Bucher Hydraulics Private Limited Vs. Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income-tax Officer

Parties Involved

Facts Summary

Bucher Hydraulics Private Limited, an assessee company, filed its return of income reporting a total loss of Rs. 1,29,20,316/- on 27.11.2017. The case was selected for complete scrutiny in CASS on various issues including claim of 'Any other amount allowable as deduction', depreciation claim, custom duty paid, sales turnover/receipts, foreign remittance, share premium, international transaction(s), reduction in profit due to ICDS, and loss from currency fluctuations. Notices under sections 143(2), 142(1) of the Income Tax Act, 1961 were issued. The assessee filed necessary details. Considering the nature of international transactions entered into by the assessee company with its associated enterprises, it was considered expedient to compute the arm’s length price. A reference under section 92CA(1) of the Act was made to the Transfer Pricing Officer ('TPO') to determine arm’s length price under section 92CA(3) of the Act in respect of the international transactions. The TPO passed an order on 23.01.2021, making an upward adjustment to the arm’s length price by Rs. 98,57,303/- in relation to the international transactions. The assessee preferred appeal against the order of the TPO and the Dispute Resolution Panel ('DRP'), which confirmed the adjustment. The assessee argued that the adjustment proposed by the TPO and DRP was illegal, erroneous, and untenable in law and on the facts of the case.…

Legal Issues

• 1. The legality and correctness of the Transfer Pricing adjustment proposed by the TPO and DRP.
• 2. The validity of the final assessment order passed by the Assessing Officer under section 143(3) r.w.s. 144C(13) r.w.s. 144B of the Act.

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• Spectro Analytical Labs Private Limited Vs. AU, Income Tax Department

  Delhi Bench benchAY 2021-22Partly Allowed

• OSI Energy Automation India Private Ltd. vs. The Deputy Commissioner of Income Tax

  Bangalore benchAY 2021-22Partly Allowed

• McKinsey Global Capabilities & Service P. Ltd. vs. Additional/Joint/Deputy/Assistant Commissioner of Income Tax

• Idemitsu Lube India Private Limited vs. DCIT

  Delhi Bench ‘H’ benchAY 2020-21Allowed

• Noida Towers Private Limited vs. Assessment Unit

• Nipro India Corporation Pvt. Ltd. vs. DCIT, Satara Circle, Satara

  Pune bench