2024 (12) TMI 483

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....-55, Mumbai, dt. 31/01/2024 pertaining to Assessment Years 2013-14, 2014-15, 2015-16 & 2016-17, respectively. 2. Since common grievance is involved in the captioned appeal, they were heard together and are disposed of by this common order for the sake of convenience and brevity. 3. The substantive grounds argued before us are as under:- "ON TRANSFER PRICING ADJUSTMENTS: 2.1. On the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in confirming the transfer pricing adjustment of Rs. 11,80,30,504/- under section 92CA(3) of the Act in the hands of the Appellant in respect of the international transactions entered into by it during the year ended 31, March 2013. While confirming the said transfer pricing adjustment ....

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....ALLOWANCES: 3.1 In the facts and circumstances of the case and in law the Ld. CIT(A) erred in confirming the disallowance of Rs. 2,08,825/- u/s 40A(a) of the Act being cash payments made in excess of Rs. 20000/- being payments made to Agents for clearance of goods from the port without appreciating that the same were made out of business compulsions and therefore no disallowance was at all called for on the same. 4. The appellant craves leave to add, amend, alter, delete or modify, all or any of the foregoing grounds of appeal, if an when necessary." 4. Representatives of both the sides were heard at length. Case records carefully perused and the judicial decisions relied upon duly considered along with the documentary evidence brought....

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....imited -0.08% 2 Incap Ltd. 6.12.% 3. Toyama Electric 6.7   Average 4.26% 9. The margin of the assessee as per the TPSR is computed as under:- Particulars   Amount (Rs) Operating Income A   Export Sales   2,140,087,822 Sale of Scrap generated from manufacturing process   4,113,401 Foreign Exchange Gain       A 2,144,201,223 Operating Cost B 2,083,959,915 Operating Profit C=(A-B) 60,241,308 OP/TC *100 (i.e., the cost plus mark up, actually earned by the assessee) D= (C/B) 2.89% 10. Based on the above, the assessee concluded that its international transactions are at ALP. The TPO did not accept the margin working provided by the assessee and re-computed the same as ....

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....d., stating that it is not functionally comparable and rejected Incap Ltd. & Toyoma Electric, as they have nil exports. He further rejected Fine Line Circuits Ltd. stating that it is not functionally comparable and rejected Cosmos Ferrite Ltd. & Aplab Limited, as not comparables for having exports less than 75% of sales. Though, the TPO accepted that Toyoma Electric & Aplab Limited are in line with the business of the assessee but did not pass the export filter. 12.1. Thereafter, the TPO went on to select his own comparables for benchmarking the international transactions as under:- Name of the company Anchor Electricals Ltd. C&S Electric Ltd. Crompton Greaves Ltd. Finolex Cables Ltd. Havells India Ltd. Khaitan Electricals Ltd. Sai....

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....e selected by the TPO are in the same line of business as that of the assessee. 16. A certificate by a chartered engineer certifies that switch mode power supply (SMPS) is an electronic product and not an electrical product as electrical systems deal with the flow of electrical power of charge, while electronic systems deal with the flow of electrons. Electrical devices convert electrical energy into other forms, such as heat, light, or sound, to perform tasks. Electronic devices control the flow of electrons to perform tasks like calculations or amplifications. Hence, SMPS is an electronic product. 16.1. In our general understanding, electronic products are different from electrical products and since we are no technical experts in this ....