Ammann India Pvt. Ltd. Vs ACIT (ITAT Ahmedabad)
The assessee, engaged in manufacturing construction equipment and components, filed its return for A.Y. 2014-15 declaring total income of Rs. 6,14,73,820/-. During F.Y. 2013-14, it acquired the assets and liabilities of the asphalt plant business of GAIL, its domestic Associated Enterprise, for Rs. 228,75,37,036/- and the assets and liabilities of the sensor paver business from Apollo Earthmovers Ltd. (AEML), another Associated Enterprise, for Rs. 40,95,87,651/-.
The Transfer Pricing Officer/Assessing Officer treated both acquisitions under the slump sale arrangement as Specified Domestic Transactions under section 92BA and made an upward adjustment totaling Rs. 116,32,00,000/-. The assessee challenged the adjustment before the Dispute Resolution Panel, contending that acquisition of a business undertaking on a going concern basis under a slump sale arrangement was not a specified domestic transaction under section 92BA(i) read with section 40A(2)(b). It also submitted that section 92BA(i) had been omitted by the Finance Act, 2017 with effect from 01.04.2017.
Before the Tribunal, the assessee further contended that the payments were not for expenditure covered by section 40A(2)(b), but represented consideration for purchase of undertakings. It also relied upon the omission of section 92BA(i) and submitted that the provision had to be considered as never having existed. The assessee relied upon the Karnataka High Court decision in Texport Overseas Private Limited and several ITAT decisions.
