CIT v. Keihin Panalfa Ltd.

381 ITR 407High Court2016#8451 most cited

What is CIT v. Keihin Panalfa Ltd. authority for?

Transfer pricing adjustments must be made only in respect of international transactions with associated enterprises, not at an entity level, especially when segmental accounts are unavailable and proportionate adjustments are necessary.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2026.

Also referred to as

CIT v Keihin Panalfa Ltd · 381 ITR 407 · transfer pricing adjustment · international transactions · associated enterprises · entity level · segmental accounts · proportionate adjustments

Sections most often in play

Section 143(3)Section 144C(13)Section 144C(5)Section 154Section 234CSection 234DSection 244ASection 271(1)(c)
Read the full judgment

Issues it is cited on

unabsorbed depreciationcomparable companiesmost appropriate methodcommercial expediencysection 32section 40(a)section 40(a)(ia)international transactionsection 43section 19section 40section 37

Judgments citing CIT v. Keihin Panalfa Ltd.

Thermo Fisher Scientific India P. Ltd, Mumbai vs. DCIT 15(3)(1), Mumbai

ITA 7294/MUM/2018[2014-15]Status: DisposedITAT Mumbai02 Jan 2026AY 2014-15

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

For Appellant: Shri Dhanesh Bafna, Shri Anmol MahajanFor Respondent: Shri Pravin Salunkhe, Sr.DR
Section 143(3)Section 144C(13)Section 144C(5)Section 32(1)

…l transactions with the associated enterprises and not at an entity level. We find that the Hon'ble Jurisdictional High Court also concurred with the view taken by the Hon'ble Delhi High Court in CIT v/s Keihin Panalfa Ltd., in ITA No. 11 of 2015, reported in 381 ITR 407, wherein it was held that where segmental accounts are not available, then proportionate adjustments have to be made only in respect of the international transactions with associated enterprises. The relevant findings of the Hon'ble Jurisdictional High Court in ALSTOM Projects India Ltd (supra) are reproduced as follows: "5. Be that as it may, Mr…

Thermo Fisher Scientific India P. Ltd, Mumbai vs. DCIT 15(3)(1), Mumbai

ITA 577/MUM/2017[2012-13]Status: DisposedITAT Mumbai02 Jan 2026AY 2012-13

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

For Appellant: Shri Dhanesh Bafna, Shri Anmol MahajanFor Respondent: Shri Pravin Salunkhe, Sr.DR
Section 143(3)Section 144C(13)Section 144C(5)Section 32(1)

…l transactions with the associated enterprises and not at an entity level. We find that the Hon'ble Jurisdictional High Court also concurred with the view taken by the Hon'ble Delhi High Court in CIT v/s Keihin Panalfa Ltd., in ITA No. 11 of 2015, reported in 381 ITR 407, wherein it was held that where segmental accounts are not available, then proportionate adjustments have to be made only in respect of the international transactions with associated enterprises. The relevant findings of the Hon'ble Jurisdictional High Court in ALSTOM Projects India Ltd (supra) are reproduced as follows: "5. Be that as it may, Mr…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

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

ITA 4081/DEL/2010[2003-04]Status: PendingITAT Delhi12 Mar 2024AY 2003-04

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Rajesh Kumar, CIT-DR

…ee and ought to be restricted to the value of international transactions. We draw support from the decision of the Hon'ble Supreme Court in the case of Hindustan Unilever 259 Taxmann.com 218, the Hon'ble High Court of Delhi in the case of Keihin Panalfa Ltd 381 ITR 407, Hon'ble Bombay High Court in the case of Tara Jewel Exports [P] Ltd 129 DTR 410. 15. Respectfully following the ratio laid down by the Hon'ble Supreme Court and High Courts [supra], TP adjustment made by the TPO and sustained by the ld. CIT(A) cannot be sustained and is liable to be deleted on the following grounds: (i) Since the difference…

M/S. Toyota Tausho India Private Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle -3(1)(1), Bengaluru

Accordingly, this ground is allowed for statistical purposes

ITA 2806/BANG/2017[2013-14]Status: DisposedITAT Bangalore02 Mar 2023AY 2013-14

Bench: Shri N.V Vasudevan & Shri Laxmi Prasad Sahu

For Appellant: Shri Darpan Kirpalani, AdvocateFor Respondent: Shri Sunil Kumar Singh, CIT (D.R)
Section 143(3)Section 92C(2)

…2006-07 in IT(TP)A No.140/Bang/2010 and he further submitted that the entity level transactions cannot be considered for computation of TP adjustment. He also relied on the judgments of Hon’ble Delhi High Court in the case of CIT vs Keihin Panalfa Ltd. [2016] 381 ITR 407 & Hon’ble Bombay High Court in the case of CIT vs Alstom Projects India Ltd. [ 2017] 394 ITR 141. 11.1 The ld.DR relied on the order of the lower authorities and he submitted that the DRP has rightly gave exemption in his order. The ld. DR further submitted that the assessee relied on the judgment as cited supra in objections before the ld. DRP a…

Rosemount Tank Gauging India Pvt.Ltd, Pune vs. Deputy Commissioner of Income Tax, Pune

In the result, the appeal is allowed for statistical purposes

ITA 422/PUN/2017[2012-13]Status: DisposedITAT Pune09 Dec 2019AY 2012-13

Bench: Shri R.S. Syal & Shri Partha Sarathi Chaudhuryआयकर अपील सं. / Ita No.422/Pun/2017 िनधा"रण वष" / Assessment Year : 2012-13 Rosemount Tank Gauging India Pvt. Vs. Dcit, Circle-5 Ltd., Pune 5Th Floor, Plot No.23, Rajiv Gandhi Infotech Park, Phase-Ii, Hinjewadi, Pune – 411 057 Pan : Aadcs9297H Appellant Respondent

Section 143(3)Section 92C

…y with reference to the international transactions and not the transactions with the non-associated enterprises. Similar view has been espoused by the Hon’ble Delhi High Court in CIT VS. Keihin 12 Rosemount Tank Gauging India Pvt. Ltd., Panalfa Ltd. (2016) 381 ITR 407 (Del). Respectfully following the precedents, we hold that the transfer pricing addition should be restricted only to the international transactions. 17. Ground Nos. 6 and 7 about charging of interest are consequential. 18. To sum up, we set aside the impugned order and remit the matter to the AO/TPO for carrying out a fresh determination of th…

Magna Steyr India Pvt. Ltd., Pune vs. Assistant Commissioner of Income-Tax

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

ITA 468/PUN/2016[2011-12]Status: DisposedITAT Pune12 Oct 2018AY 2011-12

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm

For Appellant: S/Shri Vispi Patel & Suresh DhootFor Respondent: Shri Rajeev Kumar
Section 143(3)Section 144C(5)Section 92CSection 92C(3)

…istration of the tax laws should not degenerate into an arbitrary and inconsistent application of law dependent upon the Assessee concerned. 11. We also note that the Delhi High Court in Commissioner of Income Tax Vs. Keihin Panalfa Ltd. (ITA No.11 of 2015) (381 ITR 407) decided on 7 ITA Nos.352 & 468/PUN/2016, A.Y. 2011-12 9th September, 2015 has while dealing with transfer pricing adjustment in the absence of segmental accounts held that adjustments have to be restricted only to transactions with Associated Enterprises. It further held that where separate accounts are not available, then proportionate adjustm…

Deputy Commissioner of Income-Tax vs. Magna Steyr India P. Ltd., Pune

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

ITA 352/PUN/2016[2011-12]Status: DisposedITAT Pune12 Oct 2018AY 2011-12

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm

For Appellant: S/Shri Vispi Patel & Suresh DhootFor Respondent: Shri Rajeev Kumar
Section 143(3)Section 144C(5)Section 92CSection 92C(3)

…istration of the tax laws should not degenerate into an arbitrary and inconsistent application of law dependent upon the Assessee concerned. 11. We also note that the Delhi High Court in Commissioner of Income Tax Vs. Keihin Panalfa Ltd. (ITA No.11 of 2015) (381 ITR 407) decided on 7 ITA Nos.352 & 468/PUN/2016, A.Y. 2011-12 9th September, 2015 has while dealing with transfer pricing adjustment in the absence of segmental accounts held that adjustments have to be restricted only to transactions with Associated Enterprises. It further held that where separate accounts are not available, then proportionate adjustm…

Mitsuba Sical India Pvt. Limited, Gummidipoondi vs. DCIT, Chennai

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

ITA 400/CHNY/2017[2012-13]Status: DisposedITAT Chennai03 May 2018AY 2012-13

Bench: Shri Abraham P. George & Shri Duvvuru Rl Reddy] आयकर अपील सं./I.T.A. No.400/Chny/2017 "नधा"रण वष" /Assessment Year : 2012-2013. Mitsuba Sical India Private Vs. The Deputy Commissioner Of Limited, Income Tax, (Previously Mitsuba Sical (India Corporate Circle 4(1) Ltd) Chennai. No.8,Sipcot Industrial Complex, Gummidipoondi 601 201. [Pan Aaccm 4446M] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri. R. Vijayaraghavan and ShriFor Respondent: Shri. Srinivasa Rao, IRS, CIT
Section 144C

…ecting the ld. Assessing Officer to effect adjustment without restricting it to proportion of the international transactions to the total cost. Reliance was placed on the judgments of Hon’ble Delhi High Court in the case of CIT vs. Keihin Panalfa Ltd (2016) 381 ITR 407 and that of Hon’ble Bombay High Court in the case of CIT vs. Alstom Projects India Ltd (2016) 97 CCH 149 and a also decision of the Co-ordinate Bench in the case of M/s. Mobis India Ltd. vs. DCIT, (2014) 61 SOT 40. 5. Per contra, ld. Departmental Representative strongly supported the orders of the authorities below. We have considered the ri…

Yongsan Automotive India Pvt. Ltd., Thiruvallur vs. ACIT, Chennai

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

ITA 357/CHNY/2017[2012-13]Status: DisposedITAT Chennai16 Nov 2017AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं./Ita No.357/Mds/2017 "नधा"रण वष" / Assessment Year : 2012-13

For Appellant: Shri Raghunathan Sampath, AdvocateFor Respondent: Smt. Ruby George, CIT

…ises for consideration is whether the entire transaction of the assessee needs to be taken into consideration for the purpose of transfer pricing adjustment or the TPO and DRP have to confine themselves only to international transaction? This issue was 92016) 381 ITR 407. The Delhi High Court found that the international transaction constitutes only 23.38%, therefore, the transfer pricing adjustment proportionate to that extent can be made in respect of such international transaction. This judgment of Delhi 5 I.T.A. No.357/Mds/17 High Court was followed by Bombay High Court in Alstom Projects India Limited (su…

Addl. CIT, Ghaziabad vs. M/S. Progressive Tools & Components Pvt. Ltd., Ghaziabad

In the result, the appeal is allowed for statistical purposes

ITA 56/DEL/2011[2005-06]Status: DisposedITAT Delhi10 Mar 2017AY 2005-06

Bench: Shri R.S. Syal & Shri Kuldip Singhassessment Year : 2005-06 Addl. Cit, Vs. Progressive Tools & Range-2, Components Pvt. Ltd., Ghaziabad. 8/3A, Site-Iv, Indl. Area, Sahibabad, Ghaziabad. Pan : Aachp2255L (Appellant) (Respondent)

For Appellant: Dr. Rakesh Gupta &For Respondent: Shri Ramanjaneyulu, Sr. DR

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : I-2 : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER Assessment Year : 2005-06 Addl. CIT, Vs. Progressive Tools & Range-2, Components Pvt. Ltd., Ghaziabad. 8/3A, Site-IV, Indl. Area, Sahibabad, Ghaziabad. PAN : AACHP2255L (Appellant) (Respondent) Assessee By : Dr. Rakesh Gupta & Shri Tarun Kumar, Advocates Department By : Shri Ramanjaneyulu, Sr. DR Date of Hearing : 09.03.2017 Date of Pronouncement : 10.03.2017 ORDER PER R.S. SYAL, AM: This appeal filed by the Revenue is directed against the order passed by the CIT…

M/S. Hi-Lex India Private Limited, Gurgaon vs. ACIT, Gurgaon

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

ITA 2036/DEL/2014[2005-06]Status: DisposedITAT Delhi03 Mar 2017AY 2005-06

Bench: Shri R.S. Syal & Shri Kuldip Singhassessment Year : 2005-06

For Appellant: Shri Rajan Sachdev, CA &For Respondent: Shri B. Ramanjaneyulu, Sr. DR
Section 92C(2)

…the ld. CIT(A) restricted it to the transactions with AEs, we uphold, in principle, the view point of the ld. CIT(A). Our view is fortified by the judgment rendered by the Hon’ble jurisdictional High Court in the case of CIT vs. Keihin Panalfa Ltd., (2016) 381 ITR 407 (Del). 7. Now comes the manner of allowing relief by the ld. CIT(A) on merits. The ld. CIT(A) restricted the amount of transfer pricing addition to transactions with AEs in the following manner : - Particulars Formula Value (in INR Crs.) Operating Income of the Appellant A 32.57 Cost of imported raw material & spares B 6.31 consumed Total Co…

DCIT, Gurgaon vs. M/S. Hi- Lex India Pvt. Ltd., Gurgaon

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

ITA 1849/DEL/2014[2005-06]Status: DisposedITAT Delhi03 Mar 2017AY 2005-06

Bench: Shri R.S. Syal & Shri Kuldip Singhassessment Year : 2005-06

For Appellant: Shri Rajan Sachdev, CA &For Respondent: Shri B. Ramanjaneyulu, Sr. DR
Section 92C(2)

…the ld. CIT(A) restricted it to the transactions with AEs, we uphold, in principle, the view point of the ld. CIT(A). Our view is fortified by the judgment rendered by the Hon’ble jurisdictional High Court in the case of CIT vs. Keihin Panalfa Ltd., (2016) 381 ITR 407 (Del). 7. Now comes the manner of allowing relief by the ld. CIT(A) on merits. The ld. CIT(A) restricted the amount of transfer pricing addition to transactions with AEs in the following manner : - Particulars Formula Value (in INR Crs.) Operating Income of the Appellant A 32.57 Cost of imported raw material & spares B 6.31 consumed Total Co…

Federal Mogul Automotive Products (India) Ltd., Gurgaon vs. DCIT, New Delhi

In the result, the appeal is allowed for statistical purposes

ITA 5881/DEL/2012[2008-09]Status: DisposedITAT Delhi10 May 2016AY 2008-09

Bench: Shri R.S. Syal, Am & Shri Kuldip Singh, Jm Assessment Year : 2008-09

For Appellant: Shri Himanshu S. Sinha, AdvocateFor Respondent: Dr. B.R.R. Kumar, Sr. DR
Section 143(3)Section 144C

…nsactions only to the exclusion of transactions with non-AEs. The assessee will be allowed a reasonable opportunity of being heard. Our this view is fortified by a recent judgment of the Hon’ble jurisdictional High Court in CIT VS. Keihin Panalfa Ltd. (2016) 381 ITR 407 (Del). Similar view has been taken in CIT VS. Thyssen Krupp Industries India P. Ltd. (2016) 381 ITR 413 (Bom). 15. To sum up, we set aside the impugned order on the issue of addition towards transfer pricing adjustment and remit the matter to the file of AO/TPO for fresh determination of the ALP of the international transaction in consonance w…

CIT v. Keihin Panalfa Ltd. (381 ITR 407) — Cited in 13 Judgments | BharatTax