9911796707
TMI Blog2024 (9) TMI 951X X X X Extracts X X X X X X X X Extracts X X X X ..... eral 2. Erred in making an adjustment of INR 49,33,80,333 to the total income of the Appellant under Section 92CA(3) of the Act on account of adjustment in the arm's length price of the international transaction of sale of raw materials and goods. Rejection of functional and economic analysis undertaken by Appellant 3. Erred in rejecting the functional and economic analysis undertaken by the Appellant in accordance with the provisions of the Act read with the Income-tax Rules, 1962 ("the Rules") in respect of the impugned international transaction of sale of raw materials and goods. 4. Erred in violating the provisions of Rule 10B(1)(e) of the Rules, by not considering the comparison of net profit margin realized by the Appellant from an alleged controlled transaction vis-à-vis net profit margin realized by the Appellant from a similar uncontrolled transaction and thereby rejecting internal Transactional Net Margin Method ("TNMM") as the most appropriate method ('MAM'). Inappropriate acceptance of non- comparable companies and cherry-picking of comparable companies 5. Without prejudice to the above, erred in including following companies as comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Erred in not appreciating that where there are sufficient interest-free funds available, then it is to be presumed that interest free loans/ advances are given out of such interest- free funds and no disallowance of notional interest expenditure can be made. Non-grant of set-off of brought forward unabsorbed depreciation amounting to INR 4,04,40,744/- 14. Erred in not allowing set-off of brought forward unabsorbed depreciation to the extent of INR 4, 04, 40,744/-, as claimed in the return of income filed under section 139(1) of the Act, while computing the total income of the Appellant. Non-grant of credit of self-assessment tax paid of INR 3, 93,730/- 15. Erred in non-granting credit of self-assessment tax paid by the Appellant amounting to INR 3, 93,730/-. Incorrect levy of interest under section 234A of the Act of INR 44, 10,170/- 16. erred in levying interest of INR 44,10,170 under section 234A of the Act without appreciating that the return of income was filed within the specified due date. Levy of interest under section 234B of the Act 17. Erred in levying interest under section 234B of the Act. The above grounds of appeal are independent and withou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rthern Aromatics Limited; vii. Oriental Aromatics Ltd; viii. Shingar Ltd; ix. VLCC Personal Care Ltd. x. Laser Shaving (India) Private Ltd; and xi. Proctor & Gamble Hygiene and Health Care Ltd Non consideration of the audited segmental profit and loss account 6. Erred in not considering the audited segmental profit and loss account submitted by the Appellant on the basis of untenable reasons and without considering Appellant's own ITAT order for AY 2012-13. 7. Learned DRP has erred in upholding rejection of segment profit and loss accounts relying upon the DRP directions of AY 2012-13, AY 2013-14, AY 2014-15 and AY 2016-17, without appreciating the facts involved in AY 2017-18. Other grounds: Excess levy of interest under section 234C of the Act 8. Erred in levying excess interest of INR 33,030 under section 234C of the Act. Initiation of penalty 9. Erred, in law and on facts, in initiating penalty proceedings under section 274 read with section 270A of the Act. 10. Erred, in law and on facts, in initiating penalty proceedings under section 271AA of the Act. The above grounds of appeal are independent and without prejudice to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st on outstanding receivables and hence the Appellant has not charged interest from AEs as well as non AEs on delayed receivables. Thereby, no interest adjustment is warranted. Outstanding receivables is inextricably linked with the principal transaction hence it is already benchmarked by the Appellant 7. The learned TPO erred in not appreciating the fact that the overdue receivable from AEs should be aggregated with principal transaction of manufacturing and export of finished goods as it is directly and inextricably linked with it; 8. The learned TPO erred in not appreciating the fact that the Appellant had selected transactional net margin method ('TNMM') as the most appropriate method and accordingly the effect of outstanding receivables on its net operating margin was benchmarked along with other international transactions to which they are closely inter- linked, by undertaking a working capital adjustment. 9. Without prejudice to the above, the learned TPO failed to appreciate that the Assessee has inherently factored interest element on outstanding receivables from AEs while pricing goods sold to AEs and when the invoices to AEs are discounted upfront wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent in case of conflicting provisions, by virtue of a non-obstante clause contained in section 238 of the Code. In view of this the appeals filed by the assessee cannot be continued to be allowed during the course of moratorium period. Further, the recent amendment to code provides that any resolution plan or liquidation order as decided by the competent authority would be binding on all the stakeholders including the Central Govt., any State Govt. or local authority to which a debt in respect of the payment of the dues may be owed. This will prevent State authorities, Regulatory bodies including Direct & Indirect Tax Departments from questioning the resolution plan or liquidation order as well as jurisdiction of Tribunals with regard to the code. Thus therefore after recent amendment also there is no reason to continue with these appeals. 5. It was found that in terms of application filed by M/s. Nimbus Packaging LLP in its capacity as the Operational Creditors of the assessee (hereinafter referred to as Corporate Debtor), under section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 4(1) of Insolvency and Bankruptcy (Application to adjucating authority) Rules, ..... 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