Law & Society

Dy. CIT vs Expeditors International (India) Pvt Ltd

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Assessee is a company which is stated to be engaged in the business of supplying chain management, logistics and freight forwarding related to movement of goods and cargo within and outside India by road, rail, air or ship. The case was selected for scrutiny and notice u/s 143(2) was issued and served on the assessee. The AO noticed that assessee had entered into International Transactions during the year under consideration which required the determination of Arm’s Length Price (ALP). He accordingly made reference to TPO u/s 92CA(3).

Revenue is aggrieved by the deletion of addition made by the AO and in the additional ground the grievance of the Revenue is that the Transfer Pricing documentation and other additional evidences filed before the CIT(A) by assessee were never referred to AO/ TPO which is a violation of provision of Rule 46A of the I.T. Rules, 1962. The grievance of the Revenue is that CIT(A) has decided the issue in favour of the assessee by considering the supplementary TNMM analysis and other documents filed before her and those documents were not made available to AO and secondly on merits, the order of TPO should have been upheld by CIT(A).

As far as merits of the deletion of addition is concerned, no fallacy in the findings of CIT(A) has been pointed by the Revenue. Even on the issue of alleged violation of provisions of Rule 46A, Delhi ITAT is of the view that deletion of addition was not based solely on the basis of the alleged additional evidence filed by the assessee but various other material factors as noted in the order. Thus the grounds of Revenue are dismissed.

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