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 369,743 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.

Dmg Mori Seiki India Machines and Services Pvt. Ltd., Bangalore vs. DCIT, Bangalore

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

ITA 1617/BANG/2012[2008-09]Status: DisposedITAT Bangalore02 May 2018AY 2008-09

Bench: Shri N.V Vasudevan & Shri. Jason P Boazit(Tp)A 1617/Bang/2012 (Asst. Year – 2008-09)

For Appellant: Shri. Vikram Vijayaraghavan, AdvocateFor Respondent: Smt. Padma Meenakshi, JCIT
Section 143(3)Section 234ASection 234BSection 234DSection 250Section 27lSection 92CSection 92C(2)Section 92C(3)Section 92D

…IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH ‘B’ BEFORE SHRI N.V VASUDEVAN, JUDICIAL MEMBER AND SHRI. JASON P BOAZ, ACCOUNTANT MEMBER IT(TP)A 1617/Bang/2012 (Asst. Year – 2008-09) DMG Mori Seiki India Machines And Services Pvt. Ltd ( Erstwhile DMG Deckel Maho Gildemeister (India) Pvt. Ltd.,), No.3/1, 3rd Main Road, KIADB, Peenya 1st Stage, Bangalore –560058, PAN: AABCD0003E. ….Appellant Vs. Deputy Commissioner Of Income Tax, Circle 11(1), Bangalore. …..Respondent Appellant by : Shri. Vikram Vijayaraghavan, Advocate Respondent by : Smt. Padma Meenakshi, JCIT Date of Hearing : 26-04-2018 Date o…

Comm Vault Systems (India) Pvt.Ltd., Hyd, Hyderabad vs. DCIT, Circle-1(2), Hyd, Hyderabad

In the result, assessee’s appeal is partly allowed

ITA 343/HYD/2016[2011-12]Status: DisposedITAT Hyderabad11 Apr 2018AY 2011-12

Bench: Smt. P. Madhavi Devi & Shri B. Ramakotaiahm/S. Comm Vault Systems Vs Dy. Commissioner Of Income (India) Private Limited Tax, Circle 1(2) Hyderabad Hyderabad Pan: Aaccc 3708 L (Appellant) (Respondent)

For Appellant: Shri Darpan KirpalaniFor Respondent: Shri J. Siri Kumar, DR
Section 143(3)Section 234Section 234DSection 271(1)(C)Section 92C

…shall be a distributor of AE’s products in India. The Hon'ble Delhi High Court in the case of Sony Ericson Mobile Communications India (P) Ltd. v. CIT reported in (2015) , 374 ITR 118 (Del.) discussed the context and ruling in EKL Appliances Ltd, reported in 345 ITR 241 (Del.) to hold as follows: “CIT versus EKL Appliances Ltd - Disregarding actual transaction 147. Tax authorities examine a related and associated parties' transaction as actually undertaken and structured by the parties. Normally, tax authorities cannot disregard the actual transaction or substitute the same for another transaction as per their…

M/S. Philips India Limited (Formerly Philips Electronics India Litd.), Kolkata vs. ACIT, Circle - 12(2), Kolkata

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

ITA 2489/KOL/2017[2013-14]Status: DisposedITAT Kolkata04 Apr 2018AY 2013-14

Bench: Hon’Ble Shri A.T.Varkey, Jm & Hon’Ble Shri M.Balaganesh, Am ] I.T.A No. 2489/Kol/2017 Assessment Year : 2013-14 M/S Philips India Ltd. -Vs- Acit, Circle-12(2), Kolkata (Formerly Philips Electronics India Ltd.) [Pan: Aabcp 9487 A] (Appellant) (Respondent)

For Appellant: Shri Arvind Sonde, AdvocateFor Respondent: Shri G. Mallikarjuna, CIT DR
Section 143(3)Section 92CSection 92D(1)

…PO is well within his statutory domain to determine the ALP for the intra group services rendered apparently per force to the assessee. The ld DRP placed reliance on the decision of the Hon’ble Delhi High Court in the case of EKL Appliances reported in (2012) 345 ITR 241 (Del) wherein it was held that :- 22. “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 or that in the view of the Revenue the expenditure was unremunerative or that in view of the continued losses suffered by the assessee in his bu…

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

The appeal of the assessee is partly allowed for statistical purpose

ITA 566/DEL/2015[2010-11]Status: DisposedITAT Delhi26 Feb 2018AY 2010-11

Bench: Shri R. S. Syal & Ms Suchitra Kamble

Section 143(3)Section 144Section 154Section 92BSection 92C

…1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘I-1’ NEW DELHI BEFORE SHRI R. S. SYAL, VICE PRESIDENT AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A .No. 566/DEL/2015 (A.Y 2010-11) BT India Pvt. Ltd. Vs DCIT 11th Floor, Eros Corporate Tower, Circle-3(1) Nehru Place New Delhi New Delhi AABCC4785E (RESPONDENT) (APPELLANT) Appellant by Sh. Nageshwar Rao, Sr. Adv & Sh. Parth, Adv Respondent by Sh. Sanjay I Bara, CIT DR Date of Hearing 28.11.2017 Date of Pronouncement 26.02.2018 ORDER PER SUCHITRA KAMBLE, JM This appeal has been filed by the assessee against the order dated 22/12/2014 passed by Assessi…

DCIT, New Delhi vs. M/S. Asahi India Glass Limited, New Delhi

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

ITA 2183/DEL/2014[2007-08]Status: DisposedITAT Delhi26 Feb 2018AY 2007-08

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2007-08 Asahi India Glass Limited, Dcit, Circle- 2(1), 38, Okhla Industrial Area, New Delhi. Vs. Phase- Iii, New Delhi.

For Appellant: Shri Sandip Sapra, AdvFor Respondent: Shri Kumar Parnav, Sr.DR
Section 10(34)Section 115JSection 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I-1”, NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER Assessment Year : 2007-08 Asahi India Glass Limited, DCIT, Circle- 2(1), 38, Okhla Industrial Area, New Delhi. Vs. Phase- III, New Delhi. PAN : AADCA7706R (Appellant) (Respondent) Assessment Year : 2007-08 DCIT, Circle- 2(1), Asahi India Glass Limited, New Delhi. 12, Basant Lok, Vasant Vihar, Vs. New Delhi. PAN : AADCA7706R (Appellant) (Respondent) Assessee by : Shri Sandip Sapra, Adv. Department by : Shri Kumar Parnav, Sr.DR Date of hearing : 06-12-2017 Date…

M/S. Asahi India Glass Limited, New Delhi vs. DCIT, New Delhi

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

ITA 1637/DEL/2014[2007-08]Status: DisposedITAT Delhi26 Feb 2018AY 2007-08

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2007-08 Asahi India Glass Limited, Dcit, Circle- 2(1), 38, Okhla Industrial Area, New Delhi. Vs. Phase- Iii, New Delhi.

For Appellant: Shri Sandip Sapra, AdvFor Respondent: Shri Kumar Parnav, Sr.DR
Section 10(34)Section 115JSection 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I-1”, NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER Assessment Year : 2007-08 Asahi India Glass Limited, DCIT, Circle- 2(1), 38, Okhla Industrial Area, New Delhi. Vs. Phase- III, New Delhi. PAN : AADCA7706R (Appellant) (Respondent) Assessment Year : 2007-08 DCIT, Circle- 2(1), Asahi India Glass Limited, New Delhi. 12, Basant Lok, Vasant Vihar, Vs. New Delhi. PAN : AADCA7706R (Appellant) (Respondent) Assessee by : Shri Sandip Sapra, Adv. Department by : Shri Kumar Parnav, Sr.DR Date of hearing : 06-12-2017 Date…

M/S Phillips India Limited, Kolkata vs. ACIT, Cir-12(2), Kolkata

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

ITA 612/KOL/2017[2012-13]Status: DisposedITAT Kolkata07 Feb 2018AY 2012-13

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Hon’Ble Shri M.Balaganesh, Am ] I.T.A No. 612/Kol/2017 Assessment Year : 2012-13 M/S Philips India Ltd. -Vs- Acit, Circle-12(2), Kolkata (Formerly Philips Electronics India Ltd.) [Pan: Aabcp 9487 A] (Appellant) (Respondent)

For Appellant: Shri Arvind Sonde, AdvocateFor Respondent: Shri G. Mallikarjuna, CIT DR
Section 143(3)Section 92CSection 92D(1)

…PO is well within his statutory domain to determine the ALP for the intra group services rendered apparently per force to the assessee. The ld DRP placed reliance on the decision of the Hon’ble Delhi High Court in the case of EKL Appliances reported in (2012) 345 ITR 241 (Del) wherein it was held that :- 22. “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 or that in the view of the Revenue the expenditure was unremunerative or that in view of the continued losses suffered by the assessee in his bu…

DCIT, Bangalore vs. M/S Adcock Ingram Limited, Bangalore

In the result, both the appeals of the revenue are allowed for statistical purposes

ITA 1039/BANG/2015[2009-10]Status: DisposedITAT Bangalore31 Jan 2018AY 2009-10

Bench: Shri. Jason P. Boaz

For Appellant: Shri. Vishnu Bagri, CAFor Respondent: Shri. Harinder Kumar, CIT - DR
Section 92B

…thereafter TPO had recorded that there is a huge difference in profit margin of a related party sales and the contract manufacture . in our vie the approach of TPO was not correct as it is contrary to law laid in the case of EKL Appliances, Delhi High Court, 345 ITR 241 and Dresser Rand , Mumbai Tribunal, 13 taxmann.com 82 (Mumbai) where Hon’ble court and tribunal had held i) Not necessary for the assessee to show that any legitimate expenditure was also incurred out of necessity ii) Not necessary to show that any expenditure incurred for the purpose of business has actually resulted in profit or income, eithe…

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

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

ITA 6735/DEL/2017[2013-14]Status: DisposedITAT Delhi18 Jan 2018AY 2013-14

Bench: Sh. Bhavnesh Saini & Sh. O.P. Kantassessment Year: 2013-14 Vs. Addl. Cit, Special Range-3, M/S. D.E. Shaw India Advisory Services Private Ltd., E-20, 1St & New Delhi 2Nd Floor, Main Market, Hauz Khas, New Delhi Pan : Aabce6097P (Appellant) (Respondent) Appellant By Sh. Ved Jain, Adv. Respondent By Mrs. Vatsala Jha, Cit(Dr) Date Of Hearing 04.01.2018 Date Of Pronouncement 18.01.2018 Order Per O.P. Kant, A.M.:

Section 143(3)Section 144C(5)Section 234BSection 271Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘I-1’, NEW DELHI BEFORE SH. BHAVNESH SAINI, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER Assessment Year: 2013-14 Vs. Addl. CIT, Special Range-3, M/s. D.E. Shaw India Advisory Services Private Ltd., E-20, 1st & New Delhi 2nd Floor, Main Market, Hauz Khas, New Delhi PAN : AABCE6097P (Appellant) (Respondent) Appellant by Sh. Ved Jain, Adv. Respondent by Mrs. Vatsala Jha, CIT(DR) Date of hearing 04.01.2018 Date of pronouncement 18.01.2018 ORDER PER O.P. KANT, A.M.: This appeal by the assessee is directed against order dated 10/10/2017 passed by the Ld. Addi…

DCIT, Cir-8(1), Kolkata vs. M/S Eih Ltd., Kolkata

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

ITA 153/KOL/2016[2011-2012]Status: DisposedITAT Kolkata12 Jan 2018AY 2011-2012

Bench: Hon’Ble Shri Aby. T. Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A No. 153/Kol/2016 Assessment Year : 2011-12 Dcit, Circle-8(1), Kolkata -Vs- M/S Eih Limited [Pan: Aaace 6898 B] (Appellant) (Respondent) I.T.A No. 110/Kol/2016 Assessment Year : 2011-12 M/S Eih Limited -Vs- Dcit, Circle-8(1), Kolkata [Pan: Aaace 6898 B] (Appellant) (Respondent) For The Appellant : Shri Kanchun Kaushal,Ar For The Department : Shri G.Mallikarjuna, Cit Dr Date Of Hearing : 26.10.2017 Date Of Pronouncement : 12.01.2018 Order Per Bench:

For Appellant: Shri Kanchun Kaushal,ARFor Respondent: Shri G.Mallikarjuna, CIT DR
Section 14ASection 14A(2)

…f shareholding activity and he relied on the following decisions of Hon’ble High Courts. • Delhi High Court in the case of CIT Vs. Cotton Naturals (I) Put Ltd (Refer Page 12 of Vol. II of the compendium and Para 17 of the ruling) • CIT us EKL Appliances Ltd (345 ITR 241) (Refer Page 53-57 of Vol 11 of the compendium and Para 17-21 of the ruling) 13.3. Without prejudice to the aforesaid submission, the Ld. AR made an alternate plea that since loan was advanced in the capacity of the shareholder, the assessee contended that since ld DRP accepted that LIBOR should be used as the rate of interest to determine the a…

Eih Ltd., Kolkata vs. The DCIT, Cir-8(1), Kolkata

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

ITA 110/KOL/2016[2011-2012]Status: DisposedITAT Kolkata12 Jan 2018AY 2011-2012

Bench: Hon’Ble Shri Aby. T. Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A No. 153/Kol/2016 Assessment Year : 2011-12 Dcit, Circle-8(1), Kolkata -Vs- M/S Eih Limited [Pan: Aaace 6898 B] (Appellant) (Respondent) I.T.A No. 110/Kol/2016 Assessment Year : 2011-12 M/S Eih Limited -Vs- Dcit, Circle-8(1), Kolkata [Pan: Aaace 6898 B] (Appellant) (Respondent) For The Appellant : Shri Kanchun Kaushal,Ar For The Department : Shri G.Mallikarjuna, Cit Dr Date Of Hearing : 26.10.2017 Date Of Pronouncement : 12.01.2018 Order Per Bench:

For Appellant: Shri Kanchun Kaushal,ARFor Respondent: Shri G.Mallikarjuna, CIT DR
Section 14ASection 14A(2)

…f shareholding activity and he relied on the following decisions of Hon’ble High Courts. • Delhi High Court in the case of CIT Vs. Cotton Naturals (I) Put Ltd (Refer Page 12 of Vol. II of the compendium and Para 17 of the ruling) • CIT us EKL Appliances Ltd (345 ITR 241) (Refer Page 53-57 of Vol 11 of the compendium and Para 17-21 of the ruling) 13.3. Without prejudice to the aforesaid submission, the Ld. AR made an alternate plea that since loan was advanced in the capacity of the shareholder, the assessee contended that since ld DRP accepted that LIBOR should be used as the rate of interest to determine the a…

DCIT, Cir-12(2), Kolkata vs. M/S Philips India Ltd., Kolkata

ITA 863/KOL/2016[2011-2012]Status: DisposedITAT Kolkata15 Dec 2017AY 2011-2012

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

Section 143(3)Section 144CSection 144C(5)Section 92C

…ld AR on the co- ordinate bench of this tribunal in the case of DCIT vs Bata India Ltd reported in (2016) 69 taxmann.com 120 (Kolkata Trib) dated 6.4.2016 had considered the decisions of Hon’ble Delhi High Court in the case of CIT vs EKL Appliances Ltd (2012) 345 ITR 241 (Del) ; CIT vs Cushman & Wakefield (India) (P) Ltd (2014) 367 ITR 730 (Del) and co-ordinate bench of Mumbai Tribunal in the case of Dresser Rand India (P) Ltd vs Addl CIT (2011) 47 SOT 423 (Mum) and applied the principles emanating out of those judgements and applied the same to the facts of the case in Bata India Ltd. In the said case (i.e Bata…

M/S Philips India Ltd., Kolkata vs. DCIT, Cir-12(2), Kolkata

ITA 539/KOL/2016[2011-2012]Status: DisposedITAT Kolkata15 Dec 2017AY 2011-2012

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

Section 143(3)Section 144CSection 144C(5)Section 92C

…ld AR on the co- ordinate bench of this tribunal in the case of DCIT vs Bata India Ltd reported in (2016) 69 taxmann.com 120 (Kolkata Trib) dated 6.4.2016 had considered the decisions of Hon’ble Delhi High Court in the case of CIT vs EKL Appliances Ltd (2012) 345 ITR 241 (Del) ; CIT vs Cushman & Wakefield (India) (P) Ltd (2014) 367 ITR 730 (Del) and co-ordinate bench of Mumbai Tribunal in the case of Dresser Rand India (P) Ltd vs Addl CIT (2011) 47 SOT 423 (Mum) and applied the principles emanating out of those judgements and applied the same to the facts of the case in Bata India Ltd. In the said case (i.e Bata…

Global Logic India Ltd., New Delhi vs. DCIT, New Delhi

ITA 1115/DEL/2017[2012-13]Status: DisposedITAT Delhi12 Dec 2017AY 2012-13

Bench: Shri B.P. Jain & Shri Kuldip Singh

For Appellant: Shri Ajay Vohra, Senior AdvocateFor Respondent: Shri Sanjay Batra, CIT DR
Section 143Section 143(3)Section 144Section 144CSection 92BSection 92C

…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 this Court in CIT v. EKL Appliances Ltd. (2012) 345 ITR 241 (Delhi). 12. Consequently, the Court is unable to find any error in the impugned order of the ITAT giving rise to any substantial question of law for determination. The appeal is, accordingly, dismissed.” 15. So, in view of the law laid down by Hon’ble High Court in Pr. CIT-V vs. Kusum Health Care Pvt. Ltd. (supra), we are of the notional intere…

Global Logic India Ltd., New Delhi vs. DCIT, New Delhi

ITA 1104/DEL/2015[2010-11]Status: DisposedITAT Delhi12 Dec 2017AY 2010-11

Bench: Shri B.P. Jain & Shri Kuldip Singh

For Appellant: Shri Ajay Vohra, Senior AdvocateFor Respondent: Shri Sanjay Batra, CIT DR
Section 143Section 143(3)Section 144Section 144CSection 92BSection 92C

…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 this Court in CIT v. EKL Appliances Ltd. (2012) 345 ITR 241 (Delhi). 12. Consequently, the Court is unable to find any error in the impugned order of the ITAT giving rise to any substantial question of law for determination. The appeal is, accordingly, dismissed.” 15. So, in view of the law laid down by Hon’ble High Court in Pr. CIT-V vs. Kusum Health Care Pvt. Ltd. (supra), we are of the notional intere…

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

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

ITA 1353/BANG/2010[2006-07]Status: DisposedITAT Bangalore11 Dec 2017AY 2006-07

Bench: Shri Inturi Rama Rao & Shri Lalit Kumarm/S.Volvo India Private Limited, Yalachahally Village, Tavarakere Post, Hoskote, Bangalore – 562 122. Pan: Aaacv 6747N … Appellant Vs. The Deputy Commissioner Of Income Tax, Ltu, … Respondent

For Appellant: Shri Neeraj Jain, CAFor Respondent: Ms. Neera Malhotra, CIT(DR)
Section 10ASection 143(3)Section 234CSection 234DSection 92C

…(P&H) (FB) - CIT vs. EKL Appliances Ltd. : ITA No. 1068/2011 & 1070/2011 (Del HC) - CIT v. Dalmia Cement (P.) Ltd: 254 ITR 377 (Del) 15. Further reliance was placed on the decision of the Hon’ble Delhi High Court in the case of CIT v. EKL Appliances Ltd., 345 ITR 241 (Del) and CIT v. Reebok India Co. Ltd., 374 ITR 118 (Del). It was further contended that the AO/TPO cannot question the necessity of expenditure and reliance in this regard was placed on the decision of the Hon’ble Delhi High Court in the case of CIT v. Lumax Industries Ltd. (ITA No.102/2014). Without prejudice to the above, he further contended…

M/S. Lumax Industries Ltd., New Delhi vs. JCIT, New Delhi

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

ITA 6961/DEL/2014[2010-11]Status: DisposedITAT Delhi05 Dec 2017AY 2010-11

Bench: Shri R. K. Panda & Shri Kuldip Singhassessment Year : 2010-11 Lumax Industries Ltd., Jcit, Range- 4, B-85/86, Mayapuri Industrial New Delhi. Vs. Area, Phase-1, New Delhi. Pan : Aaacl1126D (Appellant) (Respondent)

For Appellant: Shri Pradeep Dinodia, AdvFor Respondent: Shri H. K. Choudhary, CIT-DR
Section 143(3)

…ALP. On the identical facts and circumstances in the case of the assessee in ITA No.102/2014 dated 28.10.2015 has not admitted the appeal of the revenue with respect to the determination of ALP of royalty relying on the decision of CIT Vs. EKL Appliances Ltd. 345 ITR 241 and CIT Vs. Sony Ericson Mobile Communication 374 ITR 118. The coordinate bench for AY 2008-09 in ITA No.4456/Del/2012 in assessee’s own case has held as under:- “19. In this regard, it is seen that during the year, royalty was paid by the Assessee to its AE on sales made using the trade mark of ‘Stanley’; that the assessee is a widely held liste…

M/S Bright Point India Pvt Ltd., New Delhi vs. ACIT, New Delhi

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

ITA 123/DEL/2017[2012-13]Status: DisposedITAT Delhi04 Dec 2017AY 2012-13

Bench: Shri R. K. Panda & Shri Kuldip Singhassessment Year : 2012-13 Bright Point India Pvt. Ltd., Acit, Central Circle- 20, G-9, Block B-1, New Delhi. Mohan Co-Operative Industrial Vs. Estate, Mathura Road, New Delhi.

For Appellant: Shri Tarun Gulati, AdvFor Respondent: Shri H. K. Choudhary, CIT-DR
Section 143(3)Section 144CSection 253(1)Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I-2”, NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER Assessment Year : 2012-13 Bright Point India Pvt. Ltd., ACIT, Central Circle- 20, G-9, Block B-1, New Delhi. Mohan Co-operative Industrial Vs. Estate, Mathura Road, New Delhi. PAN : AAACB6414G (Appellant) (Respondent) Assessee by : Shri Tarun Gulati, Adv. Department by : Shri H. K. Choudhary, CIT-DR Date of hearing : 06-09-2017 Date of pronouncement : 04-12-2017 O R D E R PER R. K. PANDA, AM : This appeal filed by the assessee is directed against the order dated…

ITO, Bangalore vs. M/S Safran Engineering Services India Private Limited, Bangalore

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

ITA 451/BANG/2015[2010-11]Status: DisposedITAT Bangalore20 Nov 2017AY 2010-11

Bench: Shri Sunil Kumar Yadav & Shri Inturi Rama Raoit(Tp)A No.451/Bang/2015 (Assessment Year: 2010-11)

For Appellant: Ms.Neera Malhaotra, CIT(DR)For Respondent: Shri K.R.Vasudevan, Advocate
Section 10ASection 143(3)Section 92C

…signed by the TPO for determining ALP at ‘nil’. The law is now quite well settled that it is beyond the scope and powers of the AO/TPO to question the necessity of incurring expenditure. The Hon’ble Delhi High Court in the case of CIT vs. EKL Appliances Ltd. (345 ITR 241), after considering the judgment of the Apex Court in the case of CIT vs. Walchand & Co. P.Ltd. (65 ITR 381)(SC), Sassoon J.David & Co. Pvt. Ltd. vs. CIT (118 ITR 261)(SC) held that the TPO cannot determine ALP at nil by holding that there was no need to incur such expenditure. While coming to this conclusion, the Hon’ble High Court has referred…

Gamesa Renewable Private Limited, Chennai vs. ACIT, Chennai

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

ITA 376/CHNY/2017[2012-13]Status: DisposedITAT Chennai13 Nov 2017AY 2012-13

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddy

For Appellant: Shri B.Ramakrishnan, FCA &For Respondent: Smt. Vijayalakshmi, CIT,D.R
Section 143(3)Section 144C(1)Section 144C(5)

…easonable payments to relatives and associate concerns and should not be applied in a manner which will cause hardship in bona fide cases. The ld. AR, also placed reliance on the judgment of the Delhi High Court in the case of CIT vs. EKL Appliances Ltd., (345 ITR 241) wherein it has been held that it is not necessary for the assessee to show that any legitimate expenditure incurred by him was also incurred out of necessity. In addition, the Court held that it is also not necessary for the assessee to show that any expenditure incurred by him for the purpose of business carried on by him has actually result…