Bausch & Lomb Eye Care (India) Pvt. Ltd. v. Additional CIT

381 ITR 227High Court2016#813 most cited

What is Bausch & Lomb Eye Care (India) Pvt. Ltd. v. Additional CIT authority for?

The existence of an international transaction must be established before its arm's length price can be determined. An alleged 'excessive' AMP expenditure cannot unilaterally expand the scope of an international transaction if its existence is contested.

127

judgments rely on this decision, according to BharatTax’s citation analysis of 367,518 Indian tax judgments — from 2016 to 2026.

Also referred to as

Bausch & Lomb Eye Care (India) Pvt. Ltd. v. Additional CIT · Section 92B · Section 92C · Section 92F · international transaction · AMP expenditure · arm's length price · TNMM intensity approach · bright line test

Also reported as

237 Taxmann 304

Sections most often in play

Section 143(3)Section 234BSection 37(1)Section 92BSection 92CSection 92FSection 10B(2)(c)Section 145
Read the full judgment

Issues it is cited on

bright line testamp expendituresection 92f(v)section 92fsection 92c(3)section 92b(1)functional analysissection 92c(2)tested partysection 92bsection 92dtransactional net margin method

Judgments citing Bausch & Lomb Eye Care (India) Pvt. Ltd. v. Additional CIT

M/S. Whirlpool of India Ltd, Gurgaon vs. DCIT, New Delhi

ITA 1254/DEL/2014[2009-10]Status: DisposedITAT Delhi26 Nov 2018AY 2009-10

Bench: Hon’Ble, Shri G.D. Agrawal & Shri Kuldip Singh

For Appellant: Shri Ajay Vohra, Senior AdvocateFor Respondent: Shri Sanjay I. Bara, CIT DR
Section 143Section 143(3)Section 144CSection 92Section 92B

…rred by the taxpayer though benefited for brand 13 building of its AE, but contended that all decisions rendered by Hon’ble Delhi High Court viz. Sony Ericsson India Pvt. Ltd. v. CIT (supra), Bausch & Lomb Eye Care (India) Pvt. Ltd. v. Additional CIT (2016) 381 ITR 227 (Del.) and Honda Siel Power Products Ltd. v. Dy. CIT (2016) 237 Taxman 304 are lying challenged before the Hon’ble Apex Court, hence this appeal be kept pending till the decision of Hon’ble Apex Court. 17. After considering the legal position as discussed in the preceding paragraphs and following the decision rendered by Hon’ble Delhi High Cou…

M/S. Sennheiser Electronics India Pvt. Ltd., Gurgaon vs. ACIT, Gurgaon

ITA 269/DEL/2017[2012-13]Status: DisposedITAT Delhi19 Nov 2018AY 2012-13

Bench: Hon’Ble, Shri G.D. Agrawal & Shri Kuldip Singh

For Appellant: Shri Ajay Vohra, Senior AdvocateFor Respondent: Shri Sanjay I. Bara, CIT DR
Section 143Section 143(3)Section 144CSection 92B

…expenses, the order of TPO passed by making BLT as basis of the ALP adjustment is not sustainable in the eyes of law. 14. Furthermore, Hon’ble Delhi High Court in subsequent decisions viz. Bausch & Lomb Eye Care (India) Pvt. Ltd. v. Additional CIT (2016) 381 ITR 227 (Del.) and Honda Siel Power Products Ltd. v. Dy. CIT (2016) 237 Taxman 304 held that it is for the Revenue to firstly discharge the onus to prove the existence of an international transaction between the taxpayer and its AE and only thereafter ALP of international transactions involving AMP can be computed. 15. In the instant case, there is no…

Perfetti Van Melle India Pvt. Ltd., Gurgaon vs. DCIT, Circle- 3, Gurgaon

In the result, the appeal filed by the assessee is allowed for statistical purpose

ITA 1319/DEL/2018[2010-11]Status: DisposedITAT Delhi23 Oct 2018AY 2010-11

Bench: Sh. R.K. Pand & Sh. K. N. Charyassessment Year: 2010-11

Section 143Section 144C(2)Section 144C(5)Section 153Section 271Section 274Section 92Section 92C

…nt especially contrary to clause 10 thereof, is also contrary to law laid down by Hon'ble High court and Hon'ble Tribunal. He submitted that the DRP completely ignored subsequent decisions of Hon'ble High court in Maruti Suzuki (381 ITR 117), Bausch and Lomb (381 ITR 227) as also decisions of Hon'ble Tribunal in Goodyear 70 Taxman.com 67, L'oreal ([2016] 49 ITR(T) 473), Widex [2017] 78 taxmann.com 348 (Chandigarh - Trib.)etc., wherein law laid down in Sony Ericsson decision of 16th March 2015 is explained and applied. Moreover, DRP's directions to carry out further inquiries is directly contrary to section 144C (…

Wrigley India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

The appeal of the assessee are allowed accordingly

ITA 656/DEL/2015[2010-11]Status: DisposedITAT Delhi25 Sept 2018AY 2010-11

Bench: Shri Amit Shukla & Shri Prashant Maharishiwrigley India Pvt. Ltd, Vs. Dcit, 206, Okhla Industrial Estate, Circle-27(2), Phase-Iii, New Delhi New Delhi Pan: Aaacw1789P (Appellant) (Respondent)

For Appellant: Shri C.S. Aggarwal, Sr. AdvFor Respondent: Shri Sanjai Kumar Yadav, Sr
Section 143Section 143(3)Section 144CSection 92BSection 92F

…ose will be served if the matter is remanded to the TPO, or even the ITAT, for this purpose. 18. This Court has in similar circumstances in a series of decisions including Maruti Suzuki Ltd. (supra); Bausch & Lomb Eyecare (India) (P.) Ltd. v. Addl. CIT [20161 381 ITR 227/237 Taxman 24/65 taxmann.com 141 (Delhi)and Honda Siel Power Products Ltd. v. Dy. CIT [20161 237 Taxman 304/[20151 64 taxmann.com 328 (Delhikmphasized the importance of the Revenue having to first discharge the initial burden upon it with regard to showing the existence of an international transaction between the Assessee and the AE. Wrigley Indi…

Shilpa Shetty, Mumbai vs. ACIT CC 13, Mumbai

ITA 2445/MUM/2014[2010-11]Status: DisposedITAT Mumbai21 Aug 2018AY 2010-11

Bench: Hon’Ble Sh. R. C. Sharma, Am & Hon’Ble Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 2445/Mum/2014 (निर्धारणवर्ा / Assessment Year: 2010-11)

For Appellant: Shri Arvind V. SondeFor Respondent: Shri V. Jenardhanan
Section 92ASection 92A(2)(j)Section 92CSection 92F

…hat since it is not an arm's length price, an "adjustment" has to be made. 15. In this respect, Ld. AR relied upon the decision in the case of Maruti Suzuki India Ltd. CIT [2016] 381 ITR 117 (Del. HC) and Bausch & Lomb Eyecare (India) (P.) Ltd v. ACIT [2016] 381 ITR 227 (Del HC) It was also argued that the word "Price" had not been defined in the Act. It seems to have been used in its ordinary sense as meaning money only. In this respect, reliance was placed on the decision in the case of CIT v. Ganesh Builders [1979] 116 ITR 911 (BomHC). Ld. AR further submitted that in the Assessee's case, she was desirous t…

Canon India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

Appeal is dismissed

ITA 832/DEL/2016[2011-12]Status: DisposedITAT Delhi21 Aug 2018AY 2011-12

Bench: Shri R. K. Panda & Ms Suchitra Kamble

Section 143(3)Section 144CSection 92B

…d on the following decisions: • Maruti Suzuki India Ltd. vs. CIT (2016) 381 ITR 154 (Del) • CIT vs. Whirlpool of India Ltd. (2016) 381 ITR 154 (Del) • Honda Siel Power Products (2016) 283 CTR 322 (Del) • Bausch & Lomb Eyecare (India) (P) Ltd. vs. ACIT (2016) 381 ITR 227 (Del) • Widex India Pvt. Ltd. vs ACIT: [2017] 78 taxmann.com 348 (Chandigarh - Trib.) • Nippon Paint India Pvt vs ACIT: [2017] 79 taxmann.com 8 (Chennai - Trib.) • Essilor India Private Limited Vs DCIT: [2016] 178 TTJ 69 (Bangalore - Trib.) • Goodyear India Ltd v DCIT: [2016] 70 taxmann.com 67 (Delhi - Trib.) • Loreal India Private Limited v DCIT…

DCIT, New Delhi vs. M/S. Canon India Pvt. Ltd., Gurgaon

Appeal is dismissed

ITA 1052/DEL/2016[2011-12]Status: DisposedITAT Delhi21 Aug 2018AY 2011-12

Bench: Shri R. K. Panda & Ms Suchitra Kamble

Section 143(3)Section 144CSection 92B

…d on the following decisions: • Maruti Suzuki India Ltd. vs. CIT (2016) 381 ITR 154 (Del) • CIT vs. Whirlpool of India Ltd. (2016) 381 ITR 154 (Del) • Honda Siel Power Products (2016) 283 CTR 322 (Del) • Bausch & Lomb Eyecare (India) (P) Ltd. vs. ACIT (2016) 381 ITR 227 (Del) • Widex India Pvt. Ltd. vs ACIT: [2017] 78 taxmann.com 348 (Chandigarh - Trib.) • Nippon Paint India Pvt vs ACIT: [2017] 79 taxmann.com 8 (Chennai - Trib.) • Essilor India Private Limited Vs DCIT: [2016] 178 TTJ 69 (Bangalore - Trib.) • Goodyear India Ltd v DCIT: [2016] 70 taxmann.com 67 (Delhi - Trib.) • Loreal India Private Limited v DCIT…

DCIT, New Delhi vs. M/S. Canon India Pvt. Ltd., Gurgaon

Appeal is dismissed

ITA 2275/DEL/2015[2010-11]Status: DisposedITAT Delhi21 Aug 2018AY 2010-11

Bench: Shri R. K. Panda & Ms Suchitra Kamble

Section 143(3)Section 144CSection 92B

…d on the following decisions: • Maruti Suzuki India Ltd. vs. CIT (2016) 381 ITR 154 (Del) • CIT vs. Whirlpool of India Ltd. (2016) 381 ITR 154 (Del) • Honda Siel Power Products (2016) 283 CTR 322 (Del) • Bausch & Lomb Eyecare (India) (P) Ltd. vs. ACIT (2016) 381 ITR 227 (Del) • Widex India Pvt. Ltd. vs ACIT: [2017] 78 taxmann.com 348 (Chandigarh - Trib.) • Nippon Paint India Pvt vs ACIT: [2017] 79 taxmann.com 8 (Chennai - Trib.) • Essilor India Private Limited Vs DCIT: [2016] 178 TTJ 69 (Bangalore - Trib.) • Goodyear India Ltd v DCIT: [2016] 70 taxmann.com 67 (Delhi - Trib.) • Loreal India Private Limited v DCIT…

Canon India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

Appeal is dismissed

ITA 1405/DEL/2015[2010-11]Status: DisposedITAT Delhi21 Aug 2018AY 2010-11

Bench: Shri R. K. Panda & Ms Suchitra Kamble

Section 143(3)Section 144CSection 92B

…d on the following decisions: • Maruti Suzuki India Ltd. vs. CIT (2016) 381 ITR 154 (Del) • CIT vs. Whirlpool of India Ltd. (2016) 381 ITR 154 (Del) • Honda Siel Power Products (2016) 283 CTR 322 (Del) • Bausch & Lomb Eyecare (India) (P) Ltd. vs. ACIT (2016) 381 ITR 227 (Del) • Widex India Pvt. Ltd. vs ACIT: [2017] 78 taxmann.com 348 (Chandigarh - Trib.) • Nippon Paint India Pvt vs ACIT: [2017] 79 taxmann.com 8 (Chennai - Trib.) • Essilor India Private Limited Vs DCIT: [2016] 178 TTJ 69 (Bangalore - Trib.) • Goodyear India Ltd v DCIT: [2016] 70 taxmann.com 67 (Delhi - Trib.) • Loreal India Private Limited v DCIT…

Burberry India Pvt. Ltd., New Delhi vs. ITO, Ward- 5(2), New Delhi

In the result, both the appeals of the assessee are allowed

ITA 7684/DEL/2017[2013-14]Status: DisposedITAT Delhi22 Jun 2018AY 2013-14

Bench: Shri Prashant Maharishi & Shri K.N. Chary

Section 92

…ased from associated entities and there are sales effected to unrelated parties without any further processing. In fact, a Division Bench of this Court in its decision in Bausch & Lomb Eyecare (India) Pvt. Ltd. v. Additional Commissioner of Income Tax, (2016) 381 ITR 227 (Del), while considering the decision of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. v. Commissioner of Income Tax, (2015) 374 ITR 118 (Del), noted that: "The RP Method loses its accuracy and reliability where the reseller adds substantially to the value of the product or the goods are further processed or incorporated into…

Burberry India Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, both the appeals of the assessee are allowed

ITA 758/DEL/2017[2012-13]Status: DisposedITAT Delhi22 Jun 2018AY 2012-13

Bench: Shri Prashant Maharishi & Shri K.N. Chary

Section 92

…ased from associated entities and there are sales effected to unrelated parties without any further processing. In fact, a Division Bench of this Court in its decision in Bausch & Lomb Eyecare (India) Pvt. Ltd. v. Additional Commissioner of Income Tax, (2016) 381 ITR 227 (Del), while considering the decision of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. v. Commissioner of Income Tax, (2015) 374 ITR 118 (Del), noted that: "The RP Method loses its accuracy and reliability where the reseller adds substantially to the value of the product or the goods are further processed or incorporated into…

Pr. Commissioner of Income Tax-6 vs. Matrix Cellular International Services Pvt. Ltd

ITA/484/2017HC Delhi22 Nov 2017

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

Section 143(2)Section 143(3)Section 144CSection 14ASection 260ASection 92C

…d from associated entities and there are sales effected to unrelated parties without any further processing. In fact, a Division Bench of this Court in its decision in Bausch & Lomb Eyecare (India) Pvt. Ltd. v. Additional Commissioner of Income Tax, (2016) 381 ITR 227 (Del), while considering the decision of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. v. Commissioner of Income Tax, (2015) 374 ITR 118 (Del), noted that: “The RP Method loses its accuracy and reliability where the reseller adds substantially to the value of the product or the goods are further processed or incorporated…

Amadeus India Pvt. Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, appeal of the assessee is allowed partly for statistical purposes

ITA 1835/DEL/2015[2010-11]Status: DisposedITAT Delhi23 Oct 2017AY 2010-11

Bench: Sh. Vijay Pal Rao & Sh. O.P. Kantassessment Year: 2010-11 Vs. Addl. Cit, Range-2, New Delhi M/S. Amadeus India Pvt. Ltd., E- 9, Connaught House, Connaught Place, New Delhi. Pan : Aaaca0364L (Appellant) (Respondent) Appellant By Sh. Tarandeep Singh, Adv. Respondent By Sh. H.S. Choudhary, Cit(Dr) Date Of Hearing 03.08.2017 Date Of Pronouncement 23.10.2017 Order Per O.P. Kant, A.M.:

Section 143(3)Section 144C(13)Section 145C(5)Section 92BSection 92F

…cording to the Ld. CIT(DR) the Tribunal in assessment year 2009-10 has without appreciating the facts of the case properly, relied on the decision of the jurisdictional High Court in the case of Bausch & Lomb Eyecare India Private Limited Vs. Addl. CIT (2016) 381 ITR 227 (Del.) and held that in the case of the assessee incurring of alleged abnormal AMP expenses is not an international transaction. 4.4 We have heard the rival submission and perused the relevant material on record. The Ld. CIT(DR) has argued that that assessee being only service provider, the abnormal AMP expenses has benefited the ‘Amadeus’ brand…

Valvoline Cummins Private Limited vs. Dy. Commissioner of Income-Tax

ITA/158/2016HC Delhi31 Jul 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 260A

…erved if the matter is remanded to the TPO, or even the ITAT, for this purpose. 18. This Court has in similar circumstances in a series of decisions including Maruti Suzuki Ltd. (supra); Bausch & Lomb Eye care (India) Pvt. Ltd. v. Additional CIT (2016) 381 ITR 227 (Del) and Honda Siel Power Products Ltd. v. Dy. CIT (2016) 237 Taxman 304 emphasized the importance of the Revenue having to first discharge the initial burden upon it with regard to showing the existence of an international transaction between the Assessee and the AE. 19. For the aforementioned reasons, this Court is of the view that t…

Valvoline Cummins Private Ltd vs. Dy. Commissioner of Income-Tax

ITA-158/2016HC Delhi31 Jul 2017
Section 260A

…erved if the matter is remanded to the TPO, or even the ITAT, for this purpose. 18. This Court has in similar circumstances in a series of decisions including Maruti Suzuki Ltd. (supra); Bausch & Lomb Eye care (India) Pvt. Ltd. v. Additional CIT (2016) 381 ITR 227 (Del) and Honda Siel Power Products Ltd. v. Dy. CIT (2016) 237 Taxman 304 emphasized the importance of the Revenue having to first discharge the initial burden upon it with regard to showing the existence of an international transaction between the Assessee and the AE. 19. For the aforementioned reasons, this Court is of the view that t…

M/S Luxottica India Eyewear Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

In the result, the appeal of the assessee is allowed for statistical

ITA 344/DEL/2017[2012-13]Status: DisposedITAT Delhi26 May 2017AY 2012-13

Bench: Shri R.S. Syal & Shri Sudhanshu Srivastavaassessment Year : 2010-11 Assessment Year : 2011-12 Assessment Year : 2012-13

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Shri Amrendra Kumar, CIT, DR &
Section 143(3)Section 144C

…rnational transaction of Import of goods. This view of treating AMP as a function has been taken by considering the judgment of the Hon'ble jurisdictional High Court in the case of Bausch & Lomb Eyecare India Pvt. Ltd. and Ors. Vs. Addl.CIT and Ors. (2016) 381 ITR 227 (Del) in which it has been held: “that a distinction is required to be drawn between ‘a function’ and ‘a transaction’ and that every expenditure forming part of the function cannot be construed as a transaction.” We are satisfied with the view taken by the TPO in this regard, which is also supported by the judgment in Sony Ericsson (2015) 374…

M/S. Luxottica Eyewear India Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

In the result, the appeal of the assessee is allowed for statistical

ITA 1205/DEL/2016[2011-12]Status: DisposedITAT Delhi26 May 2017AY 2011-12

Bench: Shri R.S. Syal & Shri Sudhanshu Srivastavaassessment Year : 2010-11 Assessment Year : 2011-12 Assessment Year : 2012-13

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Shri Amrendra Kumar, CIT, DR &
Section 143(3)Section 144C

…rnational transaction of Import of goods. This view of treating AMP as a function has been taken by considering the judgment of the Hon'ble jurisdictional High Court in the case of Bausch & Lomb Eyecare India Pvt. Ltd. and Ors. Vs. Addl.CIT and Ors. (2016) 381 ITR 227 (Del) in which it has been held: “that a distinction is required to be drawn between ‘a function’ and ‘a transaction’ and that every expenditure forming part of the function cannot be construed as a transaction.” We are satisfied with the view taken by the TPO in this regard, which is also supported by the judgment in Sony Ericsson (2015) 374…

ACIT, New Delhi vs. M/S. Luxottica India Eyewear Pvt. Ltd., Gurgaon

In the result, the appeal of the assessee is allowed for statistical

ITA 1117/DEL/2015[2010-11]Status: DisposedITAT Delhi26 May 2017AY 2010-11

Bench: Shri R.S. Syal & Shri Sudhanshu Srivastavaassessment Year : 2010-11 Assessment Year : 2011-12 Assessment Year : 2012-13

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Shri Amrendra Kumar, CIT, DR &
Section 143(3)Section 144C

…rnational transaction of Import of goods. This view of treating AMP as a function has been taken by considering the judgment of the Hon'ble jurisdictional High Court in the case of Bausch & Lomb Eyecare India Pvt. Ltd. and Ors. Vs. Addl.CIT and Ors. (2016) 381 ITR 227 (Del) in which it has been held: “that a distinction is required to be drawn between ‘a function’ and ‘a transaction’ and that every expenditure forming part of the function cannot be construed as a transaction.” We are satisfied with the view taken by the TPO in this regard, which is also supported by the judgment in Sony Ericsson (2015) 374…

DCIT, New Delhi vs. M/S Segram India Pvt. Ltd., New Delhi

ITA 3811/DEL/2009[2004-05]Status: DisposedITAT Delhi02 May 2017AY 2004-05

Bench: Shri J.S. Reddy & Shri Sudhanshu Srivastavaay: 2004-05 Ay: 2005-06

For Appellant: Mr. Deepak Chopra, AdvFor Respondent: Shri T.M. Shivakumar, CIT DR
Section 115JSection 92C(2)

…he recent developments in law on the issue of AMP expenses. Hon’ble jurisdictional Delhi High Court, in the case of Maruti Suzuki India Ltd. vs. CIT 381 ITR 117, Whirlpool of India Ltd. vs. DCIT 381 ITR 154 and Bausch & Lomb Eyecare (India) Pvt. Ltd. vs. ACIT 381 ITR 227 has clearly laid down the jurisprudence on the issue of AMP expenses undertaken by a manufacturer and hence are squarely applicable to Appellant’s case as well. 6. Such decisions have been followed by the Hon’ble Delhi Tribunal in the case of Goodyear India Ltd. vs. DCIT [2016] 70 taxmann.com 67, which also involved an assessee who was a manufac…

Pernod Richard India Pvt. Ltd, Gurgaon vs. DCIT, New Delhi

ITA 3525/DEL/2009[2004-05]Status: DisposedITAT Delhi02 May 2017AY 2004-05

Bench: Shri J.S. Reddy & Shri Sudhanshu Srivastavaay: 2004-05 Ay: 2005-06

For Appellant: S/Shri Deepak Chopra,Adv.,Harpreet Singh, Adv., Anmol Anand, AdvFor Respondent: S/Shri T.M. Shivakumar, CIT DR, B. Ramanjaneyulu, Sr.DR
Section 115JSection 92C(2)

…he recent developments in law on the issue of AMP expenses. Hon’ble jurisdictional Delhi High Court, in the case of Maruti Suzuki India Ltd. vs. CIT 381 ITR 117, Whirlpool of India Ltd. vs. DCIT 381 ITR 154 and Bausch & Lomb Eyecare (India) Pvt. Ltd. vs. ACIT 381 ITR 227 has clearly laid down the jurisprudence on the issue of AMP expenses undertaken by a manufacturer and hence are squarely applicable to Appellant’s case as well. 6. Such decisions have been followed by the Hon’ble Delhi Tribunal in the case of Goodyear India Ltd. vs. DCIT [2016] 70 taxmann.com 67, which also involved an assessee who was a manufac…