Decided on July 18,2014

Kirby Building Systems India Ltd. Appellant
Addl. Cit Respondents


B.Ramakotaiah, Member (A) - (1.) THESE two appeals are by assessee against the respective orders of A.O. passed under section 143(3) read with section 144C(1) of the I.T. Act, 1961 making additions under section 92CA of the I.T. Act. In A.Y. 2006 -07 there is one more issue of disallowance of sales tax deferred under section 43B of the I.T. Act, 1961. Since, common issues are involved in these assessment years, these are heard together and decided by this order. For the sake of reference, the facts in appeal for A.Y. 2006 -07 are discussed elaborately.
(2.) WE have heard the Ld. Counsel and learned D.R. in detail and perused paper books containing pages 445. Ld. Counsel also placed on record a separate case law paper book and also brochure containing activities of the assessee company for explaining various technical activities of the assessee. ITA. No. 1651/Hyd/2010 -A.Y. 2006 -07: The assessee has raised 11 grounds in this appeal out of which, ground Nos. 1 to 8 pertain to T.P. adjustments. Ground No. 9 pertains to disallowance of an amount of Rs. 13,45,52,755/ - under section 43B. Ground No. 10 is on levy of interest under section 234B and 234D and ground No. 11 is on initiation of penalty proceedings under section 271(1)(c). Ground No. 10 is consequential in nature and Ground No. 11 is premature in nature and therefore, they need not be adjudicated and accordingly, ground Nos. 10 and 11 are dismissed.
(3.) GROUND Nos. 1 to 8 pertain to the disallowance of payment of royalty and technical service fee to M/s. Kirby Building Systems, Kuwait analysed under the provisions of transfer pricing. Briefly stated, assessee M/s. Kirby Building Systems India Ltd., is engaged in the business of manufacture of Pre -Engineered Steel Building System (PEB) Products. For the year under consideration, assessee filed return of income declaring total income of Rs. 6,82,39,910/ -. A.O. noticed that it had international transactions with its AE to an extent of Rs. 15,96,89,713/ -. The following are the details of international transactions entered into by and between the taxpayer and the AE: ;

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