DCIT- 2(2)(1), MUMBAI vs. STATE BANK OF INDIA, MUMBAI

ITA 3395/MUM/2018Status: DisposedITAT Mumbai11 September 2026AY 2013-1460 pages
AI SummaryPartly Allowed

What were the facts?

The assessee, State Bank of India, entered into a technical service agreement with Nepal SBI Bank, its associated enterprise. The assessee provided technical and ITES services and recovered costs, with the TPO proposing a 20% markup based on Safe Harbour Rules, which the assessee argued were not applicable.

What did the Tribunal hold?

The Tribunal held that the Safe Harbour Rules were not applicable for the assessment year in question, thus the 20% markup could not be mechanically applied. However, it also noted that the consideration received should not be accepted as arm's length without further examination, and due to the time elapsed, a fresh comparability exercise might not be practicable.

What were the issues?

The primary issue was the applicability of Safe Harbour Rules for determining the arm's length price of technical and ITES services rendered to an associated enterprise. Other issues involved disallowances under various sections and depreciation on leased assets.

Which sections of the Income-tax Act were involved?

Section 43B(f),Section 14A,Section 36(1)(viia),Section 80-IA,Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

ITA 2390/MUM/2015
ITA 2429/MUM/2015

Read from the judgment's own cause title. This page is filed under one of them.

आयकर अपीलीय अधिकरण, म ुंबई पीठें, म ुंबई INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, MUMBAI BENCH: G BEFORE SMT. BEENA PILLAI, HON’BLE JUDICIAL MEMBER AND SHRI JAGADISH, HON’BLE ACCOUNTANT MEMBER ITA 2390/MUM/2015 (निर्धारण वर्ा/Assessment Year: 2012-13) STATE BANK OF INDIA ASST CIT CIR 2(2)(1) 3RD FLOOR CORPORATE R.NO. 545 AAYAKAR CENTRE, MADAM CAMA RD, BHAVAN, M.K.RD,, -400020, Vs. NARIMAN POINT,, -, MAHARASHTRA MAHARASHTRA अपीलधर्थी Appellant प्रत्यर्थी Respondent

PAN of Assessee: AAACS8577K

अपीलधर्थी द्वारा/Appellant represented Shri Ketan Ved & Shri Ninad by: Patade, ARs प्रत्यर्थी द्वारा/Respondent represented Shri Dr. Kishor Dhule - CIT DR by: ITA 2429/MUM/2015 (निर्धारण वर्ा/Assessment Year: 2012-13) ASST CIT CIR 2(2)(1) STATE BANK OF INDIA R.NO. 545 AAYAKAR BHAVAN, FINANCIAL REPORTING & M.K.RD,, -400020, -400021, MAHARASHTRA अपीलधर्थी Appellant प्रत्यर्थी Respondent

PAN of Assessee: AAACS8577K

अपीलधर्थी द्वारा/Appellant represented Shri Dr. Kishor Dhule - CIT DR by: प्रत्यर्थी द्वारा/Respondent represented Shri Ketan Ved & Shri Ninad by: Patade, ARs

ITA 2429/MUM/2015 ITA 3395/MU

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 43B(f)

All 216 judgments and leading authorities on Section 43B(f) →

Recent GST High Court judgments

Search GST case law →