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Showing contexts for: GEA Process Engineering in Dcit Cir 2(2)(1), Mumbai vs Gea Process Engineering ()I) P.Ltd, ... on 16 June, 2022Matching Fragments
For the sake of brevity aforesaid cross appeals and cross objections bearing common question of law and facts are being disposed of by way of composite order.
2. Appellant DCIT/ITO, Mumbai (hereinafter referred to as the Revenue) and the appellant/cross objector M/s. Gea Process Engineering (India) Pvt. Ltd. (hereinafter referred to as the assessee) by filing the present appeal and cross objections sought to set aside the impugned order dated 06.04.2015 passed by the Principal Commissioner of Income Tax (OSD) [hereinafter referred to as the PCIT] on the grounds inter alia that:
M/s. Gea Process Engineering (India) Pvt. Ltd.
The Respondent Company craves leave to alter, add, amend or delete all or any of the grounds/ objection raised hereinabove."
3. Briefly stated facts necessary for adjudication of the controversy at hand are : the assessee company a Gea Process Engineering Pvt. Ltd. was incorporated in 1992 as a joint venture between L&T Ltd., India and Niro A/s, Denmark. The said joint venture was discontinued and the entire stake of L&T in the assessee company was bought over by Niro. Later on the name of the assessee company was changed to Jewel Process Engineering India Pvt. Ltd. and it became a wholly owned subsidiary of Niro A/s, Denmark. During the year under assessment the assessee company was into the business of undertaking capital intensive projects for erection and commissioning of projects. While executing these Erection, Procurement and Commissioning (EPC) contracts the assessee company designs the installation, procures the necessary materials, erects the plants as per the agreed design and ensures commissioning of same, which is engaged primarily in the execution of EPC turnkey projects in the food, dairy and chemical and pharma sectors. During the year under assessment assessee company entered into international transactions with its Associate Enterprise (AE) as reported in form 3CEB as under:
SL. Nature of transaction F.Y. 2007-08 (Rs) Method Used 1 Purchase of Components & 6,80,75,380 Resale Price Method Spares 2 Payment of Design & 1,86,83,436 Resale Price Method Engineering Fees 3 Receipt of Commission 1,19,51,956 Transactional Net Margin Method 4 Receipt for Supervisory 51,85,376 Transactional Net Assistance Margin Method M/s. Gea Process Engineering (India) Pvt. Ltd.
12. We have perused the order passed by the co-ordinate Bench of the Tribunal in assessee's own case for A.Y. 2007-08 (supra) which is on identical facts and CIT(A) after thrashing the facts in the light of the law laid down by Hon'ble Supreme Court in CIT vs. Smifs Securities Ltd. (2012) 348 ITR 302 (SC) decided the issue in favour of assessee by returning following findings:
"9. We have considered rival contentions and perused the material on record including cited case laws. We have observed that the assessee company is engaged in the business of Engineering, Procurement and Construction(EPC) of Food, Diary, Chemical and Pharma Plants. The assessee company was incorporated in the year 1992 as M/s. Gea Process Engineering (India) Pvt. Ltd.