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TMI Blog2017 (6) TMI 1225X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, ground No. 3 raised by the assessee is partly allowed. Non granting credit of tax deducted at source - Held that:- We direct the Assessing Officer to examine the cliam of assessee and if the assessee is found eligible for the benefit of TDS, if any, the same may be allowed, in accordance with law. Accordingly, ground No. 7 is allowed for statistical purposes. - ITA No. 521/PUN/2015 - - - Dated:- 7-6-2017 - Shri D. Karunakara Rao, AM And Shri Vikas Awasthy,JM Assessee by : Shri M.P Lohia Shri Hemen Chandariya Revenue by : Shri Vinod Kumar ORDER Per Vikas Awasthy, JM This appeal by the assessee is directed against the assessment order dated 27.02.2015 passed u/s 143(3) r.w.s 144C (13) of the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .I Cranes Ltd. in the list of comparables by the TPO. The assessee further prayed for exclusion of T.R.F Ltd from the list of comparables on account of misstatements in the annual report of the said company. The DRP vide directions dated 26.12.2014 rejected the objections raised by the assessee for excluding aforesaid companies from the list of comparables. Based on the directions of DRP, impugned assessment order was passed by the Assessing Officer. Now the assessee is in appeal before the Tribunal assailing the findings of authorities below. The assessee has raised as many as nine grounds in the appeal. 4. Shri M.P Lohia and Shri Hemen Chandariya appearing on behalf of the assessee stated at the Bar that he is not pressing grounds No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Year 2009-10 at page No. 383 of the paper book. The ld. AR further pointed that in the Director s Report it has been clearly mentioned that Hon ble High Court of Judicature, Bombay has approved Demerger application of W.M.I Cranes Ltd w.e.f 1st September, 2009. After demerger, turnover of the company has increased from ₹ 1562 milions in the immediately preceding Financial Year to ₹ 1711 milions in Financial Year 2009-10. Whereas, gross profit before depreciation and interest has decreased from ₹ 389.83 milions in the immediately preceding Financial Year to ₹ 387.25 milions in financial year 2009-10. On account of extraordinary events i.e the demerger, the financial results of the company does not show true picture o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard to exclusion of W.M.I Cranes Ltd and T.R.F Ltd. from the list of comparables. The assessee is seeking exclusion of W.M.I Cranes Ltd. from the list of comparables on account of extraordinary events viz. Demerger. A perusal of Director s Report of the said company at page No. 386 of the paper book shows that there was demerger of W.M.I Cranes Ltd w.e.f 1st September, 2009. On account of demerger, there were aberrations in the financial result of the said company. The Co-ordinate Bench of the Tribunal in the case of Cummins Turbo Technologies Limited Vs. Deputy Commissioner of Income Tax (supra) has held that where extraordinary events such as acquisitions, amalgamation, merger or demerger had taken place during the period under conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same may be allowed, in accordance with law. Accordingly, ground No. 7 is allowed for statistical purposes. 9. In ground No. 8, the assessee has assailed the findings of Assessing Officer in levying interest under section 234B of the Act. Interest u/s 234B of the Act is mandatory and consequential; accordingly, the ground No. 8 is dismissed. 10. In ground No. 9, the assessee has assailed the findings of DRP in initiating penalty proceedings under section 271(1)(c) of the Act. The ground raised by the assessee is premature. Hence, the same is dismissed, as such. 11. In the result, appeal of the assessee is partly allowed in the aforesaid terms. Order pronounced on Wednesday, the 7th day of June, 2017. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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