NGA HR (INDIA) PRIVATE LIMITED,MUMBAI vs. ASSESSMENT UNIT (JAO - DCIT, CIRCLE 7(1)(1), MUMBAI), MUMBAI

ITA 5777/MUM/2024Status: DisposedITAT Mumbai31 January 2025AY 2021-22Bench: SMT. BEENA PILLAI (Judicial Member), SHRI OMKARESHWAR CHIDARA ( (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the determination of nil price for intra-group services would result in a reduction of the assessee's income and erode the Indian tax base. Therefore, the transfer pricing provisions could not be invoked in this situation as per Section 92(3) of the Income Tax Act.

What were the facts?

The assessee company paid management fees to its Associated Enterprise (AE). The Assessing Officer (AO) and Transfer Pricing Officer (TPO) determined a nil price for these fees, disregarding the assessee's transfer pricing documentation. The assessee argued that this adjustment would erode the Indian tax base.

What were the issues?

Whether the transfer pricing adjustment for management fees, which results in erosion of the Indian tax base, is permissible under Section 92(3) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 92(3),Section 143(3),Section 144C(13),Section 144B,Section 153(1),Section 153(4),Section 92C,Section 92(1)

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Income Tax Appellate Tribunal, “J” BENCH, MUMBAI

Before: SMT. BEENA PILLAI & SHRI OMKARESHWAR CHIDARA

For Appellant: Shri Darpan Kirpalani
For Respondent: Shri Pankaj Kumar, CIT D.R
Hearing: 27/01/2025Pronounced: 31/01/2025

Heard together (2 matters)

I.T.A. No.5777/Mum/2024
S.A. No.122/Mum/2024

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

Per: Smt. Beena Pillai, J.M.:

S.A. No.122/Mum/2024 A.Y. 2021-22 2

Present appeal arises out of the final assessment order dated 30/09/2024 passed by assessment unit for assessment year 2021-22 on following grounds of appeal:

“Appeal under section 253(1)(d) of the Income Tax Act, 1961 (hereinafter referred to as the "Act"). against the order dated September 30, 2024 (received on September 30,

The order continues below.

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