IN THE ITAT BANGALORE BENCH ‘B’
Toyota Kirloskar Motors (P.) Ltd.
Versus
Assistant Commissioner of Income-tax
IT Appeal No. 828 (Bang.) of 2010
[Assessment year 2003-04]
November 22, 2012
ORDER
Jason P. Boaz, Accountant Member
This appeal by the assessee- company is directed against the order of the Commissioner of Income Tax (Appeals)-IV, Bangalore dated 31.3.2010 for Assessment Year 2003-04.
2. The facts of the case, in brief, are as under :
2.1 The assessee- company (hereinafter referred to as ‘the assessee’) is an Indian company engaged in the manufacture and trading of automobiles – namely, passenger cars (Corolla) and Multi Utility Vehicles (Qualis). The major shareholder of the assessee is Toyota Motor Corporation, Japan (hereinafter referred to as ‘TMC’) with 74% foreign equity participation and Kirloskar Systems India Ltd ;with 26% holding. The assessee imports components for manufacture of automobiles from TMC and other group companies. TMC provides the assessee with technical know-how for which it is paid royalty and fees for technical assistance received.
2.2 The assessee filed its return of income for Assessment Year 2003-04 on 27.11.2003 declaring a loss of Rs.6,21,90,723. Along with the return of income the assessee filed the report as required under section 92E of the Income Tax Act, 1961 (herein after referred to as ‘the Act’). The return was processed under section 143(1) and the case was taken up for scrutiny by issue of notice under section 143(2) of the Act. The Assessing Officer referred the case to the Transfer Pricing Officer (TPO) under section 92CA(1) of the Act for conducting the Transfer Pricing audit to determine the Arms Length Price (ALP) in respect of the following international transactions of the assessee in the relevant period :
A. Manufacturing Segment
