Dy. CIT, Circle-11(1), New Delhi. Vs. M/s Exxon Mobil Lubricants Pvt. Ltd.
Parties Involved
Facts Summary
The assessee, M/s Exxon Mobil Lubricants Pvt. Ltd., is a 100% subsidiary of Mobil Petroleum Company Inc. USA, engaged in manufacturing and trading lubricants in India. The assessee imports base oils and additives from Exxon Mobil Group entities and receives various support services from associated enterprises. For the assessment year 2005-06, the assessee declared a total loss of Rs. 20,68,46,690/-. The case was selected for scrutiny, and the Assessing Officer (AO) made a reference to the Transfer Pricing Officer (TPO) for determining the Arm’s Length Price (ALP) of international transactions. The TPO proposed adjustments totaling Rs.46,57,04,908/-, which the AO accepted. The assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), who partly allowed the appeal and deleted major additions. The Revenue then appealed to the Tribunal.…
Decision in favour of
Assessee
Legal Issues
- 1. Deletion of addition of Rs.46,57,04,908/- made on account of arm’s length price.
- 2. Deletion of addition of Rs.5,00,000/- made on account of disallowance of foreign travel expenses.
- 3. Deletion of addition of Rs.14,40,82,192/- made on account of disallowance u/s 40(a)(i) of the Act.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
10 precedents cited in this judgement.
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