Commissionerof Income Tax, Patiala v. Mis. Rakhra Technologiespvt. Ltd., Patiala

IN THEHIGHCOURTOF PUNJABANDHARYANAAT CKANDIGARH.~ / Income Tax Appeal No. 170 of 2011Date of decision: 8.7.2011 Commissionerof Income Tax, Patiala Versus --- Appellant Mis. Rakhra TechnologiesPvt. Ltd., Patiala --- Respondent fa-~:::>()t '\c--'J:(~&-"'T'"i-~:z.~~>(~<C::r:1-"t-i';Z~.:( ;:;.0,~'JZ:::;)?"\.1""""" I CORAM:HON'BlEMR. JUSTICE ADARSH KUMAR GOElACTING CHIEF JUSTICE HON'BlEMR. JUSTICE AJAY KUMAR MITTAl Present:Mr. Tejwinder Joshi and Ms. Rajwinder Kaur,Advocatesfor the appellant.Advocatesfor the appellant. AJAY KUMAR MITTALJ. This appeal under Section 260A of the Income-TaxAct,1961 (for short "the Act") has .been filed by the revenue against theorder dated 27.8.2010,passed by the Income Tax Appellate TribunalChandigarh Bench 'A', Chandigarh (in short "the Tribunal") in ITA No..,177/CHAND1/2010,relating to the assessment year 2005-2006.2.The following substantial questions of law have beenclaimed for determinationof this Court: "(i)Whetherin the facts and circumstancesof the case, the.Tribunalwaslegallycorrectin directingthe AssessingOfficer(AO) to re-computeArm'slengthPrice (ALP) at21.97% even when the Transfer Pricing Officer (TPO) had ~ IncomeTax AppealNo. 170 of 20112"""- arrivedat35.26%afterdueconsiderationofalltherelevantfactors.(ii)Whetherin the facts and circumstancesof the ca'se, theITAT was justifiedin issuing directionto the AO to re-ALPaftertotalcostatRs.computeadopting1,70,84,964/-insteadof Rs. 2,02,67,550/-and whether- ~theadjustmentforthedepreciationonadministrativeassets, as directed by the ITAT, is sust?inablein the eyesI-of law.~=>0(iii)Whetherin the facts and circumstancesof the case, the()Tribunal was legally correct in deleting the additiol} of Rs.:I:~-1,00,000/-on accountof disallowanceof Advertisement:J:expenses,even when the same were inadmissible, being-<t:zcapital in nature.":d:>-a::3.Learned counsel for the Revenue fairly submitted that the~J:matter is covered against the Revenue by the order of this Court int~Income Tax AppealNo. 169 of 2011 in (Commissioner of IncomeZ{~Tax, Patialavs.MIs.RakhraTechnologiesPvt. iLtd., Patiala)QJ«dated7.7.2011wherebythe said appeal preferredby the Revenue..-,zhad been dismissed.=>rJ.. 4.In view of the above, the appeal is dismissed.