SULZER PUMPS INDIA PVT LTD.,MUMBAI vs. DY CIT CIRCLE-15 (3)(2), MUMBAI

ITA 7318/MUM/2019Status: DisposedITAT Mumbai16 September 2022AY 2015-1648 pages
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What did the Tribunal hold?

The Tribunal held that the Transfer Pricing Officer (TPO) had not properly determined the ALP of international transactions by relying on previous years' proceedings and rejecting the assessee's documentation without robust reasons. The matter was restored to the TPO for fresh examination.

What were the facts?

The assessee appealed against an assessment order that included transfer pricing adjustments and other disallowances. The primary dispute revolved around the arm's length price (ALP) of various international transactions with associated enterprises, including trademark fees, SAP support services, and Microsoft licensing.

What were the issues?

Whether the lower authorities erred in determining the arm's length price of international transactions without following prescribed methods and by relying on previous years' assessments. The validity of disallowances for export commission and warranty provisions were also contested.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 92CA(3),Section 9(1)(vii),Section 92C(1)

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Income Tax Appellate Tribunal, “J” BENCH, MUMBAI

For Appellant: Shri V. Shridharan &, Ms. Manasi C, AR
For Respondent: Shri C T Mathew, DR
Hearing: 17.06.2022Pronounced: 16.09.2022

PER PRASHANT MAHARISHI, AM:

01.

This appeal is filed by Sulzer Pumps India Private Limited (the assessee/ appellant) against the order passed by the Dy. Commissioner of Income-tax 15(3) (2), Mumbai (the learned Assessing Officer) under Section 143(3) of the Income Tax Act, 1961 [ he Act] on 30th October, 2019, wherein the return filed by the assessee on 30th November, 2014 at ₹88,63,34,310/- is assessed at ₹115,86,77,740/-. This assessment order was passed incorporating the adjustment proposed per order under Section 92CA(3) of the Act dated 16th October, 2018 Sulzes Pumps I Pvt. ltd.;AY 15-16 passed by the Dy. Commissioner of Income-Tax, Transf

The order continues below.

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