THE ACIT, CIRCLE-2(1)(2),, AHMEDABAD vs. KLOECKNER DESMA MACHINERY PVT. LTD.,, AHMEDABAD

ITA 2322/AHD/2017Status: DisposedITAT Ahmedabad17 July 2026AY 2013-1419 pages
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What were the facts?

The assessee company engaged in manufacturing injection moulding machines had transfer pricing adjustments related to royalty and commission payments. The appeals also involved issues of long-term capital gains and disallowances under Section 40(a)(i) and Section 14A.

What did the Tribunal hold?

The Tribunal restored the issue of commission payment benchmarking to the TPO/AO for fresh consideration, allowing the assessee to submit additional evidence. The Revenue's grounds regarding disallowance for commission payments and under Section 14A were dismissed.

What were the issues?

The primary issues concerned the correct benchmarking of royalty and commission payments under transfer pricing regulations and the validity of disallowances for commission payments and under Section 14A.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 92CA,Section 40(a)(i),Section 195,Section 9(1)(vii),Section 14A,Section 54G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE-Ms. SUCHITRA KMBLE

For Appellant: Shri S N Soparkar, Sr. Advocate
For Respondent: Shri Sher Singh, CIT- DR
Hearing: 27.04.2026Pronounced: 17.07.2026

Heard together (2 matters)

I.T.A No.2579/Ahd/2017
I.T.A No.2322/Ahd/2017

Read from the judgment's own cause title. This page is filed under one of them.

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:

- The present batch of appeals comprises one appeal filed by the assessee for AY 2012-13 and c

The order continues below.

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