NIVEDITA CHEMICALS PVT. LTD.,MUMBAI vs. DCIT 10(3)(1), MUMBAI

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ITA 6404/MUM/2018Status: DisposedITAT Mumbai08 January 2020AY 2014-1517 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the quality specifications for export products can differ from domestic sales, and the TPO did not sufficiently verify these specifications. It also accepted that expenses incurred via a director's credit card for entertaining foreign clients are legitimate business expenses.

What were the facts?

The assessee, engaged in pharmaceutical manufacturing, had transactions with an associated enterprise (AE) exceeding Rs. 15 crores. The TPO proposed an addition of Rs. 1,89,480 for domestic transfer pricing. Additionally, Rs. 1,73,901 was disallowed for sales promotion expenses incurred via a director's credit card.

What were the issues?

Whether the arm's length price adjustment for domestic transfer pricing was justified, and if sales promotion expenses incurred via a director's credit card were personal or business expenses.

Which sections of the Income-tax Act were involved?

Section 92CA,Section 144C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B”

Before: SHRI S. RIFAUR RAHMAN, AM & SHRI RAM LAL NEGI, JM

आदेशकीप्रनिनिनिअग्रेनर्ि/Copy of the Order forwarded to : 1. अपीलाथी/ The Appellant 2. प्रत्यथी/ The Respondent आयकरआयुक्त(अपील) / The CIT(A) 3. 4. आयकरआयुक्त/ CIT- concerned 5. यवभागीयप्रयतयनयि, आयकरअपीलीयअयिकरण, मुंबई/ DR, ITAT,

M/s Nivedita Chemicals Pvt. Ltd.

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