TaxTMI 
TaxTMI 
2025 (3) TMI 1370
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....t the final assessment order, passed under Section 143(3) r.w.s. 144C(3) of the Income Tax Act, 1961 [hereinafter referred to as "the Act"] by the Assessing Officer [hereinafter referred to as "AO"], incorporating the Transfer Pricing (TP) adjustments determined by the Transfer Pricing Officer [hereinafter referred to as "TPO"] under Section 92CA of the Act. Facts of the Case: 2. The assessee is engaged in the manufacture and sale of synchronous drain pumps used in washing machines and dishwashers. The assessee filed its return of income on 28.11.2017, declaring a business loss of Rs. 21,48,541/-. The case was selected for Complete Scrutiny under CASS, and notices were issued under Sections 143(2) and 142(1) of the Act. Since the asse....
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....ational transactions are closely linked, interrelated and integral to the business operations of the Appellant and the same needs to be benchmarked using combined transactions approach. Sales Commission 3. The TPO has erred in; i) Not appreciating that the Sales commission is closely linked to the other international transactions and should not be benchmarked separately; ii) Not appreciating that once the entity level margin is tested on the touchstone of ALP, it pre-supposes that the various components of income and expenditure such as sales commission considered in the process of arriving at the margin is also at ALP; iii) Not substantiating how the sales commission was singled out of the many ....
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.... having unusual business circumstances or high margins, substantial RPT, etc.; • B V G India Ltd • Ruttonsha International Rectifier Ltd • W PIL Ltd b. Treating Forex gain/Loss as non-operating in nature while computing the operating margin. c. Treating Depreciation as part of cost and rejecting Cash PLI without appreciating that the Appellant is a new manufacturing company with high capital expenditure and depreciation allowance, when compared to the comparables; d. Without prejudice, if CASH PLI is not adopted, depreciation adjustment should be granted for excess depreciation of the Appellant. e. Incorrectly computing the margins of the comparables and the Appellan....
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....hird party would provide the assets for free; e. Not appreciating that the methodology adopted to compute ALP of fixed assets purchased is not as per the methodology prescribed in the Indian TP regulations and is not in accordance with section 92C read with Rule 10B. GROUND RELATING TO CORPORATE TAX 8. The learned AO has erred in computing the total income without granting set off of brought forward business losses and unabsorbed depreciation. 9. The learned AO has erred in computing the tax liability without providing setoff of MAT credit available as per provisions of section 115JAA of the Act. 10. The learned AO has erred in levying interest under section 234B of the Act of Rs. 1,10,58,900/-. ....
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....ve (DR) did not raise any objections to the condonation of the delay. Considering the reasons cited in the affidavit and the fact that the delay was minor and caused due to reasonable circumstances beyond the assessee's control, we find merit in the request for condonation. In the interest of justice, the delay of 11 days in filing the appeal is hereby condoned, and the appeal is admitted for adjudication on merits. 6. During the course of hearing before us, the Authorized Representative (AR) for the assessee submitted that the CIT(A)-NFAC has not adjudicated upon any of the grounds of appeal and has merely dismissed the appeal without deciding the issues on merits. 7. The Departmental Representative (DR), on the other hand, fairl....