D.C.I.T Cir-10(1), Kolkata Vs. M/s. Eureka Forbes Ltd.

Parties Involved

Facts Summary

The assessee, M/s. Eureka Forbes Ltd., is a company engaged in the business of trading and servicing of vacuum cleaners, water filters cum purifiers, water & waste water treatment plant, electronic air cleaning systems, small household appliances, and digital security systems. The assessee filed its return of income for AY 2012-13 showing a total income of ₹28,94,75,270/-. The return was selected for scrutiny, and notices under sections 143(2) and 142(1) of the Income Tax Act, 1961 were issued. The international transactions were referred to the Transfer Pricing Officer (TPO), who computed the Arm's Length Price and passed an order. The Assessing Officer (AO) passed a Final Assessment Order assessing the total income of the assessee at ₹52,72,64,911/-. Aggrieved by this order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals)-22, Kolkata (CIT(A)), who partly allowed the appeal. The Revenue, dissatisfied with the CIT(A)'s order, filed these appeals before the Tribunal. The appeals were heard together and decided via a common order.…

Legal Issues

• 1. Deletion of professional fees treated as capital expenditure by the AO.
• 2. Part relief given by the CIT(A) on repairs and maintenance disallowance.
• 3. Deletion of excess depreciation on building.
• 4. Treatment of Trademark and Copyright consultancy expenditure as revenue expenditure.
• 5. Deletion of disallowance under section 14A read with Rule 8D(2)(ii).
• 6. Restriction of addition of expenses incurred on exempt income while computing book profit under section 115JB.

Judgment Outcome

Decided in favour of Revenue.

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