IN THE ITAT MUMBAI BENCH ‘A’
Agility Logistics (P.) Ltd.
v/s.
Deputy Commissioner of Income-tax-8(1), Mumbai
IT Appeal No. 8648 (Mum.) of 2011
[Assessment year 2007-08]
April 13, 2012
ORDER
N.K. Billaiya, Accountant Member
The present appeal is directed by the assessee against the order of the assessment dated 10th October, 2011 passed in pursuance to the directions issued by the Dispute Resolution Panel [ DRP ]. The appellant has assailed the assessment order r.w the directions of the DRP r.w the order of the Transfer Pricing Officer [ TPO ] by raising two grounds of appeal. Ground No. 1 is of general in nature and ground no. 2 has 6 sub-grounds of appeal. The sum and substance of sub-grounds of appeal is that the appellant is aggrieved by the rejection of comparable uncontrolled price [CUP] method and determining the adjusted arm’s length price at Rs. 110700000.00. Briefly stated the facts of the case are that Agility Logistics Private Limited (‘Agility India’ or ‘the Assessee’) is a logistics services provider, offering a comprehensive portfolio of international, domestic and specialized freight handling services. It is an indirect subsidiary of Geologistics Corporation, US (‘Geo US’). Agility India and its associated enterprises in the Geonetwork may be characterized as freight handling companies with normal risk operating in the international logistics business. Agility India and other companies perform mirror freight handling functions at each end of the base line port to port/ airport to airport product and deploy similar assets in the execution of these services.
2. The original return of income for the A.Y.2007-08 was e-filed by the assessee on 29.10.2007, declaring total income at Rs. 122150240/-. Thereafter, the assessee has e-filed its revised return of income on 30.03.2009, declaring total income at Rs. 124694684/-.
3. As the assessee company had transactions with the Associated Enterprises exceeding Rs. 15 crore, a reference was made to the Transfer Pricing Officer, Mumbai to ascertain the Arms Length Price. Vide order u/s.92CA(3) of the I.T. Act, 1961 dated 20.10.2010, the Addl. Commissioner of Income Tax, Transfer Pricing Officer – I(1), Mumbai has proposed an adjustment of Rs. 110700000, in respect of Assessee’s international transactions with its associated enterprises (‘AEs’) pertaining to freight receipts and expenses.
4. Against draft of the proposed order of assessment issued in accordance with the provisions of sub-section (1) of Section 144C of the Act, the assessee filed his objections before the Dispute Resolution Panel in accordance with the provisions of clause(b) if sub-section(2) of Section 144C of the Act. The Dispute Resolution Panel-I, Mumbai, after perusing the draft assessment order and after examining the assessee’s objections, issued Direction u/s. 144C(5) of the Act on 12.09.2011, thereby approving the adjustment made in the draft assessment order. Accordingly, the sum of Rs. 110700000/- is hereby added to income of the assessee company. No deduction under Section 10A or 10B or Chapter VIA of the I.T. Act, 1961 is allowed on this addition.
5. The international transactions of the assessee are summarized as under:-
