LIMAGRAIN INDIA PRIVATE LIMITED,HYDERABAD vs. DCIT, CIRCLE -5(1), HYDERABAD

ITA 464/HYD/2022Status: DisposedITAT Hyderabad19 December 2024AY 2018-19Bench: Shri Manjunatha G. (Accountant Member), Shri K. Narasimha Chary (Judicial Member)18 pages
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What did the Tribunal hold?

The Tribunal held that the AO/TPO passed an order with shorter notice and without considering the assessee's submissions on seed testing charges, violating natural justice. For outstanding receivables, the Tribunal directed the use of LIBOR plus 200 basis points for benchmarking interest. The issue of set-off of brought forward losses was remanded for verification.

What were the facts?

The assessee, engaged in the seed business, appealed against transfer pricing adjustments made by the Assessing Officer (AO) and confirmed by the Dispute Resolution Panel (DRP). The adjustments related to seed testing charges, intra-group services, and notional interest on receivables.

What were the issues?

Whether transfer pricing adjustments were made in accordance with principles of natural justice and appropriate benchmarking. Whether brought forward business losses can be set off against current income.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C,Section 92CA,Section 72(1)

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Income Tax Appellate Tribunal, Hyderabad ‘B’ Bench, Hyderabad

Before: Shri Manjunatha G. & Shri K. Narasimha Chary

Hearing: 30/09/2024

PER. MANJUNATHA G., A.M: This appeal filed by the assessee is directed against the final assessment order passed by the Assessing Officer u/s 143(3) r.w.s.144C(13) of the Income tax Act, 1961 (“the Act”), dated 29.07.2022, in pursuant to directions u/s 144C(5) of the Act, dated 21.06.2022, issued by the Dispute Resolution Panel-1 (“the Ld.DRP”), Bengaluru and relevant to the A.Y.2018-

19.2.

The assessee has raised the following grounds of appeal :

1.

The captioned order of the Ld. Assessing Officer (“Ld.AO”) for the captioned AY passed in the case of Limagrain

The order continues below.

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