TaxTMI 
TaxTMI 
2026 (6) TMI 982
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....eferred to as "the Act") arising out of assessment order dated 18.01.2018 of the Ld. Assessing Officer/ACIT, Circle 1(1), Gurugaon (hereinafter referred to as "the AO") u/s 143(3) r.w.s. 144C of the Act for A.Y. 2014-15. 2. Brief facts of the case are that on 29.11.2014. the assessee electronically filed return of income declaring a loss of Rs. 1,68,40,482/-. The case was selected for scrutiny. Notice u/s 143(2) of the Act dated 28.08.2015 was issued. Notices u/s 143(2) and 142(1) of the Act alongwith a detailed questionnaire were issued on 23.06.2016. Sh. Sanjay Kumar, Goyanka, FCA, authorized representative of the assessee attended assessment proceedings, and filed information/submissions and produced book of accounts. 2.1 Reference....
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....tion to assess the income of the Appellant at INR 67,947,215 as against a loss of INR 16,840,482 declared by the Appellant in its Return of Income ("ROI") for AY 2014-15. 3. That on the facts and circumstances of the case and in law, the Ld. CIT(A) /Ld. AO/Ld. ΤΡΟ have erred in enhancing the income of the Appellant by INR 84,787,697/- pertaining to the payments made for royalty and technical fees that allegedly do not satisfy the arm's length principle envisaged under the Act and in doing so, have grossly erred in: 3.1. erroneously rejecting the economic analysis undertaken by the Appellant in the Transfer Pricing ("TP") documentation maintained by it in terms of section 92D of the Act read with Rule 10....
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....t accordingly; and 3.7. disregarding judicial pronouncements in India in undertaking the TP adjustments. Other Grounds 4. That on the facts and circumstances of the case and in law, the Ld. AO has erred in charging interest under Sections 234A, 234B and 234C of the Act. 5. That on the facts and circumstances of the case and in law, the Ld. AO erred in initiating penalty proceedings under Section 274 read with section 271 (1)(c) of the Act mechanically on the additions made." 4. Ld. Authorized Representative for appellant/assessee regarding Grounds of Appeal Nos. 3, 3.1 to 3.7 submitted that Ld. CIT(A)/Ld. AO/ Ld. TPO erred in enhancing the income of assessee by Rs. 8,47,87,690/- pertaining to payment m....
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....nder consideration had a group policy to provide technical know-how to all its subsidiaries. It charged 2% from its subsidiary in Indonesia (Refer pages 212 to 219 of the PB for the agreement of PCJ with PT. Bellsonica Indonesia). The Ld. TPO/AO/CIT(A) erred in ignoring the details of payments made by such group subsidiaries to the parent AE and copy of agreements provided by 'A'. iii. Unilateral Advance Pricing Agreement Further, on a without prejudice basis the Appellant would like to highlight a fact that, BACI entered a UAPA with Central Board of Direct Taxes ("CBDT"), Department of Revenue, Ministry of Finance, Government of India on November 29, 2022 (attached as Annexure 1 to the synopsis) wherein, a rate of 1.9% of the net ....
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....ect Taxes ("CBDT") on November 29, 2022 (attached as Annexure 1 to the Synopsis) wherein, rate of 1.9% of the net sales was agreed for consolidated payment on account of royalty and fees for technical services. The assessee has also moved an application for renewal of UAPA on March 28, 2023 which is in the final stage and has requested Hon'ble Tribunal to cap the rate of royalty and fees for technical services at 1.9%. 7.1 Hon'ble ITAT in RANBAXY LABORATORIES LTD (supra) ITA No. ITA No. 196/Del/2013 (supra) has held as: - "the concluded APA had been agreed on the whole mechanism of computation of ALP of International transactions of the assessee. The principals laid down for comparability analysis in that does have a greater per....