CIT v. EKL Appliances Ltd.

345 ITR 241High Court2012#172 most cited

What is CIT v. EKL Appliances Ltd. authority for?

Transfer pricing adjustments for outstanding receivables are permissible only if the Tax Officer establishes, through analysis over a period, a pattern indicating an international transaction intended to benefit an associated enterprise. The Tax Officer cannot question purely business decisions like royalty payments or exceed jurisdiction by applying cost-benefit analysis to determine the arm's length price of services.

422

judgments rely on this decision, according to BharatTax’s citation analysis of 370,744 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. EKL Appliances Ltd. · Section 92CA · outstanding receivables · interest on outstanding receivables · TPO jurisdiction · business decision · royalty payments · arm's length price · associated enterprise benefit · pattern of delay · intra-group services

Also reported as

24 Taxmann.com 199209 Taxmann 200250 CTR 264

Sections most often in play

Section 143(3)Section 144C(13)Section 234BSection 92CASection 144BSection 92CSection 234CSection 234D
Read the full judgment

Issues it is cited on

intra group servicesinterest on outstanding receivablescup methodtested partyfar analysisworking capital adjustmentsection 92bmost appropriate methodbenchmarking analysistransactional net margin methodcomparable companiesassociated enterprises

Judgments citing CIT v. EKL Appliances Ltd.

Ak Kearney Ltd.- India Branch Office, Gurgaon vs. ADIT, Circle- 1(1), International Taxation, New Delhi

In the result, the appeal filed by the assessee is partly allowed

ITA 7723/DEL/2017[2010-11]Status: DisposedITAT Delhi25 Feb 2020AY 2010-11

Bench: Shri Bhavnesh Saini & Shri R.K. Panda

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri Mehboob Ali, Sr. DR
Section 115J

…ted enterprise, it can said that the said services are neither shareholder services nor duplicative in nature. I have considered the arguments of the AR and the order of TPO. In light of various judicial precedents including CIT vs EKL Appliances Ltd., [2012] 345 ITR 241, Dresser-Rand India Pvt. Ltd. v. Additional Commissioner of Income Tax, 2012 (13) ITR (Trib) 422 and Commissioner of Income Tax-I vs. Cushman and Wakefield India Pvt. Ltd. (ITA No. 475/2012), it has been clearly established that it is beyond the powers of the Transfer Pricing Officer to question the commercial wisdom of the Assessee. The TPO's au…

At Kearney Ltd.- India Branch Office, Gurgaon vs. ADIT, Circle- 1(1), International Taxation, New Delhi

In the result, the appeal filed by the assessee is partly allowed

ITA 7722/DEL/2017[2009-10]Status: DisposedITAT Delhi25 Feb 2020AY 2009-10

Bench: Shri Bhavnesh Saini & Shri R.K. Panda

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri Mehboob Ali, Sr. DR
Section 115J

…ted enterprise, it can said that the said services are neither shareholder services nor duplicative in nature. I have considered the arguments of the AR and the order of TPO. In light of various judicial precedents including CIT vs EKL Appliances Ltd., [2012] 345 ITR 241, Dresser-Rand India Pvt. Ltd. v. Additional Commissioner of Income Tax, 2012 (13) ITR (Trib) 422 and Commissioner of Income Tax-I vs. Cushman and Wakefield India Pvt. Ltd. (ITA No. 475/2012), it has been clearly established that it is beyond the powers of the Transfer Pricing Officer to question the commercial wisdom of the Assessee. The TPO's au…

Indus Mobile Distribution P Ltd., Chennai vs. ACIT Central Circle 1(1), Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 969/CHNY/2019[2015-16]Status: DisposedITAT Chennai18 Feb 2020AY 2015-16

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Mr. S.Bharath, CITFor Respondent: 20.11.2019
Section 139(1)

…nduct the business of the assessee. In this connection, reliance can be placed on the decision of Hon’ble Supreme Court in the case of Eastern Investments Ltd. vs. CIT, 20 ITR 1. Recently the Hon’ble Delhi High Court in the case of CIT vs. EKL Appliances Ltd, 345 ITR 241 after referring the above said judgment of Supreme Court, wherein it was held as follows: “19. There is no reason why the OECD guidelines should not be taken as a valid input in the present case in judging the action of the Transfer Pricing Officer. In fact, the Commissioner of Income-tax (Appeals) has referred to and applied them and his decisi…

Indus Mobile Distribution P Ltd., Chennai vs. ACIT Central Circle 1(1), Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 968/CHNY/2019[2008-09]Status: DisposedITAT Chennai18 Feb 2020AY 2008-09

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Mr. S.Bharath, CITFor Respondent: 20.11.2019
Section 139(1)

…nduct the business of the assessee. In this connection, reliance can be placed on the decision of Hon’ble Supreme Court in the case of Eastern Investments Ltd. vs. CIT, 20 ITR 1. Recently the Hon’ble Delhi High Court in the case of CIT vs. EKL Appliances Ltd, 345 ITR 241 after referring the above said judgment of Supreme Court, wherein it was held as follows: “19. There is no reason why the OECD guidelines should not be taken as a valid input in the present case in judging the action of the Transfer Pricing Officer. In fact, the Commissioner of Income-tax (Appeals) has referred to and applied them and his decisi…

Indus Mobile Distribution P Ltd., Chennai vs. ACIT Central Circle 1(1), Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 967/CHNY/2019[2007-08]Status: DisposedITAT Chennai18 Feb 2020AY 2007-08

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Mr. S.Bharath, CITFor Respondent: 20.11.2019
Section 139(1)

…nduct the business of the assessee. In this connection, reliance can be placed on the decision of Hon’ble Supreme Court in the case of Eastern Investments Ltd. vs. CIT, 20 ITR 1. Recently the Hon’ble Delhi High Court in the case of CIT vs. EKL Appliances Ltd, 345 ITR 241 after referring the above said judgment of Supreme Court, wherein it was held as follows: “19. There is no reason why the OECD guidelines should not be taken as a valid input in the present case in judging the action of the Transfer Pricing Officer. In fact, the Commissioner of Income-tax (Appeals) has referred to and applied them and his decisi…

Sabmiller India Ltd, Mumbai vs. Asst CIT Cir 11(1)(2), Mumbai

In the result, Revenue’s appeal is dismissed

ITA 1205/MUM/2016[2011-12]Status: DisposedITAT Mumbai18 Feb 2020AY 2011-12

Bench: Shri Saktijit Deyand Shri N.K. Pradhan

For Appellant: Shri Rajan R. Vora a/wFor Respondent: Shri Anand Mohan
Section 143(3)Section 144C(13)

…’s AE the Authority for Advance Ruling (AAR) has given a ruling holding that it has provided technical and managerial services. In support, the learned Authorised Representative also relied upon the following decisions:– i) CIT v/s EKL Appliances Ltd. [2012] 345 ITR 241 (Del. HC); ii) Knorr-Bremse India (P) Ltd. v/s ACIT, [2016] 380 ITR 307 (P&H); iii) Merck Limited v/s DCIT, ITA no.1946/Mum./2014) dated 31st March 2016; iv) Det Norske Veritas A/S v/s ADIT, ITA no.200/Mum./2014, dated 29.02.2016; v) Dimension Data India Pvt. Ltd. v/s DCIT, ITA no.2280/ Mum./2016) dated 16th August 2017; vi) UCB India Pvt. Ltd.…

Orange Business Services India Solutions Pvt. Ltd., Gurgaon vs. DCIT, Circle-3, Gurgaon

In the result, the appeal of the assessee is allowed

ITA 7364/DEL/2019[2015-16]Status: DisposedITAT Delhi17 Feb 2020AY 2015-16

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Ravi Sharma, Adv., Ms. ShrutiFor Respondent: Ms. Nidhi Sharma, Sr.D.R
Section 143(3)

…s comparables, any further adjustment only on the basis of the outstanding receivables would have distorted the picture and re- characterised the transaction. This was clearly impermissible in law as explained by the court in CIT v. EKL Appliances Ltd. (2012) 345 ITR 241 (Del).” 14. The ld. DR pointed out that the Revenue has preferred SLP before the Hon'ble Supreme Court against the judgment of the Hon'ble High Court of Delhi. In our understanding, since the operation of the judgment of the Hon'ble High Court is not stayed by the Hon'ble Supreme Court, the same is binding on us and, therefore, respectfully follo…

Gbt India Private Limited, Delhi vs. ACIT, Circle-10(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 8965/DEL/2019[2015-16]Status: DisposedITAT Delhi31 Jan 2020AY 2015-16

Bench: Shri N.K. Billaiya & Shri N.K. Choudhary[Assessment Year: 2015-16]

For Appellant: Shri Himanshu S. Sinha, AdvFor Respondent: Shri Surendra Pal, CIT- DR
Section 143(3)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘I-1’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI N.K. CHOUDHARY, JUDICIAL MEMBER [Assessment Year: 2015-16] GBT India Pvt. Ltd Vs. The A.C.I.T G – 21, Ground Floor, Salcon Rasvila Circle 10(1) Plot No. D-4, Saket Distt. Centre New Delhi Saket, New Delhi PAN: AAFCG 5409 D [Appellant] [Respondent] Date of Hearing : 20.01.2020 Date of Pronouncement : 31.01.2020 Assessee by : Shri Himanshu S. Sinha, Adv Ms. Vrinda Tulshan, Adv Revenue by : Shri Surendra Pal, CIT- DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, This appeal by the…

M/S. Jaypee Capital Services Ltd., New Delhi vs. DCIT, New Delhi

ITA 1384/DEL/2017[2013-14]Status: DisposedITAT Delhi17 Jan 2020AY 2013-14

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Ved Jain, CAFor Respondent: Shri B. Ramanjaneyulu, Senior DR
Section 14ASection 36Section 36(1)(iii)Section 92Section 92B

…ion of capital in accordance with the RBI Guidelines under automatic approval route. Moreover, Jaypee Singapore Pte. Ltd. has made final allotment to the assessee company in AY 2014-15. Hon’ble High Court of Delhi in case of CIT vs. EKL 20. Appliances Ltd. 345 ITR 241 held as under :- 12 ITA No.1384/Del./2017 “17. The significance of the aforesaid guidelines lies in the fact that they recognise that barring exceptional cases, the tax administration should not disregard the actual transaction or substitute other transactions for them and the examination of a controlled transaction should ordinarily be based o…

Merck Specialities P.Ltd, Mumbai vs. DCIT Cir 7(2)(1), Mumbai

In the result, the appeal of the assessee is partly allowed as indicated above

ITA 1761/MUM/2015[2010-11]Status: DisposedITAT Mumbai05 Dec 2019AY 2010-11

Bench: Sri Mahavir Singh, Jm & Sri M Balaganesh, Am आयकर अपील सुं./ Ita No. 1761/Mum/2015 (यिर्ाारण वर्ा / Assessment Year 2010-11) Merck Specialities Pvt. Ltd. The Dy. Commissioner Of Income 8Th Floor, Shiv Sagar Estate- Tax, Circle 7(2)(1) बनाम/ Room No. 623, 6Th Floor, Aayakar A, Dr. Annie Besant Road, Worli, Mumbai-400 018 Bhavan, M.K. Road, Vs. Mumbai-400 020 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा सुं./Pan No. Aaecm2634B अपीलार्थी की ओर े / Appellant By : Shri Arti Vissanji, Ar प्रत्यर्थी की ओर े / Respondent By : Shri Vodhalraj Singh, Dr ुिवाई की तारीख / Date Of Hearing: 05.12.2019 घोर्णा की तारीख / Date Of Pronouncement : 05.12.2019

For Appellant: Shri Arti Vissanji, ARFor Respondent: Shri Vodhalraj Singh, DR
Section 143(3)Section 144C(13)Section 92C(2)

…ness enterprise incurs the expenditure on the basis of what is commercially expedient and what is not commercially expedient. As held by Hon’ble 22 | P a g e Merck Specialities Pvt. Ltd. jurisdictional High Court in the case of CIT Vs EKL Appliances Limited (345 ITR 241), “Even Rule 10B(1)(a) does not authorise disallowance of any expenditure on the ground that it was not necessary or prudent for the assessee to have incurred the same”. 16. The very foundation of the action of the TPO is thus devoid of legally sustainable merits. There is no dispute that the impugned payments are made under an arrangement with t…

Redtech Network India Private Limited, Kolkata vs. ACIT, Circle - 2(2), Kolkata

In the result, appeal of the assessee is allowed

ITA 2378/KOL/2017[2013-14]Status: DisposedITAT Kolkata27 Nov 2019AY 2013-14

Bench: Sri J. Sudhakar Reddy & Sri S.S. Godara) Assessment Year: 2013-14 Redtech Network India Private Limited.......................................................……………….…......Appellant Godrej Waterside 5Th Floor Unit-504 Sector-V Salt Lake City Kolkata – 700 091 [Pan : Aabcb 5398 J] Vs. Asstt. Commissioner Of Income Tax, Circle-2(2), Kolkata……....................………....…....Respondent Appearances By: Shri Ajit Korde, Advocate, Appeared On Behalf Of The Assessee. Dr. P.K. Srihari, Cit Sr. D/R, Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : October 14Th, 2019 Date Of Pronouncing The Order : November 27Th, 2019 Order Per J. Sudhakar Reddy, Am :-

Section 143(3)Section 14A

…and re-characterised the transaction. This was clearly characterised the transaction. This was clearly impermissible in law as explained by this C impermissible in law as explained by this Court in CIT v. EKL Appliances Ltd. CIT v. EKL Appliances Ltd. (2012) 345 ITR 241 (Delhi). (2012) 345 ITR 241 (Delhi).” 11.1. The Hyderabad ‘A’ Bench of the Tribunal in the case of The Hyderabad ‘A’ Bench of the Tribunal in the case of Hexagon Capability Center Hexagon Capability Center India Pvt. Ltd. vs. ACIT reported in India Pvt. Ltd. vs. ACIT reported in [2019] 102 taxmann.com 461 (Hyderabad [2019] 102 taxmann.com 461 (Hy…

Teradata India Pvt. Ltd., Gurgaon vs. ACIT, Circle- 4(1), Gurgaon

In the result, ground Nos

ITA 7890/DEL/2019[2015-16]Status: DisposedITAT Delhi22 Nov 2019AY 2015-16
Section 143(3)Section 144C(1)Section 234ASection 271(1)(c)

…s comparables, any further adjustment only on the basis of the outstanding receivables would have distorted the picture and re-characterized the transaction. This was clearly impermissible in law as explained by this Court in CIT v. EKL Appliances Ltd. (2012) 345 ITR 241 (Delhi). The issue in the present appeal is also identical therefore, squarely covered by this judgment in favour of the assessee. Therefore, Ground No. 4 & 5 are allowed.” 4.3 In assessment year 2013-14, in ITA No. 7885/del/2017, also the Tribunal following the decision, allowed the appeal of the assessee observing as under: “8. After considerin…

M/S. Jones Lang Lasalle Property Consultants (I) Pvt. Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 1648/DEL/2014[2009-10]Status: DisposedITAT Delhi22 Nov 2019AY 2009-10

Bench: Shri N.K. Billaiya & Shri Kuldip Singhआ.अ.सं/.I.T.A No.5584/Del/2011 िनधा"रणवष"/Assessment Year:2007-08 बनाम Jones Lang Lasalle Property Acit Vs. Consultants (India) Pvt. Ltd. Circle 4(1), 1108-1110, Ashoka Estate, New Delhi. Barakhamba Road, Connaught Place, New Delhi. अपीलाथ" Appellant ""यथ"/Respondent Pan No. Aaacl2089B

…(India) Pvt. Ltd. vs. ACIT/I.T.A. No. 6465/Del/2012/A.Y. 2008-09 Jones Lang LaSalle Property Consultants (India) Pvt. Ltd. vs. DCIT/I.T.A. No. 1648/Del/2014/A.Y. 2009-10 Page 14 of 21 the decision of the Hon’ble Delhi High Court in the case of EKL Appliances 345 ITR 241, wherein the Hon’ble High Court has held that “the only condition is that the expenditure should have been incurred wholly and exclusively for the purpose of business and nothing more”. The Hon’ble High Court further observed that “so long as the expenditure or payment has been demonstrated to have been incurred or laid out for the purposes of…

Jones Lang Lasalle Property Consultants (India) Pvt. Ltd., New Delhi vs. ACIT, New Delhi

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

ITA 6465/DEL/2012[2008-09]Status: DisposedITAT Delhi22 Nov 2019AY 2008-09

Bench: Shri N.K. Billaiya & Shri Kuldip Singhआ.अ.सं/.I.T.A No.5584/Del/2011 िनधा"रणवष"/Assessment Year:2007-08 बनाम Jones Lang Lasalle Property Acit Vs. Consultants (India) Pvt. Ltd. Circle 4(1), 1108-1110, Ashoka Estate, New Delhi. Barakhamba Road, Connaught Place, New Delhi. अपीलाथ" Appellant ""यथ"/Respondent Pan No. Aaacl2089B

…(India) Pvt. Ltd. vs. ACIT/I.T.A. No. 6465/Del/2012/A.Y. 2008-09 Jones Lang LaSalle Property Consultants (India) Pvt. Ltd. vs. DCIT/I.T.A. No. 1648/Del/2014/A.Y. 2009-10 Page 14 of 21 the decision of the Hon’ble Delhi High Court in the case of EKL Appliances 345 ITR 241, wherein the Hon’ble High Court has held that “the only condition is that the expenditure should have been incurred wholly and exclusively for the purpose of business and nothing more”. The Hon’ble High Court further observed that “so long as the expenditure or payment has been demonstrated to have been incurred or laid out for the purposes of…

Jones Lang Lasalle Property Consultants (India) Pvt. Ltd., New Delhi vs. ACIT, New Delhi

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

ITA 5584/DEL/2011[2007-08]Status: DisposedITAT Delhi22 Nov 2019AY 2007-08

Bench: Shri N.K. Billaiya & Shri Kuldip Singhआ.अ.सं/.I.T.A No.5584/Del/2011 िनधा"रणवष"/Assessment Year:2007-08 बनाम Jones Lang Lasalle Property Acit Vs. Consultants (India) Pvt. Ltd. Circle 4(1), 1108-1110, Ashoka Estate, New Delhi. Barakhamba Road, Connaught Place, New Delhi. अपीलाथ" Appellant ""यथ"/Respondent Pan No. Aaacl2089B

…(India) Pvt. Ltd. vs. ACIT/I.T.A. No. 6465/Del/2012/A.Y. 2008-09 Jones Lang LaSalle Property Consultants (India) Pvt. Ltd. vs. DCIT/I.T.A. No. 1648/Del/2014/A.Y. 2009-10 Page 14 of 21 the decision of the Hon’ble Delhi High Court in the case of EKL Appliances 345 ITR 241, wherein the Hon’ble High Court has held that “the only condition is that the expenditure should have been incurred wholly and exclusively for the purpose of business and nothing more”. The Hon’ble High Court further observed that “so long as the expenditure or payment has been demonstrated to have been incurred or laid out for the purposes of…

Cargill Global Trading India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal filed assessee is allowed

ITA 3059/DEL/2015[2008-09]Status: DisposedITAT Delhi15 Nov 2019AY 2008-09

Bench: Shri R.K. Panda & Shri Kuldip Singhassessment Year: 2008-09 Cargill Global Trading India Pvt. Ltd., Vs Dcit, 111, Rectangle-I, Circle-5(2), Saket District Centre, Saket, New Delhi. New Delhi. Pan: Aaccc0446P (Appellant) (Respondent) Assessee By : Shri Nageshwar Rao, Advocate Revenue By : Shri Sanjay I Bara, Cit, Dr Date Of Hearing : 01.10.2019 Date Of Pronouncement : .11.2019 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 25Th February, 2015 Of The Cit(A)-44, New Delhi, Relating To Assessment Year 2008-09

For Appellant: Shri Nageshwar Rao, AdvocateFor Respondent: Shri Sanjay I Bara, CIT, DR
Section 92C

…dy vs. Pratap Steels (2002) 2 SCC 686 and in the case of Mohinder Singh Gill vs. Chief Election Commissioner reported in AIR 1978 SC 851. Referring to the decision of the Hon'ble Delhi High Court in the case of CIT vs. EKL Appliances Ltd., reported in (2012) 345 ITR 241 (Del), he submitted that the Hon'ble Delhi High Court in the said decision has held that there is no need to establish necessity and benefit especially in proceedings before the TPO. Similarly, a conclusion has been reached in the case of Cushman Wakefield, 46 taxmann.com 317. He submitted that the adjustment made by the TPO to ALP for considerat…

Merck Specialities P. Ltd, Mumbai vs. DCIT RG 6(3), Mumbai

The appeal stands partly allowed in terms of our above order

ITA 1947/MUM/2014[2009-10]Status: DisposedITAT Mumbai11 Nov 2019AY 2009-10

Bench: Hon’Ble Shri Mahavir Singh, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ I.T.A. No.1947/Mum/2014 (िनधा"रण वष" / Assessment Year:2009-10) M/S. Merck Specialties Pvt. Ltd. Dcit-Range 6(3) बनाम/ Shiv Sagar Estate Aaykar Bhavan “A”, Annie Besant Road M.K. Road Vs. Worli, Mumbai-400 018. Mumbai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaecm-2634-B (अपीलाथ"/Appellant) (""थ" / Respondent) : Appellant By : Ms. Aarti Vissanji-Ld. Ar Respondent By : Shri Bhupendra Kumar Singh-Ld.Dr सुनवाई की तारीख/ : 17/09/2019 Date Of Hearing घोषणा की तारीख / : 11/11/2019 Date Of Pronouncement आदेश / O R D E R

For Appellant: Ms. Aarti Vissanji-Ld. ARFor Respondent: Shri Bhupendra Kumar Singh-Ld.DR
Section 143(3)Section 144C(5)Section 145ASection 14ASection 43B

…ncurred a particular expense or not. A business enterprise incurs the expenditure on the basis of what is commercially expedient and what is not commercially expedient. As held by Hon’ble jurisdictional High Court in the case of CIT Vs EKL Appliances Limited (345 ITR 241), “Even Rule 10B(1)(a) does not authorise disallowance of any expenditure on the ground that it was not necessary or prudent for the assessee to have incurred the same”. 16. The very foundation of the action of the TPO is thus devoid of legally sustainable merits. There is no dispute that the impugned payments are made under an arrangement with t…

Prayag Polytech Pvt. Ltd., New Delhi vs. Addl. CIT, Special Range- 7, New Delhi

In the result, appeal of the assessee is allowed

ITA 6625/DEL/2019[2016-17]Status: DisposedITAT Delhi07 Nov 2019AY 2016-17

Bench: Shri N. K. Billaiya & Ms Suchitra Kamblei.T.A No. 6625/Del/2019 (A.Y 2016-17)

Section 142(1)Section 143(2)

…Ltd. vs. CIT(A), Civil appeal No.5811 of 2005 with 5812 of 2006, (2007) 288 ITR 1 (SC). b) CIT vs. Panipat Woollen & General Mills Co. Ltd. [1976] 103 ITR 66 (SC). c) CIT vs. Walchand & Co. P. Ltd. (1967) 65 ITR 381 (SC). d) CIT vs. EKL Appliances Ltd. (2012) 345 ITR 241 (Del. HC) e) Upper India Publishing House Pvt. Ltd., 117 ITR 569 (SC). f) Motilal Laxmichand Sanghavi vs. ACIT in ITA No.3110/Mum/2018 dated 26.07.2019. g) Harparshad and Company Pvt. Ltd. vs. ACIT in ITA No.1128/Del/2017 dated 14.10.2019. The Ld. AR further submitted that without prejudice to the earlier submissions it should be considered that…

The Dy. CIT, Visakhapatnam vs. M/S. Snf (India) Limited, Visakhapatnam

In the result, appeals filed by the Revenue and the Cross objections filed by the assessee are dismissed

ITA 280/VIZ/2017[2008-2009]Status: DisposedITAT Visakhapatnam04 Oct 2019AY 2008-2009

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble

For Appellant: Shri Ajit Kumar Jain – ARFor Respondent: Smt. Suman Malik – Sr.DR

…in the course of the TPO assessment as well as before the DRP, detailed submissions, including agreement between AE and the assessee, justifying how the technical know-how supplied by its AE was crucial to the running of its business. In CIT vs EKL Appliances 341 ITR 241 (Del), the Hon 'ble Delhi High Court had the occasion to consider an issue of disallowance of royalty by TPO because the assessee in that case had been suffering losses, the Hon'ble High Court while holding that so long as the expenditure C.O.Nos.63&64/VIZ/2017 (M/s. SNF (India) Pvt. Ltd.) or payment by assessee has been demonstrated to have bee…

The Dy. CIT, Visakhapatnam vs. M/S. Snf (India) Limited, Visakhapatnam

In the result, appeals filed by the Revenue and the Cross objections filed by the assessee are dismissed

ITA 279/VIZ/2017[2007-2008]Status: DisposedITAT Visakhapatnam04 Oct 2019AY 2007-2008

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble

For Appellant: Shri Ajit Kumar Jain – ARFor Respondent: Smt. Suman Malik – Sr.DR

…in the course of the TPO assessment as well as before the DRP, detailed submissions, including agreement between AE and the assessee, justifying how the technical know-how supplied by its AE was crucial to the running of its business. In CIT vs EKL Appliances 341 ITR 241 (Del), the Hon 'ble Delhi High Court had the occasion to consider an issue of disallowance of royalty by TPO because the assessee in that case had been suffering losses, the Hon'ble High Court while holding that so long as the expenditure C.O.Nos.63&64/VIZ/2017 (M/s. SNF (India) Pvt. Ltd.) or payment by assessee has been demonstrated to have bee…