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

Transfer Pricing Study Report and the scientific methodology adopted by the Appellant to determine hourly rates and their benchmarking with third parties using Comparable Uncontrolled Price 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

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.

Transfer Pricing assessment can at best be taken as an indicator for the Assessing Officer to investigate as to whether or not there exists any arrangement which has resulted in more than ordinary profits qua the requirements of section 10A(7) r.w.s. 80-IA(10) of the Act. Even if it is accepted that the difference between the operating margins

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.

Transfer Pricing assessment can at best be taken as an indicator for the Assessing Officer to investigate as to whether or not there exists any arrangement which has resulted in more than ordinary profits qua the requirements of section 10A(7) r.w.s. 80-IA(10) of the Act. Even if it is accepted that the difference between the operating margins

DEPUTY COMMISSIONER OF INCOME TAX, PUNE vs. HALLIBURTON TECHNOLOGY INDIA PVT. LTD, PUNE

In the result, the appeal of the Revenue is dismissed

Bench: Invoking Section 80La( 10) , Of The Act When Bare Reading Of The Provision Does Not Impose Such Burden Of Proving Tax Avoidance On A.O.? 3. Whether On The Facts, Circumstances Of The Case And- In Law, Ld. Commissioner Of Income Tax (Appeals) Was Justified In Interpreting The Words According To The Object Of The Provision Ignoring The Fundamental Principle Of Interpretation Of Stature That Nothing Should Be Added To The Words Used By Legislature? 4. Whether On The Facts & Circumstances Of The Case & In Law, The Ld. Cit(A) Was Justified In Imposing Burden Of Proving Tax Avoidance Ignoring The Fact That Section 80Ia(10) Of The Act Is A “Domestic Transfer Pricing” Provision & Proving Tax Avoidance Is Not One

section 80IA(10) of the Act is a “domestic transfer pricing” provision and proving tax avoidance is not one 2

FAURECIA INTERIOR SYSTEMS INDIA P. LTD.,,PUNE vs. ASSISTANT COMMISSIONER OF INCOME-TAX,,

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

Bench: Ms. Sushma Chowla, Jm & Shri D. Karunakara Rao, Am

section 92C(2) of the Act and accordingly, making the transfer pricing adjustment from the arm's length price without

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

2), as increased by the amount or amounts of expenditure relatable to any income to which section 10 (other than the provisions contained in clause 38 thereof) of section 11 or section 12 apply" and in this case the disallowance is made u/s 14A which is always part of the expenses specifically debited to the profit and loss account

M/S. A B KNOWLEDGE SYSTEMS,,PUNE vs. INCOME-TAX OFFICER,,

In the result, the appeal of assessee is partly allowed

Bench: Ms. Sushma Chowla, Jm & Shri D. Karunakara Rao, Am आयकर अपीऱ सं. / Ita No.894/Pun/2016 यििाारण वषा / Assessment Year : 2012-13 M/S. Ab Knowledge Systems, 406, Lunkad Sky Station, Viman Nagar, अऩीऱाथी/Appellant Pune – 411014 …. Pan: Aarfa5025E Vs. The Income Tax Officer, …. प्रत्यथी / Respondent Ward 7(3), Pune

2 Without prejudice to 1 above, assuming that provisions of section 80-IA(8) r.w.s. 10AA(9) do apply, on the facts and in the circumstances of the case, the Ld. CIT(A) ought to have held that deduction allowable u/s 10AA was to be computed as contemplated in the manner specified in section

MERCEDES-BENZ INDIA PRIVATE LIMITED,,PUNE vs. DEPUTY COMMISSIONER OF INCOME TAX,, PUNE

The appeal of the assessee is partly allowed for statistical purposes

section 92C(3)/92CA(1) and hence, the same is not in accordance with the provisions of the Act. The transfer pricing adjustment and the Transfer Pricing Order passed should be quashed as being bad in law or illegal or void ab initio. Ground No.2 - General ground related to Transfer pricing adjustment amounting to Rs. 110,33.85,000 2

M/S. HONEWELL AUTOMATION INDIA LTD.,,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX,,

In the result, the appeal of Revenue is dismissed

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

2) of section 92C of the Act considers the entire 16 ITA Nos. 583 & 619/PUN/2015, A.Y. 2003-04 range of results where more than one result is obtained and there is no rule under the Indian transfer pricing

DEPUTY COMMISSIONER OF INCOME-TAX vs. M/S. HONEYWELL AUTOMATION INDIA LTD.,, PUNE

In the result, the appeal of Revenue is dismissed

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

2) of section 92C of the Act considers the entire 16 ITA Nos. 583 & 619/PUN/2015, A.Y. 2003-04 range of results where more than one result is obtained and there is no rule under the Indian transfer pricing

DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 1(1),, PUNE vs. M/S. IAC INTERNATIONAL AUTOMOTIVE INDIA PVT.LTD,, PUNE

In the result, the appeal of the Revenue is dismissed

Bench: Ms. Astha Chandra & Shree Dr. Dipak P. Ripote

Transfer Pricing Officer (“TPO”) under the provisions of section 92CA(1) of the Act in order to determine the Arm‟s Length Price (“ALP”) in respect of such international transactions. 2.2 The assessee undertook the following international transactions with its AEs during AY 2013-14 and benchmarked each transaction by selecting the Most Appropriate Method (“MAM”) mentioned in the table

DEPUTY COMMISSIONER OF INCOME-TAX vs. M/S. HONEYWELL AUTOMATION INDIA LTD.,, PUNE

In the result, the appeal of Revenue is dismissed as infructuous

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

2) of the Act. The case of CIT(A) is that the deduction u/s. 10A is to be restricted to the extent of ordinary profit earned by the assessee be that of comparable companies by invoking the provisions of sub-section (7) of section 10A of the Act. 7. The assessee submitted that the provisions of section

M/S. HONEWELL AUTOMATION INDIA LTD.,,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX,,

In the result, the appeal of Revenue is dismissed as infructuous

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

2) of the Act. The case of CIT(A) is that the deduction u/s. 10A is to be restricted to the extent of ordinary profit earned by the assessee be that of comparable companies by invoking the provisions of sub-section (7) of section 10A of the Act. 7. The assessee submitted that the provisions of section

MERCEDES-BENZ INDIA PVT. LTD. (FORMERLY KNOWN AS DAIMLER CHRYSLER INDIA PVT. LTD),PUNE vs. ASST. CIT, CIRCLE-8, PUNE

In the result, appeal of assessee is partly allowed, appeal of Revenue is dismissed and cross objections of assessee are dismissed

Bench: Ms. Sushma Chowla, Jm & Shri D. Karunakara Rao, Am आयकर अपीऱ सं. / Ita No.1083/Pun/2013 यििाारण वषा / Assessment Year : 2005-06 Mercedes-Benz India Pvt. Ltd., (Formerly Known As Daimler Chrysler India Pvt. Ltd.) E-3, Midc Chakan, Phase – Iii, Chakan Industrial Area, Kuruli & Nighoje, Tal. Khed, अऩीऱाथी/Appellant Pune – 410501 …. Pan: Aabcm1789L Vs. The Asst. Commissioner Of Income Tax, …. प्रत्यथी / Respondent Circle – 8, Pune

section 92C(2) of the Act to determine arm's length price in relation to an international transaction. In other words, in order to analyze arm's length price of international transactions, the Legislature itself provides that closely linked transactions were to be adopted as one transaction in order to carry out transfer

DY. CIT, CIRCLE-9, PUNE vs. MERCEDES BENZ I PVT. LTD. (FORMERLY KNOWN AS DAIMLER CHRYSLER I PVT. LTD), PUNE

In the result, appeal of assessee is partly allowed, appeal of Revenue is dismissed and cross objections of assessee are dismissed

Bench: Ms. Sushma Chowla, Jm & Shri D. Karunakara Rao, Am आयकर अपीऱ सं. / Ita No.1083/Pun/2013 यििाारण वषा / Assessment Year : 2005-06 Mercedes-Benz India Pvt. Ltd., (Formerly Known As Daimler Chrysler India Pvt. Ltd.) E-3, Midc Chakan, Phase – Iii, Chakan Industrial Area, Kuruli & Nighoje, Tal. Khed, अऩीऱाथी/Appellant Pune – 410501 …. Pan: Aabcm1789L Vs. The Asst. Commissioner Of Income Tax, …. प्रत्यथी / Respondent Circle – 8, Pune

section 92C(2) of the Act to determine arm's length price in relation to an international transaction. In other words, in order to analyze arm's length price of international transactions, the Legislature itself provides that closely linked transactions were to be adopted as one transaction in order to carry out transfer

DEPUTY COMMISSIONER OF INCOME-TAX vs. M/S. HONEYWELL AUTOMATION INDIA LTD.,, PUNE

In the result, appeal of the assessee in ITA No

Bench: Shri R.S.Syal, Vp & Shri Partha Sarathi Chaudhury, Jm

Transfer Pricing Officer (TPO)/Dispute Resolution Panel (DRP) as per grounds of appeal on record. 2. The brief facts in this case are that the assessee is a public limited company and is engaged in the business of automation and control being categorized into following three business activities: i) System Integration Segment (includes operations carried by the EHTP unit

M/S. HONEYWELL AUTOMATION INDIA LTD.,,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX,,

In the result, appeal of the assessee in ITA No

Bench: Shri R.S.Syal, Vp & Shri Partha Sarathi Chaudhury, Jm

Transfer Pricing Officer (TPO)/Dispute Resolution Panel (DRP) as per grounds of appeal on record. 2. The brief facts in this case are that the assessee is a public limited company and is engaged in the business of automation and control being categorized into following three business activities: i) System Integration Segment (includes operations carried by the EHTP unit

TDK ELECTRONICS AG, (FORMERLY KNOWN AS EPCOS AG),,NASHIK vs. ASSISTANT COMMISSIONER OF INCOME-TAX, (IT), CIRCLE -1,, PUNE

In the result, the appeal is allowed

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviिनधा"रण वष" / Assessment Year : 2015-16 Tdk Electronics Ag Vs. Acit (It), (Formerly Known As Epcos Ag) Circle-1, Pune C/O. Epcos India Pvt. Ltd., E-22-25, Midc Satpur, Nashik 422 007 Pan : Aaace9787H Appellant Respondent

Transfer Pricing Officer (TPO) for determining the arm’s length price (ALP) of the international transactions. Pursuant to the order passed by the TPO, the AO passed a draft order dated 21.12.2018 determining total income at Rs.33.48 crore by making an addition of Rs.38,77,566/- on account of `Income from fees for technical services’. The draft order was admittedly