The Himalaya Drug Company , Bangalore The Deputy Commissioner of Income Tax Circle-6(2)(1), Bangalore

This case involves an appeal by The Himalaya Drug Company against an income tax assessment order for the financial year 2014-15. The company is challenging several decisions made by the Assessing Officer, including the disallowance of advertisement expenditure (specifically for a swimming pool), depreciation, and product promotion expenses. Furthermore, the appeal addresses transfer pricing adjustments related to the sale of goods, advertisement and marketing expenses, and royalty payments.

IN THE INCOME TAX APPELLATE TRIBUNAL,
BANGALORE BENCH ‘C’

BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT
AND
SHRI B.R.BASKARAN, ACCOUNTANT MEMBER
IT(TP)A No.3071/Bang/2018

Assessment Year: 2014 – 15
M/s. The Himalaya Drug Company
Makali, Tumkur Road
Bengaluru-562162
PAN NO :AADFT3025B
APPELLANT 

Vs.

The Deputy
Commissioner of Income
tax,
Circle 6(2)(1),
Room No.317, 3rd Floor,
B.M.T.C Building, 80
feet Road, 6th Block,
Koramangala,
Bengaluru - 560095
RESPONDENT

Appellant by : Shri Padam Chand Khincha, &
Sudheendra B., A.R.
Respondent by : Shri Pradeep Kumar, CIT-D.R.

Date of Hearing : 03.12.2020
Date of Pronouncement : 07.12.2020

O R D E R

PER B.R.BASKARAN, ACCOUNTANT MEMBER:

The assessee has filed this appeal challenging the assessment order dated 14-09-2018 passed by the Assessing Officer for assessment year 2014-15 u/s 143(3) r.w.s.92CA r.w.s.144C(13) ofthe Income-tax Act,1961 ['the Act' for short] in pursuance of directions given by the ld. Dispute Resolution Panel (DRP).

2. The grounds of appeal filed by the assessee run into 28 pages. The Ld A.R submitted that they give rise to the following issues:

a. Disallowance of advertisement expenditure in the form ofconstruction of swimming pool.

b. Disallowance of Depreciation & additional depreciation claimed

c. Disallowance of product promotion expenses incurred with Doctors

d. Transfer Pricing adjustment relating to sale of goods to associated enterprises.

e. Transfer Pricing adjustment relating to advertisement and market promotion expenses.

f. Transfer Pricing adjustment relating to royaltyOther issues urged by the assessee are either general in nature or consequential.

3. The facts relating to the case have been narrated as under bythe Tribunal in its order passed for AY 2013-14 in ITANo.1385/Bang/2017:-

“3. The facts relating to the case are stated in brief. Theassessee is a partnership firm engaged in the business ofmanufacture and sale of Ayurvedic medicament andpreparations, consumer/personal care products andanimal health care products. The partners of the assessee firm are-

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