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.

M/S. Tnt India Pvt. Ltd., Bangalore vs. DCIT, Bangalore

In the result, both the appeals of the assessee are treated as allowed for statistical purposes

ITA 1403/BANG/2010[2006-07]Status: DisposedITAT Bangalore09 Sept 2019AY 2006-07

Bench: Shri B.R Baskaran & Shri Pavan Kumar Gadale

For Appellant: Shri Dhanesh Batra, C.A &For Respondent: Shri E.S Nagendra Prasad, CIT (DR)
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “B’’ BENCH : BANGALORE BEFORE SHRI B.R BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER IT(TP)A No.1403/Bang/2010 Assessment year : 2006-07 IT(TP)A No.1218/Bang/2011 Assessment year : 2007-08 TNT India Pvt. Ltd., Vs. TheDy. Commissioner of Income-tax, No.82/1, Richmond Road, Circle-12(4), Bengaluru-560 025. Bengaluru. PAN – AAACT 6649 K. APPELLANT RESPONDENT Appellant by : Shri Dhanesh Batra, C.A & Ms. Chandni Shah, C.A Respondent by : Shri E.S Nagendra Prasad, CIT (DR) Date of hearing : 20.06.2019 Date of Pronouncement : 09.09.2019 O R D E…

The Jt. CIT, Range-4, Ahmedabad vs. M/S. Mastek Ltd., Ahmedabad

ITA 514/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad03 Sept 2019AY 2010-11

Bench: Shri Pramod Kumar & Ms Madhumita Roysl. Ita No(S) Appeal(S) By Asset. Nos Year(S) Appellant Vs. Respondent Appellant Respondent 1. 1188/Ahd/2015 2009-10 M/S Mastek Ltd., D.C.I.T., (Osd)-1,Circle-4, 804/805Ahmedabad House, Opp. C.N. Vidyalaya, Nr. Ambawadi Circle, Ambawadi, Ahmedabad -380 006 Pan:Aaacm9908Q 2. 1852/Ahd/2015 2009-10 A.C.I.T., M/S. Mastek Ltd. Circle-2(1)(2), Ahmedabad. Ahmedabad 3. It(Tp) 172/Ahd/2016 2010-11 M/S. Mastek Ltd. J.C.I.T., Ahmedabad Range-4, Ahmedabad 4. It(Tp) 514/Ahd/2016 2010-11 A.C.I.T., M/S. Mastek Ltd. Circle-2(1)(2), Ahmedabad Ahmedabad Assessee By : Shri S. N. Soparkar & Parin Shah, A.Rs. Revenue By : Shri Krishna Murari, Cit- D.R.

For Appellant: Shri S. N. Soparkar & Parin Shah, A.RsFor Respondent: Shri Krishna Murari, CIT- D.R
Section 143Section 143(1)Section 143(3)Section 14A

…er activity- as is the uncontroverted position on the facts of this case, does not amount to a service in which respect of which arm's length adjustment can be done. 42. As observed by Hon'ble Delhi High Court in the case of CIT v. EKL Appliances Ltd. [2012] 345 ITR 241/209 Taxman 200/24 taxmann.com 199 (Delhi), a re-characterization of a transaction is indeed permissible, inter alia, in a situation "(i) where the economic substance of a transaction differs from its form and (ii) where the form and substance of the transaction are the same but arrangements made in relation to the transaction, viewed in their tot…

Mastek Limited, Ahmedabad vs. The Jt.CIT, Rang4, Ahmedabad

ITA 172/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad03 Sept 2019AY 2010-11

Bench: Shri Pramod Kumar & Ms Madhumita Roysl. Ita No(S) Appeal(S) By Asset. Nos Year(S) Appellant Vs. Respondent Appellant Respondent 1. 1188/Ahd/2015 2009-10 M/S Mastek Ltd., D.C.I.T., (Osd)-1,Circle-4, 804/805Ahmedabad House, Opp. C.N. Vidyalaya, Nr. Ambawadi Circle, Ambawadi, Ahmedabad -380 006 Pan:Aaacm9908Q 2. 1852/Ahd/2015 2009-10 A.C.I.T., M/S. Mastek Ltd. Circle-2(1)(2), Ahmedabad. Ahmedabad 3. It(Tp) 172/Ahd/2016 2010-11 M/S. Mastek Ltd. J.C.I.T., Ahmedabad Range-4, Ahmedabad 4. It(Tp) 514/Ahd/2016 2010-11 A.C.I.T., M/S. Mastek Ltd. Circle-2(1)(2), Ahmedabad Ahmedabad Assessee By : Shri S. N. Soparkar & Parin Shah, A.Rs. Revenue By : Shri Krishna Murari, Cit- D.R.

For Appellant: Shri S. N. Soparkar & Parin Shah, A.RsFor Respondent: Shri Krishna Murari, CIT- D.R
Section 143Section 143(1)Section 143(3)Section 14A

…er activity- as is the uncontroverted position on the facts of this case, does not amount to a service in which respect of which arm's length adjustment can be done. 42. As observed by Hon'ble Delhi High Court in the case of CIT v. EKL Appliances Ltd. [2012] 345 ITR 241/209 Taxman 200/24 taxmann.com 199 (Delhi), a re-characterization of a transaction is indeed permissible, inter alia, in a situation "(i) where the economic substance of a transaction differs from its form and (ii) where the form and substance of the transaction are the same but arrangements made in relation to the transaction, viewed in their tot…

Asstt. Commissioner of Income Tax, Circle-2(1)(2), Ahmedabad vs. M/S. Mastek Ltd., Ahmedabad

ITA 1852/AHD/2015[2009-10]Status: DisposedITAT Ahmedabad03 Sept 2019AY 2009-10

Bench: Shri Pramod Kumar & Ms Madhumita Roysl. Ita No(S) Appeal(S) By Asset. Nos Year(S) Appellant Vs. Respondent Appellant Respondent 1. 1188/Ahd/2015 2009-10 M/S Mastek Ltd., D.C.I.T., (Osd)-1,Circle-4, 804/805Ahmedabad House, Opp. C.N. Vidyalaya, Nr. Ambawadi Circle, Ambawadi, Ahmedabad -380 006 Pan:Aaacm9908Q 2. 1852/Ahd/2015 2009-10 A.C.I.T., M/S. Mastek Ltd. Circle-2(1)(2), Ahmedabad. Ahmedabad 3. It(Tp) 172/Ahd/2016 2010-11 M/S. Mastek Ltd. J.C.I.T., Ahmedabad Range-4, Ahmedabad 4. It(Tp) 514/Ahd/2016 2010-11 A.C.I.T., M/S. Mastek Ltd. Circle-2(1)(2), Ahmedabad Ahmedabad Assessee By : Shri S. N. Soparkar & Parin Shah, A.Rs. Revenue By : Shri Krishna Murari, Cit- D.R.

For Appellant: Shri S. N. Soparkar & Parin Shah, A.RsFor Respondent: Shri Krishna Murari, CIT- D.R
Section 143Section 143(1)Section 143(3)Section 14A

…er activity- as is the uncontroverted position on the facts of this case, does not amount to a service in which respect of which arm's length adjustment can be done. 42. As observed by Hon'ble Delhi High Court in the case of CIT v. EKL Appliances Ltd. [2012] 345 ITR 241/209 Taxman 200/24 taxmann.com 199 (Delhi), a re-characterization of a transaction is indeed permissible, inter alia, in a situation "(i) where the economic substance of a transaction differs from its form and (ii) where the form and substance of the transaction are the same but arrangements made in relation to the transaction, viewed in their tot…

Mastek Limited, Ahmedabad vs. The Dy.CIT, (OSD) - 1, Circle-4, Ahmedabad

ITA 1188/AHD/2015[2009-10]Status: DisposedITAT Ahmedabad03 Sept 2019AY 2009-10

Bench: Shri Pramod Kumar & Ms Madhumita Roysl. Ita No(S) Appeal(S) By Asset. Nos Year(S) Appellant Vs. Respondent Appellant Respondent 1. 1188/Ahd/2015 2009-10 M/S Mastek Ltd., D.C.I.T., (Osd)-1,Circle-4, 804/805Ahmedabad House, Opp. C.N. Vidyalaya, Nr. Ambawadi Circle, Ambawadi, Ahmedabad -380 006 Pan:Aaacm9908Q 2. 1852/Ahd/2015 2009-10 A.C.I.T., M/S. Mastek Ltd. Circle-2(1)(2), Ahmedabad. Ahmedabad 3. It(Tp) 172/Ahd/2016 2010-11 M/S. Mastek Ltd. J.C.I.T., Ahmedabad Range-4, Ahmedabad 4. It(Tp) 514/Ahd/2016 2010-11 A.C.I.T., M/S. Mastek Ltd. Circle-2(1)(2), Ahmedabad Ahmedabad Assessee By : Shri S. N. Soparkar & Parin Shah, A.Rs. Revenue By : Shri Krishna Murari, Cit- D.R.

For Appellant: Shri S. N. Soparkar & Parin Shah, A.RsFor Respondent: Shri Krishna Murari, CIT- D.R
Section 143Section 143(1)Section 143(3)Section 14A

…er activity- as is the uncontroverted position on the facts of this case, does not amount to a service in which respect of which arm's length adjustment can be done. 42. As observed by Hon'ble Delhi High Court in the case of CIT v. EKL Appliances Ltd. [2012] 345 ITR 241/209 Taxman 200/24 taxmann.com 199 (Delhi), a re-characterization of a transaction is indeed permissible, inter alia, in a situation "(i) where the economic substance of a transaction differs from its form and (ii) where the form and substance of the transaction are the same but arrangements made in relation to the transaction, viewed in their tot…

M/S Bombardier Transportation India Pvt. Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, both appeals are allowed for statistical purpose

ITA 4575/DEL/2015[2008-09]Status: DisposedITAT Delhi01 Aug 2019AY 2008-09

Bench: Shri Pramod Kumar & Shri K. Narasimha Chary

For Appellant: Sh. Vishal Kalra, Adv. & Ms. Reena Malik, CAFor Respondent: Sh. Sanjay I. Bara, CIT DR

…the services were not needed by the assessee or no benefit was received by it or that the services were itself not received by the assessee. By placing reliance on the decisions of the Hon'ble Delhi High Court in the case of CIT vs EKL Appliances Ltd. [2012] 345 ITR 241 (Del) wherein it was held that the TPO cannot hold the value of a transaction to be 'Nil', he argued that the expenses cannot be disallowed by arriving at 'Nil' ALP. Reliance, in this regard is placed. 15. According to the Ld. AR, Ld. TPO cannot determine whether there is a service from which the assessee benefits and therefore, he cannot determi…

ACIT, New Delhi vs. M/S. Bombardier Transportation India Ltd., New Delhi

In the result, both appeals are allowed for statistical purpose

ITA 4243/DEL/2015[2008-09]Status: DisposedITAT Delhi01 Aug 2019AY 2008-09

Bench: Shri Pramod Kumar & Shri K. Narasimha Chary

For Appellant: Sh. Vishal Kalra, Adv. & Ms. Reena Malik, CAFor Respondent: Sh. Sanjay I. Bara, CIT DR

…the services were not needed by the assessee or no benefit was received by it or that the services were itself not received by the assessee. By placing reliance on the decisions of the Hon'ble Delhi High Court in the case of CIT vs EKL Appliances Ltd. [2012] 345 ITR 241 (Del) wherein it was held that the TPO cannot hold the value of a transaction to be 'Nil', he argued that the expenses cannot be disallowed by arriving at 'Nil' ALP. Reliance, in this regard is placed. 15. According to the Ld. AR, Ld. TPO cannot determine whether there is a service from which the assessee benefits and therefore, he cannot determi…

D.E. Shaw India Advisory Services Pvt. Ltd., New Delhi vs. Addl. CIT, Special Range- 3, New Delhi

In the result, appeal is allowed for statistical purposes in the terms indicated above

ITA 5042/DEL/2018[2014-15]Status: DisposedITAT Delhi31 Jul 2019AY 2014-15

Bench: Shri Pramod Kumar & Before Shri Pramod Kumar & Before Shri Pramod Kumar Before Shri Pramod Kumar & Shri K. Narasimha Chary Shri K. Narasimha Charyshri K. Narasimha Chary Shri K. Narasimha Chary

For Appellant: Shri Himanshu S. SinhaFor Respondent: Shri Sandeep Kumar Mishra
Section 143(3)Section 144C(5)

…IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI BENCH ‘ DELHI DELHI BENCH ‘ BENCH ‘I(1) BENCH ‘ I(1) I(1)’ : NEW DELHI I(1) ’ : NEW DELHI ’ : NEW DELHI ’ : NEW DELHI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT AND BEFORE SHRI PRAMOD KUMAR VICE PRESIDENT AND BEFORE SHRI PRAMOD KUMAR BEFORE SHRI PRAMOD KUMAR VICE PRESIDENT AND VICE PRESIDENT AND SHRI K. NARASIMHA CHARY SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER SHRI K. NARASIMHA CHARY SHRI K. NARASIMHA CHARY , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMB…

M/S. Hella India Lighting Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 1109/DEL/2015[2010-11]Status: DisposedITAT Delhi29 Jul 2019AY 2010-11

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaassessment Year: 2010-11 Hella India Lighting Ltd., Vs Dcit, B-13, Badarpur Extension, Circle-11(1), New Delhi. New Delhi. Pan: Aaacj0101G (Appellant) (Respondent) Assessee By : Dr. Rakesh Gupta, Advocate & Shri Somil Aggarwal, Advocate Revenue By : Shri Sanjay I Bara, Cit, Dr Date Of Hearing : 16.05.2019 Date Of Pronouncement : 29.07.2019 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 23Rd December, 2014 Passed By The Dcit, Circle 11(1), New Delhi U/S 143(3) Read With Section 144C Of The It Act, 1961 For Assessment Year 2010-11. 2. Facts Of The Case, In Brief, Are That The Assessee Is A Company Engaged In The Business Of Manufacturing Of Automobile Components Including Head Lamps, Tail Lamps, Horns Switches, Bulbs, Sundry Lamps, Wiper Arms & Wiper Blades. It Filed Its Return Of Income On 5Th October, 2010 Declaring A Loss Of Rs.1,46,71,148/-. Since The Assessee Has Undertaken International Transactions With Its Ae, The Assessing Officer

For Appellant: Dr. Rakesh Gupta, Advocate &For Respondent: Shri Sanjay I Bara, CIT, DR
Section 143(3)Section 144CSection 40a

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : I-1 : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER Assessment Year: 2010-11 Hella India Lighting Ltd., Vs DCIT, B-13, Badarpur Extension, Circle-11(1), New Delhi. New Delhi. PAN: AAACJ0101G (Appellant) (Respondent) Assessee by : Dr. Rakesh Gupta, Advocate & Shri Somil Aggarwal, Advocate Revenue by : Shri Sanjay I Bara, CIT, DR Date of Hearing : 16.05.2019 Date of Pronouncement : 29.07.2019 ORDER PER R.K. PANDA, AM: This appeal filed by the assessee is directed against the order dated 23rd December, 2014 pass…

Cwt India P.Ltd, Mumbai vs. Asst CIT Cir 9(2)(2), Mumbai

In the result the ground No

ITA 5996/MUM/2018[2014-15]Status: DisposedITAT Mumbai25 Jul 2019AY 2014-15

Bench: Shri G. S. Pannu, Vice- & Shri Pawan Singhm/S Cwt India Pvt. Ltd. Acit Circle-9(2)(2) Unit No.2, Raheja Centre, Aayakar Bhavan, M.K. Vs. Ground Floor, Free Press Road, Mumbai- Journal Marg, Nariman Point, 400020. Mumbai-400021 Pan: Aaaci7084H Appellant Respondent M/S Cwt India Pvt. Ltd. Acit Circle-9(2)(2) Unit No.2, Raheja Centre, Aayakar Bhavan, M.K. Vs. Ground Floor, Free Press Road, Mumbai- Journal Marg, Nariman Point, 400020. Mumbai-400021 Pan: Aaaci7084H Appellant Respondent : Shri Mukesh Butani With Appellant By Shri Shreyash Shah (Ar) Respondent By : Shri Anand Mohan (Dr) Date Of Hearing : 18.06.2019 Date Of Pronouncement : 25.07.2019 Order Under Section 254(1)Of Income Tax Act

For Respondent: Shri Mukesh Butani with
Section 143(3)Section 144C(6)Section 234BSection 254(1)Section 271Section 274Section 92C

…rred 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 v. EKL Appliances Ltd. [2012] 345 ITR 241/209 Taxman 200/24 taxmann.com 199 (Delhi), "Even Rule 10B(1)(a) does not authorize 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 paym…

At & T Global Network Services (India) Pvt. Ltd., New Delhi vs. Addl. CIT, Special Range- 1, New Delhi

Appeal of the assessee is partly allowed for statistical purpose

ITA 7001/DEL/2018[2014-15]Status: DisposedITAT Delhi18 Jul 2019AY 2014-15

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

Section 143(3)Section 144C

…dicial precedents to bring home the point that the benefit test needs to be satisfied from the view point of assessee and business prudence : a. Ericsson India Private Limited vs Dy CIT [ITA No. 5141/Del/2011 (Delhi ITAT)] b. CIT v. EKL Appliances Ltd. [2012] 345 ITR 241 (Delhi) c. Hive Communication Pvt. Ltd. (ITA No.306/2011) d. Commissioner of Income Tax vs. Cushman and Wakefield (India) P. Ltd. (269 CTR 16) (Del.) 51. The above decisions unanimously holds that in reaching the conclusion that whether an independent entity would have paid for such services neither the revenue nor the court must question the com…

Randox Laboratories (India) Private Limited, Bangalore vs. DCIT, Bangalore

In the result, appeal by the Assessee is partly allowed and the appeal by the revenue is dismissed

ITA 800/BANG/2016[2011-12]Status: DisposedITAT Bangalore17 Jul 2019AY 2011-12

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Respondent: Shri C.H. Sundar Rao, CIT(DR-I), ITAT, Bangalore
Section 143(3)Section 144CSection 92Section 92C

…dictated by the revenue authorities as held in the cases of S.A. Builders Ltd. vs. CIT [2006] 288 IT(TP)A No.433/Bang/2016 Page 18 of 27 ITR 1 (SC), Festo Controls (P.) Ltd. vs. DCIT [2013] 30 taxmann.com 16 (Bang.-ITAT), CIT vs. EKL Appliances Ltd. [2012] 345 ITR 241 (Delhi), Dresser-Rand India (P.) Ltd. vs. Addl. CIT [2011] 13 taxmann.com 82 (Mum.) & Abhishek Auto Industries Ltd. vs. DCIT [2012] 15 ITR (Trib) 168 (Delhi). 7. Without prejudice to the above, the Honourable DRP and Learned TPO have failed to appreciate that Appellant has both trade receivable of Rs. 4,48,35,896/- and trade payable of Rs.23,16,0…

DCIT, Bangalore vs. M/S Randox Laboratories India Pvt. Ltd., Mumbai

In the result, appeal by the Assessee is partly allowed and the appeal by the revenue is dismissed

ITA 433/BANG/2016[2011-12]Status: DisposedITAT Bangalore17 Jul 2019AY 2011-12

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Respondent: Shri C.H. Sundar Rao, CIT(DR-I), ITAT, Bangalore
Section 143(3)Section 144CSection 92Section 92C

…dictated by the revenue authorities as held in the cases of S.A. Builders Ltd. vs. CIT [2006] 288 IT(TP)A No.433/Bang/2016 Page 18 of 27 ITR 1 (SC), Festo Controls (P.) Ltd. vs. DCIT [2013] 30 taxmann.com 16 (Bang.-ITAT), CIT vs. EKL Appliances Ltd. [2012] 345 ITR 241 (Delhi), Dresser-Rand India (P.) Ltd. vs. Addl. CIT [2011] 13 taxmann.com 82 (Mum.) & Abhishek Auto Industries Ltd. vs. DCIT [2012] 15 ITR (Trib) 168 (Delhi). 7. Without prejudice to the above, the Honourable DRP and Learned TPO have failed to appreciate that Appellant has both trade receivable of Rs. 4,48,35,896/- and trade payable of Rs.23,16,0…

Crm Services India Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal filed by the assessee is allowed for statistical purposes as indicated above

ITA 432/DEL/2016[2011-12]Status: DisposedITAT Delhi15 Jul 2019AY 2011-12

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaassessment Year: 2011-12 Crm Services India Pvt. Ltd., Vs Acit, 220, Vinobha Puri, Circle-6(2), Lajpat Nagar-Ii, Cr Building, New Delhi. New Delhi. Pan: Aabcc6211B (Appellant) (Respondent) Assessee By : Shri Neeraj Jain, Advocate & Shri Abhishek Agarwal, Ca Revenue By : Shri Sanjay I Bara, Cit, Dr Date Of Hearing : 16.05.2019 Date Of Pronouncement : 15.07.2019 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 13.11.2015 Passed By The Assessing Officer U/S 143(3) Read With Section 144C Of The It Act, Relating To Assessment Year 2011-12. 2. Facts Of The Case, In Brief, Are That The Assessee M/S Crm Services India Pvt. Ltd., Is A 99.9% Subsidiary Of Tpusa Inc., A Delaware Corporation, Running A Voice Based Call Centre Facility In Gurgaon. It Filed Its Return Of Income On 29.11.2011, Declaring An Income Of Rs.10,89,04,919/-. The Assessing Officer Referred The Matter

For Appellant: Shri Neeraj Jain, Advocate &For Respondent: Shri Sanjay I Bara, CIT, DR
Section 143(3)Section 144C

…omparables, any further 7 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 this Court in CIT v. EKL Appliances Ltd. (2012) 345 ITR 241 (Delhi).” 12. He submitted that the assessee, in the instant case, has earned a profit margin of 39.86% from its AE whereas it has earned profit margin of 4.67% from unrelated parties. Therefore, the profit earned from the AE being much higher than the profit earned from third party/unrelated parties, therefore, no adjustment on account of rec…

Adama India Private Limited, Hyderabad vs. Income Tax Officer, Ward-1(3), Hyderabad

In the result, appeal of the assessee is partly allowed

ITA 2314/HYD/2018[2014-15]Status: DisposedITAT Hyderabad03 Jul 2019AY 2014-15

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahmanassessment Year: 2014-15 Adama India Pvt. Ltd., Vs. Income-Tax Officer, Hyderabad. Ward – 1(3), Hyderabad. Pan – Aabcm 09294F (Appellant) (Respondent) Assessee By : Shri Raghunathan S. Revenue By : Shri Y.V.S.T. Sai Date Of Hearing : 09-04-2019 Date Of Pronouncement : 03-07-2019 O R D E R

For Appellant: Shri Raghunathan SFor Respondent: Shri Y.V.S.T. Sai
Section 115JSection 143(2)Section 143(3)Section 92CSection 92C(1)

…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 v. 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…

M/S. Barco Electronic Systems (P) Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 1530/DEL/2016[2010-11]Status: DisposedITAT Delhi28 Jun 2019AY 2010-11

Bench: Shri Amit Shukla & Shri O.P. Kantassessment Year: 2010-11 M/S. Barco Electronic Vs. Deputy Commissioner Of Systems (P.) Ltd., Income Tax, E-20, 1St & 2Nd Floor, Hauz Circle-4(1), New Delhi Khas, New Delhi Pan : Aaacb5865F (Appellant) (Respondent) Appellant By S/Shri Gautam Jain & Piyush Kamal; & Ms. Monika, Ca Respondent By Shri Sandeep Kr. Mishra, Sr.Dr

Section 143(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘I-1’, NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER Assessment Year: 2010-11 M/s. Barco Electronic Vs. Deputy Commissioner of Systems (P.) Ltd., Income Tax, E-20, 1st & 2nd Floor, Hauz Circle-4(1), New Delhi Khas, New Delhi PAN : AAACB5865F (Appellant) (Respondent) Appellant by S/shri Gautam Jain & Piyush Kamal; & Ms. Monika, CA Respondent by Shri Sandeep Kr. Mishra, Sr.DR Date of hearing 10.06.2019 Date of pronouncement 28.06.2019 ORDER PER O.P. KANT, A.M.: This appeal by the assessee is directed against order dated 25…

Godrej Cosumer Products Ltd, Mumbai vs. Asst CIT Cir 14(1)(2), Mumbai

Appeal stands dismissed whereas the assessee’s appeal stands partly allowed in terms of our above order

ITA 1102/MUM/2015[2010-11]Status: DisposedITAT Mumbai19 Jun 2019AY 2010-11

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri Farrokh V.Irani- Ld. ARFor Respondent: Shri Anand Mohan-CIT-DR
Section 143(3)Section 144C(5)Section 32

…ent, submitted the payment under question was reimbursement to AE at cost. The cost was allocated in the ratio of sale of Kiwi Products worldwide. Reliance has been placed on the decision of Hon’ble High Court of Delhi rendered in CIT V/s EKL Appliances Ltd. [24 Taxmann.com 199] for the submissions that Ld. TPO had no authority to disallow entire expenditure. Reliance has also been placed on the decision of this Tribunal rendered in CLSA India P. Ltd. V/s DCIT [101 Taxmann.com 388] for the submissions that Ld. TPO has not followed any prescribed method while computing ALP of the transactions. 12.2 The Ld. CIT-DR…

At & T Global Network Services (India) Pvt. Ltd., New Delhi vs. JCIT, Special Range-1, New Delhi

In the result, both the appeals filed by the assessee are partly allowed for statistical purposes

ITA 7115/DEL/2017[2013-14]Status: DisposedITAT Delhi27 May 2019AY 2013-14

Bench: Shri R.K. Panda & Smt. Beena A. Pillai

For Appellant: Shri Kanchan Kaushal, AdvocateFor Respondent: Shri H.K. Choudhary, CIT, DR
Section 143(3)Section 144CSection 92C

…dicial precedents to bring home the point that the benefit test needs to be satisfied from the view point of assessee and business prudence : a. Ericsson India Private Limited vs Dy CIT [ITA No. 5141/Del/2011 (Delhi ITAT)] b. CIT v. EKL Appliances Ltd. [2012] 345 ITR 241 (Delhi) c. Hive Communication Pvt. Ltd. (ITA No.306/2011) d. Commissioner of Income Tax vs. Cushman and Wakefield (India) P. Ltd. (269 CTR 16) (Del.) 51. The above decisions unanimously holds that in reaching the conclusion that whether an independent entity would have paid for such services neither the revenue nor the court must question the com…

M/S at & T Global Network Services (India) Pvt. Ltd., Gurgaon vs. JCIT, New Delhi

In the result, both the appeals filed by the assessee are partly allowed for statistical purposes

ITA 5535/DEL/2016[2012-13]Status: DisposedITAT Delhi27 May 2019AY 2012-13

Bench: Shri R.K. Panda & Smt. Beena A. Pillai

For Appellant: Shri Kanchan Kaushal, AdvocateFor Respondent: Shri H.K. Choudhary, CIT, DR
Section 143(3)Section 144CSection 92C

…dicial precedents to bring home the point that the benefit test needs to be satisfied from the view point of assessee and business prudence : a. Ericsson India Private Limited vs Dy CIT [ITA No. 5141/Del/2011 (Delhi ITAT)] b. CIT v. EKL Appliances Ltd. [2012] 345 ITR 241 (Delhi) c. Hive Communication Pvt. Ltd. (ITA No.306/2011) d. Commissioner of Income Tax vs. Cushman and Wakefield (India) P. Ltd. (269 CTR 16) (Del.) 51. The above decisions unanimously holds that in reaching the conclusion that whether an independent entity would have paid for such services neither the revenue nor the court must question the com…

Smith & Nephew Healthcare P.Ltd, Mumbai vs. ITO 11(2)(3), Mumbai

In the result, appeal is partly allowed

ITA 2028/MUM/2016[2011-12]Status: DisposedITAT Mumbai24 May 2019AY 2011-12

Bench: Shri Saktijit Deyand Shri Rajesh Kumar

For Appellant: Shri M.P. Lohia a/wFor Respondent: Shri Manish Kumar Singh a/w

…ade by the Transfer Pricing Officer. Thus, he submitted, the addition made should be deleted. In support of such contention, the learned Authorised Representative relied upon the following decisions:– 14 Smith & Nephew i) CIT v/s EKL Appliances Ltd., [2012] 345 ITR 241 (Del.); ii) CIT v/s Lever India Exports, [2017] 78 taxmann.com 88 (Bom.); iii) Merck Ltd. v/s DCIT, [2016] 179 TTJ 121 (Mum.); iv) TNS India Pvt. Ltd. v/s ACIT, ITA no.944/Hyd./2007, etc., dated 22.01.2014; and v) CIT v/s CA Computer Associates India Pvt. Ltd., 351 ITR 069 (Bom.). 18. However, he submitted that the issue may be restored back to…