IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “I” BENCH: NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER &

SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.927/Del/2022 [Assessment Year : 2015-16]

DCIT, vs DCM Shriram Ltd., Circle-7(1), 5th Floor, Kanchenjunga Room No.404, Building, 18-Barakhamba C.R. Building, Road, Connaught Place, New Delhi-110002. New Delhi-110001.

PAN-AAACD0079R APPELLANT RESPONDENT ITA No.704/Del/2021 [Assessment Year : 2016-17]

DCM Shriram Ltd., vs Additional/Joint/ 2nd Floor (West Wing), Deputy/Assistant Worldmark 1, Aerocity, CIT/ITO, New Delhi-110037. NeAC, Delhi PAN-AAACD0097R APPELLANT RESPONDENT ITA No.2587/Del/2022 [Assessment Year : 2018-19]

DCM Shriram Ltd., vs ACIT, 2nd Floor (West Wing), Circle-7(1), Worldmark 1, Aerocity, Delhi New Delhi-110037. PAN-AAACD0097R APPELLANT RESPONDENT ITA No.4328/Del/2024 [Assessment Year : 2020-21]

DCM Shriram Ltd., vs Assessment Unit, 2nd Floor (West Wing), Income tax Worldmark 1, Aerocity, Department, Delhi New Delhi-110037. PAN-AAACD0097R APPELLANT RESPONDENT ITA No.1495/Del/2024 [Assessment Year : 2020-21]

DCM Shriram Ltd., vs DCIT, 2nd Floor (West Wing), Circle-7(1), Worldmark 1, Aerocity, New Delhi New Delhi-110037. PAN-AAACD0097R APPELLANT RESPONDENT ORDER PER MANISH AGARWAL, AM :

These captioned appeals are filed by the Revenue and the assessee for various AYs. Since in all the appeals, certain issues are common therefore, these are decided separately by a common order for the sake of convenience and brevity.

2. First, we take up ITA No.927/Del/ 2022 for AY 2015-16.

ITA No.927/Del/2022 (AY 2015-16) [Revenue’s appeal]

3. This appeal is filed by the Revenue against the order dated 16.09.2020 passed by Ld. Commissioner of Income Tax (A)-44, New Delhi [“Ld.CIT(A)”] in Appeal No.-78/2019-20/CIT(A)-44 u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 28.12.2018 passed u/s 143(3)/144C of the Act pertaining to assessment year 2015-16.

4. Brief facts of the case are that the assessee is a public limited company engaged in the business of manufacturing and trading of chemical, PVC Resins, PVC compounds, UPVC Windows & Door Systems, Cement, Sugar, Fertilizers, seeds, textile yarn, power generation etc. The return of income was filed on 28.11.2015, declaring total income at INR 29,48,96,750/- after claiming deduction under section 80IA of the Act in respect of power generation unit and also claimed deduction under section 80G of the Act. The company has declared book profit u/s 115JB at INR 2,46,12,21,172/- and paid MAT on book profits. The return of income was revised on 13.07.2016 at an income of INR 22,56,33,190/-. The case of the assessee was taken up for scrutiny and a reference under section 92CA of the Act was made to the TPO for determination of ALP in respect of international transactions and specified domestic transactions carried out by the assessee during the previous year relevant to year under appeal. The assessee has carried out following international and specified domestic transactions-

5. The TPO after examining the TP Study Report (“TPSR”)

submitted by the assessee and further examined the details filed in response to the query raised by the TPO, vide its order dated 29.10.2018 held that the international transactions carried out by the assessee company are at Arm Length Price and no adjustment was proposed on these transactions. With respect to specified domestic transactions, the TPO observed that the deduction claimed under section 80IA of the Act on the profits from power generation units needs to be reduced and observed that the transfer of electricity generated by power generating units to other manufacturing units was not at ALP and proposed reduction of INR 7,96,94,566/- in the deduction claimed under section 80IA of the Act on this activity. Further, in respect of transfer of steam from eligible units to non-eligible manufacturing plants, the TPO has proposed the reduction of INR 98,26,24,597/- accordingly