TEEJAY INDIA PRIVATE LIMITED,VISAKHAPATNAM vs. ASSISTANT COMMISSIONER OF INCOME TAX, DC/AC 4(1), VISAKHAPATNAM

In the result, appeal filed by the assessee is partly allowed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

transfer pricing adjustments not on proportionate basis which was consistently followed in earlier assessment years. 4.12. Not providing appropriate economic adjustments towards material differences between the operational profile of comparable companies and the appellant with respect to working capital adjustments. Grounds for disallowance

GVR POWER & INFRASTRUCTURE LIMITED,KADIYAM vs. ACIT, CIRCLE - 2(1), RAJAHMUNDRY

In the result, the appeal filed by the assessee is partly allowed

Bench: Shri V. Durga Rao & Shri D.S. Sunder Singh

transfer pricing officer found GVK Power & Infrastructure Ltd., Jegurupadu that the assessee has receivables of Rs.7,32,97,465/- as at the end of the year. The TPO requested the assessee to submit the details of raising the invoice and subsequent receipt of the amount and also called for an explanation as to why notional interest should not be charged

ASSISTANT COMMISSIONER OF INCOME, CIRCLE-1(1),, GUNTUR vs. M/S CCL PRODUCTS(INDIA) LIMITED, GUNTUR

In the result, appeal of the revenue is dismissed

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.348/Viz/2018 (ननधधारण वर्ा/ Assessment Year:2014-15) Dcit, Circle-1(1) Vs. M/S Ccl Products (India) Guntur Pvt. Ltd. Duggirala Post & Mandal Guntur [Pan : Aaacc9552G] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant By : Shri D.K.Sonowal, Dr प्रत्यधथी की ओर से/ Respondent By : Shri Ramesh Babu, Ar सुनवधई की तधरीख / Date Of Hearing : 20.03.2019 घोर्णध की तधरीख/Date Of Pronouncement : 03 .04.2019

Transfer pricing - Computation of arm's length price (Comparables and Adjustments/Adjustments - Interest) - Assessment year 2011-12 - TPO noted that there was delay in receipt of payment from AE and observed that estimate period of 30 days would be considered as normal period for inter-company sales and services and any delay beyond said period should be benchmarked - After treating said

KOTARI SRINIVASA RAO, ,UNDRAJAVARAM MANDALAM vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX, , RAJAHMUNDRY

In the result, additional ground raised is allowed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपील सं./I.T.A.No.335/Viz/2019 (ननधधारण वर्ा / Assessment Year : 2014-15) Kotari Srinivasa Rao Vs. Principal Commissioner Of D.No.1-91, Canal Road Income Tax Velivennu Rajahmundry Undrajavaram Mandal West Godavari Dist. [Pan : Apjpk9870N] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

disallowance on account of unverifiable expenditure under the heads “freight”, “oil & petrol” “salaries & wages” etc. 3. Under the powers vested with the PCIT u/s 263 of the Act, the assessment records were called for and after careful examination of the assessment records, the Ld.Pr.CIT held that the assessment order dated 29.06.2016 passed is not only erroneous but also prejudicial

M/S. MAHATI SOFTWARE PVT. LTD.,VISAKHAPATNAM vs. THE ACIT,, VISAKHAPATNAM

In the result, appeals of the assessee are partly allowed

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.67/Viz/2016 & 68/Viz/2017 (निर्धारण वर्ा/Assessment Year:2011-12 & 2012-13) M/S Mahati Software Pvt. Ltd. Vs. Asst. Commissioner Of D.No.10-27-14A Income Tax Sivam, Kailashmetta Circle-3(1) Waltair Visakhapatnam Visakhapatnam [Pan : Aadcm9620J] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

Transfer Pricing Officer (TPO)]-1, Hyderabad dated27.01.2015and 30.01.2016 for the assessment year 2011-12 and 2012-13 respectively u/s 143(3) r.w.s.144C(13) of the 2 I.T.A Nos.67/Viz/2016& 68/Viz/2017 M/s Mahati Software Pvt. Ltd., Visakhapatnam Act. Since the issues involved in both the appeal are common, both the appeal are clubbed and heard together and disposed off in a common

MAHATI SOFTWARE PVT LTD.,,VISAKHAPATNAM vs. THE ACIT,, VISAKHAPATNAM

In the result, appeals of the assessee are partly allowed

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.67/Viz/2016 & 68/Viz/2017 (निर्धारण वर्ा/Assessment Year:2011-12 & 2012-13) M/S Mahati Software Pvt. Ltd. Vs. Asst. Commissioner Of D.No.10-27-14A Income Tax Sivam, Kailashmetta Circle-3(1) Waltair Visakhapatnam Visakhapatnam [Pan : Aadcm9620J] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

Transfer Pricing Officer (TPO)]-1, Hyderabad dated27.01.2015and 30.01.2016 for the assessment year 2011-12 and 2012-13 respectively u/s 143(3) r.w.s.144C(13) of the 2 I.T.A Nos.67/Viz/2016& 68/Viz/2017 M/s Mahati Software Pvt. Ltd., Visakhapatnam Act. Since the issues involved in both the appeal are common, both the appeal are clubbed and heard together and disposed off in a common

GVK POWER & INFRASTRUCTURE LIMITED,KADIYAM vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2(1),, RAJAHMUNDRY

In the result, appeal of the assessee is allowed

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकरअपीलसं./I.T.A.No.553/Viz/2018 (ननधधारण वर्ा/Assessment Year:2014-15) M/S Gvk Power & Infrastructure Ltd. Vs. Asst.Commissioner Of D.No.5-48, Gvk Power Plant Income Tax Jegurupadu, Kadiyammandal Circle-2(1) East Godavari Rajamahendravaram [Pan :Aaacj5599A] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओ रसे/ Appellant By Shri G.V.N.Hari, Ar प्रत्यधथी की ओर से/ Respondent By Shri D.K.Sonowal, Cit Dr सुनवधई की तधरीख / Date Of Hearing : 21.03.2019 घोर्णध की तधरीख/Date Of Pronouncement : 03.04.2019

transfer pricing study. The assessee has brought on record the number of case laws relied up on, but the revenue did not make out a case for rejection of the commission @ 0.25% to 0.53%, which is held to be reasonable. Neither the A.O. nor DRP brought on record any decision, which is held to be more favourable to the revenue

TEEJAY INDIA PRIVATE LIMITED,VISAKHAPATNAM vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-5(1), VISAKHAPATNAM

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

Bench: Shri Vijay Pal Rao, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपीलसं./I.T.A.No.340/Viz/2024 (निर्धारण वर्ा/ Assessment Year: 2020-21) & S.A. No. 15/Viz/2025 (निर्धारण वर्ा/ Assessment Year: 2020-21) Teejay India Private Limited, Vs. Deputy Commissioner Of Plot No. 15, Brandix, Apsez, Income Tax, Pudimadaka Road, Atchutapuram Circle-5(1), Mandal, Visakhapatnam-530011. Visakhapatnam. Pan: Aaaco9452H (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

transfer price of the appellant’s international transactions of Rs. 24,84,58,065/- in respect of payment of royalty, Rs. 40,49,995/- in respect of payment of interest on ECB and Rs. 5,57,443/- on account of imputation of notional interest on outstanding receivables. Further, the Ld. AO and the Ld. DRP erred in disallowing

THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2,, VISAKHAPATNAM vs. SRI VIJAYA VISAKHA MILK PRODUCERS COMPANY LIMITED,, VISAKHAPATNAM

In the result, Cross Objections filed by the assessee are dismissed as infructuous

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकरअपीलसं./ I.T.A. Nos. 243 & 244/Viz/2020 ("नधा"रणवष"/ Assessment Year : 2011-12 & 2012-13) Assistant Commissioner Of Vs. M/S. Sri Vijaya Visakha Milk Income Tax, Producers Company Limited, Central Circle-2, Visakhapatnam. Visakhapatnam. Pan: Aajcs 7398 P (अपीलाथ"/ Appellant) (""यथ"/ Respondent) Co Nos. 18 & 19/Viz/2023 (In आयकरअपीलसं./ I.T.A. No.243 & 244/Viz/2020 ("नधा"रणवष"/ Assessment Year : 2011-12 & 2012-13)

disallowed and added back Rs. 1,65,72,145/- to the total income of the assessee. Further, on verification of the submissions, the Ld. AO also noticed that the assessee company 5 has debited an amount of Rs. 146,06,81,638/- to the P & L Account towards withheld price against the procurement of milk and kept the said amount

THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, , VISAKHAPATNAM vs. SRI VIJAYA VISAKHA MILK PRODUCERS COMPANY LIMITED, , VISAKHAPATNAM

In the result, Cross Objections filed by the assessee are dismissed as infructuous

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकरअपीलसं./ I.T.A. Nos. 243 & 244/Viz/2020 ("नधा"रणवष"/ Assessment Year : 2011-12 & 2012-13) Assistant Commissioner Of Vs. M/S. Sri Vijaya Visakha Milk Income Tax, Producers Company Limited, Central Circle-2, Visakhapatnam. Visakhapatnam. Pan: Aajcs 7398 P (अपीलाथ"/ Appellant) (""यथ"/ Respondent) Co Nos. 18 & 19/Viz/2023 (In आयकरअपीलसं./ I.T.A. No.243 & 244/Viz/2020 ("नधा"रणवष"/ Assessment Year : 2011-12 & 2012-13)

disallowed and added back Rs. 1,65,72,145/- to the total income of the assessee. Further, on verification of the submissions, the Ld. AO also noticed that the assessee company 5 has debited an amount of Rs. 146,06,81,638/- to the P & L Account towards withheld price against the procurement of milk and kept the said amount

TEEJAY INDIA PRIVATE LIMITED,VISAKHAPATNAM vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-5(1), VISAKHAPATNAM

Bench: Shri Ravish Sood, Hon’Ble & Shri Omkareshwar Chidara, Hon’Ble

transfer price of the Appellant's international transactions of INR 20,72,84,822 in respect of payment of royalty, INR 31,16,642 in respect of payment of interest on ECB and INR 86,54,646 on account of imputation of notional interest on outstanding receivables. Further, the learned AO and the learned DRP erred in disallowing

DEVI SEA FOODS LIMITED,VISAKHAPATNAM vs. DEPUTY COMMISSIONER OF INCOME TAX , CIRCLE -3(1), VISAKHAPATNAM

In the result, appeal of the assessee is allowed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपील सं./I.T.A.No.156/Viz/2022 (निर्धारण वर्ा / Assessment Year : 2018-19) M/S Devi Sea Foods Limited Vs. Deputy Commissioner Of 50-1-51/1, A.S.R.Nagar Income Tax Seethammadhara Circle-3(I) Visakhapatnam Visakhapatnam [Pan : Aabcd0248B] अपीलधथी की ओर से/ Appellant By : Shri D.Anand, Ar प्रत्यधथी की ओर से / Respondent By : Shri M.N.Murthy Naik, Cit(Dr) सुिवधई की तधरीख / Date Of Hearing : 01.12.2022 घोर्णध की तधरीख/Date Of Pronouncement : 16.12.2022 O R D E R Per Shri S.Balakrishnan:

disallowance as per Rule 8D of I.T.Rules, 1962. Aggrieved by the order passed by the AO based on the directions of the Ld.DRP, the assessee is in appeal before us and raised the following grounds : 1. The Final Assessment order incorporating Transfer Pricing

GVK POWER AND INFRASTRUCTURE LIMITED,JEGURUPADU vs. DCIT, CIRCLE-1, RAJAHMUNDRY

In the result, appeal of the assessee is partly allowed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

Transfer pricing upward adjustments made by the Ld. TPO, the Ld.AO passed a draft assessment order dated 15/4/2021. Aggrieved by the draft assessment order, the assessee filed its objections before the Ld. Dispute Resolution Panel, Bengaluru [DRP]. Considering the objections of the Ld. Assessee’s Representative, the DRP in F.No. 25/DRP-1/BNG/2021-22, dated 27/01/2022 rejected the objections raised

DEVI SEA FOODS LIMITED,VISAKHAPATNAM vs. DCIT, CIRCLE-3(1), VISAKHAPATNAM

In the result, appeal of the assessee is allowed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकरअपीलसं./ I.T.A. No.75/Viz/2022 ("नधा"रणवष"/ Assessment Year: 2017-18) M/S. Devi Sea Foods Limited, Vs. Deputy Commissioner Of Visakhapatnam. Income Tax, Pan: Aabcd 0248 B Circle-3(1), Visakhapatnam. (अपीलाथ"/ Appellant) (""यथ"/ Respondent) अपीलाथ"क"ओरसे/ Appellant By : Sri D. Anand, Advocate ""याथ"क"ओरसे/ Respondent By : Sri Mn Murthy Naik, Cit-Dr

Transfer Pricing Officer [TPO] for determining Arms LengthPrice (ALP) u/s 92CA(3) in respect of its international transaction entered into with AE, after approval from the Principal Commissioner of Income Tax-1, Visakhapatnam on 1/4/2019. In response to the notices of the Ld. TPO, the assessee filed various submissions and requested for personal hearing which was allowed on 20/1/2021. Considering

POINEER ELASTIC INDIA PRIVATE LIMITED,VISAKHAPATNAM vs. ACIT, CIRCLE-5(1), , VISAKHAPATNAM

In the result, appeal of the assessee is dismissed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अऩीऱ सं./ I.T.A. No.167/Viz/2017 (ननधधारण वषा / Assessment Year :2012-13) M/S. Pioneer Elastic India Pvt Ltd., Vs. Asst. Commissioner Of Plot No.06, Brandix India Appareal Income Tax, City Sez, Pudimadaka Road, Circle-5(1), Atchutapuram Mandal, Visakhapatnam. Visakhapatnam – 531011. Pan: Aaecp 3529 N (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) आयकर अऩीऱ सं./ I.T.A. No.05/Viz/2018 (ननधधारण वषा / Assessment Year :2013-14) M/S. Pioneer Elastic India Pvt Ltd., Vs. Asst. Commissioner Of Plot No.06, Brandix India Appareal Income Tax, City Sez, Pudimadaka Road, Circle-5(1), Atchutapuram Mandal, Visakhapatnam. Visakhapatnam – 531011. Pan: Aaecp 3529 N (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अऩीऱधथी की ओर से/ Appellant By : Sri P.V.S.S. Prasad, Ca & Sri A. Vamsi Rajesh, Ca प्रत्यधथी की ओर से / Respondent By : Sri Mn Murthy Naik, Cit-Dr सुनवधई की तधरीख / Date Of Hearing : 23/05/2022 घोषणध की तधरीख/Date Of : 27/07/2022 Pronouncement

disallowing the under-utilization capacity adjustment finally determined adjustment u/s 92CA(3) of the Act based on the average PLI as follows: Description Amount (Rs.) % of AE sales on 54.59% operating revenue Operating Cost 18,28,83,863 Arm’s Length Margin 2.83% Prop. Operating Cost 9,98,36,304 Arm’s Length Price 10,26,61,671 Price received

M/S. PIONEER ELASTIC INDIA PVT. LTD.,VISAKHAPATNAM vs. THE ACIT,, VISAKHAPATNAM

In the result, appeal of the assessee is dismissed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अऩीऱ सं./ I.T.A. No.167/Viz/2017 (ननधधारण वषा / Assessment Year :2012-13) M/S. Pioneer Elastic India Pvt Ltd., Vs. Asst. Commissioner Of Plot No.06, Brandix India Appareal Income Tax, City Sez, Pudimadaka Road, Circle-5(1), Atchutapuram Mandal, Visakhapatnam. Visakhapatnam – 531011. Pan: Aaecp 3529 N (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) आयकर अऩीऱ सं./ I.T.A. No.05/Viz/2018 (ननधधारण वषा / Assessment Year :2013-14) M/S. Pioneer Elastic India Pvt Ltd., Vs. Asst. Commissioner Of Plot No.06, Brandix India Appareal Income Tax, City Sez, Pudimadaka Road, Circle-5(1), Atchutapuram Mandal, Visakhapatnam. Visakhapatnam – 531011. Pan: Aaecp 3529 N (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अऩीऱधथी की ओर से/ Appellant By : Sri P.V.S.S. Prasad, Ca & Sri A. Vamsi Rajesh, Ca प्रत्यधथी की ओर से / Respondent By : Sri Mn Murthy Naik, Cit-Dr सुनवधई की तधरीख / Date Of Hearing : 23/05/2022 घोषणध की तधरीख/Date Of : 27/07/2022 Pronouncement

disallowing the under-utilization capacity adjustment finally determined adjustment u/s 92CA(3) of the Act based on the average PLI as follows: Description Amount (Rs.) % of AE sales on 54.59% operating revenue Operating Cost 18,28,83,863 Arm’s Length Margin 2.83% Prop. Operating Cost 9,98,36,304 Arm’s Length Price 10,26,61,671 Price received

LEWEK ALTAIR SHIPPING PRIVATE LIMITED,KAKINADA vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-1, KAKINADA

In the result, the appeal of the assessee is dismissed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपील सं./I.T.A.No.146/Viz/2021 & 147/Viz/2021 (ननधधारण वर्ा / Assessment Year : 2012-13 & 2013-14) Lewek Altair Shipping Private Limited Vs. Dy.Commissioner Of Income Tax D.No.3-16-193/1, Sri Vidya Colony Circle-1 Suryarao Peta, Kakinada Kakinada [Pan : Aabcl9766C] अपीलधथी की ओर से/ Appellant By : Shri Jitendra Singh, Ar प्रत्यधथी की ओर से / Respondent By : Shri Mn Murthy Naik, Cit(Dr) सुनवधई की तधरीख / Date Of Hearing : 21.11.2022 घोर्णध की तधरीख/Date Of Pronouncement : 23.01.2023 O R D E R Per Shri S.Balakrishnan: These Appeals Are Filed By The Assessee Against The Orders Of The Ao/Tpo/Dispute Resolution Panel-1, Bengaluru(Drp In Short) U/S 143(3) R.W.S 144C Of The Income Tax Act For The Assessment Years 2012-13 & 2013-14 Respectively. Since The Facts Are Identical, Both The Appeals Are Clubbed, Heard Together & Disposed Off In A Common Order For The Sake Of Convenience & The Facts Are Extracted From I.T.A.No.146/Viz/2021 For The A.Y.2012-13. 2 Ita No.146/Viz/2021 & 147/Viz/2021, A.Y.2012-13 & 2013-14 Lewek Altair Shipping Private Ltd., Kakinada

transfer pricing issue. Fresh approval has been obtained from Pr.CIT-2, Visakhapatnam and the case was referred to TPO, Hyderabad for determination of Arm’s Length Price (ALP) in conformity with the directions of Hon’ble ITAT. In the instant case, the assessee has paid bareboat rentals of Rs.43,35,50,310/- to Lewek Shipping Pte Ltd., Singapore and Ship

LEWEK ALTAIR SHIPPING PRIVATE LIMITED,KAKINADA vs. DEPUTY COMMSSIONER OF INCOME TAX, CIRCLE-1, KAKINADA

In the result, the appeal of the assessee is dismissed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपील सं./I.T.A.No.146/Viz/2021 & 147/Viz/2021 (ननधधारण वर्ा / Assessment Year : 2012-13 & 2013-14) Lewek Altair Shipping Private Limited Vs. Dy.Commissioner Of Income Tax D.No.3-16-193/1, Sri Vidya Colony Circle-1 Suryarao Peta, Kakinada Kakinada [Pan : Aabcl9766C] अपीलधथी की ओर से/ Appellant By : Shri Jitendra Singh, Ar प्रत्यधथी की ओर से / Respondent By : Shri Mn Murthy Naik, Cit(Dr) सुनवधई की तधरीख / Date Of Hearing : 21.11.2022 घोर्णध की तधरीख/Date Of Pronouncement : 23.01.2023 O R D E R Per Shri S.Balakrishnan: These Appeals Are Filed By The Assessee Against The Orders Of The Ao/Tpo/Dispute Resolution Panel-1, Bengaluru(Drp In Short) U/S 143(3) R.W.S 144C Of The Income Tax Act For The Assessment Years 2012-13 & 2013-14 Respectively. Since The Facts Are Identical, Both The Appeals Are Clubbed, Heard Together & Disposed Off In A Common Order For The Sake Of Convenience & The Facts Are Extracted From I.T.A.No.146/Viz/2021 For The A.Y.2012-13. 2 Ita No.146/Viz/2021 & 147/Viz/2021, A.Y.2012-13 & 2013-14 Lewek Altair Shipping Private Ltd., Kakinada

transfer pricing issue. Fresh approval has been obtained from Pr.CIT-2, Visakhapatnam and the case was referred to TPO, Hyderabad for determination of Arm’s Length Price (ALP) in conformity with the directions of Hon’ble ITAT. In the instant case, the assessee has paid bareboat rentals of Rs.43,35,50,310/- to Lewek Shipping Pte Ltd., Singapore and Ship