DEPUTY COMMISSIONER OF INCOME TAX, TIRUNELVELI vs. M/S.LOYAL TEXTILE MILLS LIMITED, KOVILPATTI

ITA 192/CHNY/2025Status: DisposedITAT Chennai30 October 2025AY 2017-18Bench: SHRI MANU KUMAR GIRI (Judicial Member), SHRI S. R. RAGHUNATHA (Accountant Member)6 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s deletion of the transfer pricing adjustment, following Supreme Court and jurisdictional ITAT precedents regarding the valuation of captively consumed power. The Tribunal also upheld the deletion of disallowance for commission paid to non-resident agents, as services were rendered outside India and the assessee had complied with procedural requirements.

What were the facts?

The Revenue filed appeals against the CIT(A)'s orders deleting additions made by the AO concerning transfer pricing adjustment for captive power valuation and disallowance of commission paid to non-resident agents. The assessee had declared its total income, and a reference was made to the TPO.

What were the issues?

Whether the transfer pricing provisions override the computation mechanism for deduction under section 80IA(8) for captive power valuation and whether disallowance under section 40(a)(ia) is attracted for commission paid to non-resident agents when services are rendered outside India.

Which sections of the Income-tax Act were involved?

Section 92CA,Section 143(3),Section 144C(3),Section 80IA,Section 40(a)(ia),Section 195,Section 115JAA,Section 92F,Section 10B,Section 271I,Section 195(6),Section 37BB

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Cases cited in this judgment(4)Show list

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Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: HON’BLE SHRI MANU KUMAR GIRI & HON’BLE SHRI S. R. RAGHUNATHA

Hearing: 22.10.2025Pronounced: 30.10.2025

Heard together (2 matters)

ITA No.192/Chny/2025
ITA No.193/Chny/2025

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

PER MANU KUMAR GIRI, JM: These two appeals by the Revenue are directed against the orders of the Commissioner of Income Tax (Appeals) – 16, Chennai / National Faceless Appeal Centre, Delhi [in short, “CIT(A)”] dated 27.11.2024 and 03.12.2024, relating to the assessment years 2017–18 and 2018–19, respectively.

2.

Facts in brief are that the

The order continues below.

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