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

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”). 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

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

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”). 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

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.

42,654/- made by the lower authorities invoking Section 10 AA(9) r.w.s. 80IA (10) of the Act thereby alleging it to have earned more than the “ordinary” profits. The same is found to be no more re integra between the parties as this tribunal co-ordinate bench’s order dated 12.09.2019 in assessee’s appeal itself for assessment year

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.

42,654/- made by the lower authorities invoking Section 10 AA(9) r.w.s. 80IA (10) of the Act thereby alleging it to have earned more than the “ordinary” profits. The same is found to be no more re integra between the parties as this tribunal co-ordinate bench’s order dated 12.09.2019 in assessee’s appeal itself for assessment year

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

Transfer Pricing Provisions, the said Provision does not require a precise accuracy on the part of the Assessing Officer. At this point, the Ld. CIT-DR relied upon the decision of the Hon‘ble Kerala High Court in the case of Abdul Vahab P. vs. ACIT, (2012) 249 CTR 102 (Kerala) wherein the word ―appears‖ has been understood to imply

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

Transfer Pricing Provisions, the said Provision does not require a precise accuracy on the part of the Assessing Officer. At this point, the Ld. CIT-DR relied upon the decision of the Hon‘ble Kerala High Court in the case of Abdul Vahab P. vs. ACIT, (2012) 249 CTR 102 (Kerala) wherein the word ―appears‖ has been understood to imply

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

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 legislation for a blanket rejection of loss making companies but however, the TPO noted that at the time of transfer pricing documentation, assessee applied

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

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 legislation for a blanket rejection of loss making companies but however, the TPO noted that at the time of transfer pricing documentation, assessee applied

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

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 provides that most appropriate method referred to in sub-clause (1) shall be applied for determining arm's length price, in the manner as may be prescribed. For this, we have to look to the Rules framed by the Legislature. Rule 10A(ab) of the Rules defines uncontrolled transaction to mean a transaction between

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 provides that most appropriate method referred to in sub-clause (1) shall be applied for determining arm's length price, in the manner as may be prescribed. For this, we have to look to the Rules framed by the Legislature. Rule 10A(ab) of the Rules defines uncontrolled transaction to mean a transaction between

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

In the result, the appeal for the A

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviआयकर अपील सं. / Ita Nos.738, 739 & 740/Pun/2017 िनधा"रण वष" / Assessment Years : 2011-12, 2012-13 & 2013-14

section 92CA(1) r.w.s. 92C(3) and 92B of ITA, 1961.” 19. The Hon’ble Supreme Court in National Thermal Power Company Ltd. Vs. CIT (1998) 229 ITR 383 (SC) has observed that “the purpose of the assessment proceedings before the taxing authorities is to assess correctly the tax liability of an assessee in accordance with law. If, for example

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

In the result, the appeal for the A

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviआयकर अपील सं. / Ita Nos.738, 739 & 740/Pun/2017 िनधा"रण वष" / Assessment Years : 2011-12, 2012-13 & 2013-14

section 92CA(1) r.w.s. 92C(3) and 92B of ITA, 1961.” 19. The Hon’ble Supreme Court in National Thermal Power Company Ltd. Vs. CIT (1998) 229 ITR 383 (SC) has observed that “the purpose of the assessment proceedings before the taxing authorities is to assess correctly the tax liability of an assessee in accordance with law. If, for example

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

In the result, the appeal for the A

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviआयकर अपील सं. / Ita Nos.738, 739 & 740/Pun/2017 िनधा"रण वष" / Assessment Years : 2011-12, 2012-13 & 2013-14

section 92CA(1) r.w.s. 92C(3) and 92B of ITA, 1961.” 19. The Hon’ble Supreme Court in National Thermal Power Company Ltd. Vs. CIT (1998) 229 ITR 383 (SC) has observed that “the purpose of the assessment proceedings before the taxing authorities is to assess correctly the tax liability of an assessee in accordance with law. If, for example

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

Section 92C(3). 3.14 The above principal was also ruled in the case of Nielson India Pvt Ltd. [TS-347-ITAT-2016-Mum], wherein the Tribunal held that TPO/DRP not justified in determining ALP at Nil on ground of furnishing of no documentary evidence despite furnishing of details of services as well as allocation of cost pertaining to these services

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

Section 92C(3). 3.14 The above principal was also ruled in the case of Nielson India Pvt Ltd. [TS-347-ITAT-2016-Mum], wherein the Tribunal held that TPO/DRP not justified in determining ALP at Nil on ground of furnishing of no documentary evidence despite furnishing of details of services as well as allocation of cost pertaining to these services

NALCO WATER INDIA LIMITED,,PUNE vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE -2, , PUNE

Appeal is allowed for statistical purposes

Bench: Shri R.S.Syal, Vp & Shri Partha Sarathi Chaudhury, Jm Assessment Year:2014-15

42,10,447 8 Nalco Water India Ltd. A.Y. 2014-15. 13. In view of the facts of the case, submissions of assessee, economic analysis carried out discussion made above, Arm‟s Length Price of transactions as reported by the assessee company is altered and an adjustment of Rs. 32,61,52,919/- is made in respect of international transaction

MERCEDES-BENZ INDIA PVT.LTD,,PUNE vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE - 9,, PUNE

Appeal is allowed in above terms

Bench: Shri S.S.Godara & Shri G.D.Padmashaliआयकर अपीलसं. / Ita No.14/Pun/2018 िनधा"रणवष" / Assessment Year : 2013-14 Mercedes-Benz India Privatge The Acit, Circle-9, Pune. Limited, Vs E-3, Midc Chakan, Phase-Iii, . Chakan Industrial Area, Kuruli & Nighoje, Tal.Khed, Pune – 410 501. Pan: Aabcm 1786 L Appellant/ Assessee Respondent /Revenue Assessee By Shri Percy Pardiwala & Shri Darpan Kirpalani – Ar Revenue By Shri Prashant Gadekar – Dr Date Of Hearing 26/08/2022 Date Of Pronouncement 29/09/2022 आदेश/ Order Per S.S.Godara, Jm: This Assessee’S Appeal For A.Y. 2013-14 Arises Against The Acit, Circle-9, Pune’S Assessment Dated 07.11.2017 Framed In Furtherance To Dispute Resolution Panel-3, Mumbai “Drp”S Directions Dated 14.09.2017 Passed In Objection No.27, Involving Proceedings Under Section 143(3) R.W. S. 144C(13) Of The Income Tax Act, 1961 [In Short “The Act”].

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 :— ITA No.14/PUN/2018 for A.Y. 2013-14 (A) Mercedes-Benz India Pvt. Ltd. b) resale price method, by which,— (i) the price at which property purchased or services obtained

MERCEDES BENZ INDIA PVT. LTD.,,PUNE vs. ACIT CIR.9,, PUNE

In the result, all the appeals of assessee are allowed

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita No.1468/Pun/2010 यििाारण वषा / Assessment Year : 2006-07 Mercedes-Benz 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 – 9, Pune आयकर अपीऱ सं. / Ita No.10/Pun/2012 यििाारण वषा / Assessment Year : 2007-08 Mercedes-Benz 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 – 9, Pune आयकर अपीऱ सं. / Ita No.298/Pun/2013 यििाारण वषा / Assessment Year : 2008-09 Mercedes-Benz 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 – 9, Pune : Shri Pramod Achuthan : Ms. Nandita Kanchan Revenue By घोषणा की तारीख / सुनवाई की तारीख / Date Of Pronouncement: 30.04.2019 Date Of Hearing : 12.02.2019

42. Following the above said principles, we hold that approach adopted by TPO in comparing margins of controlled transaction i.e. import of spare parts and import of CBUs from associated enterprises and proposing adjustment on account of arm's length price of international transactions does not stand and the same is cancelled. Hence, the TPO had erred in applying