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.

M/S Instrumentarium Corporation Ltd., Kolkata vs. DDIT (It)-1(1), Kolkata

ITA 1549/KOL/2009[2004-05]Status: DisposedITAT Kolkata15 Jul 2016AY 2004-05

Bench: The Special Bench:

…action- which is not permissible under the scheme of the law. Learned counsel refers to, and relies upon, judgments of Hon’ble Delhi High Court in the cases of CIT Vs Cotton Naturals India Pvt Ltd [(2015) 118 DTR 1 (Del)] and CIT Vs EKL Appliances Ltd [(2015) 345 ITR 241 (Del)] in this regard. His next argument is that taxation laws in India do not mandate the chagrining of interest on loan advanced to its associated enterprises. Furthermore, according to the learned counsel, where there is no income, there cannot be any tax. He then refers to judicial precedents in the cases of CIT Vs Shoorji Vallabhdas & Co [(1…

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

In the result the appeal filed by the assessee stands allowed for statistical purposes

ITA 166/DEL/2013[2008-09]Status: DisposedITAT Delhi30 Jun 2016AY 2008-09

Bench: Shri N. K. Saini & Smt. Beena A. Pillaii.T.(Tp) No.166/Del.2013 (Assessment Year 2008-09) M/S. Showa India Pvt. Ltd., Vs. Dcit, Circle 8(1), 23-32, Sector 58, New Delhi Faridabd, Haryana-121002 Gir / Pan :Aabce5725G (Appellant) (Respondent)

For Appellant: Shri Aseem Chawla, AdvFor Respondent: Shri Amrendra Kumar, CIT DR
Section 133(6)Section 271Section 92ASection 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘I’, NEW DELHI BEFORE SHRI N. K. SAINI, ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER I.T.(TP) No.166/Del.2013 (Assessment Year 2008-09) M/s. Showa India Pvt. Ltd., Vs. DCIT, Circle 8(1), 23-32, Sector 58, New Delhi Faridabd, Haryana-121002 GIR / PAN :AABCE5725G (Appellant) (Respondent) Appellant by :Shri Aseem Chawla, Adv. Ms. Priyanka Mongia, CA Respondent by :Shri Amrendra Kumar, CIT DR Date of hearing: 17.06.2016 Date of Pronouncement: 30.06.2016 ORDER PER BEENA A. PILLAI, JM: The present appeal has been filed by the assessee against the orde…

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

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

ITA 1482/DEL/2015[2010-11]Status: DisposedITAT Delhi28 Jun 2016AY 2010-11

Bench: Shri I.C. Sudhir & Shri L.P. Sahu

For Appellant: Sh. Manoj Pardasani, CAFor Respondent: Sh. Amrendra Kumar, CIT/DR
Section 143(3)Section 144C(5)

…of MSIL was found "excessive" the Revenue deduced the existence of an international transaction. It then added back the excess expenditure as the transfer pricing "adjustment". This runs counter to legal position explained in CIT v. EKL Appliances Ltd. [2012] 345 ITR 241 (Delhi), which required a Transfer Pricing Officer "to examine the 'international transaction' as he actually finds the same". In other words the very existence of an international transaction cannot be a matter for inference or surmise. 65. As already noticed, the decision in Sony Ericsson has done away with the bright line test as means for det…

Fabindia Overseas Pvt. Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 2245/DEL/2013[2009-10]Status: DisposedITAT Delhi13 Jun 2016AY 2009-10

Bench: Shri S.V. Mehrotra & Shri Sudhanshu Srivastavaasstt. Year: 2009-10 Asstt. Year: 2007-08

For Appellant: S/Shri Aseem Chawla, AdvFor Respondent: Shri A.M.Govil, CIT DR
Section 80

…ecessary as products sold by the assessee had already acquired a reputation of quality before conclusion of the agreement for purchase of trade mark. The Ld. AR also relied on the decision of the Hon'ble Delhi High Court in the case of CIT vs EKL Appliances 345 ITR 241 (Del) for the proposition that it is not necessary for the assessee to show that any legitimate expenditure incurred by it was also incurred out of necessity. It is also not necessary for the assessee to show that any expenditure incurred by it for the purpose of business carried by it has actually resulted in profit or income either in the sam…

Fabindia Overseas Pvt. Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 2244/DEL/2013[2007-08]Status: DisposedITAT Delhi13 Jun 2016AY 2007-08

Bench: Shri S.V. Mehrotra & Shri Sudhanshu Srivastavaasstt. Year: 2009-10 Asstt. Year: 2007-08

For Appellant: S/Shri Aseem Chawla, AdvFor Respondent: Shri A.M.Govil, CIT DR
Section 80

…ecessary as products sold by the assessee had already acquired a reputation of quality before conclusion of the agreement for purchase of trade mark. The Ld. AR also relied on the decision of the Hon'ble Delhi High Court in the case of CIT vs EKL Appliances 345 ITR 241 (Del) for the proposition that it is not necessary for the assessee to show that any legitimate expenditure incurred by it was also incurred out of necessity. It is also not necessary for the assessee to show that any expenditure incurred by it for the purpose of business carried by it has actually resulted in profit or income either in the sam…

DCIT, New Delhi vs. M/S. Fabindia Overseas (P) Ltd., New Delhi

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

ITA 1898/DEL/2013[2007-08]Status: DisposedITAT Delhi13 Jun 2016AY 2007-08

Bench: Shri S.V. Mehrotra & Shri Sudhanshu Srivastavaasstt. Year: 2009-10 Asstt. Year: 2007-08

For Appellant: S/Shri Aseem Chawla, AdvFor Respondent: Shri A.M.Govil, CIT DR
Section 80

…ecessary as products sold by the assessee had already acquired a reputation of quality before conclusion of the agreement for purchase of trade mark. The Ld. AR also relied on the decision of the Hon'ble Delhi High Court in the case of CIT vs EKL Appliances 345 ITR 241 (Del) for the proposition that it is not necessary for the assessee to show that any legitimate expenditure incurred by it was also incurred out of necessity. It is also not necessary for the assessee to show that any expenditure incurred by it for the purpose of business carried by it has actually resulted in profit or income either in the sam…

DCIT, New Delhi vs. M/S Fabindia Overseas (P) Ltd., New Delhi

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

ITA 1894/DEL/2013[2009-10]Status: DisposedITAT Delhi13 Jun 2016AY 2009-10

Bench: Shri S.V. Mehrotra & Shri Sudhanshu Srivastavaasstt. Year: 2009-10 Asstt. Year: 2007-08

For Appellant: S/Shri Aseem Chawla, AdvFor Respondent: Shri A.M.Govil, CIT DR
Section 80

…ecessary as products sold by the assessee had already acquired a reputation of quality before conclusion of the agreement for purchase of trade mark. The Ld. AR also relied on the decision of the Hon'ble Delhi High Court in the case of CIT vs EKL Appliances 345 ITR 241 (Del) for the proposition that it is not necessary for the assessee to show that any legitimate expenditure incurred by it was also incurred out of necessity. It is also not necessary for the assessee to show that any expenditure incurred by it for the purpose of business carried by it has actually resulted in profit or income either in the sam…

Ac Nielesen Org-Marg P. Ltd, Mumbai vs. Addl CIT RG 6(1), Mumbai

ITA 8799/MUM/2011[2007-08]Status: DisposedITAT Mumbai27 May 2016AY 2007-08

Bench: S/Sh.Rajendra & C.N. Prasadआयकर अपील सं./I.T.A./8799/Mum/2011,िनधा"रण वष" /Assessment Year: 2007-08 M/S. Nielsen (India) Private Limited Addl. Range-6(1) Aayakar Bhavan, 4Th Floor, M.K.Marg (Formerly Known As M/S. Acnielson Org- Marg Private Limited) Mumbai-400 020. 6Th Floor, Block C, Godrej It Park, 02 Vs. Godrej Business District, Lbs Marg, Phirojshanagar, Vikhroli (W) Mumbai-400 079. Pan:Aaacm 9279 L (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By:Shri N.K. Chand Assessee By: S/Shri Saurabh Soparkar & Bandish Soparkar सुनवाई की तारीख / Date Of Hearing: 25.04.2016 घोषणा की तारीख / Date Of Pronouncement: 27.05.2016 आयकर अिधिनयम,1961 की धारा 254(1)के अ"ग"त आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद" राजे" के अनुसार Per Rajendra, Am- Challenging The Order Dated 24.10.2011 Of The Assessing Officer (Ao), Passed Under Section 143(3) Read With Section 144C (13) Of The Act,The Assessee Has Filed The Present Appeal.During The Course Of Hearing Before Us, The Authorised Representative (Ar)Stated That The Assessee Was Not Interested In Pursuing Ground Number Six, Considering The Smallness Of The Tax Effect.Therefore, Same Stands Dismissed As Not Pressed. 2.Assessee-Company Is A Wholly Owned Subsidiary Of Valcon, Which Is Part Of The Ac Nielsen Group. It Is Engaged In The Business Of Providing Customised Market Research Services Including Quantitative & Qualitative Consumer Studies, Print Media Measurement Services & Retail Measurement Services Which Includes Retail Tracking, Modeling & Analytics & Category Manage - Ment.It Filed Its Return Of Income On 29/10/2007, Declaring Total Income At Rs. 18.12 Crores.The Ao Completed The Assessment On 24/10/2011,Determining The Income Of The Assessee At Rs. 33.77 Crores.

For Appellant: S/Shri Saurabh Soparkar & Bandish SoparkarFor Respondent: Shri N.K. Chand
Section 143(3)Section 144CSection 254(1)Section 92

…y and exclusively for the purposes of the business” is a fact determination or verification and that exercise is to be undertaken by the AO.That determination is not and cannot be made by the TPO.The Hon’ble Delhi High Court in the case of Ekl Appliances Ltd.(345 ITR 241) has held as under: “It is not open to the Transfer Pricing Officer to question the judgment of the assessee as to how it should conduct its business and regarding the necessity or otherwise of incurring the expenditure in the interest of its business. It is entirely the choice of the assessee as to from whom it contemplates to source its techno…

E.I. Dupont India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

ITA 4774/DEL/2014[2007-08]Status: DisposedITAT Delhi20 May 2016AY 2007-08
For Appellant: Shri Ajit Tolani, AdvFor Respondent: S/Shri Anand Kumar Kedia &

…(ITA no. 4869/Del/2014) – Para 33. The copy of the order was submitted to Your Honors during the hearing. Reliance should also be placed in the judgment in the case of Hive Communication [353 ITR 200] by Delhi High Court dated July 8, 2011 and EKL Appliances [345 ITR 241] by Delhi High Court dated March 29, 2012. Services are actually shareholder or stewardship activities  o It is humbly submitted that none of the services have been received from shareholder. Thus, there is no question of shareholder activity. Without prejudice to this, it is humbly submitted that each legal entity should be respected for its se…

ACIT, Bangalore vs. 3M India Limited, Bangalore

In the result, both the appeals filed by the assessee- company as well as the revenue are partly allowed for statistical purposes

ITA 727/BANG/2011[2005-06]Status: DisposedITAT Bangalore13 May 2016AY 2005-06

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Mukesh Bhutani, AdvocateFor Respondent: Ms. Neera Malhotra, CIT(DR)
Section 143(1)Section 143(2)Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, BANGALORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER and SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER IT(TP)A No.725/Bang/2011 (Assessment year: 2005-06) M/s. 3M India Ltd., No.48/51, Electronic City, Hosur Road, Bangalore-560 100. … Appellant PAN:AAACB 5724H Vs. Addl. Commissioner of Income-tax (LTU), Bangalore. … Respondent AND IT(TP)A No.727/Bang/2011 (Assessment year: 2005-06) (by the revenue) ***** Assessee by : Shri Mukesh Bhutani, Advocate Respondent by : Ms. Neera Malhotra, CIT(DR) Date of hearing : 05/04/2016 Date of pronouncement : 13/05/2016 O R D E R Pe…

3M India Limited, Bangalore vs. Addl.C.I.T., Bangalore

In the result, both the appeals filed by the assessee- company as well as the revenue are partly allowed for statistical purposes

ITA 725/BANG/2011[2005-06]Status: DisposedITAT Bangalore13 May 2016AY 2005-06

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Mukesh Bhutani, AdvocateFor Respondent: Ms. Neera Malhotra, CIT(DR)
Section 143(1)Section 143(2)Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, BANGALORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER and SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER IT(TP)A No.725/Bang/2011 (Assessment year: 2005-06) M/s. 3M India Ltd., No.48/51, Electronic City, Hosur Road, Bangalore-560 100. … Appellant PAN:AAACB 5724H Vs. Addl. Commissioner of Income-tax (LTU), Bangalore. … Respondent AND IT(TP)A No.727/Bang/2011 (Assessment year: 2005-06) (by the revenue) ***** Assessee by : Shri Mukesh Bhutani, Advocate Respondent by : Ms. Neera Malhotra, CIT(DR) Date of hearing : 05/04/2016 Date of pronouncement : 13/05/2016 O R D E R Pe…

Ge Money Financial Services Pvt. Ltd., Delhi vs. DCIT, New Delhi

In the result ground, no

ITA 6282/DEL/2012[2008-09]Status: DisposedITAT Delhi02 May 2016AY 2008-09

Bench: Shri A.T.Varkey & Shri Prashant Maharishi

For Appellant: Sh. Sachit Jolly, AdvFor Respondent: Sh. Amendra Kumar, CIT DR
Section 143(3)Section 144Section 144CSection 144C(5)Section 32Section 36(1)(vii)Section 36(2)Section 92C

…should have been procured from whom. For this he relied on the decisions of i. CIT V Walchand & CO Limited 65 ITR 381 (SC) ii. Sasoon J David& co P Ltd V CIT 118 ITR 261 (SC) iii. Hive Communications P Ltd V CIT 201 Taxman 99 ( Del ) iv. CIT V EKL Appliances 345 ITR 241 ( Del) It was further submitted that several tribunals have held that TPO cannot question the commercial wisdom of the assessee. i. Dresser-Rand India Pvt. Ltd. v. ACIT [2012] 13 ITR (Trib.) 422 (Mum) Page 29 of 79 G E Money Financial Services Pvt Limited A Y ITA No 5882/Del/2010 5816/Del/2011 & 6282/Del/2012 2006-07 2007-08 & 2008-09 ii. Erics…

Ge Money Financial Services Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result ground, no

ITA 5882/DEL/2010[2006-07]Status: DisposedITAT Delhi02 May 2016AY 2006-07

Bench: Shri A.T.Varkey & Shri Prashant Maharishi

For Appellant: Sh. Sachit Jolly, AdvFor Respondent: Sh. Amendra Kumar, CIT DR
Section 143(3)Section 144Section 144CSection 144C(5)Section 32Section 36(1)(vii)Section 36(2)Section 92C

…should have been procured from whom. For this he relied on the decisions of i. CIT V Walchand & CO Limited 65 ITR 381 (SC) ii. Sasoon J David& co P Ltd V CIT 118 ITR 261 (SC) iii. Hive Communications P Ltd V CIT 201 Taxman 99 ( Del ) iv. CIT V EKL Appliances 345 ITR 241 ( Del) It was further submitted that several tribunals have held that TPO cannot question the commercial wisdom of the assessee. i. Dresser-Rand India Pvt. Ltd. v. ACIT [2012] 13 ITR (Trib.) 422 (Mum) Page 29 of 79 G E Money Financial Services Pvt Limited A Y ITA No 5882/Del/2010 5816/Del/2011 & 6282/Del/2012 2006-07 2007-08 & 2008-09 ii. Erics…

Goodyear India Ltd., Faridabad vs. ACIT, New Delhi

ITA 5650/DEL/2011[2007-08]Status: DisposedITAT Delhi29 Apr 2016AY 2007-08

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

For Appellant: Mr. Ajay Vohra, Sr. AdvFor Respondent: Mr. Amrinder Singh, CIT-DR
Section 143(3)Section 144CSection 144C(5)Section 92C

…nd exclusively for the purpose of business of the appellant, whether or not such expenditure actually benefits the appellant is an irrelevant consideration for the purpose of determination of ALP. Reliance is placed on the decision of DCIT vs Ekla Appliances: 345 ITR 241, Wherein the Hon’ble Tribunal held that the TPO cannot challenge the judgment of the assessee as to the source from which the technology is to be obtained and at what cost etc. The Hon’ble Delhi High Court while upholding the decision of the Hon’ble Tribunal held that as long as an expense is incurred wholly and exclusively for the purpose of bus…

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

In the result appeal of the assessee is partly allowed

ITA 6212/DEL/2013[2009-10]Status: DisposedITAT Delhi22 Apr 2016AY 2009-10

Bench: Shri Rajpal Yadav & Shri Prashant Maharishilumax Industries Ltd., Dcit, B-85/86, Mayapuri Industrial Area, Circle-4(1), Vs. Phase-1, New Delhi New Delhi Pan:Aadcr6902J (Appellant) (Respondent)

For Appellant: Sh. Pradeep Dinodia, AdvFor Respondent: Sh. Manu Chaurasia, Sr. DR
Section 143(3)Section 144CSection 144C(5)Section 14ASection 43BSection 92C

…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 bythe Assessee to its AE on sales made using the trade mark of „Stanley‟;that the assessee is a widely held listed…

M/S. Mc Donald'S India (P) Ltd., New Delhi vs. DCIT, New Delhi

In the result ground no. 7 of the appeal is allowed with above direction

ITA 961/DEL/2010[2003-04]Status: DisposedITAT Delhi12 Apr 2016AY 2003-04

Bench: Shri A. T. Varkey & Shri Prashant Maharishimc Donald’S India (P) Ltd, Dcit, 10, Basant Lok, Circle-6(1), Vs. Vasant Kunj, R.No.413, C.R.Building, New Delhi New Delhi Pan:Aaacm2007J (Appellant) (Respondent) Assessee By Sh. Rohit Tiwari, Ca Ms. Sonal Arora, Ca Revenue By Shri Amendra Kumar, Cit Dr Date Of Hearing 23.02.2016 Date Of Pronouncement 12.04.2016

Section 143(3)Section 92A(2)(g)Section 92C

…ts it incurs." Para 2.94 of the OECD Guidelines further acknowledges that "comparability issues may arise in practice where limited information is available on the breakdown of the costs of the comparables." This Court has in CIT v. EKL Appliances Ltd. [2012] 345 ITR 241 (Delhi) has noted that the OECD Guidelines have been recognised in our tax jurisprudence. What is however, is significant is that in the absence of any reliable comparable data, and in the absence of proper reasons, it would not be justified for the Revenue to simply reject a financial ratio adopted by the Assessee for computing the net profit ma…

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

In the result, the appeal of the assessee is partly allowed

ITA 1906/DEL/2015[2010-11]Status: DisposedITAT Delhi08 Apr 2016AY 2010-11

Bench: Shri S.V. Mehrotra & Shri Sudhanshu Srivastavaay: 2010-11 Frigoglas India Pvt. Ltd., Vs Dcit, Plot 26-A, Sector-3, Circle-9(2), Imt Manesar, New Delhi. Gurgaon. (Pan: Aaacf6804G) (Appellant) (Respondent) Appellant By: Shri Harpreet Singh, Adv. Shri Rophan Khare, Adv. Shri Gagandeep Nagpal, Ca Respondent By: Shri Amendra Kumar, Cit Dr Date Of Hearing: 11.01.2016 Date Of Pronouncement: 08.04.2016

For Appellant: Shri Harpreet Singh, AdvFor Respondent: Shri Amendra Kumar, CIT DR
Section 143(3)Section 92C

…ore the DRP, detailed submissions, including agreement between AE and the assessee, 19 I.T.A. 1906/D/2015 Assessment year: 2010-11 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 or payment by assessee has been demonstrated to have been incurred or laid out for the purposes of business…

DCIT, Circle -2, Kolkata vs. M/S. Bata India Ltd., Kolkata

In the result, the appeal by the Assessee is partly allowed while the appeal by the Revenue is dismissed

ITA 365/KOL/2012[2004-05]Status: DisposedITAT Kolkata06 Apr 2016AY 2004-05

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am] I.T.A No. 365/Kol/2012 Assessment Year : 2004-05

For Appellant: Shri Ajay Vohra, Sr.Advocate &For Respondent: Shri G.Mallikarjuna,CIT
Section 139(1)Section 2(24)(x)Section 36(1)(va)Section 36(6)(va)Section 43B

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : KOLKATA [Before Hon’ble Sri N.V.Vasudevan, JM & Shri Waseem Ahmed, AM] I.T.A No. 365/Kol/2012 Assessment Year : 2004-05 D.C.I.T., Circle-2, -vs.- M/s. Bata India Ltd. Kolkata Kolkata [PAN : AABCB1043Q) (Appellant) (Respondent) I.T.A No. 327/Kol/2012 Assessment Year : 2004-05 M/s. Bata India Ltd. D.C.I.T., Circle-2, Kolkata Kolkata [PAN : AABCB1043Q) (Appellant) (Respondent) For the Department : Shri G.Mallikarjuna,CIT For the Assessee : Shri Ajay Vohra, Sr.Advocate & Shri Neeraj Jain, Advocate Date of Hearing : 14.03.2016. Date of Pronouncement : 06.04.…

M/S. Bata India Limited, Kolkata vs. DCIT, Circle - 2, Kolkata

In the result, the appeal by the Assessee is partly allowed while the appeal by the Revenue is dismissed

ITA 327/KOL/2012[2004-05]Status: DisposedITAT Kolkata06 Apr 2016AY 2004-05

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am] I.T.A No. 365/Kol/2012 Assessment Year : 2004-05

For Appellant: Shri Ajay Vohra, Sr.Advocate &For Respondent: Shri G.Mallikarjuna,CIT
Section 139(1)Section 2(24)(x)Section 36(1)(va)Section 36(6)(va)Section 43B

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : KOLKATA [Before Hon’ble Sri N.V.Vasudevan, JM & Shri Waseem Ahmed, AM] I.T.A No. 365/Kol/2012 Assessment Year : 2004-05 D.C.I.T., Circle-2, -vs.- M/s. Bata India Ltd. Kolkata Kolkata [PAN : AABCB1043Q) (Appellant) (Respondent) I.T.A No. 327/Kol/2012 Assessment Year : 2004-05 M/s. Bata India Ltd. D.C.I.T., Circle-2, Kolkata Kolkata [PAN : AABCB1043Q) (Appellant) (Respondent) For the Department : Shri G.Mallikarjuna,CIT For the Assessee : Shri Ajay Vohra, Sr.Advocate & Shri Neeraj Jain, Advocate Date of Hearing : 14.03.2016. Date of Pronouncement : 06.04.…

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

In the result, the appeal of the Assessing Officer for the assessment year

ITA 1222/MUM/2015[2009-10]Status: DisposedITAT Mumbai31 Mar 2016AY 2009-10
Section 133(6)Section 143(3)

…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…