DIT v. Morgan Stanley & Co.

Elcome Technologies Private Limited, Gurgaon vs. The Deputy Commissioner of Income-Tax-Range 15(1)(1), Mumbai

In the result, the appeal is dismissed

Bench: Shri Saktijit Day () & Shri N.K. Pradhan () Assessment Year: 2011-12 Elcome Technologies Private Deputy Commissioner Of Income Limited, Vs. Tax-Range 15(1)(1), Mumbai. Elcome House, A-06, Infocity, Sector-34, Gurgaon-122002 Pan No. Aaace7023Q Appellant Respondent Assessee By : Mr. Dhanesh Bafna /Mr. Arpit Agrawal, Ar Revenue By : Mr. Anand Mohan/Mr. Michael Jerald, Dr Last Date Of Hearing : 23/06/2020 Date Of Pronouncement : 09/09/2020

…matching the functional profile and the other relevant reasons of the other company. Functional analysis enables comparison of controlled transactions with uncontrolled transactions. The Hon’ble Supreme Court in the case of Morgan Stanley & Company Inc (2007) 292 ITR 416(SC) has placed significant emphasis on FAR (functions performed, assets owned and risks assumed by the associated enterprises involved) analysis for benchmarking exercise, also known as comparability Elcome Technologies 17 analysis, for determination of arm’s length price of a transaction between associated enterprises. Their Lordships have obse…

Colgate Palmolive (India) Ltd, Mumbai vs. Addl CIT 10(3), Mumbai

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

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2008-09

…age 40-43 of the TP study of the appellant. Colgate Palmolive (India) Ltd. 23 22.2. Functional analysis enables comparison of controlled transactions with uncontrolled transactions. The hon’ble Supreme Court in the case of Morgan Stanley & Company Inc (2007) 292 ITR 416(SC) has placed significant emphasis on FAR (functions performed, assets owned and risks assumed by the associated enterprises involved) analysis for benchmarking exercise, also known as comparability analysis, for determination of arm’s length price of a transaction between associated enterprises. Under Rule 10D(1)(e), a taxpayer who has entered…

Sabre Asia Pacific Pte Ltd (Earlier Known As M/S.Abacus International Pte Limited), Mumbai vs. DCIT (It) 1(1)(1), Mumbai

Bench: Shri Ravish Sood, Jm & Shri N.K. Pradhan, Am आयकर अपील सं./ I.T.A. No.4968/Mum/2017 (निर्धारण वर्ा / Assessment Year:2013-14) Sabre Asia Pacific Pte. Ltd. Deputy Commissioner Of Income Tax (International Taxation)- 1(1)(1), Room No. (Earlier Known As M/S Abacus International Pte Ltd.), Abacus Plaza, 3 Tampines Central I, 117, 1St Floor, Scindia House, Ballard बिधम/ # 08-01 Singapore 529540 Estate, Mumbai 400 038. Vs. C/O Deloitte Haskins & Sells Llp India Bulls Financial Centre Tower 3, 28Th Floor, Senapati Bapat Marg, Elphinstone (W),Mumbai-400 013. स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aabca6590M (अपीलाथी/Appellant) (प्रत्यथी /Respondent) :

…sia Pacific Pte ltd. Vs. DCIT (IT)-1(1)(1) the PE from the CRS activities in the said case was in conformity with the CBDT Circular No. 23, dated 23.07.1969 and the judgment of the Hon‟ble Supreme Court in the case of DIT Vs. Morgan Stanley & Co. Inc. (2007) 292 ITR 416 (SC). We thus find ourselves persuaded to be in agreement with the contention of the ld. A.R that since the determination of 15% of the gross receipts as attributable to the CSR operations carried out by the assessee in India is already based on a FAR analysis, therefore, no purpose would be served by restoring the matter to the file of the A.O.…

Delmas (Uk) Limited, Mumbai vs. DDIT (It)-4(2), Mumbai

In the result, ITA No, 8423/Mum/10 is also allowed in the above terms

…subject matter of consideration in the open court proceedings before us. In the case of Set Satellite (supra), Hon’ble jurisdictional High Court has , after taking note of Hon’ble Supreme Court’s judgment in the case of CIT Vs Morgan Stanley & Co Inc [(2007) 292 ITR 416 (SC)], held that, “In our opinion considering the judgment, if the correct arm's length price is applied and paid then nothing further would be left to be taxed in the hands of the Foreign Enterprise.”. Viewed thus, and having regard to the fact that the payment of arm’s length remuneration to the agent, and taxability of income embedded in such…

Audi Ag, Mumbai vs. DCIT (It) 1(1)(2), Mumbai

The appeal is hereby allowed

Bench: Shri Pramod Kumar & Shri Amarjit Singhaudi Ag Deputy Commissioner Of Income-Tax, C/O Srbc & Associates Llp, (International Taxation)-1(1)(2), 14Th Floor, The Ruby, Room No. 117, 1St Floor, Senapati Bapat Marg, Vs. Scindia House, Ballard Estate, Dadar (West), Mumbai – 400 028 Mumbai- 400 038 Maharashtra.

…DCIL, the profit of the Assessee is reduced to the extent of he commission paid to DCIL. 31. The following decisions cited by the assessee can be extracted for this purpose. "The decision of the Hon'ble supreme Court in case of DIT v. Morgan Stanley & Co Inc 292 ITR 416 (refer page 555, 556 & 565 of Paper Book Volume II), wherein the Hon'ble Apex Court has observed that since the assessee did not conclude any contracts on behalf of Morgan Stanley & Co. Inc (MSCo), it did not have an agency PE in India. Similar view has also been taken by the Special Bench of Delhi Tribunal in case of Motorola Inc & Others v. DIT…

Sabre Asia Pacific Pte. Ltd, Mumbai vs. DCIT (International Taxation)-4(2)(1), Mumbai

Bench: Shri Ravish Sood, Jm & Shri N.K. Pradhan, Am आयकर अपील सं./ I.T.A. No.664/Mum/2017 (निर्धारण वर्ा / Assessment Year:2012-13) Sabre Asia Pacific Pte. Ltd. Deputy Commissioner Of Income Tax (Earlier Known As M/S Abacus International Pte Ltd.), (International Taxation)- 1(1)(1), Room No. Abacus Plaza, 3 Tampines Central I, 117, 1St Floor, Scindia House, Ballard बिधम/ # 08-01 Singapore 529540 Estate, Mumbai 400 038. Vs. C/O Deloitte Haskins & Sells Llp India Bulls Financial Centre Tower 3, 28Th Floor, Senapati Bapat Marg, Elphinstone (W),Mumbai-400 013. स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aabca6590M (अपीलाथी/Appellant) (प्रत्यथी /Respondent) :

…ved that the determination of the income of the PE from the CRS activities in the said case was in conformity with the CBDT Circular No. 23, dated 23.07.1969 and the judgment of the Hon‟ble Supreme Court in the case of DIT Vs. Morgan Stanley & Co. Inc. (2007) 292 ITR 416 (SC). We thus find ourselves persuaded to be in agreement with the contention of the ld. A.R that since the determination of 15% of the gross receipts as attributable to the CSR operations carried out by the assessee in India is already based on a FAR analysis, therefore, no purpose would be served by restoring the matter to the file of the A.O.…

Sabre Asia Pacific Pte. Ltd, Mumbai vs. DCIT (It) 1(1)(1), Mumbai

Bench: Shri Ravish Sood, Jm & Shri N.K. Pradhan, Am आयकर अपील सं./ I.T.A. No.664/Mum/2017 (निर्धारण वर्ा / Assessment Year:2012-13) Sabre Asia Pacific Pte. Ltd. Deputy Commissioner Of Income Tax (Earlier Known As M/S Abacus International Pte Ltd.), (International Taxation)- 1(1)(1), Room No. Abacus Plaza, 3 Tampines Central I, 117, 1St Floor, Scindia House, Ballard बिधम/ # 08-01 Singapore 529540 Estate, Mumbai 400 038. Vs. C/O Deloitte Haskins & Sells Llp India Bulls Financial Centre Tower 3, 28Th Floor, Senapati Bapat Marg, Elphinstone (W),Mumbai-400 013. स्थायीलेखासं./जीआइआरसं./ Pan/Gir No. Aabca6590M (अपीलाथी/Appellant) (प्रत्यथी /Respondent) :

…ved that the determination of the income of the PE from the CRS activities in the said case was in conformity with the CBDT Circular No. 23, dated 23.07.1969 and the judgment of the Hon‟ble Supreme Court in the case of DIT Vs. Morgan Stanley & Co. Inc. (2007) 292 ITR 416 (SC). We thus find ourselves persuaded to be in agreement with the contention of the ld. A.R that since the determination of 15% of the gross receipts as attributable to the CSR operations carried out by the assessee in India is already based on a FAR analysis, therefore, no purpose would be served by restoring the matter to the file of the A.O.…