2025 (7) TMI 2051

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....ed 25.01.2024 passed u/s.250 of the Income Tax Act (hereinafter the 'Act'). The relevant assessment year is 2015-16. 2. Brief facts of the case are as follows: The assessee is a private limited company. It is a captive contract manufacturer in processing and export of crab meat to its Associated Enterprise (AE). For the assessment year 2015-16, return of income was filed on 11.11.2015 disclosing total income of Rs.1.71 crores. The assessment was selected for limited scrutiny and notice u/s.143(2) of the Act was issued. During the course of assessment proceedings, the case was referred to the Transfer Pricing Officer (TPO) to determine the arm's length price of the international transaction undertaken by the assessee with its AE. The TPO ....

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....rating profit (OP) / operating cost (OC)] as arm's length profit margin for the impugned assessment year and accordingly determined the TP adjustment of 4.15 crores. Hence the appeal of the assessee was partly-allowed. 5. Aggrieved by the order of the CIT(A), the Revenue has filed the appeal in ITA No.739/CHNY/2024 raising the following grounds:- 1. Whether on facts and circumstances of the case, the ld. CIT(A) was justified in adjudicating based on the additional grounds and evidences filed by the assessee in the form of Advance Pricing Agreement (APA) dated 25.08.2023, when the same document did not exist while passing the order u/s 92CA(3) dated 01.11.2019 and no remand report was called for in accordance with Sub-Rule 3 of R....

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....ng the APA margin of 4.5%. 7. Per contra, the Ld.AR relied on the following judicial pronouncements in support of her contention that CIT(A) is justified in directing the AO/TPO to adopt the APA net profit of 4.5% as arm's length profit margin for the relevant assessment year:- i. Hon'ble Delhi High Court in the case of Springer India Pvt. Ltd., reported in TS-403-HC-2023 DEL-TP ii. Hon'ble Delhi High Court in the case of Ameriprise India (P.) Ltd., reported in 78 taxmann.com 373 iii. Chennai Bench of the Tribunal in the case of Kone Elevator India Pvt. Ltd., in IT(TP)A No.85/CHNY/2019 iv. Bangalore Bench of the Tribunal in the case of Timken Engineering & Research India Pvt. Ltd., in ITA Nos. 694/Bang....