Konica Minolta Healthcare India Private Limited Vs DCIT (ITAT Mumbai)
Summary: ITAT Mumbai partly allowed the appeal of Konica Minolta Healthcare India Private Limited against the final assessment order dated 27/06/2024 passed under section 143(3) read with section 144C(13) and section 144B of the Income Tax Act, 1961. The principal dispute concerned a transfer pricing adjustment of ₹20,39,22,414 arising from the rejection of TNMM and adoption of RPM for benchmarking the assessee’s international transaction relating to import of medical equipment, films and consumables from its Associated Enterprise. The Tribunal noted the assessee’s submissions and documentary evidence regarding package configuration, local accessories, installation, commissioning, software and licensing, regulatory compliance, training, warranty and maintenance services and technical support. It held that the assessee performed functions extending beyond those of a regular distributor and that the lower authorities had not demonstrated that it was merely a reseller without value addition. The Tribunal also noted that TNMM had been adopted for the preceding 11 years and that the TPO had accepted the same comparable companies selected by the assessee while merely substituting RPM for TNMM. Grounds 4 to 6 and 9 were allowed. The issue concerning exclusion of Roche Diagnostics India Private Limited and Smiths Medical India Private Limited under the 25% RPT filter was remanded to the AO/TPO for fresh examination after providing adequate opportunity. Ground 8 was treated as academic, while the claim concerning double taxation of ₹10,16,656 was remanded for verification and allowed for statistical purposes. Grounds 11 and 12 were consequential and grounds 1 to 3 were general. The appeal was partly allowed.
