DY. COMMISSIONER OF INCOME TAX, CIRCLE-3(1), VISAKHAPATNAM vs. SNF (INDIA) PRIVATE LIMITED, VISAKHAPATNAM

ITA 456/VIZ/2026Status: DisposedITAT Visakhapatnam16 September 2026AY 2009-1018 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the facts and circumstances of the current assessment years were identical to the earlier years where the ITAT had deleted the royalty adjustment. Therefore, the Revenue ought to have followed the rule of consistency and not made any adjustment.

What were the facts?

The assessee, a subsidiary of a French company, paid royalty for technical know-how and brand names. The Transfer Pricing Officer (TPO) made an adjustment on royalty payments, stating the assessee failed to justify the benefit derived from the know-how. The Commissioner (Appeals) deleted this adjustment, relying on previous ITAT decisions in the assessee's own case.

What were the issues?

Whether the royalty payment made by the assessee to its Associated Enterprise was at arm's length, and whether the TPO erred in rejecting the benchmarking analysis and applying an impermissible 'benefit test'.

Which sections of the Income-tax Act were involved?

Section 92C,Section 92CA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH,

PER MANJUNATHA G., A.M :

The captioned appeals filed by the Revenue are directed against the separate orders of the Ld. Commissioner of Income Tax (Appeals)-10, Hyderabad, dated 19.

The order continues below.

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