2023 (11) TMI 496

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.... in manufacturing of latching relays, solenoids and actuators (electromechanical products), used in electrical and electronic meter industry and automotive industry. Gruner India has the exclusive rights to manufacture the relays, actuators and solenoids in India under the brand name "Gruner" and has also obtained the licence to use the technical know-how of the associated enterprise (AE), i.e. Gruner AG. In this case, the return of income for AY 2017-18 was efiled on 30.11.2017 declaring a total income of Rs. 6,88,86,230/-. 2.1 As per the Transfer Pricing (TP) document furnished for the A.Y. 2017- 18, the assessee company has entered into the following international transactions with its Associated Enterprises (AE):- S. No. Nature of Tr....

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....ervices followed DRP directions for A.Y. 2012-13. 4. Accordingly, draft assessment order u/s 144C was served upon which assessee for which assessee raised objection before DRP challenging the applicability of CUP Method instead of TNMM and applying 3% royalty rate, without undertaking any economic analysis and without explaining the manner of determining ALP of impugned transactions. 5. The DRP on the basis of its findings for A.Y. 2012-13 and 2013-14 directed to adhoc royalty rate of 3% for bench marking of the payment of royalty. It was also observed as far as the payment of technical services is concerned the TPO/ AO has not applied CUP correctly in terms of the directions of the Tribunal and has not searched the comparables for the pu....

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....Rule 10C. 2. Ld. AO erred in charging interest u/s 234B, 234C and 234D under the facts & in law in the circumstances of the case. 3. Ld. AO erred by initiating the penalty proceedings u/s 270A. 4. The appellant craves add, amend, alter or vary the above ground of appeal at or before the time of hearing." 8. Heard and perused the record. 9. Ld. AR relying the order of co-ordinate Bench in ITA no. 4062/Del/2019 for A.Y. 2012-13 submitted that the issue of methodology to be adopted and arbitrary selection of royalty rate of 3% without bringing any correct comparables has been considered and Coordinate bench has set aside the adjustments. 9.1 Ld. DR however submitted that in the present assessment year the case of comparable in form of....