TaxTMI 
TaxTMI 
2025 (5) TMI 789
X X X X Extracts X X X X
X X X X Extracts X X X X
....ock Compressors India Private Limited therein after referred to as the Appellant respectfully craves leave to prefer an appeal under section 253 of the Income-tax Act. 1961 (the Act ) against the order passed by Assessment Unit, Income Tax Department (Assessing Officer" or "AO") dated 27 June 2024 in pursuance of the Directions issued by the Dispute Resolution Panel ("DRP") 2, Mumbai dated 24 May 2024, on the following grounds: 1. The Ld AO erred in law and on facts, in making an upward adjustment of INR 83,30,174 to the total income of the Appellant in relation to the deemed international transactions pertaining to sale of goods and re-determined the Arm's Length Price ("ALP"). 2. The Ld. AO and Ld. Transfer Pricing O....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f deemed international transaction is more than margin earned from third parties. 6. Without prejudice to the above, the Ld. AO in its order erred in law and on facts in not following directions passed by the DRP u/s. 144(5) of the Act to restrict the adjustment to the value of deemed international transaction. Consequentially, the order of the Ld. AO dated 27 June 2024 not in line with section 144C and bad in law. 7. Without prejudice to the above the Ld. AO and Ld. TPO erred in law and on facts in computing the amount of adjustment by incorrectly computing the operating margin of the tested party. 8. The Ld. AO erred in levying interest under section 234B and 234D of the Act which is consequential to the grounds....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... order dated 21-09-2023 filed objection before DRP. The DRP vide order dated 24-05-2024 deleted the adjustment of Rs. 10,01,946/- being 5% mark up on the management services appeared from the associated concern of the assessee, the adjustment made by the TPO. The TPO passed the necessary order giving effect to the directions of DRP vide order dated 06-06-2024. Consequently to the directions of the DRP, the Assessing Officer made addition of Rs. 4,59,51,095/- on account of sale of goods as discussed in the draft assessment order to the income of the assessee for assessment year under consideration. 4. Being aggrieved by the assessment order, the assessee filed appeal before us. 5. The Ld. A.R. submitted that the Assessing Officer on su....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 1980/Del/2024 order dated 10-12-2019), Olympus Medical Systems (P) Pvt. Ltd. vs. ACIT (2022) 137 taxmann.com 306 (Delhi Tribunal), Tata Power Solar Systems Ltd. vs. DCIT (2023) 149 taxmann.com 294 (Bangalore-Trib), Toyota Tsusho India P. Ltd. vs. Joint/Deputy CIT SP No. 12/Bang/2022 & IT(TP)A No. 175/Bang/2022 order dated 09- 09-202. 6. The Ld. D.R. submitted that the rectification order was passed due to the assessee's rectification application filed by the assessee on 19-07-2024 and therefore it is not a suo moto rectification which was ignoring the DRP directions. Therefore, the decisions relied upon by the assessee will not be applicable in the present scenario. 7. We have heard both the parties and perused all the relevant mater....
X X X X Extracts X X X X
X X X X Extracts X X X X
....TPO has not rightly rejected the RPM method. The Ld. D.R. relied upon the order of the DRP. 9. We have heard both the parties and perused all the relevant materials available on record. The DRP has considered the bench marking adopted by the assessee as well as by the TPO as transactions conducted by the assessee i.e. purchase as well as sales are contended and hence it does not fit into the ambit of RPM and consequently because various expanses were incurred by the assessee in India which adds significant value to the sales and hence gross margin analysis cannot be at all as it is not a case simple re-sale. This observation of the DRP is general in nature and in fact for the transactions related to purchase as well as sales the RPM meth....