The Commissioner Of Income Tax, Chennai v. M/S.renault India Private Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 05.01.2021 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Ms.Justice R.N.MANJULA Tax Case Appeal No.697 of 2018 The Commissioner of Income Tax,Chennai....Appellant/RespondentVs M/s.Renault India Private Ltd.,No.37&38, ASV Ramana Towers,4th Floor, Venkatanarayana Road,T.Nagar, Chennai - 600 017.PAN: ...Respondent/Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 30.01.2018 made in ITA.No.1078/Mds/2017 on thefile of the Income Tax Appellate Tribunal, Madras 'D' Bench forthe assessment year 2012-13 against the order passed by theDeputy Commissioner of Income Tax, corporate Circle 5(1) made inPANGI.No.AADCR2042M, dated 23.02.2017 and against the orderpassed by the Joint Commissioner of Income Tax Transfer PricingOfficer-2, Chennai made in No.R-210/TPO-2/2012-2013 dated23.01.2017 and against the order passed by the Income TaxDepartment Ministry of Finance, Dispute Resolution Panel-2bangalore, made in F.No.71/DRP-2/BLR/2016-2017 dated 29.12.2016,and against the Deputy Commissioner of Income Tax, CorporateCircle5(1) dated 20.03.2016 made in PAN/GI.No. . This appeal has been filed by the Revenue under Section 260Aof the Income Tax Act, 1961 ('the Act' for brevity) challengingthe order dated 30.01.2018 made in ITA.No.1078/Mds/2017 on thefile of the Income Tax Appellate Tribunal, Madras 'D' Bench https://hcservices.ecourts.gov.in/hcservices/ ('the Tribunal' for brevity) for the assessment year 2012-13. 2. The appeal was admitted on 19.11.2018 on the followingsubstantial questions of law: “1. Whether the Tribunal was correct inholding that the purchase of cars by theAssessee from Nissan Automotive India PvtLtd would not come within the meaning ofInternational Transaction and is noteligible to Arms length pricing analysis andadjustment thereof? 2. Whether the Tribunal was right inholding that the expenditure incurred onadvertisement/market promotion activity willnot amount to international transactionsince the Assessee has incurred suchexpenditure to create market share for itscars and marginal benefit derived by itsPrincipal Abroad as offshoot cannot beconverted into an international transaction?" 3. We have heard Mrs.Hemalatha, learned Senior StandingCounsel appearing for the appellant/Revenue and Mr.N.V.Balaji,learned counsel appearing for the respondent. 4. The learned counsel appearing on behalf of therespondent/ assessee submits that the respondent/assessee hasalready filed the declaration/undertaking under the Vivad SeVishwas Scheme and is awaiting orders to be passed in Form No.3. 5. In the light of the subsequent event, the CompetentAuthority shall process the application/declaration inaccordance with the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3of 2020) and pass appropriate orders as expeditiously aspossible. The assessee is given liberty to restore this appealin the event the ultimate decision to be taken on thedeclaration filed by the assessee under Section 4 of the saidAct is not in favour of the assessee. If such a prayer is made,the Registry shall entertain the prayer without insisting uponany application to be filed for condonation of delay inrestoration of the appeal and on such request made by theassessee by filing a miscellaneous petition for restoration, theRegistry shall place such petition before the appropriateDivision Bench for orders. 6. The tax case appeal stands disposed of with theaforementioned liberty and consequently, the substantialquestions of law framed are left open. No costs. Sd/- Asst.Registrar (CS III ) /true copy/Sub Asst. Registrar hvkTo 1. The Income Tax Appellate Tribunal, Chennai 'D' Bench.2. The Commissioner of Income Tax, Chennai. 3.The Deputy Commissioner of Income Tax,Corporate Circle5(1)Nungambakkam, Chennai-34 6. The tax case appeal stands disposed of with theaforementioned liberty and consequently, the substantialquestions of law framed are left open. No costs. Sd/- Asst.Registrar (CS III ) /true copy/Sub Asst. Registrar hvkTo 1. The Income Tax Appellate Tribunal, Chennai 'D' Bench.2. The Commissioner of Income Tax, Chennai. 3.The Deputy Commissioner of Income Tax,Corporate Circle5(1)Nungambakkam, Chennai-34 4.The Ministry of FinanceIncome Tax Department,Dispute Resolution Panel-2bangalore 5.The Joint Commissioner of Income Tax,Transfer Pricing Officer-2(I/c)Chennai-6 +1 cc to Mr.T.Ravikumar Advocate sr426 TCA.No.697 of 2018 aa02/02/2021aa09/02/2021