Advance Pricing Agreement coverage led to withdrawal of transfer pricing appeal without merits adjudication.

The transfer pricing adjustments relating to import of finished goods, marketing support services and reimbursement of services were covered by an operative Advance Pricing Agreement. In view of that coverage, the assessee sought withdrawal of the appeal and the Revenue raised no objection. The appeal was accordingly permitted to be withdrawn and stood dismissed as withdrawn, leaving the transfer pricing dispute unadjudicated on merits.

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Issues: Whether the assessee's appeal against transfer pricing adjustments survived after the underlying international transactions were covered by an Advance Pricing Agreement, and whether the appeal was liable to be dismissed as withdrawn.

Analysis: The appeal challenged adjustments relating to import of finished goods and provision of marketing support services. The record showed that the Advance Pricing Agreement covered the transactions in dispute, including import of finished goods, provision of marketing support services, and reimbursement of services. In view of the coverage under the agreement, the assessee sought withdrawal of the appeal and the Revenue raised no objection.

Conclusion: The appeal was permitted to be withdrawn and stood dismissed as withdrawn.

Final Conclusion: The dispute on the transfer pricing additions was not adjudicated on merits and the matter came to an end by withdrawal of the appeal.

Ratio Decidendi: Where the disputed transfer pricing issues are covered by an operative Advance Pricing Agreement and the appellant seeks withdrawal, the appeal can be disposed of as withdrawn without a merits adjudication.

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