DCIT,CIRCLE-1, HALDWANI vs. DELTA POWER SOLUTION INDIA PVT. LTD., U S NAGAR

Assessee by Sh. Salil Kapoor, Adv. Sh. Anil Chachra, Adv. Sh. Utkarsa Gupta, Adv. Ms. Ananya Kapoor, Adv. Sh. Tarun Chanana, Adv. Sh. Shivam Yadav, Adv. Department by Sh. Amar Pal Singh, Sr. DR Date of hearing 21.03.2025 Date of pronouncement 02.04.2025 ORDER

PER SATBEER SINGH GODARA, JM

2. Whether the Ld. CIT(A) was justified in rejecting the comparable companies having relatively higher margins.

3. Whether the Ld. CIT(A) was justified in rejecting M/s Crompton Greaves Ltd. As a comparable on the basis of existence of an event of amalgamation which cannot be verified, ignoring the findings of this office.

4. Whether the Ld. CIT(A) was justified in directing to include M/s Nutech Engineers and Power Systems Ltd. as a comparable irrespective of the fact that the same company was considered to be non-comparable by both assessee and Ld. TPO during the TP proceedings. 5. Whether the Ld. CIT(A) was justified in giving contradictory directions by upheld a company as comparable and rejecting another as comparable on the basis of similar products, in spite of the facts that these companies have similar products. 6. That the order of the Ld. CIT(A), Haldwani is against the spirit of legislature and the order of the AO is liable to be restore. 7. That the appellant craves, leave to add, alter, clarify, amend or withdraw any grounds of appeal

as and when the occasion demands.

3. It is at this stage that the learned counsel representing assessee’s status at the bar that there arises the first and foremost issue of inclusion of M/s. Crompton Greaves Ltd. as a comparable whilst determining the arm’s length price “ALP” of the respondent/taxpayer’s international transactions with its overseas associates enterprises involving manufacturing segment. We are taken to page 57, para 6.2.7 of the lower appellate discussion rejecting M/s. Crompton Greaves Ltd. from the array of valid comparables since having undergone an extraordinary event of amalgamation of a subsidiary, in its books of account in the 3 | P a g e relevant previous year. We wish to make it clear that we afforded adequate opportunity to the department to rebut the CIT(A)’s foregoing clinching findings going to the root of the matter. There is no rebuttal thereto coming from the department side to this effect.

at the Revenue’s behest in its instant appeal are accepted for statistical purposes in very terms. Ordered accordingly. This Revenue’s appeal is partly allowed for statistical purposes.

5. The Revenue’s latter appeal 3/DDN/2024 is dismissed as a “duplicate” file subject to all just exceptions. Learned counsel representing assessee does not wish to press for C.O. No. 38/Del/2019 in above terms. Rejected accordingly.