2025 (3) TMI 308 - HC - Income Tax

TP Adjustment - ITAT is justified in restricting the adjustment only on international transactions where the assessee has selected TNMM and applied the same on entity level - HELD THAT - Although it is correct that Income Tax Appeal 2024 (9) TMI 1703 - BOMBAY HIGH COURT we cannot overlook the fact that at that time the decisions in Spicer India Ltd. 2023 (7) TMI 139 - BOMBAY HIGH COURT and Hindustan Unilever Ltd. 2016 (7) TMI 1245 - BOMBAY HIGH COURT had not been delivered. The decisions of the Coordinate Bench hold that benchmarking should be done only on associated enterprise or related party transactions and not with respect to the entire turnover. In fact in Hindustan Unilever Ltd. (supra.) the learned counsel for the revenue had fairly stated that this issue concerning transfer pricing adjustment stood concluded against the revenue and in favour of the assessee by decisions of this Court in Tara Jewellers Exports (P) Ltd. 2015 (12) TMI 1130 - BOMBAY HIGH COURT Petro Araldite (P.) Ltd. 2015 (11) TMI 1628 - BOMBAY HIGH COURT There is no point in admitting this appeal which now no longer raises any substantial question of law.

Summary

The Bombay High Court heard an appeal concerning the assessment year 2009-10. The appellant (Revenue) sought admission of the appeal based on a substantial question of law regarding transfer pricing adjustments on international transactions. The appellant argued that the ITAT decision was incorrect, relying on past orders. However, the respondent (assessee) contended that the issue had been settled in previous cases and should be decided against the revenue. The Court agreed with the respondent, citing precedents and dismissing the appeal, stating that the proposed question of law no longer holds merit. Therefore, the appeal was declined and dismissed without costs.