TaxTMI 
TaxTMI 
2026 (2) TMI 808
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....nder section 143(3) r.w.s. 144C of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Years 2006-07 to 2009-10. Since common issues are involved in all these appeals, for the sake of convenience the same are disposed of by this common order. 2. ITA No. 2017/Ahd/2025 for A.Y. 2006-07 is taken as the lead case. Brief facts of the case are that the assessee is a company engaged in the business of manufacturing of various types of Ball and Roller Bearings. For Asst. Year 2007-08, assessee filed its Return of Income declaring total income of Rs. 59,30,95,740/-. The return was taken for scrutiny assessment and referred to Transfer Pricing Officer to determine the Arms' Length Price u/s. 92CA(1) of the Ac....
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....s issued by the higher authority are to be strictly followed and the scope of such proceedings is limited to the extent of remand given by the higher authority. 6.1 In the present case, the ITAT has clearly directed that the ALP of the international transaction of payment of royalty should be determined following TNMM method. The contention of the TPO that in many decisions referred in the remand report it has been held that the ALP of royalty payment should be determined by using CUP method is not acceptable at this stage. The TPO has not pointed out any defect in the ALP determined by the appellant using TNMM considering royalty payment for such computation. 6.2 It is also a fact that similar directions were issued by th....
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....-03 has held that TNMM may be used for determination of Arm's Length Price for Royalty payments The relevant extracts of the order passed by ITAT Ahmedabad in assessee's own case for AY 2002-03 has been reproduced by Ld. CIT(A) (at Page 20- 21 of his order), while deciding the issue in favour the assessee. Further, we observe that even the AO/TPO in the remand proceedings have given a specific findings that if TNMM has taken to be the most appropriate method, the transactions is at Arm's Length Price (refer Para 3.6.1.. Page 21 of CIT(A) for AY 2010-11) Accordingly, in view of the decision of ITAT Ahmedabad in assessee's own case on this issue we are of the considered view that Ld. CIT(A) has not erred in facts and in law in decidin....
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....r of the Transfer Pricing Officer on merits and just by relying on the order of his predecessor for the assessment year 2002-03, to apply TNMM instead of CUP while benchmarking the royalty payment? (ii) Whether on facts and in the circumstances of the cases and in law, the Ld. CIT(A) has erred in holding that Royalty payment to Associated Enterprise (AE) to be aggregated under TNMM without appreciating that only intrinsically linked transaction can be aggregated and payment of royalty is a separate class of transaction is not intrinsically linked transaction and has to be benchmarked separately? (iii) The appellant craves leaves to add, modify, amend or alter any grounds of appeal at the time of, or before, the hearing of ....
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.... (ii) On the facts and circumstances of the case and in law, the Ld.CIT(A) erred in holding that Royalty payment to Associated Enterprise (AE) to be aggregated under TNMM without appreciating that only intrinsically linked transaction can be aggregated and payment of royalty is a separate class of transaction is not intrinsically linked transaction and has to be benchmarked separately? (iii) The appellant craves leaves to add, modify, amend or alter any grounds of appeal at the time of, or before, the hearing of appeal. 7. The Grounds of appeal raised by the Revenue in ITA No. 2019/Ahd/2025 for A.Y. 2008-09 are as follows: (i) On the facts and circumstances of the case and in law, the Ld.CIT(A) erred in deleting of Rs.....