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TMI Blog2020 (11) TMI 1032X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee-company and has attributed 50% of the gross trading profits of MIPL as income of the assessee-company and the commission paid by the assessee to MIPL was registered @ 0.8905556% of the total sale. CIT (A) has though uphold the action of the Assessing Officer that the MIPL is a DAPE but has attributed only 20% of the gross trading profit of MIPL - commission paid by the assessee-company to MIPL have been accepted at Arm s Length Price to the TPO that no discount of commission has to be made that since the commission paid was more than 20% attributed to DAPE, the entire addition made by the Assessing Officer was deleted. The Revenue is in appeal against the order of Ld. CIT (A) questioning the order of gross profit of sales and del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the permanent Establishment of Mitsui Co. Ltd. ( Assessee ) in India as against 50% as was determined by the Assessing Officer. 2. On the facts and in the circumstances of the case, whether the Ld. CIT(A) erred in allowing deduction of commission to the Permanent Establishment of the assessee at ₹ 1,32,13,29,525/- as against ₹ 35.30.09,057/- which was determined by the Assessing Officer. Whereas in the Cross Objection, assessee has raised the following grounds:- 1. On the facts and circumstances of the case, the order passed by the learned Commissioner of Income Tax (Appeals) [CIT(A)] is bad, both in the eyes of law as well as on facts. 2. On the facts and circumstances of the case, the learned CIT(A) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 5,24,118/- made by the AO on account of Usance Interest on LC from Shri Ram Pistons and Rings Ltd. (ii) That the addition has been confirmed despite the fact that the said income appearing in Form 26AS is not taxable in the hands of the assessee. 8. (i) On the facts and circumstances of the case, the learned CIT(A) has erred in confirming the addition of ₹ 5,57,215/- made by the AO on account of Usance Interest on LC from DSM Sinochem Pharmaceuticals India Pvt. Ltd. (ii) That the addition has been confirmed despite the fact that the said income appearing in Form 26AS is not taxable in the hands of the assessee. 9. That the respondent craves leave to add, amend or alter any of the grounds of appeal. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y applying profit, attributable rate of 20% on the total trading T.O, in India the profit on Indian operation shall come to ₹ 16,17,27,909/- as against ₹ 40,43,19,773/- computed by the AO. 5.11 Further M/s. Mitsui India Pvt. Ltd. has been paid a commission of ₹ 132,13,29,595/- on the total sale. The AO has restricted this commission to ₹ 35,30,09,057/- by applying percentage at 0.8905556%. In the year under consideration the report of the TPO in the case of Mitsui India P Ltd has been received and TPO has accepted the payment of ₹ 1,32,13,29,595/- at an arm s length. Accordingly the commission to the extent of ₹ 132,13,29,595/- has to be allowed as claimed by the assessee in view of TPO s report. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the gross trading profits of MIPL as income of the assessee-company and the commission paid by the assessee to MIPL was registered @ 0.8905556% of the total sale. The Ld. CIT (A) has though uphold the action of the Assessing Officer that the MIPL is a DAPE but has attributed only 20% of the gross trading profit of MIPL. Ld. CIT(A) further held that commission paid by the assessee-company to MIPL have been accepted at Arm s Length Price to the TPO that no discount of commission has to be made that since the commission paid was more than 20% attributed to DAPE, the entire addition made by the Assessing Officer was deleted. The Revenue is in appeal against the order of Ld. CIT (A) questioning the order of gross profit of sales and deleting ..... X X X X Extracts X X X X X X X X Extracts X X X X
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