L & T MHI POWER TRUBINE GENERATORS PVT LTD (FROMERLY KNOWN AS L & T MHPS TURBINE GENERATORS PVT LTD) ,MUMBAI V. ASSISTANT COMM. OF INCOME TAX CIRCLE 2(2)(1), MUMBAI

ITA 2394/MUM/2022

AI Insights

The case involved L&T MHI Power Turbine Generators Pvt. Ltd., which appealed against the order of the Commissioner of Income-tax (Appeals) - 57, Mumbai, concerning the assessment year 2014-15. The primary contention was regarding the benchmarking analysis adopted by the company using the Transactional Net Margin Method (TNMM). The assessee challenged the rejection of certain comparable companies and the acceptance of others by the Transfer Pricing Officer (TPO). However, before the tribunal could adjudicate on these issues, the assessee submitted a request to withdraw the appeal, leading to the dismissal of the case as infructuous.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47264 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: K
• Assessment Year: 2014-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KIRAN UNAVEKAR
• Assessee Lawyers: PUJA CHOUDHARY; VIRTUALLY

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “K” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI RAHUL CHAUDHARY (JUDICIAL MEMBER) ITA No. 2394/MUM/2022 Assessment Year: 2014-15 L&T MHI Power Turbine Generators Pvt. Ltd., (Formerly known as L&T MHPS Turbine Generators Pvt. Ltd.), L&T House, N M Marg, Ballard Estate, Fort, Mumbai-400001. Vs. Asst. CIT Circle 2(2)(1), Aayakar Bhavan, M.K. Marg, Mumbai-400001. PAN NO. AABCL 2729 F Appellant Respondent Assessee by : Ms. Puja Choudhary, Virtually Present Revenue by : Mr. Kiran Unavekar, Sr. DR Date of Hearing : 01/04/2025 Date of pronouncement : 07/04/2025 ORDER PER OM PRAKASH KANT, AM This appeal by the assessee is directed against order dated 19.07.2022 passed by the Ld. Commissioner of Income-tax (Appeals) – 57, Mumbai [in short ‘the Ld. CIT(A)’] for assessment year 2014-15, raising following grounds: 1. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in benchmarking analysis carried out by the company by adopting Transactional Net Margin Method (TNMM) for benchmarking. 2. Without prejudice to Ground No circumstances of the case and in law, the learned CIT( in: a. Rejecting Toshiba Power Systems Pvt Ltd on the ground that the company is consistently making losses. b. Accepting two companies selected by TPO as comparable companies for determining the ALP margin disregarding the fact that they are not of the appellant 2. At the outset, it is pertinent to note that the assessee company has submitted a letter seeking to withdraw the present appeal, having taken into consideration the time and resources invol the litigation relative to the potential benefit arising from a favorable adjudication. In light of the assessee’s request for withdrawal, the appeal is hereby dismissed as having become infructuous. 3. In the result, the appeal of the assessee is Order pronounced in the open Court on Sd/ (RAHUL CHAUDHARY JUDICIAL MEMBER Mumbai; Dated: 07/04/2025 Rahul Sharma, Sr. P.S. L&T MHI Power Turbine Generators Pvt. Ltd 1. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in rejecting the primary benchmarking analysis carried out by the company by adopting Transactional Net Margin Method (TNMM) for benchmarking. 2. Without prejudice to Ground No-01, on the facts and in the circumstances of the case and in law, the learned CIT( a. Rejecting Toshiba Power Systems Pvt Ltd on the ground that the company is consistently making losses. b. Accepting two companies selected by TPO as comparable companies for determining the ALP margin disregarding the fact that they are not functionally comparable to the business of the appellant company At the outset, it is pertinent to note that the assessee company has submitted a letter seeking to withdraw the present appeal, having taken into consideration the time and resources invol the litigation relative to the potential benefit arising from a favorable adjudication. In light of the assessee’s request for withdrawal, the appeal is hereby dismissed as having become infructuous. In the result, the appeal of the assessee is dismissed. nounced in the open Court on 07/04/2025. Sd/- Sd/ (RAHUL CHAUDHARY) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER L&T MHI Power Turbine Generators Pvt. Ltd 2 ITA No. 2394/MUM/2022 1. On the facts and in the circumstances of the case and in rejecting the primary benchmarking analysis carried out by the company by adopting Transactional Net Margin Method (TNMM) for 01, on the facts and in the circumstances of the case and in law, the learned CIT(A) erred a. Rejecting Toshiba Power Systems Pvt Ltd on the ground that b. Accepting two companies selected by TPO as comparable companies for determining the ALP margin disregarding the functionally comparable to the business At the outset, it is pertinent to note that the assessee company has submitted a letter seeking to withdraw the present appeal, having taken into consideration the time and resources involved in the litigation relative to the potential benefit arising from a favorable adjudication. In light of the assessee’s request for withdrawal, the appeal is hereby dismissed as having become infructuous. dismissed. /04/2025. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// L&T MHI Power Turbine Generators Pvt. Ltd Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai L&T MHI Power Turbine Generators Pvt. Ltd 3 ITA No. 2394/MUM/2022 BY ORDER, (Assistant Registrar) ITAT, Mumbai "