Case Number: ITA 831/DEL/2021
Appellant: Avery Dennison (India) Private Limited, New Delhi
Respondent: ACIT, Circle-3(2), New Delhi
Assessment Year: 2016-17
Result: 2016-17
Case Filed on: 2021-07-06
Order Type: Final Tribunal Order
Date of Order: 2023-04-10
Pronounced on: 2023-04-10
This appeal was filed by Avery Dennison (India) Pvt. Ltd. against the order dated 30.03.2021 passed by the Income Tax Officer, National E-Assessment Centre, Delhi for the assessment year 2016-17. The primary issue was the transfer pricing adjustment made by the Assessing Officer (AO) based on the directions of the Dispute Resolution Panel (DRP).
The grounds of appeal were as follows:
The case was heard by the Delhi Bench ‘I’ of the Income Tax Appellate Tribunal (ITAT), with Dr. B.R.R. Kumar, Accountant Member, and Sh. Yogesh Kumar U.S., Judicial Member, presiding over the matter. The appeal was scheduled for a hearing on 05.04.2023.
The appellant, represented by Sh. S. S. Tomar, Advocate, and Ms. Sh. Yishu Goel, Authorized Representative (AR), contended that the issues involved were covered by the Tribunal’s decisions in the appellant’s own cases for the assessment years 2007-08, 2008-09, 2010-11, 2011-12, and 2014-15, where similar adjustments on account of intra-group services received were made and subsequently deleted by the Tribunal.
After considering the submissions and perusing the material on record, the Tribunal noted that the intra-group services received by the appellant were intrinsically linked to its business operations and could not be analyzed in isolation. The Tribunal observed that the Dispute Resolution Panel (DRP) and Transfer Pricing Officer (TPO) had erred in applying the Comparable Uncontrolled Price (CUP) method to a fragment of services, ignoring the economic analysis provided by the appellant.
The Tribunal, following its earlier decisions and the consistent view taken by the Hon’ble Delhi High Court in similar cases, held that the AO, DRP, and TPO had wrongly made the transfer pricing adjustment. The Tribunal deleted the adjustment of INR 70,30,77,902, allowing the appeal in favor of Avery Dennison (India) Pvt. Ltd.
The order pronounced in the open court on 10th April 2023 was as follows:
Order pronounced in the open court on 10th April 2023
Sd/- Sd/-
(Dr. B.R.R. KUMAR) (YOGESH KUMAR U.S.)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Date: 10/04/2023
R.N, Sr. PS
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT
ASSISTANT REGISTRAR
ITAT NEW DELHI
Avery Dennison India vs ACIT: Transfer Pricing Dispute – Final Tribunal Order
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