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

92B, 92C, 92CB, 92D, 92E and section 92F are all precisely defining and facilitating provisions ultimately for the purpose of computing the income as stated in section 92. All the above stated sections provided in Chapter X of the Income-tax Act, 1961 belong to a separate code as such, enacted for the purpose of computing income from international transactions

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:

section 92B of the Income Tax Act, 1961 (‘the Act’ for short) :- Sr. Nature of Transactions Amount of Method No. Transactions Adopted 1. Purchase of raw material, 10,76,36,722 TNMM spares parts & consumables 2. Purchase of finished goods 27,17,21,004 TNMM 3. Payment of royalty 1,55,68,463 CUP 4. Payment of Global License

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.

92B, 92C, 92CB, 92D, 92E and section 92F are all precisely defining and facilitating provisions ultimately for the purpose of computing the income as stated in section 92. All the above stated sections ITA Nos.42 & 43/PUN/2021 for A.Y’s: 2015-16 & 16-17 DCIT Vs. M/s.Eaton Technologies Pvt. Ltd., (R) provided in Chapter X of the Income

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.

92B, 92C, 92CB, 92D, 92E and section 92F are all precisely defining and facilitating provisions ultimately for the purpose of computing the income as stated in section 92. All the above stated sections ITA Nos.42 & 43/PUN/2021 for A.Y’s: 2015-16 & 16-17 DCIT Vs. M/s.Eaton Technologies Pvt. Ltd., (R) provided in Chapter X of the Income

WOCKHARDT LIMITED,,AURANGABAD vs. ASSISTAMT COMMISSIONER OF INCOME TAX, CIRCLE -3,, AURANGABAD

In the result, the appeal filed by Revenue is partly allowed, the appeal filed by assessee is partly allowed and the CO filed by assessee is dismissed as withdrawn

Bench: Shri Inturi Rama Rao & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita No.775/Pun/2019 निर्धारण वषा / Assessment Year : 2013-14 Acit, Circle-3, Aurangabad .......अऩीऱाथी / Appellant बिधम / V/S. Wockhardt Ltd., R&D Centre, D-4, Midc, Chikalthana, Aurangabad. Pan: Aaacw2472M ……प्रत्यथी / Respondent आयकर अपीऱ सं. / Ita No.758/Pun/2019 निर्धारण वषा / Assessment Year : 2013-14 Wockhardt Ltd., R&D Centre, D-4, Midc, Chikalthana, Aurangabad. Pan: Aaacw2472M .......अऩीऱाथी / Appellant बिधम / V/S. Acit, Circle-3, Aurangabad ……प्रत्यथी / Respondent Co No.43/Pun/2019 निर्धारण वषा / Assessment Year : 2013-14 Wockhardt Ltd., R&D Centre, D-4, Midc, Chikalthana, Aurangabad. Pan: Aaacw2472M .......Cross Objector बिधम / V/S. Acit, Circle-3, Aurangabad ……प्रत्यथी / Respondent Co No.43/Pun/2019

section 35(2AB) of Rs.65,55,77,068/-, disallowance of Freebies to Doctors of Rs.1,19,82,100/-, disallowance u/s CO No.43/PUN/2019 14A of Rs.78,87,413/- and disallowance of Provision for BDDR of Rs.1,56,33,232/-. Being aggrieved, an appeal was filed before the CIT(A), who vide impugned order held that a transaction of sale of FDFS

DEPUTY 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

section 92B of the Act: Sr. No. Nature of Transactions Amount of MAM Transactions 1 Purchase of raw materials, spare 75,45,92,737 TNMM (for the parts & consumables material imported from AE’s only) 2 Purchase of finished goods 19,61,95,142 TNMM 3 Payment of Royalty 3,88,57,633 CUP 4 Payment of Global licence fees

KIMBERLY CLARK LEVER PVT. LTD.,,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX,,

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

section 92B of the Act: Sr. No. Nature of Transactions Amount of MAM Transactions 1 Purchase of raw materials, spare 75,45,92,737 TNMM (for the parts & consumables material imported from AE’s only) 2 Purchase of finished goods 19,61,95,142 TNMM 3 Payment of Royalty 3,88,57,633 CUP 4 Payment of Global licence fees

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

section 92B of the Act: Sr. No. Nature of Transactions Amount of MAM Transactions 1 Purchase of raw materials, 57,28,75,077 Not benchmarked spare parts & consumables at the time of filing of 3CEB TNMM as additional analysis with AE as tested party for Rs.6,80,99,978 2 Purchase of finished goods 2,91,82,458 Not benchmarked

DEPUTY COMMSSIONER OF INCOME TAX CIRCLE-1(1), PUNE vs. FERRERO INDIA PVT.LTD, PUNE

92B of the Act. The problem does not stop here. Even if a transaction involving an AMP spend for a foreign AE is able to be located in some agreement, written (for e.g., the sample agreements produced before the Court by the Revenue) or otherwise, how should a TPO proceed to benchmark the portion of such AMP spend that

ASSISTANT COMMISSIONER OF INCOME-TAX vs. PERSISTENT SYSTEMS PVT. LTD.,, PUNE

In the result, the appeal of Revenue is dismissed

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita No.2336/Pun/2016 यििाारण वषा / Assessment Year : 2011-12 The Asst. Commissioner Of Income Tax, अऩीऱाथी/Appellant Circle – 4, Pune …. Vs. Persistent Systems Pvt. Ltd., Bhageerath, 402, Senapati Bapat Marg, …. प्रत्यथी / Respondent Pune – 411016 Pan: Aabcp1209Q

92B, 92C, 92CB, 92D, 92E and section 92F are all precisely defining and facilitating provisions ultimately for the purpose of computing the income as stated in section 92. All the above stated sections provided in Chapter X of the Income-tax Act, 1961 belong to a separate code as such, enacted for the purpose of computing income from international transactions

BAJAJ ALLIANZ GENERAL INSURANCE COMPNY LIMITED,,PUNE vs. DEPUTY COMMISSIONER OF INCOME TAX,,

Appeal of the assessee is allowed

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर अपील सं आयकर अपील सं. / Ita No.2896/Pun/2016 आयकर अपील सं आयकर अपील सं िनधा"रण वष" िनधा"रण वष" / Assessment Year : 2011-12 िनधा"रण वष" िनधा"रण वष"

92B of the Act. On going through the auditor’s report in Form 3CEB, AO referred the case to the TPO ITA No.26/PUN/2017 and CO No.55/PUN/2018 u/s.92CA(1) of the Act for determining the Arm’s Length Price. The TPO in his report dated 24-01-2014 accepted the benchmarking done by the assessee making no adjustments on account

ASSISTANT COMMISSIONER OF INCOME TAX vs. SOMNATH VAIJANATH SAKRE,, AURANGABAD

Appeal of the assessee is allowed

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर अपील सं आयकर अपील सं. / Ita No.2896/Pun/2016 आयकर अपील सं आयकर अपील सं िनधा"रण वष" िनधा"रण वष" / Assessment Year : 2011-12 िनधा"रण वष" िनधा"रण वष"

92B of the Act. On going through the auditor’s report in Form 3CEB, AO referred the case to the TPO ITA No.26/PUN/2017 and CO No.55/PUN/2018 u/s.92CA(1) of the Act for determining the Arm’s Length Price. The TPO in his report dated 24-01-2014 accepted the benchmarking done by the assessee making no adjustments on account

DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE -5, PUNE vs. SERUM INSTITUTE OF INDIA PVT LTD.,, PUNE

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

section 35(2AB) following the decision of the Hon’ble Gujarat High Court in the case of CIT vs. Cadila Healthcare Ltd., 31 taxmann.com 300 (Gujarat). (v) As regards to the disallowance of Rs.1,64,05,330/-, being the payments made to two foreign parties, namely, (i) Vakzine Project Management, Germany and (ii) Medicine in need corporation

JAIN IRRIGATION SYSTEMS LTD,,JALGAON vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 2,, JALGAON

Appeal is partly allowed in above terms

Bench: Shri S.S.Godara & Dr.Dipak P.Ripoteआयकरअपीलसं. / Ita No.227/Pun/2018 िनधा"रणवष" / Assessment Year : 2013-14 Jain Irrigation Systems Ltd., The Deputy Commissioner Of Jain Plastic Park, N.H No.6, Vs Income Tax, Circle-2, Jalgaon – 425001. . Jalgaon. Pan: Aaacj 7163 Q Appellant/ Assessee Respondent /Revenue Assessee By Shri Percy Pardiwala; Shri Prashant Maheshwari & Ms.Monicamulchandani – Ar’S Revenue By Shri B Koteswara Rao – Dr Date Of Hearing 23/09/2022 Date Of Pronouncement 22/12/2022 आदेश/ Order Per S.S.Godara, Jm: This Assessee’Sappeal For Assessment Year 2013-14Is Directed Against Thedeputy Commissioner Of Income Tax, Cricle-2, Jalgaon’S Assessment Order Dated 29.10.2017, Framed In Furtherance To The Dispute Resolution Panel-3, Mumbai (Drp)’S Direction Dated 25.09.2017 Passed In Objection No.78, In Proceedings U/S 143(3) R,.W.S 144C(5) Of The Income Tax Act, 1961 [In Short “The Act”].

section 92B as well as hon’ble madras high court’s decision (supra). The assessee’s argument(s) that such a price could not be super imposed on Nil value declared goes against the very applicability of Chapter-X which has been inserted in the act by the legislature by way of an anti-avoidance provision. The same would

EATON TECHNOLOGIES PVT. LTD.,,PUNE vs. ACIT, CIRCLE 1(2),, PUNE

In the result, appeal of the assessee is partly allowed

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita No.1650/Pun/2013 यििाारण वषा / Assessment Year :2008-09 Eaton Technologies Pvt. Ltd., Cluster C, Wing 1, Eon Free Zone, Plot No.1, Survey No.77, Midc, Kharadi Knowledge Park, अऩीऱाथी/Appellant Kharadi, Pune – 411014 …. Pan: Aabce4323Q Vs. The Asst. Commissioner Of Income Tax, …. प्रत्यथी / Respondent Circle 1(2), Pune

section 92B of the Act and it was also reported by assessee in Form No.3CEB for the assessment year. The assessee further pointed out that it had disallowed

M/S. SAVA HEALTHCARE LTD,,PUNE vs. ASSISTANT COMMISSIONER OF INCOME TAX,, PUNE

In the result, 70% of world profits are added in the hands of assessee under guise of Profit Split Method

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita Nos.1062 To 1068/Pun/2017 यििाारण वषा / Assessment Years : 2007-08 To 2013-14

92B of the Act and also process of testing the control and management of AE's was not the same as benchmarking of international transactions, in fact it was not a transaction at all and hence, could not be benchmarked. The assessee also argued that section 6(3) of the Act provides that an entity is resident of India

M/S. SAVA HEALTHCARE LTD,,PUNE vs. ASSISTANT COMMISSIONER OF INCOME TAX,, PUNE

In the result, 70% of world profits are added in the hands of assessee under guise of Profit Split Method

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita Nos.1062 To 1068/Pun/2017 यििाारण वषा / Assessment Years : 2007-08 To 2013-14

92B of the Act and also process of testing the control and management of AE's was not the same as benchmarking of international transactions, in fact it was not a transaction at all and hence, could not be benchmarked. The assessee also argued that section 6(3) of the Act provides that an entity is resident of India

M/S. SAVA HEALTHCARE LTD,,PUNE vs. ASSISTANT COMMISSIONER OF INCOME TAX,, PUNE

In the result, 70% of world profits are added in the hands of assessee under guise of Profit Split Method

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita Nos.1062 To 1068/Pun/2017 यििाारण वषा / Assessment Years : 2007-08 To 2013-14

92B of the Act and also process of testing the control and management of AE's was not the same as benchmarking of international transactions, in fact it was not a transaction at all and hence, could not be benchmarked. The assessee also argued that section 6(3) of the Act provides that an entity is resident of India