TaxTMI 
TaxTMI 
2025 (12) TMI 1704
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....d one unit is in Kalyani which is engaged in manufacturing of soft ferrites components. 2.2. The brief facts qua this issue are that during the year, the Appellant has availed various IGS from its AEs for its business activities. TDK Group is a manufacturing giant engaged in the manufacture and sale of electronic components used in the electronics and the communication equipment industry since 1989. Considering the business size of TDK group, there is a necessity for centralisation of IT, management and other services for smooth functioning of the business operations. With years of operations in varied market conditions and different economies, TDK AG and TDK Malaga have gained rich experiences in the field of Marketing, Corporate functions, R&D, Information Technology, Export Market, etc. and are engaged in providing services to TDK group companies in the nature of ITSS and ESS by TDK AG and MSS by TDK Malaga. Thus, TDK AG and TDK Malaga operate as cost centres within the TDK group for above-mentioned services' whereby TDK AG and TDK Malaga procures services from third party service provider as well as deploys its in house dedicated resources. 2.3. At the outset the ld c....
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.... no. 6 to 11 are allowed." Similarly, for AY 2014-15 & 2015-16 (consolidated order), the Hon'ble ITAT held as follows: "26. In view of our conclusion that the Ld. TPO and Hon'ble DRP were in error in holding that the nature of services rendered by AE were in the nature of stewardship activity or shareholder activity, we hold that the TPO's conclusion that no charges ought to have been paid by the Assessee is without any basis. After considering all the evidences submitted by the Assessee and various judicial precedents relied on the Ld. Counsel, we conclude that the charges paid by the Assessee to AE are held to be at Arm's Length. Consequently, the addition made by the revenue authorities in this regard are directed to be deleted and relevant grounds raised on this issue are allowed." (Emphasis supplied) 2.6. Even on the rule of consistency the ground raised by the assessee needs to be allowed as the deptt has accepted the position and not preferred any appeal before the Hon'ble Calcutta High Court till date in the earlier assessment years. 2.7. Considering these facts and the decisions of the coordinate bench in earlier assessment years....
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....directed the TPO to broaden his search to more comparables agreements. In accordance with the direction of Hon'ble DRP, the Ld. TPO added one more non comparable agreement and determined the arm's length price of the international transaction under consideration. 3.3. The ld AR submitted that Rule of Consistency should be followed where the DRP/ TPO have accepted the Appellant's approach of benchmarking using TNMM as a most appropriate method in previous assessment years. Further, the Hon'ble DRP/Ld.TPO has erred in selecting CUP as a most appropriate method for determining the arm's length price for the transactions under consideration, which required stringent product, market, function comparability, which is not met in the instant case for the following reasons i) availability of Agreement: A copy of agreement of Polybrite International Inc is available. However, there is no copy of agreement is available for Gorilla Brand LLC, which was selected by the TPO after the DRP hearing making comparability impossible. Ii) Functionality is different: The Appellant renders marketing support services of non-exclusive right to solicit & mediate sales of contractual p....
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....ed the materials on records. We observe that the DRP/ TPO have accepted the Appellant's approach of benchmarking using TNMM as a most appropriate method in previous assessment years and therefore Rule of Consistency should be followed. Further, the Hon'ble DRP/Ld.TPO has erred in selecting CUP as a most appropriate method for determining the arm's length price for the transactions under consideration, which required stringent product, market, function comparability, which is not met in the instant case for the reasons cited by the learned AR before us. The case of the assessee is squarely covered by the decisions as cited above by the learned AR. Consequently, we set aside the order of DRP and direct the AO /TPO to delete the addition. The grounds no. 17 to 23 are allowed. 4. The issue raised in ground no. 26 is against disallowance of delayed deposit of employees Contribution to provident fund. 4.1. We note that there is delay in deposit of Employee contribution to provident Fund. We find that assessee had duly deposited employees' contribution to Provident Fund ('PF') on or before the prescribed due dates for all months, except for the month of Septe....
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.... been duly disallowed in computing business income, in accordance with Explanation 2 to Section 37(1) of the Income-tax Act. Out of INR 80,25,360 INR 53,50,000 represented donations made to charitable institutions registered under Section 80G. While CSR expenses are disallowed under Section 37, such disallowance does not extend to deductions permissible under Chapter VI-A, including Section 80G. The restriction under Section 80G applies only to donations made to Swachh Bharat Kosh and Clean Ganga Fund if made as part of CSR. There is no bar on claiming deduction under Section 80G for donations to other eligible institutions, even if made in pursuance of CSR obligations. In this regard, the Appellant wishes to place the reliance on the following judicial precedents: - A. "Philips India Ltd. Vs. DCIT ITA 1960 (KOL) OF 2024 (ITAT Kolkata) -IT APPEAL NO. 2034 (KOL) OF 2024 & OTHERS B. Deputy Commissioner of Income-tax vs. Phillips Carbon Black Ltd. (ITAT Kolkata) - IT APPEAL NO. 2034 (KOL) OF 2024 & OTHERS C. L & T Finance Ltd. vs. Deputy Commissioner of Income-tax (ITAT Kolkata) -IT APPEAL NOS. 1059 AND 1060 (KOL.) OF 2023 D. ACG Pam Pharma Technolo....