2025 (11) TMI 812 - AT - Income Tax

Taxpayer Withdraws Appeal Over Transfer Pricing Adjustments; Issues Covered by APA for Imports, Marketing Support, Reimbursements

ITAT (DELHI - AT) allowed the taxpayer's request to withdraw the appeal concerning transfer pricing adjustments for import of finished goods, provision of ... TP adjustment towards the cost of import of finished goods and marketing support services - HELD THAT:- From the perusal of para 3 of APA, it is seen that this agreement covered following three transactions:- (i) Import of finished goods; (ii) Provision of marketing support services; and (iii) Reimbursement of services. Since all the three issues agitated by the assessee in the present appeal, have already been settled in APA therefore, we allow the request of the assessee for withdrawal of the appeal. Accordingly, appeal of the assessee is dismissed as withdrawn. Appeal against AO order dated 22.10.2024 passed under section 143(3) read with section 144C(13) r.w.s. 144B for AY 2021-22. Ground No.2 (limitation) was adjourned sine die pending the Supreme Court; the assessee gave an undertaking that it 'will not press Ground No.2' challenging limitation. An Advance Pricing Agreement (APA) was executed and signed on 21.02.2025; the APA expressly covers three international transactions: (i) import of finished goods; (ii) provision of marketing support services; and (iii) reimbursement of services. The transfer-pricing adjustments contested in the appeal relate to cost of import of finished goods and marketing support services, which are encompassed by the APA. Revenue raised no objection to withdrawal. Because the disputed issues have been settled by the APA, the request to withdraw the appeal was allowed and the appeal was 'dismissed as withdrawn.' Order pronounced 31.10.2025.