TaxTMI 
TaxTMI 
2026 (9) TMI 1623
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....nt years 2021-22 and 2022-23, pursuant to the respective directions issued by the Dispute Resolution Panel ("DRP"). Since common facts and identical issues are involved, both the appeals were heard together and are disposed of by this consolidated order. With the consent of the parties, the appeal for A.Y. 2021- 22 is taken as the lead case. 2. The assessee filed revised grounds of appeal. The revised grounds are concise and arise from the issues already contested in the original grounds. Accordingly, the revised grounds are admitted and are taken up for adjudication. ITA No. 9233/Mum/2025 - A.Y. 2021-22 3. In the revised grounds, the assessee has challenged: (i) disallowance of deduction under section 10AA of the Act amou....
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....PL identified and selected vendors, negotiated procurement terms and coordinated procurement logistics, while the raw material moved directly from third-party vendors to the assessee. On the basis of the functional analysis and material gathered during search proceedings in the group, the TPO in the ex parte order, rejected the benchmarking adopted by the assessee. By applying an average EBIT margin of 9.17 per cent, he determined the arm's-length price of the purchases at Rs.122,64,62,860 and proposed an adjustment of Rs.7,47,46,398. 6. In the draft assessment order, the Assessing Officer also proposed disallowance of the deduction under section 10AA. He relied substantially upon the findings recorded for A.Y. 2020-21 and held that the ....
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....the Development Commissioner, Mangalore Special Economic Zone, consent for operation issued by the Karnataka State Pollution Control Board, and bills for machinery. It was submitted that these documents are relevant to demonstrate that the assessee's unit was established with fresh capital and independent plant and machinery, at a separate geographical location, for distinct manufacturing activity, without transfer of the fixed assets of USFPL. The evidence, therefore, goes to the root of the allegation of splitting up or reconstruction and requires examination by the lower authority. 9. As regards the transfer-pricing issue, the learned Authorised Representative submitted that it is interlinked with the claim under section 10AA because ....
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....eld that relevant documents having a bearing on the issue should be considered while deciding the controversy. Having regard to the nature of the evidence and the controversy before us, we admit the additional evidence in the interest of substantial justice. 12. We also find that the eligibility of the undertaking under section 10AA was first examined in A.Y. 2020-21. The Assessing Officer has expressly drawn support from the findings recorded for that year while denying the deduction in A.Y. 2021-22. The appeal for the first year is stated to be pending before the learned CIT(A), where similar additional evidence is also proposed to be filed. Thus, the foundational facts concerning the formation of the undertaking, source and deployment....
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....oceedings for A.Y. 2020-21, if available by the time of fresh adjudication. Needless to state, a reasonable opportunity of being heard shall be granted to the assessee. The assessee is directed to cooperate and furnish the requisite details promptly. All contentions on merits are left open. ITA No. 9234/Mum/2025 - A.Y. 2022-23 15. The parties submitted that the facts and issues involved in A.Y. 2022- 23 are identical to those in A.Y. 2021-22. In this year, the assessee has challenged the disallowance of deduction under section 10AA amounting to Rs.4,38,66,415 and the transfer-pricing adjustment of Rs.11,71,94,036 in respect of the specified domestic transactions of purchase of goods from USFPL. The additional evidence and the submissi....