RED HAT INDIA PRIVATE LIMITED ,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX , CIRCLE 15(3)(1), MUMBAI

ITA 3853/MUM/2025Status: DisposedITAT Mumbai12 January 2026AY 2016-1714 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee was entitled to working capital adjustment, and upon granting this adjustment, the assessee's margin fell within the arm's length range. Consequently, the transfer pricing adjustment made by the lower authorities was deleted.

What were the facts?

The assessee, Red Hat India Private Limited, appealed against an order giving effect to directions from the Dispute Resolution Panel regarding transfer pricing adjustments. This was the second round of proceedings after a previous Tribunal order had restored the issue to the Transfer Pricing Officer for specific purposes.

What were the issues?

The primary issue was whether the assessee was entitled to a working capital adjustment in its transfer pricing analysis. Other issues included the validity of assessment proceedings and claims for statutory credits.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 254,Section 92CA,Section 92C(2),Section 153,Section 144C(1),Section 156,Section 115JAA,Section 90,Section 244A

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IN THE INCOME TAX APPELLATE TRIBUNAL, ‘J’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER ITA No.3853/Mum/2025 (Assessment Year :2016-17) Red Hat India Private Vs. Assistant Commissioner Limited of Income Tax, Circle A-201, Supreme 15(3)(1), Mumbai Business Park, Supreme City, Hiranandani Gardens Powai, Mumbai- 400 076 (Appellant) PAN/GIR No.AABCR7097N (Respondent) Assessee by Shri Ajit Jain a/w Shri Akshay Jain & Ms.Archita Singhal Revenue by Shri Pankaj Kumar. CIT DR Date of Hearing 07/01/2026 Date of Pronouncement 12/01/2026 आदेश / O R DER PER AMIT SHUKLA (J.M): The present appeal has been preferred by the assessee assailing the Order Giving Effect dated 31 December 2024 passed by the learned Assessing Officer under section 143(3) read with section 254 of the Income Tax Act, 1961 for the Assessment Year 2016–17, pursuant to the directions issued by the Dispute Resolution Panel–2, Mumbai. The appeal arises in the second round of proceedings, the matter having earlier travelled to this Tribunal, which had partly set aside the assessment and restored the issue to the file of the Transfer Pricing Officer for limited and spe

The order continues below.

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