TaxTMI 
TaxTMI 
2026 (7) TMI 1218
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....ferred by the assessee are directed against two orders of Commissioner of Income Tax (Appeals), Chennai-16 both dated 21.05.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called 'the Act'). The relevant Assessment Years are 2013-14 & 2014-15. 2. The appeals filed by the Department are delayed by 122 days. The AO has filed an affidavit stating therein the reasons for belated filing of these appeals. On perusal of the reasons stated in the condonation petition, we are of the view that there is sufficient cause for late filing of these appeals and no latches can be attributed to the Department. Hence, we condone the delay in filing these appeals and proceed to dispose off the appeals on merits. 3. Common issue is....
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.... and other grounds that may be adduced at the time of hearing, it is prayed that the order of the learned CIT(A) may be set aside and that of the Assessing officer be restored. 4. Brief facts in relation to the appeals filed by the Department are as follows: The assessee is a private limited company incorporated in the year 2007. It is a 100% affiliate of PharmaZell GmbH and was engaged in the manufacture and sale of APIs, amino acids and their derivatives using water-based chemistry. It also provides R&D services. Pursuant to the order dated 21.02.2020 passed by the National Company Law Tribunal, the assessee stood amalgamated with PharmaZell India Pvt. Ltd. with effect from 01.07.2018. For the assessment years 2013-14 and 2014-15, the ....
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....allowed the appeals of the assessee. While adjudicating the transfer pricing adjustments relating to royalty, management fees and other cross-charge payments, the CIT(A) accepted the assessee's contention that the services received from its Associated Enterprises were need-based and had been availed for legitimate business purposes. The CIT(A) further took note of the signed Advance Pricing Agreement (APA) entered into between the assessee and the CBDT covering Assessment years 2015-16 to 2019-20. The CIT(A) held that, where the facts and circumstances remain identical, there is no impediment in applying the principles and parameters agreed upon under the APA for determining the arm's length nature of similar international transactions in a....
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....es availed and the benefits derived therefrom. However, the TPO rejected the need-benefit analysis and supporting documentation in a summary manner without carrying out any meaningful examination of the evidences furnished by the assessee. The TPO proceeded to determine the ALP of the impugned transactions afresh, substantially on the ground that the assessee had failed to establish the necessity of the services and the benefits derived therefrom. On appeal, the CIT(A) examined the material placed on record and found that the assessee had adequately demonstrated the commercial expediency of availing the services from its Associated Enterprises and had furnished sufficient evidence to establish the need for such services as well as the benef....
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....e following judicial precedents:- I. Hon'ble Delhi High Court in the case of PCIT Delhi vs. Springer India Private Limited (ITA 451/2022, judgment dated 15.03.2023) II. ITAT, Chennai Benches in the case of ACIT Vs. Phillips Foods India Private Limited (ITA No.: 739/CHNY/2024, order dated 08.07.2025) III. ITAT, Delhi Benches in the case of FIS Global Solutions vs DCIT (ITA no. 422/Del/2019, order dated 18.06.2020) IV. ITAT, Chennai Benches in the case of Lotus Footwear Enterprises Ltd vs DCIT (ITA 779/MDS/2014,801/MDS/2015 and 810/MDS/2016, order dated 21.09.2016) V. ITAT, Chennai Benches in the case of M/s. Sanmina - SCI India Pvt. Ltd vs. ACIT (IT(TP) A No: 82/CHNY/2018, order dated 04.02.2022) ....