2023 (4) TMI 455

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....ving DIN & Order No. ITBA/DRP/ F/144C(5)/2021-22/1039822679(1), in proceedings u/s. 143(3) r.w.s. 144C of the Income Tax Act, 1961 (in short "the Act"). 2. Heard both the parties. Case file perused. 3. The assessee raises the following substantive grounds in the instant appeal : 4. Learned counsel submits at the outset that the assessee's ground nos.1 and 5 to 7 inter alia are general, not pressed consequently and premature, respectively. Rejected accordingly. 5. This leaves us with the assessee's next substantive ground nos.2 to 2.5, 3 and 4 challenging correctness of the learned lower authorities action making ALP adjustment of Rs.7,77,78,194/- in respect of it's international transactions with overseas Associated Enterprises ....

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....NMM comparing loss incurred with Non-AE segment with profit that arrived in AE segment. The TPO noticed certain errors and after detailed discussion he rejected the internal TNMM. Before the DRP, the assessee submitted that the ITAT, Pune Benches in assessee's own case for A.Y. 2007-08 upheld the use of internal TNMM for demonstrating arm's length price of its international transactions pertaining to manufacturing segment. Further, it was submitted that the DRP for A.Y. 2011-12 upheld the applicability of internal TNMM but however the DRP upheld the action of TPO in rejecting the internal TNMM selected by the assessee as most appropriate method for determining ALP of its international transactions vide para 3.2.4. 5. Before us, the....

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....ant three issues in assessee's favour and against the department. The former's instant substantive grounds 4 to 7.5 stand accepted in very terms. Necessary computation shall follow as per law. The assessee's former appeal ITA No. 204/Pun/2018 is allowed in above terms. 6. Same order to follow in assessee's latter appeal ITA.NO. 1882/PUN/2018 raising as many issues of TP adjustments amounting to Rs.11,20,79,272/- and Rs.4,07,27,000/- regarding corporate support services, manufacturing segments followed by corporate cost allocation disallowance of Rs.4,51,07,206/-; respectively in absence of any distinguishing features throughout." 6. Ld. CIT-DR at this stage took us to the DRP's directions in para-4.2 that the assessee had not fi....

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.... and in law, the TPO has erred in making and the AOI DRP have erred in upholding the Transfer Pricing ("TP") adjustment of INR 7,77,78,194 in respect of the international transactions pertaining to the manufacturing segment. That on the facts and circumstances of the case and in law, the TPO has erred in not discharging the statutory onus of establishing that the conditions specified in clauses (a) to (d) of section 92C(3) of the Act are satisfied in the Appellant's case, before disregarding the arm's length price determined by the Appellant. The AO/ DRP have further erred in upholding the action of the TPO. That on the facts and circumstances of the case and in law, the TPO has erred in rejecting and ....