ITAT MUMBAI BENCH ‘K’
S. Narendra
versus
Additional Commissioner of Income-tax-16(3)
IT APPEAL NO. 6839 (MUM.) OF 2012
[ASSESSMENT YEAR 2008-09]
FEBRUARY 8, 2013
ORDER
I.P. Bansal, Judicial Member
This appeal is filed by this assessee. It is directed against the Assessment Order dt. 5th October 2012 passed u/s. 143(3) r.w.s. 144C of the Income Tax Act, 1961 (Act). Assessment Order has been passed in pursuance of directions of Dispute Resolution Panel (DRP) given vide its order dt. 13th August, 2012. A copy of which has been placed on record.
2. This is a stay granted matter. The stay was granted by the Tribunal vide its order on 14th day of December 2012 on the condition for making total payment of Rs. 25 Lakhs in two installments. The assessee has complied with the conditions of the stay and has furnished the proof regarding the payments. Accordingly, we proceed to decide the present appeal after hearing both the parties.
3. The assessee has entered into the following international transactions with its Associate Enterprise (AE).
|
S. No. |
Name and Address of AE |
Nature of Transaction |
Qty (In Cts) |
Amount in Rs. |
|
1. |
M/s. Sauraj Diamonds NV 348, 2-Hovenierstraat B-2018, Antwerp, Belgium | Import of Rough Diamonds |
1,32,564.76 |
53,91,66,956 |
|
2. |
M/s. Sauraj Diamonds NV 348, 2-Hovenierstraat B-2018, Antwerp, Belgium | Import of Polished Diamonds |
1,608.21 |
1,74,25,842 |
|
3. |
M/s. Sauraj Diamonds NV 348, 2-Hovenierstraat B-2018, Antwerp, Belgium | Export of Polished Diamonds |
11,725.22 |
23,10,55,520 |
The matter was referred to Transfer Pricing Officer (TPO) who has computed the adjustment of Rs. 3,19,55,004/- vide his order date 25th October 2011. It was the case of the assessee that its margin should be determined after taking into consideration the gain on foreign exchange amounting to Rs. 3,36,36,765/-. However, TPO did not accept such contention of the assessee and has computed the transaction profit of the assessee at Rs. 75,71,025/- as per the following table:
