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TMI Blog2019 (4) TMI 1658X X X X Extracts X X X X X X X X Extracts X X X X ..... rm of export sales made to AE by the assessee, in accordance with law. The assessee is at liberty to furnish additional evidences, if any, either in the form of transfer pricing study report or any other evidences, if they so desire, in support of its contentions. Accordingly, the grounds raised by the assessee are allowed for statistical purposes. - ITA No.1876/Mum/2017 - - - Dated:- 24-4-2019 - SHRI M. BALAGANESH, AM AND SHRI RAM LAL NEGI, JM For The Assessee : Dr. K. Sivaram Shri Sashank Dundu For The Revenue : Shri Manish Kumar Singh ORDER PER M. BALAGANESH (A.M): This appeal in ITA No.1876/Mum/2017 for A.Y.2010-11 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-38, New Delhi in appeal No.60/2015-16 dated 26/12/2016 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3)of the Income Tax Act, 1961 (hereinafter referred to as Act) dated by the ld. Dy. Commissioner of Income Tax, New Delhi (hereinafter referred to as ld. AO). 2. The assessee has raised the following grounds of appeal:- 1. On the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as issued fixing hearing on 19.11.2015 at 10:30 AM in response to which an adjournment petition was filed by appellant. At the request of appellant case was adjourned by notice u/s 250 dated 27.01.2016 to 28.03.2016 at 10:30 AM. In the mean time, the case was transferred to CIT (A)-38 as stated in Para-1 above. This case was received in the office of the undersigned on 09.03.2016. Notice u/s 250(1) dated 23.03.2016 was issued by this office fixing hearing on 28.03.2016 at 11:00 AM on which date submission regarding transfer of PAN of appellant filed before CIT-9, New Delhi on 24.09.20.15 and before AO ITO Ward 27(2), New Delhi requesting PAN migration to Mumbai was filed. Letter dated 22.04.2016 received in this office on 28.04.2016 from appellant intimated this office that the appellant company has officially changed its Registered Office from New Delhi to Mumbai, Maharashtra with the Registrar of Companies enclosing a copy of said certificate and requesting to expedite the process of PAN migration to Mumbai. By letter dated 23.05.2016 this office informed appellant that any request for transfer of jurisdiction should be made to the administrative Principal Commissioner/Chief Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 4,24,80,886/-. Since, the total value of international transactions is less than ₹ 5 Crores, there was no need for the ld. AO to refer the case to ld. Transfer Pricing Officer for determination of arm s length price in respect of export sales carried out by the assessee. There is no dispute with regard to the list of international transactions reported by the assessee in the form 3CEB. 3.1. Before the ld. AO, assessee submitted that it had entered into a service agreement with WD Partners Inc. (Associated Enterprise AE) and as per the terms of this agreement, assessee shall render computer aided design and engineering services to AE at a price which shall be equal to actual costs incurred by the assessee company like man power, depreciation, supplies, services etc., plus an additional amount equal to 10% of such costs. The copy of service agreement entered with AE was also filed before the ld. AO. The assessee also pleaded that its income is exempt u/s.10A of the Act and therefore, there was no motive to charge price less than the arm s length price from its AE. 3.2. The ld. AO observed that the entire exports of the assessee was mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and reasons; for decision 4,1 The only ground of appeal is general in nature, cryptic and is not accompanied by a separate statement of fact. Not only has appellant not prosecuted the appeal, it has deliberately adopted dilatory tactics while representing this case despite being given numerous opportunities to do so. Under the circumstances, this ground of appeal is dismissed. 4.1. Ld. AR referred to the relevant details of the paper book referring to the written submissions filed during the course of hearing before the ld. CIT(A) wherein the entire facts together with necessary details were duly furnished before the ld. CIT(A). In the said written submissions, the most appropriate method adopted by the assessee i.e., transactional net margin method (TNMM) was also duly mentioned. The ld. AR drew the attention to pages 20 to 32 of the paper book containing month wise details of various costs incurred by the assessee for rendering services to its AE for the period April 2009 to 31/03/2010 together with the mark-up of 10% thereon to arrive at the total export sales of ₹ 4,24,80,886/-. He stated that these submissions were not at all conside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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