Maersk Tankers India Private Limited Vs. ACIT Circle

Parties Involved

Facts Summary

The assessee, Maersk Tankers India Private Limited, is a resident company and part of the Maersk Tankers Group, operating in the product tanker industry. For A.Y. 2022–23, the assessee filed its return of income declaring total income of Rs. 17,04,70,291/-. The case was selected for scrutiny through CASS on account of refund claim, international transactions posing transfer pricing risk, and depreciation. During assessment proceedings, the Assessing Officer noticed that the assessee had reported transactions in Form No. 3CEB and referred the matter to the Transfer Pricing Officer (TPO). The TPO proposed a transfer pricing adjustment of Rs. 46,45,29,035/- in respect of a transaction involving divestment of India’s Support Services Business. The Assessing Officer passed a Draft Assessment Order proposing an addition of Rs. 46,45,29,035/-. The assessee filed objections before the Dispute Resolution Panel (DRP), which rejected the objections and directed the Assessing Officer to confirm the proposed transfer pricing adjustment. Aggrieved by the final assessment order, the assessee is in appeal raising various grounds including the invalidity of the transfer pricing adjustment, the reference to the TPO, and the levy of interest and penalty.…

Legal Issues

• 1. Whether the transfer pricing adjustment of INR 46,45,29,035 is valid.
• 2. Whether the transaction qualifies as an 'international transaction' under Section 92B of the Act.
• 3. Whether the reference to the Transfer Pricing Officer is valid.
• 4. Whether the TPO followed the prescribed methods under Section 92C(1) of the Act.
• 5. Whether the final assessment order is barred by limitation.
• 6. Whether the levy of interest is valid.

Judgment Outcome

Decided in favour of Assessee.

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