M/S GUJARAT GUARDIAN LTD.,,NEW DELHI vs. DCIT,, NEW DELHI

ITA 2539/DEL/2017Status: DisposedITAT Delhi16 July 2025AY 2005-0666 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CUP method was not appropriate due to differences in product thickness, geographical locations, sales volume, and terms and conditions. The Tribunal found that the CIT(A) had erred in restricting the application of the CUP method to only a few transactions.

What were the facts?

The assessee, Gujarat Guardian Ltd., engaged in the manufacture and sale of float glass, entered into international transactions with its associated enterprises. The assessee benchmarked these transactions using the Transactional Net Margin Method (TNMM), showing a profit margin of 27.26%. The TPO, however, applied the Comparable Uncontrolled Price (CUP) method, arguing that the assessee sold similar products to unrelated parties.

What were the issues?

Whether the Comparable Uncontrolled Price (CUP) method or the Transactional Net Margin Method (TNMM) is the most appropriate method for benchmarking international transactions of float glass exports to associated enterprises, considering the differences in transaction specifics.

Which sections of the Income-tax Act were involved?

Section 92CA

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Heard together (2 matters)

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

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ITA Nos.4859/Del/2009; ITA Nos.157 to 159, 4791, 4856 & 5358/Del/2010 & ITA No.2539/Del/2017 Gujarat Guardian Ltd., New Delhi IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES, ‘H’ NEW DELHI BEFORE SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER

| Sl.No. | ITA No. | Filed by Assessee/Revenue | Assessment year | Authority passing the order | |---|---|---|---|---| | | | ITA Nos.158, 159, 4856 & 5358/Del/2010 & ITA No.2539/Del/2017 | Assessment Years: 2002-03, 2003-04, 2004-05, 2006-07 & 2005-06 respectively | |

Gujarat Guardian Ltd. 4/7C, DDA Shopping Centre Circle-12(1) New Delhi PAN NO :AAACG1622K APPELLANT RESPONDENT

DCIT Circle-12(1) New Delhi ITA Nos.4859/Del/2009, ITA Nos.157 & 4791/Del/2010

Assessment Years: 2002-03, 2003-04 & 2004-05 respectively Gujarat Guardian Ltd. 4/7C, DDA Shopping Centre PAN NO :AAACG1622K RESPONDENT

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

Date of Hearing Date of Pronouncement: : 06.05.2025 16

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