AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 380
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.... of domestic transaction. The assessee has made following specified domestic transactions:- S. No. Description of Transactions Amount (INR) Method 1. Purchase of Material 1846750765 CUP 2. Purchase of Fixed Assets 18016218 CUP 3. Sale of Material 4035680478 CUP 4. Sale of Fixed Assets 8222055 CUP 5. Sale of Finished Goods 4101766 CUP 3. The TPO vide order passed u/s 92CA(3) of the Act has accepted the comparables taken by the assessee however, has further included Six more comparables for benchmarking the transactions and median OP/OC was worked out at 7.46% as against 9.28% calculated by the assessee which has resulted into the adjustment of INR 1.66 crores. The TPO further hold that the operating profit for the purpose of deduction u/s 80IC of 7.46 is Rs. 28.42 crores and suggest the AO to reduce the amount deduction claimed by the assessee u/s 80IC accordingly. The AO thereafter, passed the draft assessment order u/s 144C dated 31.03.2021 wherein AO proposed the addition on account of adjustment in the ALP by the TPO. Against the said order, assessee filed objections before the ld. DRP, who vide it....
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....unds of appeal taken goes to the root of the matter and thus, deserves to be accepted being purely legal ground and placed reliance on the judgement of Hon'ble Supreme Court in the case of C.I.T. vs. Ponni Sugars and Chemicals Ltd. [306 ITR 392] (SC). The additional Grounds of appeal so raised by the assessee reads as under:- 1.0 "That on the facts and in the circumstances of the case, the disallowance, imposition of tax and interest with reference thereto, the quantification of taxable income and the tax liability, has been grossly unjustified, erroneous and unsustainable and necessary direction be given to the Ld. AO to give appropriate relief in accordance with law. 2.0 That on the facts and in the circumstances of the case, the Ld. A.O. ought to have considered Excise Duty exemption as capital receipt in the computation of total income under the normal provisions and under AMT provision u/s 115JC of the Act. 3.0 That the appellant craves leave, to add, to amend, modify, rescind, supplement, or alter any of the Grounds stated here-in-above, either before or at the time of hearing of this appeal." 6. With respect to Ground of appeal No.1 raised by th....
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....d the material available on record. The TPO has included Unik Techno Systems Pvt. Ltd. as one of the valid comparable. The assessee in its reply filed against the show cause notice dated 05.01.2021 before TPO, has submitted that Unik Techno Systems Pvt. Ltd. is not engaged in the business of manufacturing of batteries rather it is engaged in the manufacturing and trading of machines which are used to manufacture batteries. Before us, Ld.AR for the assessee filed the screen shot from the official websites of the company from which it is clear that it is manufacturing machines for manufacturing the batteries. The screenshot so submits are reproduced as under:- 11. It is further observed that website address https://www.unikbatteries.com/traction-battery referred by ld. DRP in para 3.5.1 of the order actually relates to M/s Unik Batteries Pvt. Ltd. 12. From the above discussions, it is clear that M/s Unik Batteries Pvt. Ltd. is a different company which is engaged in the business of manufacturing of batteries whereas assessee was requesting to exclude M/s Unik Techno Systems Pvt. Ltd. from the final set of comparables and therefore, DRP has wrongly compared the function performe....
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....not made before the lower authorities and was made for the first time before the Tribunal and in support various documents are submitted. On perusal of the additional grounds of appeal and the details filed, it is observed that admission of a fresh claim in the appellate proceedings is purely a legal issue and whether the assessee is eligible for such claim and what would be the correct amount of claim is purely a question of fact. Regarding the argument of ld. CIT DR that no new fresh claim could be made at this stage, the Hon'ble Apex Court in the case of Goetz India Ltd. vs CIT reported in (2006) 284 ITR 323 (SC) has held that no fresh claim could be made before the AO otherwise than by way of revised return however, the Hon'ble Court further clarified that decision is limited to the power of the assessing authority and does not impinge on the power of appellate authorities. In the case of CIT v. Jai Parabolic Springs Ltd. reported in (2008) 306 ITR 42 (Delhi) the AO disallowed the claim of the assessee on the ground that "since the claim for the deferred revenue expenditure of INR 15,58,500/- was not claimed by the assessee in the return of income for the assessment year 1990-9....
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....he learned Departmental Representative to the query from the Bench has fairly admitted that there is nothing in Goetze (India) Ltd., which prevents the Tribunal from entertaining any fresh claim if the same can be entertained in the light of the available material on the face of the record. Anything to the contrary of the proposition will only negate the principle laid down by the Hon'ble Supreme Court in the case of National Thermal Power Co. Ltd. (supra). We therefore confirm his order. It may be mentioned that we have taken this view after considering the fact that in all other years the department has accepted these expenses and allowed deduction as claimed by the assessee" 20. However, in all the aforementioned cases, the relevant material in support of fresh claim was available with the lower authorities and requires no fresh verification of facts but in the instant case, claim of the assessee whether the Excise Duty Exemptions is not forming part of income in terms of section 2(24)(xviii) of the Act and is a capital receipt and further the nature and intent of the Incentive Scheme under which the assessee was entitled for Excise Duty exemption is required to the examined ....