Income Tax Appellate Tribunal - Mumbai
Vashraj Exports P. Ltd, Mumbai vs Department Of Income Tax on 23 September, 2011
आयकर अपील य अ धकरण,
धकरण मंुबई यायपीठ 'के' मंुबई ।
IN THE INCOME TAX APPELLATE TRIBUNAL
"K"
"K" BENCH, MUMBAI
सव ी बी. रामकोटया,
रामकोटया लेखा सद य एवं ी वजयपाल राव,
राव या यक सद य
BEFORE SHRI B. RAMAKOTAIAH
RAMAKOTAIAH,
AMAKOTAIAH, AM & SHRI VIJAY PAL RAO, JM
आयकर अपील
अपील सं./I.T.A.
I.T.A. No.8514
No. 8514/Mum/201
8514 /Mum/2011
/Mum/201 1
( नधारण वष / Assessment Year :2005-06)
Vershraj Export Pvt. Ltd. बनाम/
बनाम DC IT Range (8)(3)
7C, Senior Estate Near Sona Mumbai
Vs.
Udyog, P arsi Panchayat Raod,
Andheri (E)
Mumbai-69
थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. :AAAC V4644E
(अपीलाथ /Appellant) .. ( यथ / Respondent)
अपीलाथ ओर से / Appellant by : None
यथ क ओर से/Respondent by : Shri Ajit Kumar Jain
आयकर अपील सं./I.T.A.
I.T.A. No.8030
No. 8030/Mum/201
8030 /Mum/2011
/Mum/201 1
( नधारण वष / Assessment Year :2005-06)
DCIT R ange (8)(3) बनाम/
बनाम Vershraj Export Pvt. Ltd.
Mumbai 7C, Senio r Est ate Nea r Sona
Vs.
Udyog, Parsi Panchayat Raod,
Andheri (E)
Mumbai-69
(अपीलाथ /Appellant) .. ( यथ / Respondent)
अपीलाथ ओर से / Appellant by : Shri Ajit Kumar Jain
यथ क ओर से/Respondent by : None
सनवाई
ु क तार ख / Dt . o f H e a ri n g : 10th July 2013
घोषणाक तार ख/D
ख t. Of P r on ou n ce men t : 10th July 2013
आदे श / O R D E R
PER : वजयपाल राव, या.स. / VIJAY PAL RAO, JM
These cross appeal are directed against the order dated 23.9.2011 of Commissioner of Income Tax(Appeals) for the assessment year 2005-06.
2
ITA No.8514 & 8030/Mum/201 Vershraj Exports P. Ltd.
.
2. None has appeared on behalf of the assessee when the appeal was called for hearing despite the notice of the hearing duly served upon the assessee vide acknowledgement. A Letter for request for adjustment has been filed by one Shri Nirmal Kumar Mallawat stated to be Income Tax practicener however, there is no authority on record for authorising Mr. Nirmal Kumar Mallawat to represent the assessee. Therefore we do not entertain the said request in the absence of the authority letter. ITA No. 8514/M/2011
3. Nobody as appeared on behalf of the assessee when this appeal of the assessee was called for hearing despite notice of hearing was duly served upon the assessee through RPAD, proof of which is placed on record. This type of conduct on the part of the assessee shows that the assessee is not interested in prosecuting the appeal filed by it. Accordingly, we dismiss the appeal as not admitted by following the decisions of the Hon'ble Madhya Pradesh High Court in the case of Estate of Late Tukojirao Holkar vs CWT(223 ITR 480(MP) and order of the Delhi Bench of the Tribunal in the case of CIT vs Multiplan (India) Pvt Ltd (38 ITD 320 (Del).
4. However, if the assessee through proper application can satisfy the Tribunal for such non appearance on the date of hearing, the Tribunal may at its discretion recall this order. 3
ITA No.8514 & 8030/Mum/201 Vershraj Exports P. Ltd.
.
ITA No. 8030/M/2011 8030/M/2011
5. The Revenue has raised the following grounds in this appeal:
"On the facts and circumstances of the case and in law, the Ld. CIT(A) failed to interpret the provisions of Section 92C(2) of the Income Tax Act, 1961, in its right perspective and true meaning."
"On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in allowing the benefit of -5% relief to the extent of ` 18,86,736/- without appreciating the fact that the benefit of -5% is not available under the Income Tax Act, 1961."
6. We have heard the Ld. DR and carefully perusal the relevant record. The benefit under the proviso to Section 92C(2) is only in the nature of tolerance range of 5% and not standard deduction. By virtue of retrospective amendment in the proviso to Section 92C(2) of the Income Tax Act, the legislature has made it clear that the benefit of ±5% is only a tolerance range and therefore it is available only when the prices of international transaction is within the range of 5% of the arithmetic mean of more than one comparable prices. Accordingly, we set aside the order of the CIT(A) qua this issue and decide this issue in favour of the revenue.
7. In the result, the appeal of the assessee is dismissed and appeal of the revenue is allowed.
4
ITA No.8514 & 8030/Mum/201 Vershraj Exports P. Ltd.
.
Order pronounced in the open Court on this day of 10th July 2013 आदे श क घोषणा खले ु यायालय म दनांकः 10 जलाई th ु को क गई ।
Sd/- Sd/-
(बी. रामकोटया) ( वजयपाल राव)
लेखा सद य या यक सद य
(B. RAMAKOTAIAH) (VIJAY PAL RAO)
Accountant Member Judicial Member
Place: Mumbai : Dated: 10th July 2013 Subodh* Copy forwarded to:
1 Appellant 2 Respondent 3 CIT 4 CIT(A) 5 DR /TRUE COPY/ BY ORDER Dy /AR, ITAT, Mumbai