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.

How many judgments cite CIT v. EKL Appliances Ltd.?

422 judgments on BharatTax cite CIT v. EKL Appliances Ltd. (345 ITR 241), spanning 2015 to 2026.

Which sections of the Income Tax Act does CIT v. EKL Appliances Ltd. come up under?

It is most often cited in judgments turning on Section 143(3), Section 144C(13), Section 234B, Section 92CA, Section 144B, Section 92C.

CIT v. EKL Appliances Ltd. (345 ITR 241)

DCIT (Ltu)-2, Mumbai vs. M/S Reliance Industries Ltd., Mumbai

In the result, the ITA No

ITA 2344/MUM/2019[2014-15]Status: DisposedITAT Mumbai08 Mar 2022AY 2014-15

Section 143(3)Section 28

…ning interest, which again would be yielding tax revenue to this country? Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) is correct in ignoring the decision of Hon'ble Delhi High court in the case of CIT v/s EKL Appliances Ltd, (345 ITR 241) wherein it has been held that recharacterisation of transaction is permissible in exceptional circumstances as that of assessee as under?Two exceptions have been allowed to the aforesaid principle and they are – (i) where the economic substance of a transaction differs from its form; and ITA Nos.1645 & 2876/Mum/2019 ITA Nos.2344 & 3945/Mum/2019…

Reliance Industries Limited, Mumbai vs. ACIT, Mumbai

In the result, the ITA No

ITA 1645/MUM/2019[2014-15]Status: DisposedITAT Mumbai08 Mar 2022AY 2014-15

Section 143(3)Section 28

…ning interest, which again would be yielding tax revenue to this country? Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) is correct in ignoring the decision of Hon'ble Delhi High court in the case of CIT v/s EKL Appliances Ltd, (345 ITR 241) wherein it has been held that recharacterisation of transaction is permissible in exceptional circumstances as that of assessee as under?Two exceptions have been allowed to the aforesaid principle and they are – (i) where the economic substance of a transaction differs from its form; and ITA Nos.1645 & 2876/Mum/2019 ITA Nos.2344 & 3945/Mum/2019…

Nalco Water India Limited, Pune vs. Assistant Commissioner of Income-Tax, Circle -2, Pune

Appeal is allowed for statistical purposes

ITA 1892/PUN/2018[2014-15]Status: DisposedITAT Pune02 Mar 2022AY 2014-15

Bench: Shri R.S.Syal, Vp & Shri Partha Sarathi Chaudhury, Jm Assessment Year:2014-15

For Appellant: Shri Ketan VedFor Respondent: Shri Shivaji B. More

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

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, PUNE BEFORE SHRI R.S.SYAL, VP AND SHRI PARTHA SARATHI CHAUDHURY, JM Assessment Year:2014-15 Nalco Water India Ltd. Sr.No. 238/239, 3rd floor, Quadra 1, Magarpatta Road, Sade Satra Nali, Hadapsar, Pune. PAN : AAACO4994N Appellant Vs. Asstt. CIT Cir. 2, Pune. Respondent Appellant by : Shri Ketan Ved Respondent by : Shri Shivaji B. More Date of Hearing : 16-02-2022 Date of Pronouncement :_02-03-2022 ORDER PER PARTHA SARATHI CHAUDHURY, JM : This appeal preferred by the assessee emanates from the directions of the Ld. Dispute Resolution Panel (DRP), Panel-3, Mumbai d…

Owens Corning Industries (India) P. Ltd. Mahabubnagar (Previously Known As Saint Gobain Vetrotex India Ltd), Mahabubnagar Dist vs. DCIT, Circle-3(1), Hyderabad

Appeal is partly allowed in above terms

ITA 256/HYD/2016[2004-05]Status: DisposedITAT Hyderabad22 Feb 2022AY 2004-05

Bench: Shri A. Mohan Alankamony & Shri S.S. Godaraassessment Year: 2004-05 Owens Corning Industries Vs. The Deputy Commissioner (India) Private Limited Of Income Tax, (Previously Known As Saint Circle 3(1), Gobain Vetrotex India Hyderabad. Limited), Hyderabad. Pan : Aaacv9858N. (Appellant) (Respondent) Assessee By: Shri S. Rama Rao. Revenue By: Shri T. Sunil Goutam. Date Of Hearing: 17.02.2022 Date Of Pronouncement: 22.02.2022 O R D E R Per S. S. Godara, J.M. This Assessee’S Appeal For A.Y. 2004-05 Arises From The Commissioner Of Income Tax (Appeals) – 4, Hyderabad’S Order Dated 21.12.2015 In Case No.0217/Dcit, Cir.3(1)/2014-15/ Cit(A)-4/Hyd/2015-16 Involving Proceedings U/S 143(3) Of The Income Tax Act, 1961 [In Short, ‘The Act’].

For Appellant: Shri S. Rama RaoFor Respondent: Shri T. Sunil Goutam

Section 143(3)

…on that the TPO was incorrect in going into the business expediency of payment of royalty and arriving at the conclusion of the quantum of the royalty. We find support for this proposition in the decision of Hon'ble Delhi High Court in CIT vs. EKL Appliances (345 ITR 241. (Del) wherein the Hon'ble Delhi High Court had occasion to consider the disallowance of royalty by TPO and held that if the expenditure has been incurred or laid out for the purposes of business it is no concern of the TPO to disallow the same on any extraneous reasons. In the case of Ericsson India Pvt. Ltd. vs. DCIT (ITA No. 5141/Del/ 2011) th…

Bharti Airtel Services Ltd., New Delhi vs. DCIT, Circle-4(2), New Delhi

ITA 6272/DEL/2018[2012-13]Status: DisposedITAT Delhi31 Jan 2022AY 2012-13

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar(Through Video Conferencing)

For Appellant: S/Shri Rahul Mitra, NininFor Respondent: Shri Mrinal Kumar Das

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 this Court in CIT v. EKL Appliances Ltd. (2012) 345 ITR 241 (Delhi).” 9. This judgement has also been followed in catena of judgements by the Tribunal, a compilation of which has been filed before us separately. If the working capital adjustment is accepted, then the differential impact of working capital of the Assessee vis-à-vis the comparables stands already factored in the pricing/profitability, whic…

Bharti Airtel Services Ltd., Gurgaon vs. DCIT, Circle-4(2), New Delhi

ITA 3183/DEL/2018[2013-14]Status: DisposedITAT Delhi31 Jan 2022AY 2013-14

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar(Through Video Conferencing)

For Appellant: S/Shri Rahul Mitra, NininFor Respondent: Shri Mrinal Kumar Das

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 this Court in CIT v. EKL Appliances Ltd. (2012) 345 ITR 241 (Delhi).” 9. This judgement has also been followed in catena of judgements by the Tribunal, a compilation of which has been filed before us separately. If the working capital adjustment is accepted, then the differential impact of working capital of the Assessee vis-à-vis the comparables stands already factored in the pricing/profitability, whic…

Gbt India Private Limited, Delhi vs. National E-Assesment Centre, New Delhi

In the result, the appeal of the assessee is allowed and Stay application is accordingly held to be infructuous

ITA 462/DEL/2021[2016-17]Status: DisposedITAT Delhi06 Jan 2022AY 2016-17

Bench: Shri G.S. Pannu & Shri Amit Shukla(Through Video Conferencing)

For Appellant: Shri Himanshu Sinha, Adv. &For Respondent: Shri Surendra Pal

Section 143(3)Section 144C(13)

…received by the assessee from rendering these services. We fail to understand why the payments have been subjected to different treatments. 18. The Hon'ble High Court of Delhi in the case of CIT v. EKL Appliances Ltd. [2012] 24 taxmann.com 199/209 Taxman 200/345 ITR 241 has held that the TPO does not have power to adjudicate the allowance/disallowance of expenditure incurred by the assessee thereby demolishing the need and benefit derived by the assessee. The relevant findings of the Hon'ble High Court read as under: "15. It seems to us that the decision taken by the Tribunal is the right decision. The TPO appli…

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

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

ITA 851/DEL/2021[2016-17]Status: DisposedITAT Delhi18 Nov 2021AY 2016-17

Bench: Shri O.P. Kant & Shri K.N. Chary[Through Video Conferencing] Assessment Year: 2016-17

Section 92CSection 92D

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘I-2’ NEW DELHI BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI K.N. CHARY, JUDICIAL MEMBER [Through Video Conferencing] Assessment Year: 2016-17 M/s. Orange Business Vs. DCIT, Services India Solutions Circle-3, Pvt. Ltd., Gurgaon Tower-B, 8th Floor, DLF Infinity Tower, Phase-II, Sector-25, Gurgaon, Haryana PAN :AABCE4540P (Appellant) (Respondent) Appellant by Sh. Ravi Sharma, Adv. Respondent by Sh. Sukesh Kumar Jain, CIT(DR) Date of hearing 23.09.2021 Date of pronouncement 18.11.2021 ORDER PER O.P. KANT, AM: This appeal by the assessee is directed against…

Globallogic India Ltd.(Formerly Known As Globallogic India Limited), New Delhi vs. DCIT, Circle-10(1), New Delhi

ITA 868/DEL/2021[2016-17]Status: DisposedITAT Delhi12 Nov 2021AY 2016-17

Bench: Shri Anil Chaturvedi & Shri Kuldip Singh

For Appellant: Shri Neeraj Jain, AdvocateFor Respondent: Shri Surender Pal, CIT DR

Section 143Section 143(3)Section 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 considered vie…

Lite-on Mobile India Private Limited, Kancheepuram vs. DCIT, Chennai

In the result, appeal filed by the assessee for assessment

ITA 478/CHNY/2017[2012-13]Status: DisposedITAT Chennai03 Nov 2021AY 2012-13

Bench: Shri Duvvuru Rl Reddy & Shri G. Manjunathaआयकरअपीलसं./I.T.A.Nos.3194 & 478/Chny/2017 ("नधा"रणवष" / Assessment Years: (2013-14 & 2012-13) M/S. Lite-On Mobile India Pvt.Ltd. Vs The Deputy Commissioner Of Nokia Telecom Special Economic Zone, Income Tax, Plot No.1A, Sipcot Industrial Park, Corporate Circle-4(1) Phase-Iii Chennai-Bangalore Highway, Chennai-600 034. Sriperumbudur, Kancheepuram Dist. Pin- 602 105. Pan: Aadcp 9246K (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr. B.Jayaraghavan, CIT

Section 92CSection 92C(3)

…ncluding necessity of services and want of evidence to justify payment of management fees. It is well settled principle of law by the decisions of various courts, including decision of the Hon’ble Delhi High Court in the case of CIT vs Ekl Appliances Ltd., 345 ITR 241, that the Assessing Officer cannot question wisdom of businessman to incur a particular expenditure. But, fact remains that the AO/TPO is having all powers to examine whether particular expenditure incurred is genuine in nature and further it is supported by necessary evidence. In this case, on the basis of facts brought out by the authoritie…

Lite-on Mobile India Private Limited, Kancheepuram vs. DCIT Corporate Circle 4(1), Chennai

In the result, appeal filed by the assessee for assessment

ITA 3194/CHNY/2017[2013-14]Status: DisposedITAT Chennai03 Nov 2021AY 2013-14

Bench: Shri Duvvuru Rl Reddy & Shri G. Manjunathaआयकरअपीलसं./I.T.A.Nos.3194 & 478/Chny/2017 ("नधा"रणवष" / Assessment Years: (2013-14 & 2012-13) M/S. Lite-On Mobile India Pvt.Ltd. Vs The Deputy Commissioner Of Nokia Telecom Special Economic Zone, Income Tax, Plot No.1A, Sipcot Industrial Park, Corporate Circle-4(1) Phase-Iii Chennai-Bangalore Highway, Chennai-600 034. Sriperumbudur, Kancheepuram Dist. Pin- 602 105. Pan: Aadcp 9246K (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr. B.Jayaraghavan, CIT

Section 92CSection 92C(3)

…ncluding necessity of services and want of evidence to justify payment of management fees. It is well settled principle of law by the decisions of various courts, including decision of the Hon’ble Delhi High Court in the case of CIT vs Ekl Appliances Ltd., 345 ITR 241, that the Assessing Officer cannot question wisdom of businessman to incur a particular expenditure. But, fact remains that the AO/TPO is having all powers to examine whether particular expenditure incurred is genuine in nature and further it is supported by necessary evidence. In this case, on the basis of facts brought out by the authoritie…