BIRLA FURUKAWA FIBRE OPTICS PRIVATE LIMITED,VERNA vs. DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 1(1), PANAJI

ITA 178/PAN/2025Status: DisposedITAT Panaji07 August 2026AY 2021-2234 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the TPO erred in rejecting the CUP method and applying TNMM. It found that the comparable company selected under TNMM was functionally dissimilar and lacked segmental data. The Tribunal deleted the transfer pricing adjustment.

What were the facts?

The assessee, a joint venture company, manufactured optical fibre and reported a loss. The TPO rejected the assessee's CUP method for benchmarking international transactions and applied TNMM, proposing a significant upward adjustment. The DRP confirmed the TPO's additions.

What were the issues?

Whether the TPO was justified in rejecting the CUP method in favour of TNMM for benchmarking international transactions, and whether the comparable company selected under TNMM was appropriate.

Which sections of the Income-tax Act were involved?

Section 92CA,Section 143(3),Section 144B,Section 260

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PANAJI BENCH, ‘DB’ PANAJI

Before: DR.MANISH BORAD & SHRI VINAY BHAMORE

For Appellant: Shri Mohit Choudhary &, Shri Harish Choudhary
For Respondent: Smt. Poonam Sharma
Hearing: 11.06.2026Pronounced: 07.08.2026

PER DR. MANISH BORAD, ACCOUNTANT MEMBER :

The captioned appeal at the instance of assessee pertaining to A.Y. 2021-22 is directed against the order dated 23.04.2025 framed by the Assessing Officer u/s.143(3) r.w.s. of the Income Tax Act, 1961 (in short ‘the Act’).

2.

Brief facts of the case are that the assessee is a Private Limited company incorporated on 23.07.2009 under the Companies Act, 1956 as a Joint Venture company between Universal Cables Limited, Satna and the Furukawa Electric Company Limited, Japan vide Agreement dated 11.04.2009. The assessee manufactures single mode opt

The order continues below.

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