Delloite Consulting India (P.) Ltd. v. Dy. CIT/ITO

137 ITD 21Income Tax Appellate Tribunal2012#2820 most cited

What is Delloite Consulting India (P.) Ltd. v. Dy. CIT/ITO authority for?

The Transfer Pricing Officer (TPO) is empowered to determine the Arm's Length Price (ALP) of an international transaction at "nil" if the assessee fails to establish that payments made to an Associated Enterprise (AE) were commensurate with the benefit received or the quality of services availed. This determination constitutes an adjustment to ALP, distinct from a disallowance of expenditure.

42

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2014 to 2025.

Also referred to as

Delloite Consulting India · 137 ITD 21 · 22 Taxmann.com 107 · section 92 · section 92CA · arm's length price nil · TPO power · commensurate benefit · international transaction · associated enterprises · transfer pricing adjustment · management consultancy services

Also reported as

22 Taxmann.com 107

Sections most often in play

Section 10B(1)(a)Section 10B(1)(e)Section 92Section 92CA

Issues it is cited on

most appropriate methodcup methodarm's length priceassociated enterprisesassociated enterpriseinternational transactiontransfer pricing adjustmenttnmmsection 92section 92casection 92cfinal assessment order

Judgments citing Delloite Consulting India (P.) Ltd. v. Dy. CIT/ITO

Skf Technologies (India) Private Limited, Bangalore vs. ACIT, Bangalore

ITA 1481/BANG/2010[2006-07]Status: DisposedITAT Bangalore31 Mar 2016AY 2006-07

Bench: Shri. Abraham P. George

For Appellant: Shri. K. R. Vasudevan, AdvocateFor Respondent: Shri. G. R. Reddy, CIT – DR -I
Section 144C(5)

…isallowing expenditure. That decision is outside the authority of the Transfer Pricing Officer. This aspect was made clear by the Income-tax Appellate Tribunal in Deloitte Consulting India Pvt. Ltd. v. Deputy CIT/ITO [2012] 19 ITR (Trib) 378 (Mumbai) ; [2012] 137 ITD 21 (Mumbai) (page 402 of 19 ITR (Trib)) : "On the issue as to whether the Transfer Pricing Officer is empowered to determine the arm's length price at "nil", we find that the Bangalore Bench of the Tribunal in Gemplus India P. Ltd. 2010-TII- 55-ITAT- BANG-TP, held that the assessee has to establish before the Transfer Pricing Officer that the payment…

CIT vs. Cushman and Wakefield India Pvt Ltd

The appeal is partly allowed

ITA - 475 / 2012HC Delhi23 May 2014
Section 143(1)Section 143(2)Section 143(3)Section 144CSection 92BSection 92C

…sessee did not benefit from these services, which amounts to disallowing expenditure. That decision is outside the authority of the TPO. This aspect was made clear by the ITAT in Delloite Consulting India Pvt. Ltd. v. Deputy Commissioner of Income Tax, [2012] 137 ITD 21 (Mum): “37. On the issue as to whether the Transfer Pricing Officer is empowered to determine the arm's length price at “nil”, we find that the Bangalore Bench of the Tribunal in Gemplus India P. Ltd. 2010-TII-55-ITAT-BANG-TP, held that the assessee has to establish before the Transfer Pricing Officer that the payments made were commensurate to th…