Schindler India Private Limited Vs ACIT (ITAT Mumbai)
The Mumbai ITAT disposed of the assessee’s appeal arising from the assessment order passed under Sections 143(3), 144C(13), and 144B of the Income-tax Act for AY 2020-21. The appeal originally challenged various transfer pricing adjustments, additions, levy of interest, and grant of TDS credit.
At the outset, the assessee withdrew Ground No. 1.2 challenging the assessment order on the ground of limitation and also withdrew Ground No. 1.3 taken as a matter of abundant caution regarding an alleged direction of the Dispute Resolution Panel (DRP) under Section 37(1). The Tribunal dismissed these grounds as withdrawn and held that the remaining legal grounds relating to transfer pricing required no separate adjudication.
Ground Nos. 2, 3, and 4 related to transfer pricing adjustments concerning payment for IT Support and SAP System charges, royalty/license fees, and management service charges paid to associated enterprises. During the hearing, the assessee informed the Tribunal that it had entered into a Unilateral Advanced Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT) on 15-10-2024 covering the relevant international transactions for the period from FY 2011-12 to FY 2019-20. Since the impugned transactions stood covered by the APA, the assessee sought withdrawal of these transfer pricing grounds. The Revenue raised no objection, and the Tribunal dismissed Ground Nos. 2, 3, and 4 as withdrawn.
