTEN TION TO RULE 10RA OF THE INCOME TAX RULES 1962 ('THE RULES ') WHERE IN IT IS STATED THAT 'IF ANY APPEAL FILED BY THE APPLICANT IS PENDING BE FORE THE COMMISSIONER (APPEALS) APPELLATE TRIBUNAL OR THE HIGH COURT FOR A ROLLBACK YEAR ON THE ISSUE WHICH IS THE SUBJECT MATTER OF THE RO LLBACK PROVISION FOR THAT YEAR THE SAID APPEAL TO THE EXT ENT OF THE SUBJECT COVERED UNDER THE AGREEMENT SHALL BE WITHDRAWN BY T HE APPLICANT BEFORE FURNISHING THE MODIFIED RETURN FOR THE SAID YEAR '. FURTHER BOBST INDIA WISHES TO DRAW YOUR HONOURS' K IND ATTENTION TO SECTION 92CD (1) OF THE ACT WHICH READS AS 'NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN SECTION 139 WHERE ANY PERSON HAS ENTERED INTO AN AGREEMENT AND PRIOR TO THE DATE OF ENTERING INTO THE AGREEMENT ANY RETURN OF INCOM E HAS BEEN FURNISHED UNDER THE PROVISIONS OF SECTION 139 FOR ANY ASSESSM ENT YEAR RELEVANT TO A PREVIOUS YEAR TO WHICH SUCH AGREEMENT APPLIES SUCH PERSON SHALL FURNISH WITHIN A PERIOD O(THREE MONTH S FROM THE END O(THE MONTH IN WHICH THE SAID AGREEMENT WAS ENTERED INTO A MODIFIED RETURN IN ACCORDANCE WITH AND LIMITED TO THE AGREEMENT'. IN VIEW OF THE ABOVE IN CASE OF BOBST INDIA THE D ATE OF ENTERING INTO THE UAPA IS 04 OCTOBER 2019. ACCORDINGLY AS PER T HE PROVISIONS OF SECTION 92CD(1) THE LAST DATE FOR FILING OF MODIFI ED RETURN FOR THE YEARS FOR WHICH THE RETURN OF INCOME WERE FILED BEFORE TH E DATE OF ENTERING INTO UAPA (I.E FOR FY 2011- 12 TO FY 2017-18) IS 31 JANUARY 2020. M/S. BOBST INDIA PRIVATE LIMITED A.YRS. 2012-13 TO 2014-15 3 AS PER THE PROVISIONS OF RULE 10RA OF THE RULES AND WITH REGARD TO THE APPEALS WHICH ARE PENDING BEFORE YOUR HONOURS THE ISSUE IN THE SAID APPEALS RAISED THROUGH VARIOUS GROUNDS IS THE TRANS FER PRICING ADJUSTMENT MADE BY THE LEARNED TRANSFER PRICING OFF ICER ('TPO') BY DISTURBING THE ARM'S LENGTH PRICE ('ALP'). THE SAID ADJUSTMENT WAS UPHELD BY THE HON'BLE DISPUTE RESOLUTION PANEL ('DR P') AND CONSEQUENTLY FINALIZED BY THE LEARNED ASSESSING OFF ICER ('AO'). THE SIMILAR ISSUE IS DEALT WITH UNDER UAPA WHEREIN THE ALP HAS BEEN DETERMINED IN ADVANCE BY TAKING INTO CONSIDERATION THE FUNCTIONAL ANALYSIS AND RISK PROFILE OF BOBST INDIA. BOBST IND IA WISHES TO STATE THAT THERE IS NO OTHER ISSUE IN THE YEARS UNDER CONSIDER ATION WHICH IS PENDING BEFORE YOUR HONOURS AND NOT COVERED BY THE UAPA. IT MAY BE NOTED THAT THE ISSUE COVERED UNDER THE SA ID APPEALS RELATES TO THE INTERNATIONAL TRANSACTION PERTAINING TO RECEIPT OF COMMISSION FROM MARKETING OF MACHINES VIS-A-VIS RECEIPT OF COMMISSI ON FROM MARKETING OF SPARES. THE SAID ISSUE IS COVERED IN THE UAPA AS 'ACCRUAL/RECEIPT OF COMMISSION FROM AES FOR MARKETING MACHINES AND S PARES' IN THE TABLE 'COVERED TRANSACTION' (REFER PAGE NO. 27 - SR NO. 13) AS WELL AS IN THE TABLE 'MOST APPROPRIATE TRANSFER PRICING METHOD AND ALP' (REFER PAGE NO. 28 AND PAGE NO. 29 - SR. NO. 13). FURTHER FOR THE SAKE OF REFERENCE AND CONVENIENCE THE ASSESSEE WISHES TO SUBMIT THAT THE HON'BLE PUNE ITAT HAS IN THE CA SE OF DAR AL HANDASAH CONSULTANTS (SHAIR & PARTNERS) INDIA PVT. LTD. PERMITTED WITHDRAWAL OF ASSESSEE'S APPEAL IN VIEW OF RULE 10R A OF THE RULES. COPY OF ORDER OF THE HON'BLE PUNE ITAT IS ENCLOSED (REFER PAGE NO. 63 TO PAGE NO. 65) FOR YOUR HONOURS' CONVENIENCE AND REFERENCE. T HE COPY OF RULE 10RA IS ALSO ATTACHED AT PAGE NO. 66. IN VIEW OF THE ABOVE DISCUSSION SINCE THE APPEALS FILED FOR AY 2012-13 AY 2013-14 AND AY 2014-15 HAVE TO BE WITHDRAWN BEF ORE FILING THE MODIFIED RETURN OF THOSE YEARS BOBST INDIA SUBMITS BEFORE YOUR HONOURS THAT THE SAID APPEALS NEEDS TO BE WITHDRAWN AND ACCORDINGLY REQUESTS YOUR HONOURS TO PASS APPROPRIATE ORDER/ DI RECTION TO GIVE EFFECT TO THE SAME. 3. ON PERUSAL OF THE ABOVE LETTER AND HAVING NO OBJECTION FR OM THE SIDE OF LD. DR WE ALLOW THE REQUEST OF THE ASSESSEE TO WITHDRAW THE APPEALS. M/S. BOBST INDIA PRIVATE LIMITED A.YRS. 2012-13 TO 2014-15 4 4. IN THE RESULT ALL THE APPEALS OF THE ASSESSEE ARE DIS MISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH NOVEMBER 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VIC E PRESIDENT PUNE; DATED : 19 TH NOVEMBER 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-13 PUNE 4. 5. 6. THE PR.CIT-V PUNE / DR C ITAT PUNE; / GUARD FILE. / BY ORDER // TRUE COPY // SENIOR P RIVATE SECRETARY / ITAT PUNE M/S. BOBST INDIA PRIVATE LIMITED A.YRS. 2012-13 TO 2014-15 5 DATE 1. DRAFT DICTATED ON 18-11-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 18-11-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *