OMNIACTIVE HEALTH TECHNOLOGIES LIMITED,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 8(2)(1), AAYAKAR BHAWAN, MUMBAI, MUMBAI

PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the addition in assessment order dated 22.04.2024 passed under section 143(3) r.w.s. 144C(3) r.w.s. 144B passed in pursuance of direction of Dispute Resolution Panel (DRP) – 2, Mumbai dated 29.10.2025. The assessee has raised following grounds of appeal: 1 : 0 Final order barred by limitation 1: 1 The Appellant submits that considering the facts and circumstances of its case and the law prevailing on the subject, the impugned Order dated 11 November 2025 passed u/s. 143(3) r.w.s. 144C(3) read with section 144B of of the Income-tax Act, 1961 is ab-initio void being barred by limitation u/s 153 r.w.s 144C and hence, ought to be struck down. Without prejudice to the above, 2 : 0 Transfer Pricing Adjustment of INR 20196183,693 to the interr1ational transaction relating to export of goods

ITA No.935/Mum/2026(AY 2022-23) Omni Active Health Technologies Limited 2 : 1 The learned Assessing Officer (''AO")/ Transfer Pricing Officer ("TPO")/ Dispute Resolution Panel ("DRP") has erred in making an upward adjustment of INR 20,96,83,693/- to the total income of the Appellant by holding that the international transaction relating to the export of goods entered into by the Appellant with its Associated Enterprise {"AE") was not at arm's length. 2 : 2 The learned AO/TPO/DRP erred in rejecting Transactional Net Margin Method (''TNMM") which was determined by the Appellant as the most appropriate method as per provisions of section 92C{l) of the Act. 2 : 3 The learned AO/TPO/DRP has erred in applying Comparable Uncontrolled Price {"CUP") method by comparing sales made to third party customers with that to AE ignoring the significant factors like differences on account of geographical market, volume of transactions etc. 2 : 4 The learned AO/TPO/DRP has erred in not following the orders of the Hon'ble Income Tax Appellate Tribunal ('!TAT') in Appellant's own case in earlier years wherein TNMM was accepted as the most appropriate method relating to export of goods to AE. Accordingly, the learned TPO/AO/DRP have erred in adopting consistency in approach and disregarding the fact that there is no change in facts of the Appellant which required change in the benchmarking approach. 2 : 5 The Appellant submits that the learned AO be directed to delete the upward adjustment of INR 20,96,83,693 made by him to the Appellant's total income and to re-compute its total income and tax liability accordingly. 3: 0 General 3 : 1 The Appellant submits that considering the facts and circumstances of its case, the learned AO has erred in initiating penalty proceedings under section 270A of the Act. 3 : 2 The Appellant craves leave to add, alter, amend and/or substitute and/or modify in any manner whatsoever modify all or any of the foregoing grounds of appeal at or before the hearing of the appeal.” 2. Rival submissions of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that assessee is in the business of Natural APIs and Novel Delivery Systems for Nutrients and Active Ingredients. The assessee is having international reputation for its range of active natural ingredients for healthcare, food and personal care applications. The

ITA No.935/Mum/2026(AY 2022-23) Omni Active Health Technologies Limited assessee while filing return of income reported international transaction with its AE for sale of goods of Rs. 352.47 crore. The assessee furnished its Transfer Pricing Study Report (TPSR). The assessee adopted Transaction Net margin Method (TNMM) as most appropriate method to benchmark the transaction with its AE. Consequent upon international transaction of more than threshold limit, the Assessing Officer (AO) made reference to Transfer Pricing Officer (TPO) for computation of Arm’s Length Price (ALP). The TPO rejected TNMM method adopted by assessee most appropriate method and applied Comparable Uncontrolled Price (CUP) wherein he has considered the difference between the prices charged to the AE vis-à-vis non-AE to arrive at an adjustment of Rs. 20.96 crore. The ld. AR of the assessee submits that he has raised specific ground of appeal about selection of most appropriate method being TNMM, which is covered in favour of assessee by the decision of Tribunal in assessee’s own case for A.Y. 2012-13 and 2013-14 in ITA No. 638 & 4643/Mum/2017, which has been followed in various other years. The copy of decision of Tribunal is placed on record. The Tribunal held that TNMM is consistently followed, can be changed only if there is change of law or in facts. The various Higher Courts and Hon’ble Supreme Court held that consistency has to be followed if there is no change in the fact or law. The decision of Tribunal in A.Y. 2012-13 and 2013-14 has been followed in A.Y. 2014-15 in ITA No. 7284/M/2018 and further in A.Y. 2016-17 in ITA No. 1224/M/2021. The Tribunal in its order in ITA No. 1224/M/2021 for A.Y.

ITA No.935/Mum/2026(AY 2022-23) Omni Active Health Technologies Limited 2016-17 has held that TNMM is the most appropriate method and no transfer pricing adjustment would be warranted on such transaction. Further, on similar set of fact, the case of A.Y. 2017-18 was restored back to the file of AO / TPO vide ITA No. 748/M/2022 in M.A. No. 587/M/2023 and the TPO in order giving effect has revised the transfer pricing adjustment to Nil in his order dated 28.03.2025. Similar order was followed in A.Y. 2020-21 in ITA No. 4675/M/2024 wherein the matter was set aside to the file of AO / TPO to determine the ALP of similar transaction by adopting TNMM by most appropriate method. The ld. AR of the assessee submits that all the details and order of lower authorities are already placed on record. Hence, the issue is covered in favour of the assessee. In case, TNMM is accepted as most appropriate method, the adjustment would be at Nil. And all other grounds of appeal raised by the assessee would become academic. 3. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the revenue supported the order of lower authorities. 4. We have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. We find that during the transfer pricing adjustment proceeding the TPO rejected TNMM as most appropriate method and applied CUP method wherein he has considered the difference between the prices charged to the AE vis- à-vis non-AE to arrive at an adjustment of Rs. 20.96 crore. The action of TPO was upheld by DRP, thereby the AO made addition in the final assessment order. We find that before us, the ld. AR of the assessee has

ITA No.935/Mum/2026(AY 2022-23) Omni Active Health Technologies Limited raised a limited plea that in case most appropriate method i.e. TNMM is accepted, the adjustment would become Nil. The ld. AR while making his submissions carried us through the order the order of Tribunal in A.Y. 2014-15, 2016-17, 2017-18 & 2020-21 wherein in all orders, the co- ordinate bench of this Tribunal has consistently accepted TNMM as most appropriate method. Further, by accepting TNMM as most appropriate method, the matter was restored back to the file of TPO wherein he has revised the transfer pricing adjustment as Nil in A.Y. 2017-18. Thus we find merits in the submissions of ld AR of the assessee and held that the TNMM is the most appropriate method which has been consistently accepted by coordinate bench of Tribunal. In the result, sub-ground of appeal raised in ground no. 2.2 of the appeal is allowed. Considering the facts that we have accepted primary submission of ld AR of the assessee, hence all other grounds of appeal have become academic. 5. No specific submissions were made in support of ground No. 1, the same is treated as not pressed and dismissed as such. 6. In result, the appeal of assessee is partly allowed.

Order pronounced in open Court on 27.07.2026 Sd/- Sd Sd/- /- Sd/- SS Sd/-SSSS GIRISH AGRAWAL PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER

Mumbai, Dated: 27/07/2026 Biswajit

ITA No.935/Mum/2026(AY 2022-23) Omni Active Health Technologies Limited Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT and (5) Guard file. By Order

Assistant Registrar ITAT, Mumbai