Exxon Mobil Company India P. Ltd. V/s Dy. Commissioner of Income Tax
IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI
ITA No. 8311/Mum./2010
(Assessment Year: 2006- 07)
Date of Hearing: 11.4.2011
ORDER PER J. SUDHAKAR REDDY, A.M.
This appeal preferred by the assessee, is directed against the impugned order dated 20th September 2010, passed by the Assessing Officer under section 143(3) r/w section 144C(13) of the Income Tax Act, 1961 (for short “the Act”).
2. The assessee company filed its return of income on 30th November 2006, declaring total income of 22,17,44,830. The assessee company is stated to be engaged in the business of market development, dissemination of product information of specialty chemical and polymers. It also carries out research and development activities and also provides on-site and back office support services. The Assessing Officer made a reference to the Addl. Commissioner of Income Tax (Transfer Pricing), Mumbai, under section 92CA(1) for computation of Arm’s Length Price (herein after for short “ALP”) in relation to international transaction. The TPO, vide order dated 29th October 2009, arrived at a Transfer Pricing adjustment of 1,94,44,068. The assessee made submissions before the Assessing Officer against the proposed adjustment. The Assessing Officer rejected the same and issued a draft assessment order. The assessee filed objections against the proposed variation to the income before the Dispute Resolution Panel-1, Mumbai on 22nd December 2009. The panel, vide its order dated 6th August 2010, has issued certain direction under section 144C(4) of the Act. The Assessing Officer passed the order under section 143(3) r~w section 144C(13) of the Act on 20th September 2010. Aggrieved the assessee is in appeal before us.
3. The facts, as far as the company and the issues are concerned, have been brought out in the order dated 29th October 2009, passed by the Transfer Pricing Officer (herein after for short “TPO”) under section 92CA(3) of the Act, which is extracted for ready reference:-
“3. The assessee is a company of the Exxon Mobile Corp. Group of US and is responsible for information dissemination, maintaining customer relationship and market development for its AE Exxon Mobile Chemical Co. USA. It is also providing application research and technical services and back office support services to the AE.
4. The international transactions of the assessee are as under:
