CIT v. EKL Appliances Ltd.

Lg Electronics India Pvt. Ltd., Uttar Pradesh vs. ACIT, Noida

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

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2008-09] L.G. Electronics India Pvt. Ltd Vs. The Asstt. C.I.T A-27, Mohan Co-Operative Industrial Circle - 3 Estate, Mathura Road Noida [U.P] New Delhi Pan : Aaacl 1745 Q [Appellant] [Respondent] Date Of Hearing : 13.12.2018 Date Of Pronouncement : 14.01.2019

…x v. Sony Ericsson Mobile Communication (2015) 374 ITR 118 where the determination of the ALP of the royalty paid as Nil was not approved. The Court's attention has also been drawn to the decision in Commissioner of Income Tax v. EKL Appliances Limited (2012) 345 ITR 241 wherein it was held that Rule 10B (1) (a) did not authorize disallowance of any expenditure on the ground that it was not necessary for the Assessee to have incurred such expense. It was observed that though the quantum of expenditure could be examined, the entire expenditure could not be disallowed on the ground that it was not necessary.” 55.…

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

In the result, the appeal filed by the assessee in ITA No

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava[A.Y 2014-15] Orange Business Services India Vs. The Dy. C.I.T Solutions Pvt. Ltd Circle – 3 Tower B, 8Th Floor, Dlf Gurgaon Infinity Tower, Phase - Ii Sector 25, Gurgaon Pan : Aabce 4540 P [Appellant] [Respondent]

…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 foll…

DCIT, New Delhi vs. M/S Jsl Ltd., Hisar

Accordingly, ground number 2 of the appeal of the learned AO for 2007 – 08 is dismissed

Bench: Smt Diva Singh & Shri Prashant Maharishi

…to distribution and marketing agreements with third parties or incorporate subsidiaries in different countries for undertaking marketing and distribution of the products. The Delhi High Court in Commissioner of Income Tax versus EKL Appliances Limited, (2012) 345 ITR 241 (Delhi) = 2012-TII-01-HC-DEL-TP referred to the Paragraphs 1.36 to 1.38 of the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, 2010 published by the Organization for Economic Cooperation and Development (OECD, for short) and held as under:- "17. The significance of the aforesaid guidelines lies in the fact that…

Jindal Stainless Ltd., Hisar vs. DCIT, New Delhi

Accordingly, ground number 2 of the appeal of the learned AO for 2007 – 08 is dismissed

Bench: Smt Diva Singh & Shri Prashant Maharishi

…to distribution and marketing agreements with third parties or incorporate subsidiaries in different countries for undertaking marketing and distribution of the products. The Delhi High Court in Commissioner of Income Tax versus EKL Appliances Limited, (2012) 345 ITR 241 (Delhi) = 2012-TII-01-HC-DEL-TP referred to the Paragraphs 1.36 to 1.38 of the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, 2010 published by the Organization for Economic Cooperation and Development (OECD, for short) and held as under:- "17. The significance of the aforesaid guidelines lies in the fact that…

Nissin Brake India Pvt. Ltd., Gurgaon vs. DCIT, Circle- 3, Gurgaon

Bench: Hon’Ble, Shri N.K. Saini & Shri Kuldip Singh

…ilable at pages 969 of the paper book and request received from customers via email to modify the products. 14. The ld. AR for the taxpayer in support of his contentions relied upon the decision of Hon’ble Delhi High Court in CIT vs. EKL Appliances Ltd. – 341 ITR 241 (Del.) and also relied upon – ITA No.1040/Hyd/211, Thyseenkrupp Industries India Pvt. Ltd. 10 – ITA No.7032/Mum/2011 and Toyota Kirloskar Auto Parts Pvt. Ltd. vs. ACIT – IT(TP)A.No.1642/Bang/2012. 15. However, on the other hand, ld. DR for the Revenue contended that for determining the ALP of royalty and product development fee, best method is…

M/S. Terex Equipment Private Limited, Noida vs. ACIT, New Delhi

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

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2009-10] Terex Equipment Pvt. Ltd Vs. The A.C.I.T [Formerly Terex Vectra Equipment Company Circle 18)(1) Private Limited] New Delhi Plot No. 22, Udyog Vihar Greater Noida, Po Surajpur. Pan : Aabct 8105 H [Appellant] [Respondent] Date Of Hearing : 25.10.2018 Date Of Pronouncement : 14.11.2018

…ordingly, reflective of an arm’s length charge. 11. In so far as the observation of the TPO that the assessee has not been able to show as to what cost benefit analysis has been done by the assessee, the Hon'ble Delhi High Court in the case of EKL Appliances 345 ITR 241 has held as under: “14. On the submissions made by both the sides, the following substantial questions of law are framed: - ASSESSMENT YEAR 2003-04 "Whether on the facts and in the circumstances of the case and on a proper interpretation of Section 92CA of the Act and Rule 10B(1)(a) of the Income Tax Rules, 1962, the Tribunal was right in confi…

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

In the result appeal of the revenue is dismissed and appeal of the assessee is allowed

Bench: Shri Amit Shukla & Shri L.P. Sahu

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA Nos. 2845/Del/2013 Asstt. Year: 2006-07 DCIT, Central Circle – 20, Xerox India Ltd., Room No. 333, 5 & 6th Floor, Block One ARA Centre, Vatika Business Park Jhandewalan Extn. Sector 49, Sohna Road vs. New Delhi. Gurgaon, Haryana-122018 PAN AAACM8634R (Appellant) (Respondent) ITA Nos. 2895, 2896/Del/2013 Asstt. Years 2006-07,1998-99 Xerox India Ltd., DCIT, 5 & 6th Floor, Block One Vs. Central Circle – 20, Vatika Business Park New Delhi. Sector 49, Sohna Road Gurgaon, Haryan…

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

In the result appeal of the revenue is dismissed and appeal of the assessee is allowed

Bench: Shri Amit Shukla & Shri L.P. Sahu

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA Nos. 2845/Del/2013 Asstt. Year: 2006-07 DCIT, Central Circle – 20, Xerox India Ltd., Room No. 333, 5 & 6th Floor, Block One ARA Centre, Vatika Business Park Jhandewalan Extn. Sector 49, Sohna Road vs. New Delhi. Gurgaon, Haryana-122018 PAN AAACM8634R (Appellant) (Respondent) ITA Nos. 2895, 2896/Del/2013 Asstt. Years 2006-07,1998-99 Xerox India Ltd., DCIT, 5 & 6th Floor, Block One Vs. Central Circle – 20, Vatika Business Park New Delhi. Sector 49, Sohna Road Gurgaon, Haryan…

DCIT, New Delhi vs. M/S. Xerox India Ltd., New Delhi

In the result appeal of the revenue is dismissed and appeal of the assessee is allowed

Bench: Shri Amit Shukla & Shri L.P. Sahu

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA Nos. 2845/Del/2013 Asstt. Year: 2006-07 DCIT, Central Circle – 20, Xerox India Ltd., Room No. 333, 5 & 6th Floor, Block One ARA Centre, Vatika Business Park Jhandewalan Extn. Sector 49, Sohna Road vs. New Delhi. Gurgaon, Haryana-122018 PAN AAACM8634R (Appellant) (Respondent) ITA Nos. 2895, 2896/Del/2013 Asstt. Years 2006-07,1998-99 Xerox India Ltd., DCIT, 5 & 6th Floor, Block One Vs. Central Circle – 20, Vatika Business Park New Delhi. Sector 49, Sohna Road Gurgaon, Haryan…

M/S at&T Communication Services (India)P.Ltd., Gurgaon vs. DCIT, New Delhi

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

Bench: Shri N.K. Billaiya & Ms Suchitra Kambleassessment Year 2012-13 Assessment Year: 2011-12 At & T Communication Services Vs. Dcit, (India) P. Ltd., Circle-3(2), Vatika Triangle, 3Rd Floor, New Delhi. Sushant Lok-1, Block-A, Gurgaon. Pan: Aacca8033E (Appellant) (Respondent) Assessee By : Shri Kanchun Kaushal, Ar & Ms Chinu Bhasin, Ca Revenue By : Shri Sanjay I Bara, Cit, Dr Date Of Hearing : 25.10.2018 Date Of Pronouncement : 31.10.2018 Order Per N.K. Billaiya, Am: These Are Separate Appeals By The Assessee Preferred Against Two Separate Assessment Orders Dated 20.12.2016 & 29.01.2016 Framed U/S 143(3) R.W. Section 144C(13) Of The Act Pertaining To Assessment Years 2012-13 & 2011-12

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : I-1 : NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER Assessment Year 2012-13 Assessment Year: 2011-12 AT & T Communication Services Vs. DCIT, (India) P. Ltd., Circle-3(2), Vatika Triangle, 3rd Floor, New Delhi. Sushant Lok-1, Block-A, Gurgaon. PAN: AACCA8033E (Appellant) (Respondent) Assessee by : Shri Kanchun Kaushal, AR & Ms Chinu Bhasin, CA Revenue by : Shri Sanjay I Bara, CIT, DR Date of Hearing : 25.10.2018 Date of Pronouncement : 31.10.2018 ORDER PER N.K. BILLAIYA, AM: These are separate appeals by the asses…

At&T Communication Services India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

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

Bench: Shri N.K. Billaiya & Ms Suchitra Kambleassessment Year 2012-13 Assessment Year: 2011-12 At & T Communication Services Vs. Dcit, (India) P. Ltd., Circle-3(2), Vatika Triangle, 3Rd Floor, New Delhi. Sushant Lok-1, Block-A, Gurgaon. Pan: Aacca8033E (Appellant) (Respondent) Assessee By : Shri Kanchun Kaushal, Ar & Ms Chinu Bhasin, Ca Revenue By : Shri Sanjay I Bara, Cit, Dr Date Of Hearing : 25.10.2018 Date Of Pronouncement : 31.10.2018 Order Per N.K. Billaiya, Am: These Are Separate Appeals By The Assessee Preferred Against Two Separate Assessment Orders Dated 20.12.2016 & 29.01.2016 Framed U/S 143(3) R.W. Section 144C(13) Of The Act Pertaining To Assessment Years 2012-13 & 2011-12

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : I-1 : NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER Assessment Year 2012-13 Assessment Year: 2011-12 AT & T Communication Services Vs. DCIT, (India) P. Ltd., Circle-3(2), Vatika Triangle, 3rd Floor, New Delhi. Sushant Lok-1, Block-A, Gurgaon. PAN: AACCA8033E (Appellant) (Respondent) Assessee by : Shri Kanchun Kaushal, AR & Ms Chinu Bhasin, CA Revenue by : Shri Sanjay I Bara, CIT, DR Date of Hearing : 25.10.2018 Date of Pronouncement : 31.10.2018 ORDER PER N.K. BILLAIYA, AM: These are separate appeals by the asses…

Cairn India Ltd., Gurgaon vs. DCIT, Gurgaon

In the result, the appeal of the assessee in ITA Nos

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2011-12] & [A.Y 2012-13] Cairn India Ltd., Vs. The A.C.I.T, Dlf Atria Building, Circle-1(1), Jacaranda Marg, N Block, Gurgaon. Dlf City Phase Ii, Gurgaon. [Pan: Aaccc 8799D] [Appellant] [Respondent] Date Of Hearing : 17.10.2018 Date Of Pronouncement : 24.10.2018 Assessee By : Shri Ajay Vohra, Sr. Adv Shri Ravi Sharma, Adv

…he say of the ld. AR that the TPO/Assessing Officer has grossly erred in wrongly interpreting the guidelines of OECD. In support of his contention, strong reliance was placed on the decision of the Hon'ble High Court of Delhi in the case of EKL Appliances Ltd 345 ITR 241. 13. We have extracted the OECD Guidelines elsewhere. The relevant findings of the Hon'ble High Court of Delhi in the case of EKL Appliances [supra] read as under; “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 transacti…