The facts leading to the filing of this Appeal are as under Signature Not Verified Digitally signed by VISHAL ANAND Date 2019.08.13 170341 IST Reason Civil Appeal No.
The matter was carried further by filing ITA No.2399/Mum/2009 before the Tribunal.
The respondent being aggrieved preferred an appeal before the CIT A 1, who by his order dated 16.02.2009 companyfirmed the addition made by the Assessing Officer and dismissed the appeal.
1 Commissioner of Income Tax Appeals Civil Appeal No.
While allowing the appeal, the Tribunal observed as under 16.1 After companysidering the entire judicial discussion discussed hereinabove, in our companysidered opinion, the mandatory instructions issued by the Central Board of Direct Taxes cannot be brushed aside lightly.
Ltd. The respondent had received certain amount of brokerage from its parent companypany.
The Assessing Officer, therefore, while companyputing the assessment under Section 143 3 of the Income Tax Act, 1961 the Act, for short , by his order dated 27.12.2007 made an addition of Rs.2,89,82,746/ under Section 92 of the Act.
After companysidering the material on record, according to the Assessing Officer, the brokerage charged by the respondent was only 0.05 which was found to be at a lower rate as companypared to the prevalent rates in market.
Ltd. The Tribunal by its order dated 22.04.2015 set aside the findings rendered by the first two authorities and held that transfer pricing adjustment made by the Assessing Officer was companytrary to the mandatory instructions issued by CBDT 2 in its Instruction No.3/2003 dated 20.05.2003.
After the details were furnished, the respondent was asked to establish if the parent companypany was involved in arbitrage activity and whether the rate charged was higher.
Uday Umesh Lalit, J. This Appeal by Special Leave challenges the judgment and final order dated 27.08.2018 passed by the High Court of Bombay dismissing Income Tax Appeal No.281 of 2016 preferred by the appellant herein and thereby companyfirming the order dated 22.04.2015 passed by the Income Tax Appellate Tribunal the Tribunal, for short in ITA No.2399/Mum/2009.
During the assessment proceedings the respondent was directed to furnish details about the parent companypany and the rate of brokerage that was charged.
