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.

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

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.

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

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

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 Assessee by Shri Vishal Kalra Revenue by Shri Pankaj Kumar – DR Date of hearing 30-11-2022 Date of pronouncement 06-12-2022 आदेश / ORDER Per S.S.Godara, JM: These assessee’s twin appeals

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

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 Assessee by Shri Vishal Kalra Revenue by Shri Pankaj Kumar – DR Date of hearing 30-11-2022 Date of pronouncement 06-12-2022 आदेश / ORDER Per S.S.Godara, JM: These assessee’s twin appeals

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

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, 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 analysis conducted by the Assessee and for computing the arm's length price of the Assessee's international transaction pertaining to payment of management fees at Rs. 3,32,21,272/ taking AE as tested party with TNMM selected as most appropriate method to compute arm's length price without appreciating the facts that: a. The comparable companies

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

C” BENCH, PUNE (Through Virtual Court) BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपीऱ सं. / ITA No.584/PUN/2015 नििाारण वषा / Assessment Year : 2005-06 M/s. Honeywell Automation India Limited, 56 & 57, Hadapsar Industrial Estate, Hadapsar, Pune – 411013 PAN : AAACT3904F ......अऩीऱाथी / Appellant बिाम / V/s. Deputy Commissioner of Income Tax, Circle – 7, Pune ……प्रत्यथी / Respondent आयकर

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

C” BENCH, PUNE (Through Virtual Court) BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपीऱ सं. / ITA No.584/PUN/2015 नििाारण वषा / Assessment Year : 2005-06 M/s. Honeywell Automation India Limited, 56 & 57, Hadapsar Industrial Estate, Hadapsar, Pune – 411013 PAN : AAACT3904F ......अऩीऱाथी / Appellant बिाम / V/s. Deputy Commissioner of Income Tax, Circle – 7, Pune ……प्रत्यथी / Respondent आयकर

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

transfer pricing documentation, assessee applied filter to reject the companies having negative worth showing that the assessee has rejected companies whose capital has been eroded as a result of continuous losses, that persistent operating loss makers have been rejected by assessee on the most conservative approach and requested to include Mahindra Ashtec Limited and Artson Engineering Ltd. as comparables

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

transfer pricing documentation, assessee applied filter to reject the companies having negative worth showing that the assessee has rejected companies whose capital has been eroded as a result of continuous losses, that persistent operating loss makers have been rejected by assessee on the most conservative approach and requested to include Mahindra Ashtec Limited and Artson Engineering Ltd. as comparables

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

C. Further, referring to Ground Nos. 14 and 16 relating to corporate/ non-Transfer Pricing issues, Ld. Counsel submitted that they relate to the claim of deduction u/s.10A of the Act and disallowance u/s.14A of the Act. 4. Before us, Ld. Counsel for the assessee filed a chart giving the particulars of the grounds/issue-wise revenue comments, contentions

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

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

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, the arm's length price in relation to an international transaction shall be determined by any of the following methods, being the most appropriate method, in the following manner, namely :— b) resale price method, by which,— (i) the price at which property purchased or services obtained by the enterprise from an associated enterprise is resold or are provided

BMC SOFTWARE INDIA PRIVATE LIMITED,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE-1(1), PUNE

The appeal is dismissed as not pressed

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

section 271(1)(c) of the Act without appreciating the facts that transfer pricing adjustment to the international transactions of the Appellant and corporate tax adjustment made is on account of difference of opinion as to application of selection criterion for selection of comparable companies, incoherent approach, interpretation of the provisions, interpretation of case laws etc. IV Additional ground

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

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

Bench: Shri R.S. Syal & Shri Vikas Awasthy

c), which is as under : - M/s. Carraro India Private Limited (i) the direct and indirect costs of production incurred by the enterprise in respect of property transferred or services provided to an associated enterprise, are determined ; (ii) the amount of a normal gross profit mark-up to such costs (computed according to the same accounting norms) arising from the transfer

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

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

Bench: Shri R.S. Syal & Shri Vikas Awasthy

c), which is as under : - M/s. Carraro India Private Limited (i) the direct and indirect costs of production incurred by the enterprise in respect of property transferred or services provided to an associated enterprise, are determined ; (ii) the amount of a normal gross profit mark-up to such costs (computed according to the same accounting norms) arising from the transfer

M/S. EATON POWER QUALITY PRIVATE LTD.,,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX,,

In the result, the appeal of assessee in ITA No

Bench: Shri Anil Chaturvedi, Am & Shri Vikas Awasthy, Jm

Transfer Pricing which also recommends the indirect charge approach for intra- group services in certain circumstances. The relevant Paras from the OECD Guidelines are reproduced hereunder for ready reference: "Para 7.24 -In some cases, an indirect charge method may be necessary due to the nature of the service being provided. One example is where the proportion of the value

M/S EATON POWER QUALITY P.LTD.,PUNE vs. ACIT, PUNE

In the result, the appeal of assessee in ITA No

Bench: Shri Anil Chaturvedi, Am & Shri Vikas Awasthy, Jm

Transfer Pricing which also recommends the indirect charge approach for intra- group services in certain circumstances. The relevant Paras from the OECD Guidelines are reproduced hereunder for ready reference: "Para 7.24 -In some cases, an indirect charge method may be necessary due to the nature of the service being provided. One example is where the proportion of the value