The Almatis India would have access to the resources and would pay appropriate consideration which would be commensurate with the amount paid to third party service provider: Calcutta High Court.
The Judgment in the case of Principal Commissioner Of Income vs Almatis Alumina Pvt. Ltd (IA NO.GA/2/2020) was served by THE HON’BLE JUSTICE T.S. SIVAGNANAMAnd THE HON’BLE JUSTICE HIRANMAY BHATTACHARYYA.
FACTA OF THE CASE:
This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the ‘Act’ in brevity) is directed against the order dated 16th April, 2019 passed by the Income Tax Appellate Tribunal, “C” Bench, Kolkata (the ‘Tribunal’ in short) in ITA Nos.726 & 2361/Kol/2017 for the assessment years 2012-13 and 2013-14.
The revenue has raised the following substantial questions of law :-
(a) Whether the Hon’ble Tribunal has committed substantial error in law in considering a foreign AE as tested party as per Indian Transfer Pricing Regulations?
(b) Whether the Hon’ble Tribunal has committed substantial error in law in considering the segmental accounts which do not from part of the audited financial statements for determination of arm’s length price?
(c) Whether the Hon’ble Tribunal has committed substantial error in law in holding intra-group services in the nature of shareholder activities?
JUDGEMENT :
The Court after going through the facts and arguments advanced from both the parties held that the assessee has established the nature of services including the quantum of services received from the AE and such services the court re provided in order to meet specific need of the assessee for such services, economic and commercial benefit derived by the assessee. Thus, the court find that the third issue raised by the revenue is entirely factual and no substantial question of law arises for consideration.
In the result, the appeal filed by the revenue stands dismissed and the substantial questions of law (a) and (b) are ansthe court red against the revenue and in respect of substantial question of law (c) The court find that there is no question of law much less the substantial of law arising for consideration. With the dismissal of the appeal, the stay application stands closed.
JUDGEMENT REVIEWED BY AKANKSHA