2020 (10) TMI 1357 - AT - Income Tax

TP adjustment made to the transactions entered into with the AEs in US and TP adjustment made to the transactions entered into with non US AEs - HELD THAT - TP adjustment with AE in USA is concerned, the dispute is now settled by MAP. Communications from the Government of India, Ministry of Finance, Department of Revenue, CBDT are placed on record. To this extent, the appeals are dismissed as withdrawn. TP adjustment with AEs which are non USA AEs and other corporate grounds - As the assessee is contemplating to settle the dispute under Vivad se Vishwas Scheme, for the time being we dismiss these grounds as withdrawn with liberty to the assessee to approach the Tribunal and revive the appeal, if for some technical reason the dispute could not be settled under the Vivad se Vishwas Scheme. All the appeals of the assessee stand dismissed as withdrawn.

Summary

Issues:
- TP adjustment with AEs in the USA
- TP adjustment with non-USA AEs
- Corporate tax grounds relating to computation of book profit u/s 115JB
- Disallowance u/s 14A of the Act
- Settlement under Vivad se Vishwas Scheme

TP Adjustment with AEs in the USA:
The appeals were filed against orders framed under section 143(3) r.w.s 144C of the Income Tax Act for A.Ys 2006-07, 2007-08, and 2008-09. The main issue in all appeals was the TP adjustment made to transactions with AEs in the USA. The dispute regarding TP adjustment with USA AEs was settled by the Mutual Agreement Procedure (MAP), as confirmed by communications from the Government of India. Consequently, the appeals related to this issue were dismissed as withdrawn.

TP Adjustment with Non-USA AEs and Corporate Tax Grounds:
Apart from the USA AEs issue, the appeals also concerned TP adjustments with non-USA AEs and corporate tax grounds. The assessee expressed intentions to settle these disputes under the Vivad se Vishwas Scheme. The Tribunal dismissed these grounds as withdrawn, with the assessee having the liberty to revive the appeals if unable to settle under the scheme due to technical reasons.

Corporate Tax Grounds:
Specifically, in A.Y 2006-07, there was a corporate tax ground related to the computation of book profit u/s 115JB. For A.Y 2007-08 and 2008-09, in addition to the main grounds, corporate tax grounds related to disallowance u/s 14A of the Act. The Tribunal acknowledged the assessee's plans to resolve these issues under the Vivad se Vishwas Scheme.

Conclusion:
All three appeals by the assessee were dismissed as withdrawn, with the TP adjustment issue with USA AEs settled and the other issues deferred for potential resolution under the Vivad se Vishwas Scheme. The order was pronounced on 28.10.2020.