TaxTMI 
TaxTMI 
2026 (4) TMI 1531
X X X X Extracts X X X X
X X X X Extracts X X X X
....judicial to the Appellant, is based on incorrect appreciation of fact and incorrect interpretation of law and therefore, are bad in law and contrary to the facts and circumstances of the case 3. The Ld. AO erred in assessing the total income of the Appellant at INR 18,71,41,145 under the normal provision of the Act as against INR 3,73,66,449 claimed in return of income filed by the Appellant. Grounds relating to legal validity of the order passed by the learned AO 4. The Ld. AO have erred on the facts, in circumstances of the case and in law in not passing the final assessment order within the time limit as provided under Section 153 of the Act i.e., the outer limit for passing of the final assessment order for AY 2021-22 would be 31 December 2023, thus making the assessment proceedings time barred and bad in law and thereby it should be quashed. Transfer Pricing Grounds 5. The Hon'ble DRP has erred in law by violating the principle of natural justice and not providing opportunity of being heard to the Appellant by directing Ld. AO/Ld. TPO to undertake fresh search thereby identifying new comparable companies and including the same i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....for differences in the risk profile of the Assessee vis-à-vis the comparables. 14. Erroneously considering assessed profits and gains from business as book profits for Minium Alternate Tax ("MAT") provisions 14.1 The Ld. AO has erred in law and on facts, by making an addition of Rs. 9,13,56,765 to the Book Profit of the Appellant as determined u/s 115JB of the Act, directly in the computation sheet annexed to the Final Assessment Order without proposing any addition either in the Show Cause Notice ("SCN") or in the Final Assessment Order. 14.2 The Ld. AO has erred in law and on facts, in not appreciating that in the absence of any specific provision u/s 115JB of the Act, no adjustment can be made for computation of the book profits. 14.3 Without prejudice to above, the Ld. AO has erred in law and on facts, in not granting the available MAT credit. Arithmetical Error 15. The Ld. AO has erred in computing the total interest and fee payable in the computation sheet as INR 1,53,96,923 instead of INR 1,50,01,601. Consequential Grounds 16. The Ld. AO has erred in initiating penalty proceedings u/s 270A of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Transactional Net Margin Method (TNMM) for the purchase and sale and had applied the other method as specified for the expenses cross charged to AE. The Assessing Officer (hereinafter referred to as Ld. 'AO')/Transfer Pricing Officer (in short ld. 'TPO') proposed the adjustments being a sum of Rs. 7,47,85,179/- on account of purchase of raw material and Rs. 8,30,95,903/- on account of sale of finished goods with the total adjustment of Rs. 15,78,81,082/-. The assessee filed objections against the same before the Ld. DRP, who examined the objections of the assessee, the legal provisions in this regard and vide directions dated 19.09.2024 disposed of the objections. The Ld. AO referred the matter to the Ld. TPO again, who gave effect to the directions issued u/s 144C of the Act by the Ld. DRP and proposed transfer pricing adjustments. The Ld. AO incorporated the same and in view of the directions u/s 144C(5) of the Act dated 19.09.2024 of the Hon'ble DRP-2, New Delhi, and order u/s 92CA(3) r.w.s.144C(5) dated 17.10.2024 of the DC/ACIT TP-1 Kolkata, the assessee company's revised income for the AY 2021-22 was computed as per provisions of section 144C(13) as unde....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to be at arm's length in a previous year, if the operating profit margin of the Applicant in the previous year is not less than 4.25% for the covered transactions; ii. The international transaction of recovery of expenses that are not linked to the operations of the Applicant and are covered under sub-clause (iii) of clause 5 above, shall be considered to be at arm's length if they are undertaken on a cost-to-cost basis. iii. The determination of ALP for APA Years is subject to the condition that the ALP would get modified to the extent that it does not result in reducing the total income or increasing the total loss, as the case may be, of the Applicant as already declared in the return of the income of the said years." 5. It was stated that in ITA No. 1966/KOL/2024 for AY 2021-22 (copy of the order being enclosed at page 35 to 39 of the paper book and specifically page 38 of the paper book at para 3.2), the matter had been remanded to the Ld. AO. The relevant extract from the order of the Tribunal in the assessee's own case is as under: "3.2 Regarding the issue of transfer pricing adjustment, we find that the aspect of estimated profitability....