TaxTMI 
TaxTMI 
2026 (7) TMI 1159
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....4 are that the assessee company furnished return of income on 12.02.2021 declaring total income Nil. The company offers various products and services related to the treatment of water, waste water, and process systems in industrial, commercial, and institutional facilities. The assessee is also engaged in manufacture and distribution of water treatment chemicals, membrane elements, cartridge filters, provides waste water treatment and process solutions globally and includes separation equipment, membranes and filtration technology, monitoring solutions, analytical instruments, specialty chemicals and in sourcing business. The case was selected for scrutiny assessment through CASS for the reasons: i. High Creditors/liabilities ii. Refund Claim iii. International Related Party Transactions in Respect of Intengible Property iv. ICDS Compliance and Adjustment v. Investment in Intangible Assets vi. International Transactions 4. Notice u/s 143(2) of the Act 29.06.2021, notices u/s 142(1) dated 25.11.2021, 15.09.2022, 24.11.2022, 11.08.2023, 17.08.2023 and 30.08.2023 were issued. The assessee submitted replies submissions etc. 4.....
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....lant's income. 3. On the facts and circumstances of the case and in law, the final assessment order dated 29 July 2024 passed by the Ld. AU under Section 143(3) read with Section 144C(13) of the Act having been passed beyond the limitation provided in terms of Section 153(1) r.w.s. 153(4) of the Act, is illegal, being barred by limitation, void-ab-initio and liable to be quashed. 4. On the facts and circumstances of the case and in law, the Directions issued by the Ld. DRP and actions by the Ld. TPO while passing its order dated is against the scheme of the Section 144C and therefore ultra vires the provisions of section 144C(5) read with section 144C(8) of the Act and liable to be quashed. 5. On the facts and circumstances of the case and in law, the order passed by the Ld. AU/Ld. ΤΡΟ is illegal for exceeding the jurisdiction conferred by the Section 144C(10) of the Act while passing the order in contravention to the binding Directions issued by Ld. DRP. Transfer Pricing Adjustments TP adjustment with respect to Project Business Segment 6. On the facts and circumstances of the case and in law, the Ld. AU/ Ld....
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.... in doing so have grossly erred in: 7.1. Determining the ALP of the transaction at NIL, by applying Comparable Uncontrolled Price ('CUP') method as MAM, merely based on presumptions and without furnishing details of price charged in any comparable uncontrolled transaction, which is in contravention of the provisions of Rule 108 of the Rules. 7.2. Not passing a speaking order and completely disregarding the documentation furnished by the Appellant. 7.3. Alleging that the Appellant neither received any service and/ or benefit in lieu of the payment made by it for services availed nor demonstrated any need for such services/payments. This conclusion is drawn without appreciating the core and essential nature of the services for the business of the Appellant; thereby challenging the commercial wisdom of the Appellant in making such payments while passing the order in contrast with the recent judicial pronouncements in this regard. 7.4. Holding that the Appellant has not furnished relevant documentary evidence so as to demonstrate the receipt of services from the AEs and benefits derived thereof. 7.5. Adopting contradictory positions ....
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....as submitted that Ld. TPO vide order dated 29.01.2026 for assessment year 2023-24 page No. 76 to 146 of convenience compilation had accepted arm's length price. So, the matter may be restored to the file of Ld. TPO. 7. As far as other critical services (non-core services) amounting to Rs. 29,76,19,309/- are concerned, the assessee submitted bifurcation of payments made and the basis of allocation as under: Impact Nature of Services covered Amount of transaction (INR) Nature of documents Convenience compilation Page No. Paper Book page No. Other Critical functions- using Group's Synergy Receipt of HQ services from: * SWTS US 24,18,80,482 -Backup Workings -Copy of Invoice - Copy of Agreement 1-3 4 5-18 378 379-391 * Suez Water Technologies and Solutions S.A. ('SWTS SA') 1,82,04,483 -Copy of Invoice - Copy of Agreement 18 19-34 475 476-491 * Suez Groupe S.A.S. (also referred to as 'France HQ') 92,11,629 -Copy of Invoice 35 492 IT Fees Paid to Societe Lyonnaise D' Organisation De Gestion Informatique ET Administrative (Also referred to as "SLOGIA") 2,83,22,71....