Income Tax Appellate Tribunal Mumbai Vodafone India Ltd, Mumbai vs Asst Cit 8(3)(2), Mumbai on 17 May, 2024 IN THE INCOME TAX APPELLATE TRIBUNAL "I" BENCH, MUMBAI SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No. 884/MUM/2016 (Assessment Year: 201112) & ITA No. 2834/MUM/2017 (Assessment Year: 201213) Vodafone India Ltd., Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400013 [PAN: AAACH5332B] ............. Appellant Assistant Commissioner of Income Tax Vs 8(3)(2), Mumbai, ............. Respondent ITA No. 1916/MUM/2016 (Assessment Year: 201112) Deputy Commissioner of Income Tax 5(2)(1), Mumbai, 5th Floor, Room No. 525, Aayakar Bhavan, M.K. Road, Mumbai 400020 ............. Appellant M/s Vodafone Idea Limited, (Earlier known as Vodafone India Vs Limited which now stands merged with Idea Cellular Limited ('ICL') and consequently known as Vodafone Idea Limited), 10th Floor, Birla Centurion, Pandurang Budhkar Marg, Worli, Mumbai 400030 [PAN: AAACH5332B] ............. Respondent Appearance For the Assessee : Shri P.J. Pardiwala Shri Ketan Ved Shri Abdul Kadir Jamsadwala For the Department : Shri T. Sankar Date Conclusion of hearing : 22.02.2024 Pronouncement of order : 17.05.2024 ITA Nos. 884 & 1919//Mum/2016 : Assessment Year 201112 ITA No. 2834/Mum/2017 : Assessment Year 201213 ORDER Per Rahul Chaudhary, Judicial Member: 1. This is a batch of three appeals consisting of cross appeals for the Assessment Year 201112 and appeal preferred by the Assessee for the Assessment Year 201213. Since the appeals involved common issues the same were heard together and are being disposed by way of a common order. Assessment Year 201112 2. We would first take up take up cross appeals for the Assessment Year 201112 which are directed against Final Assessment Order dated, 28/01/2016, passed under Section 144C(13) read with Section 143(3) of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'] for the Assessment Year 201112, as per directions issued by Dispute Resolution Panel2, Mumbai [hereinafter referred to as 'the DRP'] under Section 144C(5) of the Act. 2.1. In ITA No. 884/Mum/2016, the Assessee has raised grounds of appeal in relation to the following issues: (a) Ground No. 1 to 1.2: Disallowance of INR 357,23,70,000/ under section 14A of the Act (b) Ground No. 2 to 2.2: Disallowance of INR 19,35,01,258/ being interest on Capital Workin Progress under Section 36(1)(iii) of the Act. (c) Ground No. 3 to 3.7: Disallowance of INR 30,95,03,786/ in respect of roaming charges under Section 40(a)(ia) of the Act (d) Ground No. 4 to 4.5: Disallowance of INR 47,17,99,596/ in respect of discount extended to prepaid distributors under Section 40(a)(ia) of the 2 ITA Nos. 884 & 1919//Mum/2016 : Assessment Year 201112 ITA No. 2834/Mum/2017 : Assessment Year 201213 Act (e) Ground No. 5 to 5.5: Disallowance of deduction under Section 80IA of the Act (f) Ground No. 6 to 6.3: Disallowance of deduction under Section 80IA of the Act in respect of 'Other Income' (g) Ground No. 7 to 7.2: General grounds on Transfer Pricing Adjustment (h) Ground No. 7.3 to 7.8: Transfer Pricing Adjustment of INR 22,01,14,350/ pertaining to Advertisement, Marketing and Promotion expenditure (i) Ground No. 7.9 to 7.10: Transfer Pricing Adjustment of INR 7,97,68,155/ pertaining to Brand Royalty payment made to Vodafone Ireland Marketing Limited for obtaining the right to use of Vodafone trademark and trade name (j) Ground No. 7.11 to 7.13: Transfer Pricing Adjustment of INR 1,31,43,772/ pertaining t