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TMI Blog2024 (9) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... e TPO while raising objections to the draft order u/s 144 (c) had placed before the DRP, the necessary and specific details pertaining to the nature of alleged AMP expenses, selling expenses such as trade and other discount on sales, sales discounts, warranty expenses and packing expenses, which should be excluded in the determination of AMP expenses. If an order is passed without taking note of the materials on record and subsequently, if it is brought to the notice of the Income Tax Authority u/s 154 of the Act, it would be open for the Income-Tax Authority to rectify such mistake apparent from the record. While considering the application u/s 154 of the Act, if the material which was not considered while passing original order are consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the provisions of the Companies Act claims to be engaged in the business of trading of power tool products. For the assessment year 2010-11, after scrutiny, assessment was completed. During the course of assessment, it was found that assessee-company had entered into international transaction. Therefore, matter was referred to Transfer Pricing Officer (for short, TPO ) for determination of Arms Length Price (for short, ALP ) in respect of the international transaction and the TPO passed order on 17.01.2014. Pursuant to TPO s order, draft assessment order was passed on 15.04.2014, against which, assessee approached the Dispute Resolution Panel-1, Bengaluru (for short, DRP ). The DRP passed order on 31.12.2014 upholding the action of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the facts and in the circumstances of the case, the Tribunal is right in confirming the directions of DRP to reexamine an issue based on certain material on record, which tantamount to error of judgment and cannot be considered to be a mistake apparent from record and the Tribunal erred in considering the case on merits.? 4. Heard the learned counsel Sri. E.I. Sanmathi for appellant/Revenue and learned senior counsel Sri. T. Suryanarayana for Smt. Tanmayee Rajkumar, learned counsel for respondent-assessee. Perused the entire appeal papers. 5. Learned counsel Sri. E.I. Sanmathi for Revenue would submit that there was no mistake apparent from the record to rectify the order and as such DRP could not have exercised its power under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould amount to mistake apparent and hence it is submitted that exercise of power under Section 154 of the Act by DRP is proper and correct. Thus, he prays for dismissing the appeal by answering the substantial questions of law in favour of the respondent-assessee. 7. The respondent-assessee claims to be engaged in the business of trading of power tool products and for the assessment year 2010-11, after completion of assessment, since the assessee had international transaction, the matter was referred to TPO for determination of Arms Length Price in respect of international transaction. The assessee had incurred expenditure on advertisement and sales promotion amounting to Rs. 8,47,34,153/- and the TPO, after analyzing the AMP expenditure in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee though had not filed any objection or explanation before the TPO while raising objections to the draft order under Section 144 (c) of the Act had placed before the DRP, the necessary and specific details pertaining to the nature of alleged AMP expenses, selling expenses such as trade and other discount on sales, sales discounts, warranty expenses and packing expenses, which should be excluded in the determination of AMP expenses. If an order is passed without taking note of the materials on record and subsequently, if it is brought to the notice of the Income Tax Authority under Section 154 of the Act, it would be open for the Income-Tax Authority to rectify such mistake apparent from the record. While considering the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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