2025 (5) TMI 1642

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....ng Officer' or 'Ld. AO') in pursuance to the directions issued by the Hon'ble Dispute Resolution Panel - I, Bengaluru (hereinafter referred to as the Hon'ble DRP) on the following grounds which are without prejudice to one another: General ground: 1. On the facts and circumstances of the case and in contrary to law, the Deputy Commissioner/Assistant Commissioner of Income Tax, Transfer Pricing Officer - 2, Hyderabad (hereinafter referred to as 'the Ld. TPO') and the Ld. AO pursuant to the directions issued by the Hon'ble DRP erred in making a transfer pricing adjustment of INR 2,22,20,986 to the Appellant's income and thereby determining a total income of INR 12,98,27,726 and the said adjustment being wholly unjustified is liable to be deleted. Receipt of management and technical assistance services (referred to as 'intra group services'): 2. On the facts and circumstances of the case and in contrary to law, the Ld. TPO erred in and the Hon'ble DRP further erred in upholding / confirming the action of Ld. TPO, in not considering an aggregate benchmarking approach under Transactional Net Margin Metho....

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.... favour the advancements of its business. 8. On the facts and circumstances of the case and in contrary to law, the Ld. TPO erred in and the Hon'ble DRP further erred in disregarding the documentary evidences including cost allocation workings and other factual and legal submissions, provided by the Appellant to substantiate the "Need-Benefit- Evidence' for each category of service, corresponding economic or commercial value derived on receipt of intra group services, during the course of proceedings, without providing any cogent and specific findings or defects. 9. On the facts and circumstances of the case and in contrary to law, the Ld. TPO erred and the Hon'ble DRP further erred in disregarding the supplementary benchmarking analysis maintained and submitted by Appellant during the course of proceedings, considering AE as the tested party. Corporate tax: 10. On the facts and in the circumstances of the case and in law, the Ld. AO erred in not granting of credit of tax deducted at source ('TDS') amounting to INR 13,33,073 and tax collected to source ('TCS') amounting to INR 34,995 while computing taxes payable/(refu....

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.... Mane Fils S.A., France 7.21,417     Marketing Samples V Mane Fils S.A., France 13,825     Printing & Stationery expenses P T Mane, Indonesia 1.17,541     Pre-operative expenses V Mane Fils S.A., France 84.83.152     Pre-operative travelling expenses V Mane Fils S.A., France 16.39.773 15 Trade Payables   P T Mane, Indonesia 85.66.959     Mane Italia SRL 1.89.354     V Mane Fils S.A., France 6.21.35.875 16   Mane (Shanghai) Fragrance & Flavors Co. Limited 43.686 17 Outstanding ECB Loan V Mane Fils S.A., France 45,00,00,000 18 Interest accrued but not due 64.86,657 19 Commission Payables Mane SA, Switzerland 16.31.825 20 Commission receivable 7.17,549 21 Trade receivables P T Mane, Indonesia 6,81,639 22 Other Payables V Mane Fils S.A., France 7,780 4. The TPO accepted all the transactions at Arms' Length, except the international transaction on account of payments made towards management and technical assistance services to the AE. In ....

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....erred the judgment of the Hon'ble Delhi High Court which is in favour of the assessee and wrongly considered by the TPO as against the assessee. She has relied upon the following decisions and submitted that the TPO cannot determine the ALP at 'Nil' without conducting the proper exercises of determination of ALP by one of the prescribed methods. She has relied upon the following decisions: i) CIT vs. EKL Appliances Ltd (2012) 24 Taxmann.com 199 (Delhi) ii) CIT vs. Cushman & Wakefield India (P) Ltd (2014) 46 Taxmann.com 317 (Delhi). iii) CIT vs. Lever India Exports Ltd (2017) 78 Taxmann.com 88 (Bombay). iv) CIT vs. Johnson & Johnson Ltd (2017) 80 Taxmann.com 337 (Bombay). 5. The learned AR has then referred to the agreement between the assessee and the AE for management and technical assistance services and submitted that the payments towards management and technical assistance services are made under the said agreement. The terms & conditions of the agreement are binding on the parties. The assessee also referred to the invoices and the break-up details of the services provided by the AE to the assessee placed at page Nos.530 to 557 of the....