GUJARAT GUARDIAN LTD.,,NEW DELHI vs. DCIT, NEW DELHI

ITA 159/DEL/2010Status: DisposedITAT Delhi16 July 2025AY 2003-0466 pages
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What did the Tribunal hold?

The Tribunal held that the Transfer Pricing Officer (TPO) erred in applying the Comparable Uncontrolled Price (CUP) method for benchmarking the international transactions. The Tribunal found that the TNMM method, as applied by the assessee, was more appropriate given the differences in product specifications, geographical locations, and transaction terms.

What were the facts?

The assessee, Gujarat Guardian Ltd., engaged in the manufacture and sale of float glass, had international transactions of exporting float glass to its associated enterprise. The assessee used the Transactional Net Margin Method (TNMM) to benchmark these transactions, showing a profit margin of 27.26%.

What were the issues?

The primary issue was the appropriateness of the method used by the TPO to determine the arm's length price (ALP) for international transactions, specifically whether CUP or TNMM was the most appropriate method.

Which sections of the Income-tax Act were involved?

Section 92CA,Section 92C

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Cases cited in this judgment(26)Show list

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Income Tax Appellate Tribunal, DELHI BENCHES, ‘H’ NEW DELHI

Before: SHRI PRAKASH CHAND YADAV & SHRI BRAJESH KUMAR SINGH

For Appellant: Shri Ajay Vohra, Sr. A.R, Shri Neeraj Jain, A.R, Shri Ramit Katiyal, A.R. &, Shri Kunal Pandey, A.R
For Respondent: Shri Bhopal Singh, Sr. D.R
Pronounced: 06.05.2025

Heard together (2 matters)

ITA Nos.4859/Del/2009
ITA No.2539/Del/2017

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PER PRAKASH CHAND YADAV,

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