NIRMA LIMITED,,AHMEDABAD vs. DCIT, CIRCLE-3(1)(1),, AHMEDABAD

ITA 516/AHD/2018Status: DisposedITAT Ahmedabad30 June 2025AY 2014-15Bench: DR. B.R.R. KUMAR (Vice President), MS. SUCHITRA R. KAMBLE (Judicial Member)29 pages
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What did the Tribunal hold?

The Tribunal upheld the disallowance of delayed payments to ESIC/PF, following its own prior decision. For the corporate guarantee commission, the Tribunal held it to be an international transaction and set the arm's length price (ALP) at 0.5%, partly allowing the Revenue's appeal on this issue.

What were the facts?

The assessee, Nirma Limited, filed appeals against the CIT(A)'s orders concerning disallowances related to delayed payments to ESIC/PF and depreciation on goodwill. The Revenue also filed cross-appeals challenging certain deletions made by the CIT(A), including those related to sales tax subsidy and corporate guarantee commission.

What were the issues?

The key issues involved the disallowance of delayed employee contributions to ESIC/PF and the benchmarking of corporate guarantee commission as an international transaction.

Which sections of the Income-tax Act were involved?

Section 2(24)(x),Section 36(1)(va),Section 92B,Section 271(1)(c),Section 234B,Section 234C,Section 80IA

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Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE- & MS. SUCHITRA R. KAMBLE

For Appellant: Shri S.N. Soparkar, Sr.Advocate, Shri Parin Shah, AR
Hearing: 07/05/2025Pronounced: 30/06/2025

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

The present set of five appeals comprises three appeals filed by the assessee and two cross-appeals filed by the Revenue. The assessee’s appeals are directed against the orders of the learned Commissioner of Income-tax (Appeals)-9, Ahmedabad dated 20.07.2017, 21.07.2017, and 22.01.2018, pertaining to the assessment years 2012-13, 2013-14, and 2014-15, respect

The order continues below.

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