MSD Pharmaceuticals Pvt. Ltd., New Delhi V. DCIT Circle-16(1), New Delhi

ITA 1017/DEL/2021

AI Insights

MSD Pharmaceuticals Pvt. Ltd. appealed against the order passed by the Assessing Officer under sections 143(3) read with section 144C(13) of the Income Tax Act, 1961. The primary contention in the appeal was related to the adjustments made in the ALP and the issue of deduction of Education Cess. The assessee conceded that the adjustments in ALP were rectified and did not press the Transfer Pricing (TP) issues further. However, the tribunal dismissed the appeal, referencing the Supreme Court's decision which ruled against the deduction of Education Cess.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131665 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 22-11-2022
• Assessment Year: 2016-2017
• Appeal Filed On: 25-08-2021
• Other Referred Cases: CIT Vs. Chambal Fertilisers & Chemicals Limited in SLP(C) No. 7379 OF 2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘I’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 1017/Del/2021 : Asstt. Year : 2016-17 MSD Pharmaceuticals Pvt. Ltd., 1544, Level-15, Eros Corporate Towers, Nehru Place, New Delhi-110019 Vs DCIT, Circle-16(1), New Delhi (APPELLANT) (RESPONDENT) PAN No. AAECM1106C Assessee by : Ms. Rashmi Chopra, Adv. Revenue by : Sh. Rajesh Kumar, CIT DR Date of Hearing: 23.11.2022 Date of Pronouncement: 07.02.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order dated 29.06.2021 passed by the AO u/s 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961. 2. At the outset, the assessee submitted that the adjustment in ALP stands rectified and hence the TP issues are not being pressed. 3. The BLT approach being a non-recognized method as held by the various courts cannot be invoked. 4. The issue of deduction of Education Cess is ruled against the assessee in view of the judgment of Hon’ble Supreme Court ITA No. 1017/Del/2021 MSD Pharmaceuticals Pvt. Ltd. 2 in the case of CIT Vs. Chambal Fertilisers & Chemicals Limited in SLP(C) No. 7379 OF 2019 dated 14.12.2022. 5. In the result, the appeal of the assessee is dismissed. Order Pronounced in the Open Court on 07/02/2023. Sd/- Sd/- (Yogesh Kumar US) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 07/02/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR