PRAGATI AROMA OIL DISTILLERS PVT.LTD. vs THE DEPUTY COMMISSIONER OF INCOME TAX-14(2)

Judgment text excerpt

2026:BHC-OS:10531-DB Bhogale 3.itxa-502-2015.odt IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.502 OF 2015 Pragati Aroma Oil Distillers Private Ltd. (formerly known as M/s. Hindustan Essential Oil Company) A company incorporated under The Companies Act, 1956 Having its office at R. No.6, 2nd Floor, Anand, Bhanva, 17, Babu Genu Road, Mumbai-400021 … Appellant Versus The Deputy Commissioner of Income Tax-14(2) Having his office at Room No.302, 3rd Floor, Earnest House, Nariman Point, Mumbai-400 021 .… Respondent **** Adv. Naresh Jain a/w Adv. Mansvi Singh, Adv. Priyanshi Jain and Adv. Bhavesh Bhatia, for the appellant. Adv. Sushma Nagaraj (through VC) a/w Adv. Abhinav Palshikar, for the respondent. **** CORAM : M. S. KARNIK & S. M. MODAK, JJ. DATE : 23rd APRIL, 2026 JUDGMENT (PER M. S. KARNIK, J.) : 1. This is an appeal filed under Section 260A of the Income Tax Act, 1961 (“the IT Act”, for short), preferred by the appellant- 1 Bhogale 3.itxa-502-2015.odt assessee challenging the order dated 25th November 2014 passed by the Income Tax Appellate Tribunal (“ITAT”, for short), in ITA No.873/Mum/2013 for the Assessment Year (“AY”, for short) 2009-10, dismissing the appeal filed by the appellant. 2. This appeal was admitted on the following substantial question of law: “Whether in the facts and circumstances of the case and in law, the Appellate Tribunal was justified in comparing and adopting net profit margin of sister concern Pragati Aroma Oil Distillers Pvt. Ltd. (as existed during the relevant Assessment Year), even in the absence of any arrangement as contemplated in Section 10B (7) read with section 80IA (10) of the Income Tax Act, 1961?” 3. The appellant is a private limited company incorporated under the Companies