MSD PHARMACEUTICALS PVT. LTD.,NEW DELHI vs. DCIT CIRCLE-16(1), NEW DELHI

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ITA 1017/DEL/2021Status: DisposedITAT Delhi07 February 2023AY 2016-172 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the 'BLT approach' is not a recognized method and cannot be invoked. The deduction of Education Cess was ruled against the assessee based on a Supreme Court judgment.

What were the facts?

The assessee filed an appeal against the AO's order. The assessee stated that transfer pricing (TP) issues were not pressed as the adjustment in the Arm's Length Price (ALP) was rectified. The Tribunal noted that the 'BLT approach' is not a recognized method.

What were the issues?

Whether the 'BLT approach' is a valid method for transfer pricing. Whether Education Cess is deductible.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘I’, NEW DELHI

Before: Dr. B. R. R. KumarSh. Yogesh Kumar US

For Appellant: Ms. Rashmi Chopra, Adv
Hearing: 23.11.2022Pronounced: 07.02.2023

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the assessee against the order dated 29.06.2021 passed by the AO u/s 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961.

2.

At the outset, the assessee submitted that the adjustment in ALP stands rectified and hence the TP issues are not being pressed.

3.

The BLT approach being a non-recognized method as held by the various courts cannot be invoked.

4.

The issue of deduction of Education Cess is ruled against the assessee in view of the judgment of Hon’ble Supreme Court

MSD Pharmaceuticals Pvt. Ltd. in the case of CIT Vs. Chambal Fertilisers & Chemicals Limited in SLP(C) No. 7379 OF 2019 dated 14.12.2022.

5.

In the result, the appeal of the assessee is dismissed. Order Pronounced in the Open Court on 07/02/2023.

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