M/S PERSISTENT SYSTEMS LIMITED,PUNE vs. ASSESSMENT UNIT, INCOME-TAX DEPARTMENT, PUNE

In the result, appeal of the Assessee is Partly Allowed

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकरअपीलसं. / Ita No.692/Pun/2022 िनधा"रणवष" / Assessment Year : 2018-19 M/S.Persistent Systems Assessment Unit, Income Limited, V Tax Department. “Bhageerath” 402, Senapati S Bapat Road, Pune – 411016. Pan: Aabcp 1209 Q Appellant/ Assessee Respondent /Revenue Assessee By Shri Dhanesh Bafna& Shriaditya Vaidya– Ar’S Revenue By Shri Suhas Kulkarni - Irs Addl Commissioner Of Income Tax Date Of Hearing 26/09/2023 Date Of Pronouncement 02/11/2023 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Filed By The Assessee Is Directed Against The Assessment Order, Dated 20.07.2022 Under Section 143(3) R.W.S. 144C(13) Read With Section 144B Of The Income Tax Act, 1961 For A.Y.2018-19. The Assessee Has Raised The Following Grounds Of Appeal: “Ground 1: Order Is Invalid / Non Est  On The Facts & In The Circumstances Of The Case & In Law, The Assessment Unit (‘Au’) Has Erred In Passing The Draft Assessment M/S.Persistent Systems Limited [A]

TP study report and our letter dated 02 July 2021. we confirm that PSL as well as its branches are engaged in provision of software 21 M/s.Persistent Systems Limited [A] development and related services. The comparable companies are also engaged in the similar functional profile of provision of services. 2.2.2. Your goodselfis referring to companies involved in provision of product

KIMBERLY CLARK LEVER P.LTD.,PUNE vs. ACIT, PUNE

In the result, the appeal of the assessee stands allowed

Bench: Shri Inturi Rama Rao, Am & Shri Partha Sarathi Chaudhury, Jm आयकर अपील सं. / Ita No.2481/Pun/2012 िनधा"रण वष" / Assessment Year : 2008-09 Kimberly Clark Lever P. Ltd., Gat No.934 To 937, Village Sanaswadi Off Nagar Road, Ta- Shirur, Pune-412208. .......अपीलाथ" / Appellant Pan : Aaack4647E बनाम / V/S. Acit, Circle-Xi(I), ……""यथ" / Respondent Pune. Assessee By : Shri Percy Pardiwalla Revenue By : Shri Sandeep Garg सुनवाई क" तारीख / Date Of Hearing : 08.02.2021 घोषणा क" तारीख / Date Of Pronouncement : 22.02.2021 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Assessee Directed Against The Final Assessment Order U/S 143(3) R.W.S. 144C Of The Income Tax Act, 1961 (‘The Act’ For Short) Of The Asstt. Commissioner Of Income Tax, Circle-11(1), Pune (‘The Assessing Officer’ For Short) Dated 29.10.2012 For The Assessment Year 2008-09. 2. The Appellant Raised The Following Grounds Of Appeal :- “The Appellant Objects To The Order Dated 29 October 2012 Passed Under Section 143(3) R.W.S. 144(C) Of The Income-Tax Act, 1961 (‘The Act’) By The Assistant Commissioner Of Income Tax, Circle 11(1), Pune [‘Acit’ Or ‘Ao’] Following The Directions Issued By The Dispute Resolution Panel (‘Drp’) In Respect Of The Aforesaid Assessment Year On The Following Among Other Grounds:

TP adjustment of A&M expenses – Rs.32,63,66,267/-. (b) Disallowance on account of Advertising & Marketing expenses – Rs.2,47,13,051/-. (c) Disallowance on account of management cost – Rs.1,54,77,351/-. (d) Disallowance on account of selling discount to HUL – Rs.3,25,68,847/-. 8. Being aggrieved by the above disallowances proposed by the Assessing Officer

ASSISTANT COMMISSIONER OF INCOME-TAX,, PUNE vs. M/S. KIMBERLY CLARK LEVER PVT. LTD.,, PUNE

In the result, appeal of assessee is allowed for statistical purposes and the appeal of Revenue is dismissed in the above terms

method at entity level and selecting the comparables whose average profit margin was computed at 7.49% as compared to negative margin of (-) 6.68% of the appellant company and the TP adjustment is worked out as below: Single Year margins for the Comparables = 11.74% Margins for the Manufactured Products = -7.66% Operating Costs = Rs.200.86 Crs 11.74-(-7.66) x 200.86 TP adjustment = Rs.38.96

DCIT, CIRCLE 8 PUNE, PUNE vs. ALFA LAVAL INDIA PVT LTD, PUNE

In the result, the appeal filed by the Revenue is dismissed

TDS was deducted during the AY 2018-19 and\ndeposited on such expenses.\n3.\nOn the facts and circumstances of the case the Ld. CIT(A) erred in deleting\nthe addition of Rs.7,51,15,458/- on account of ICDS Adjustment not\ndisclosed by the assessee without appreciating the fact that all adjustments\narising due to ICDS need

DEPUTY COMMISSIONER OF INCOME TAX CIR 1(1), PUNE vs. EATON TECHNOLOGIES PVT. LTD.,, PUNE

Appeals are partly allowed for statistical purpose in above terms

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकरअपीलसं. / Ita Nos.42 & 43/Pun/2021 िनधा"रणवष" / Assessment Years : 2015-16 & 16-17 Dcit, Circle-1(1), Pune. M/S.Eaton Technologies Pvt. Ltd., Vs Cluster C Wing-1, Eon Zone, Midc Kharadi, Knowledge Park, Plot No.1, Survey No.77, Kharadi, Pune – 411014. Pan: Aabce 4323 Q Appellant/ Assessee Respondent /Revenue Assessee By Shri Vishal Kalra & Shri Ss Tomar -Ar Revenue By Shri Sunil Kumar – Cit(Dr) Date Of Hearing 24/06/2022 Date Of Pronouncement 07/07/2022 आदेश/ Order Per S.S.Godara, Jm: These Revenue’S Twin Appeals For The Assessment Years 2015- 16 & 2016-17 Arise Against The Cit(A)-13, Pune’S Separate Orders; Both Dated 29.05.2020, Passed In Case No.Pn/Cit(A)-13/Dcit, Circle-1(2), Pune/10142/2019-20/02, Pn/Cit(A)-13/Dcit, Circle- 1(2), Pune/10142/2019-20/03 Respectively, Involving Proceedings Under Section 143(3) Of The Income Tax Act, 1961. Heard Both The Parties. Case Files Perused.

method cannot be applied by the AO to arrive at reasonable profit of the SEZ unit when the Arm’s Length Price of the transactions had been accepted by the TPO? 4. The Ld.CIT(A) is erred in allowing the Assessee non deduction of TDS on payment made to non-resident? 5. The Ld.CIT(A) is erred in deleting disallowance

DEPUTY COMMISSIONER OF INCOME TAX CIR 1(1), PUNE vs. EATON TECHNOLOGIES PVT. LTD.,, PUNE

Appeals are partly allowed for statistical purpose in above terms

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकरअपीलसं. / Ita Nos.42 & 43/Pun/2021 िनधा"रणवष" / Assessment Years : 2015-16 & 16-17 Dcit, Circle-1(1), Pune. M/S.Eaton Technologies Pvt. Ltd., Vs Cluster C Wing-1, Eon Zone, Midc Kharadi, Knowledge Park, Plot No.1, Survey No.77, Kharadi, Pune – 411014. Pan: Aabce 4323 Q Appellant/ Assessee Respondent /Revenue Assessee By Shri Vishal Kalra & Shri Ss Tomar -Ar Revenue By Shri Sunil Kumar – Cit(Dr) Date Of Hearing 24/06/2022 Date Of Pronouncement 07/07/2022 आदेश/ Order Per S.S.Godara, Jm: These Revenue’S Twin Appeals For The Assessment Years 2015- 16 & 2016-17 Arise Against The Cit(A)-13, Pune’S Separate Orders; Both Dated 29.05.2020, Passed In Case No.Pn/Cit(A)-13/Dcit, Circle-1(2), Pune/10142/2019-20/02, Pn/Cit(A)-13/Dcit, Circle- 1(2), Pune/10142/2019-20/03 Respectively, Involving Proceedings Under Section 143(3) Of The Income Tax Act, 1961. Heard Both The Parties. Case Files Perused.

method cannot be applied by the AO to arrive at reasonable profit of the SEZ unit when the Arm’s Length Price of the transactions had been accepted by the TPO? 4. The Ld.CIT(A) is erred in allowing the Assessee non deduction of TDS on payment made to non-resident? 5. The Ld.CIT(A) is erred in deleting disallowance

DCIT, SWARGATE PUNE vs. CUMMINS INDIA LTD , PUNE

In the result, appeal of the assessee bearing ITA No

TP Regulations, the median royalty rate of 2.75%\nis considered as arm's length rate.\n2.4.6 In view of the above, the transaction of royalty\npayment on export sales is to be segregated and\nbenchmarked on a transaction-by-transaction basis, as\ndone by the TPO. Therefore, the TPO was justified in\nmaking an adjustment of Rs.12

CUMMINS INDIA LIMITED,,PUNE vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE - 1(1),, PUNE

In the result, appeal of the assessee bearing ITA No

TP Regulations, the median royalty rate of 2.75%\nis considered as arm's length rate.\n\n2.4.6 In view of the above, the transaction of royalty\npayment on export sales is to be segregated and\nbenchmarked on a transaction-by-transaction basis, as\ndone by the TPO. Therefore, the TPO was justified in\nmaking an adjustment of Rs.12

M/S. VISHAY COMPONENTS INDIA PRIVATE LIMITED,,PUNE vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE - 13,, PUNE

In the result, the appeal of assessee is partly allowed for statistical purpose

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Ravi

Method (TNMM) which was accepted by the TPO. The assessee adopted profit level indicator of Operating Profit before Depreciation, Interest and Tax to Operating Cost but however, it was held by this Tribunal in assessee’s own case that the Operating Profit of assessee and comparables should be calculated after depreciation since the depreciation is an integral part of Operating

EATON TECHNOLOGIES PVT.LTD,,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 1(2),, PUNE

Bench: Shri S.S.Godara & G.D.Padmahshaliआयकरअपीलसं. / Ita No.590/Pun/2018 िनधा"रण वष" / Assessment Year: 2014-15 Eaton Technologies Private Limited, Dcit, Circle-1(2), Cluster C, Wing 1, Eon Free Zone, Vs Pune Plot No.1, Sr.No.77, Midc Kharadi Knowledge Park, Kharadi, Pune 411 014 Pan : Aabce4323Q Appellant/ Assessee Respondent /Revenue आयकरअपीलसं. / Ita No.902/Pun/2018 िनधा"रण वष" / Assessment Year: 2011-12 Eaton Technologies Private Limited, Pr.Cit-1, Cluster C, Wing 1, Eon Free Zone, Vs Pune Plot No.1, Sr.No.77, Midc Kharadi Knowledge Park, Kharadi, Pune 411 014 Pan : Aabce4323Q Appellant/ Assessee Respondent /Revenue

method (“CUP”). The CIT(A) further erred in upholding the arbitrary action of the AO. 4. That on the facts and circumstances of the case and in law, the CIT(A) ought to have held that the provisions of section 10AA(9) read with section 80IA(10) of the Act, could not have been invoked as there was no erosion

EATON TECHNOLOGIES PVT.LTD,,PUNE vs. PR. COMMISSIONER OF INCOME-TAX-1,, PUNE

Bench: Shri S.S.Godara & G.D.Padmahshaliआयकरअपीलसं. / Ita No.590/Pun/2018 िनधा"रण वष" / Assessment Year: 2014-15 Eaton Technologies Private Limited, Dcit, Circle-1(2), Cluster C, Wing 1, Eon Free Zone, Vs Pune Plot No.1, Sr.No.77, Midc Kharadi Knowledge Park, Kharadi, Pune 411 014 Pan : Aabce4323Q Appellant/ Assessee Respondent /Revenue आयकरअपीलसं. / Ita No.902/Pun/2018 िनधा"रण वष" / Assessment Year: 2011-12 Eaton Technologies Private Limited, Pr.Cit-1, Cluster C, Wing 1, Eon Free Zone, Vs Pune Plot No.1, Sr.No.77, Midc Kharadi Knowledge Park, Kharadi, Pune 411 014 Pan : Aabce4323Q Appellant/ Assessee Respondent /Revenue

method (“CUP”). The CIT(A) further erred in upholding the arbitrary action of the AO. 4. That on the facts and circumstances of the case and in law, the CIT(A) ought to have held that the provisions of section 10AA(9) read with section 80IA(10) of the Act, could not have been invoked as there was no erosion

EATON TECHNOLOGIES PVT.LTD,,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 1(2),, PUNE

Appeal is partly allowed in above terms

Bench: Shri S. S. Godara, Jm & Shri Dr. Dipak P. Ripote, Am आयकर अपीऱ सं. / Ita No.3075/Pun/2017 ननधधारण वषा / Assessment Year : 2013-14 Eaton Technologies Pvt. Ltd. Cluster C, Wing 1, Eon Free Zone, Plot No.1, Sr. No.77, Midc Kharadi Knowledge Park, Kharadi ,Pune- 411 014. .......अपऩलधथी / Appellant Pan : Aabce4323Q बनधम / V/S. ……प्रत्यथी / Respondent Dcit, Circle-1(2), Pune Assessee By : Shri Vishal Karla Revenue By : Shri S. P. Walimbe

method (―CUP‖). 7. That on the facts and circumstances of the case and in law, the AO/DRP have erred in interpreting/ applying the provisions of section 10AA(9) read with section 80IA(10) of the Act, without establishing the existence of any ‗arrangement‘ to manipulate profits of the eligible unit between Appellant and its AE. 8. That on the facts

THYSSENKRUPP ELECTRICAL STEEL INDIA PVT.LTD,,NASHIK vs. DEPUTY COMMISSIONER OF INCOME TAX,, NASHIK

In the result, the appeal of assessee is partly allowed

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Ravi

TDS on such payments to TKAG. The Ld. A.R. referred to Page No.199 of the Paper Book about the business description. He also referred to Page No.206 of the Paper Book and submitted that all group companies as of fiscal year 2009-10 have to pay a royalty rate of 0.5% on the revenue generated through their production, processing

DEPUTY COMMISSIONER OF INCOME-TAX vs. CARRARO INDIA PVT. LTD.,, PUNE

In the result, appeal of the Revenue in ITA No

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhury

TP adjustment of the full amount of Rs.75.41 lakh, cannot be allowed once again. Thus, royalty paid for use of trade mark license pertaining to steering axle and accessories for 35 and 55 HP tractors, included in the amount of Rs.75.41 lakh is required to be disallowed as a duplicate payment. The ld. AR was fair enough to concede this

CARRORO INDIA PRIVATE LTD.,,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX,,

In the result, appeal of the Revenue in ITA No

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhury

TP adjustment of the full amount of Rs.75.41 lakh, cannot be allowed once again. Thus, royalty paid for use of trade mark license pertaining to steering axle and accessories for 35 and 55 HP tractors, included in the amount of Rs.75.41 lakh is required to be disallowed as a duplicate payment. The ld. AR was fair enough to concede this

M/S. VISHAY COMPONENTS INDIA PRIVATE LIMITED,,PUNE vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE - 12, PUNE

The appeal of the assessee is partly allowed for statistical purposes

Bench: Shri R.S. Syal & Shri Partha Sarathi Chaudhury

TDS amount of INR 90,000 while computing the tax liability of the Appellant and consequential1y error in computation of interest liability under section 234C of the Act. 17. Erroneous levy of interest under section 2348 of the Act Erred in levying additional interest under section 234B of the Act on account of unanticipated additions made to the total income

FRANCOIS COMPRESSOR INDIA PVT.LTD,,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 1(2),, PUNE

In the result, the appeal filed by the assessee stands partly allowed for statistical purposes

Bench: Shri Inturi Rama Rao, Am & Shri Partha Sarathi Chaudhury, Jm आयकर अपील सं. / Ita No.2504/Pun/2017 िनधा"रण वष" / Assessment Year : 2013-14 ………. अपीलाथ" / Francois Compressor India Pvt. Ltd., Gat No.147/1(New), Lavale Road, Appellant Pirangut, Tal. Mulshi, Dist. Pune – 412115. Pan : Aabcf0496K. बनाम V/S ………. ""यथ" / The Dy.Commissioner Of Income Tax, Circle 1 (2), Pune. Respondent Assessee By : Shri Sharad Shah. Revenue By : Shri Amol Kamat. सुनवाई क" तारीख / Date Of Hearing : 05.08.2021 घोषणा क" तारीख / Date Of Pronouncement : 18.08.2021 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Assessee Directed Against The Final Assessment Order Dt.31.08.2017 Passed Under Sec.143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961 (Hereinafter Referred To “The Act”) For The Assessment Year 2013-14. 2. The Brief Facts Of The Case Are As Under : The Appellant Is A Company Incorporated Under The Provisions Of The Companies Act, 1956. It Is Engaged In The Business Of Development & Sale

Method No. Transaction 1 AF Compressors Sale of Goods 11,45,823 TNMM (Kunshan) Co. Ltd, China 2 AF-Distribution Sale of Goods 2,86,65,338 TNMM Centre FZE, Dubai 3 Ateliers Francois SA, Sale of Goods 12,42,26,938 TNMM Belgium. 4 Ateliers Francois SA, Rendering of 3,12,73,628 CPM Belgium. Services 5 AF Compressors

DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1, AURANGABAD, AURANGABAD vs. ENDURANCE TECHNOLOGIES LIMITED, AURANGABAD

In the result, all the appeals filed by the Revenue are dismissed

TDS\nRs.4,53,134/-\niv)\naddition on account of deduction\nclaimed u/s 35DDA\nRs.60,02,685/-\n67.\nIn appeal, the Ld. CIT(A) / NFAC deleted all the additions made by the\nAssessing Officer.\n68.\nAggrieved with such order of the Ld. CIT(A) / NFAC, the Revenue is in\nappeal before the Tribunal by raising the following grounds