Transfer Pricing Adjustment under section 92CA of the Income Tax Act, 1961

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘I-1’ BENCH,
NEW DELHI (THROUGH VIDEO CONFERENCING]
BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND
MS. SUCHITRA KAMBLE, JUDICIAL MEMBER
ITA No. 5189/DEL/2018
[A.Y 2014-15]

Keihin Automotive India Pvt Ltd
[Now amalgamated and known as
Keihin India Manufacturing Pvt Ltd
Plot No. 663, Phase – 5, Udyog Vihar
Gurugram, Haryana
PAN :AAACK 5968 J

Vs.

The Addl. C.I.T

Special Range-5

New Delhi

Date of Hearing : 24.08.2021
Date of Pronouncement : 24.08.2021
Assessee by : Ms. Pallavi Dinodia, CA
Shri R.K. Kapoor, CA
Revenue by : Shri Surender Pal, CIT-DR

ORDER

This appeal by the assessee is preferred against the order dated 21.06.2018 framed u/s 143(3) r.w.s 144C(5) of the Income tax Act, 1961.

2.  Briefly stated, the facts of the case are that the appellant company is engaged in the business of manufacturing of Compressed Natural Gas [CNG] assembly parts for the automotive industry. The year under consideration is the second full year of commercial operations and the assessee followed Aggregated Transactions Approach to arrive at the Arm’s Length Price (‘ALP’) of its majority of the controlled transactions, considering itself as the tested party.

3. The transfer pricing assessment was completed by the TPO vide order dated 23.10.2017 wherein the TPO made transfer pricing adjustment of Rs. 4,06,60,617/-. While completing the transfer pricing adjustment, the TPO accepted the adjustment of non operating expenses and capacity utilisation expenses in respect of depreciation by following the order of the DRP for A.Y 2013-14 and other adjustments claimed by the assessee were denied.

4.It can be seen from the above directions of the DRP that it has simply followed the directions given by it in A.Y 2013 14, which quarrel travelled upto this Tribunal in ITA No. 7801/DEL/2017 order dated 08.06.2021 and this Tribunal has decided this quarrel in favour of the assessee and against the Revenue.

5.In the result, the appeal filed by the assessee in ITA No. 5189/DEL/2018 is partly allowed.

6. The order is pronounced in the open court on 24.08.2021 in the presence of both the rival representatives.

Please find attached the enclosed file for the full judgement.