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TMI Blog2018 (4) TMI 1861X X X X Extracts X X X X X X X X Extracts X X X X ..... ents agreed that manufacturing activity is being carried out by the assessee. Thus, there is due compliance of principles of natural justice. Each case has to be decided on its own facts. The general principle reiterated by the Hon ble High Courts in the cases referred above is that no person should be condemned without giving opportunity of hearing. No infirmity in the impugned order, accordingly, the same is upheld and the appeals of the Revenue for assessment years 2008-09 and 2009-10 are dismissed. - ITA No. 669, 670/PUN/2014 - - - Dated:- 26-4-2018 - SHRI D. KARUNAKARA RAO AND AND SHRI VIKAS AWASTHY, JJ. Appellant by : Shri Nikhil Pathak and Shri Nimit Gujarathi Respondent by : Shri Achal Sharma ORDER VIK ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accessories, spares and components. The assessee is import of accessories and components for reselling in Indian market and is procuring accessories and components from India market for export to parent company. In proceedings before the Transfer Pricing Officer (TPO) the contention of the assessee was that the assessee is engaged in manufacturing process and is exporting finished goods to its Associated Enterprises (AEs). However, in the TP study there was no reference of any manufacturing activity being carried out by the assessee. The TPO held that the assessee was involved only in trading of accessories and components. The TPO aggregated domestic and export sales and made an adjustment of ₹ 1,15,04,012/- in assessment year 2008-09 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Officer Vs. Prem Kumar Jindal, 27 SOT 228 (Chandigarh). 4. On the other hand Shri Nikhil Pathak appearing on behalf of the assessee submitted that the assessee is engaged in manufacturing activities as well as trading of hydraulic equipments/components. The ld. AR pointed that in the TP study though it may not have been prominently mentioned about the manufacturing activity being carried out by the assessee but there is a reference of export of finished goods by the assessee to its AE. The ld. AR referred to TP study report at page 184 of the paper book. The ld. AR further contented that the assessee had furnished additional evidence before Commissioner of Income Tax to substantiate the fact that the assessee is engaged in manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. sample copies of invoices and d. Photographs of the actual site where the activity is carried out. In proceedings before the TPO the assessee could not substantiate manufacturing activity being carried out by the assessee in respect of goods being exported to its AE to the satisfaction of TPO. Resultantly, the TPO concluded that there is no logic in bifurcating trading activity in domestic sales and export sales. Whereas, the case of the assessee is that the assessee apart from trading of components is also engaged in export of finished goods. Before the Commissioner of Income Tax (Appeals) the assessee filed manufacturing process chart, cost sheet, sample copies of invoices and photographs of the manufacturing activity, etc. to sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia The assessee has furnished additional evidence before the Commissioner of Income Tax (Appeals) to strengthen his claim of carrying out manufacturing activity for export of manufactured/finished goods. 6. A perusal of remand report dated 09-12-2013 at page 354 of the paper book would show that the TPO after examining the additional evidence has accepted that the assessee company is engaged in manufacturing and trading activity. Thus, the documents placed on record by the assessee as additional evidence were vital for proper adjudication of the issue. 7. In so far as the case laws relied by the ld. DR to contend that the additional documents have been admitted by the Commissioner of Income Tax (Appeals) in violation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f right, unless the opposite side is allowed opportunity to controvert. 9. In the present case the additional evidence furnished by assessee were referred to TPO/Assessing Officer for examination and comments. The TPO after examining the documents agreed that manufacturing activity is being carried out by the assessee. Thus, there is due compliance of principles of natural justice. Each case has to be decided on its own facts. The general principle reiterated by the Hon ble High Courts in the cases referred above is that no person should be condemned without giving opportunity of hearing. Thus, we do not find any infirmity in the impugned order, accordingly, the same is upheld and the appeals of the Revenue for assessment years 2008-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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