Gharda Chemicals Ltd. v. Oy. CIT

39 SOT 93Income Tax Appellate Tribunal2010#7015 most cited

What is Gharda Chemicals Ltd. v. Oy. CIT authority for?

The Comparable Uncontrolled Price (CUP) method is the most preferred method for determining arm's length price in international transactions, but it requires a high degree of comparability. If comparables are not identical, the CUP method may not be applicable unless another method is proven to be more reliable in the specific fact situation.

16

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2022.

Also referred to as

Gharda Chemicals Ltd. v. Oy. CIT · 39 SOT 93 · ITAT · Comparable Uncontrolled Price (CUP) method · arm's length price · international transactions · highest degree of comparability · priority of methods

Judgments citing Gharda Chemicals Ltd. v. Oy. CIT

D.C.I.T., Circle-5(1), Kolkata vs. M/S Dhunseri Ventures Ltd.(Formerly:Dhunseri Petrochem Ltd.), Kolkata

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

ITA 1989/KOL/2019[2015-16]Status: DisposedITAT Kolkata29 Aug 2022AY 2015-16

Bench: Shri Rajpal Yadav, Vice-(Kz) & Shri Rajesh Kumar

Section 92C

…he comparables so identified are not absolutely identical, then CUP Method cannot be applied. It is by now a settled position that for application of the CUP method, highest degree of comparability is required. In case of Intervet India Private Limited (2010) 39 SOT 93, the Hon'ble ITAT, Mumbai has observed that standard of comparable data while applying CUP method is more stringent and need of similar economic relevant transactions is of paramount importance. Identical view has been expressed by the Hon'ble ITAT, Kolkata in the case of Dy.CIT Vs Emami Ltd (ITA No. 1066/Kol/2017) dated 15.06.2018. For the reasons…

Tata Coffee Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeal of the assessee is partly allowed, while the appeal by the department is dismissed

ITA 647/BANG/2016[2011-12]Status: DisposedITAT Bangalore29 Nov 2021AY 2011-12

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri K.R. Vasudevan, AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bangalore
Section 143(3)Section 92

…e & Technologies Services Ltd. v. Asstt. CIT [2007] 107 ITD 141/162 Taxman 119 (Bang.) (SB) - UCB India (P.) Ltd. v. Asstt. CIT [2009] 30 SOT 95 (Mum.) - Gharda Chemicals Ltd. v. Oy. CIT [2010] 35 SOT 406 (Mum.) - Intervet India (P.) Ltd. v. Asstt. CIT [2010] 39 SOT 93 (Mum.) - Asstt. CIT v. Dufon Laboratories [2010] 39 SOT 59 (Mum.) 11" (b) The Mumbai Tribunal in the case of Serdia Pharmaceuticals (India) (P.) Ltd. v. Asstt. CIT [2011] 44 SOT 391/9 taxmann.com 13 while dealing with the priority of applications of methods for the determination of ALP, has held as under:— "64. . . as long as CUP method can be rea…

DCIT, Bangalore vs. M/S Tata Coffee Pvt. Ltd., Bangalore

In the result, the appeal of the assessee is partly allowed, while the appeal by the department is dismissed

ITA 560/BANG/2016[2011-12]Status: DisposedITAT Bangalore29 Nov 2021AY 2011-12

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri K.R. Vasudevan, AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bangalore
Section 143(3)Section 92

…e & Technologies Services Ltd. v. Asstt. CIT [2007] 107 ITD 141/162 Taxman 119 (Bang.) (SB) - UCB India (P.) Ltd. v. Asstt. CIT [2009] 30 SOT 95 (Mum.) - Gharda Chemicals Ltd. v. Oy. CIT [2010] 35 SOT 406 (Mum.) - Intervet India (P.) Ltd. v. Asstt. CIT [2010] 39 SOT 93 (Mum.) - Asstt. CIT v. Dufon Laboratories [2010] 39 SOT 59 (Mum.) 11" (b) The Mumbai Tribunal in the case of Serdia Pharmaceuticals (India) (P.) Ltd. v. Asstt. CIT [2011] 44 SOT 391/9 taxmann.com 13 while dealing with the priority of applications of methods for the determination of ALP, has held as under:— "64. . . as long as CUP method can be rea…

Deputy Commissioner of Income Tax Central Circle -5(1), Mumbai vs. Usv Limited, Mumbai

In the result, the appeal filed by the Revenue is dismissed

ITA 4915/MUM/2017[2011-12]Status: DisposedITAT Mumbai05 Mar 2021AY 2011-12

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2010-11

For Appellant: Mr. Rajan Vora, AR
Section 143(3)Section 37(1)

…issioner of Income Tax (109 ITD 101) Del ITAT, Firmenich Aromatics (India) (P.) Ltd. [2019] 106 taxmann.com 166 (Mumbai-Trib.) Firmenich Aromatics Production (India) Private Limited v. Income Tax Officer-9(3)(2) Mum ITAT, Internet India Private Limited (2010) 39 SOT 93 – Mum ITAT, DCIT/ACIT, Circle 4(1), Kolkata v. M/s Emami Limited (1065 & 1066/Kol/2017), Delhi ITAT in the ITA No. 4845/M/2017 & Ors 27 M/s USV Private Limited case of Moser Baer India (TS-624-ITAT-2015(Del)-TP] and Kolkata Tribunal in the case of Emami Limited [ITA No. 1066/Kol/2017]. The Ld. counsel submits that without prejudice to the above, i…

Deputy Commissioner of Income Tax Central Circle -5(1), Mumbai vs. Usv Limited, Mumbai

In the result, the appeal filed by the Revenue is dismissed

ITA 4914/MUM/2017[2010-11]Status: DisposedITAT Mumbai05 Mar 2021AY 2010-11

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2010-11

For Appellant: Mr. Rajan Vora, AR
Section 143(3)Section 37(1)

…issioner of Income Tax (109 ITD 101) Del ITAT, Firmenich Aromatics (India) (P.) Ltd. [2019] 106 taxmann.com 166 (Mumbai-Trib.) Firmenich Aromatics Production (India) Private Limited v. Income Tax Officer-9(3)(2) Mum ITAT, Internet India Private Limited (2010) 39 SOT 93 – Mum ITAT, DCIT/ACIT, Circle 4(1), Kolkata v. M/s Emami Limited (1065 & 1066/Kol/2017), Delhi ITAT in the ITA No. 4845/M/2017 & Ors 27 M/s USV Private Limited case of Moser Baer India (TS-624-ITAT-2015(Del)-TP] and Kolkata Tribunal in the case of Emami Limited [ITA No. 1066/Kol/2017]. The Ld. counsel submits that without prejudice to the above, i…

DCIT, Circle - 6(2), Kolkata vs. M/S. Emami Limited, Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 1455/KOL/2018[2014-15]Status: DisposedITAT Kolkata23 Oct 2019AY 2014-15

Bench: Shri A.T. Varkey, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1455/Kol/2018 ("नधा"रणवष" / Assessment Year:2014-15)

For Appellant: Dr. P.K. Srihari, CIT DRFor Respondent: Shri Akkal Dudhwewala, ACA
Section 143(3)Section 92C

…djustments on account of differences in market and economic conditions of countries in which products have been sold to independent third parties. For that we rely on the judgment of the Coordinate Bench Mumbai in case of Internet India Private Limited (2010) 39 SOT 93, wherein it was held as follows: "We heard both parties. From the submissions made by the assessee the economic and market conditions of Thailand and Vietnam are totally different. The ld. CIT (A) has held that both the countries are located in Far East Asia and have similar demographical constitution.......... We find that the TPO and the CIT(A) h…

ACIT, Circle-6(2), Kolkata vs. M/S. Emami Limited, Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 1958/KOL/2017[2013-14]Status: DisposedITAT Kolkata03 Apr 2019AY 2013-14

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1958/Kol/2017 ("नधा"रणवष" / Assessment Year:2013-14)

For Appellant: Dr. P.K. Srihari, CIT DRFor Respondent: Shri Akkal Dudhwewala, ACA
Section 143(3)Section 92BSection 92C

…djustments on account of differences in market and economic conditions of countries in which products have been sold to independent third parties. For that we rely on the judgment of the Coordinate Bench Mumbai in case of Internet India Private Limited (2010) 39 SOT 93, wherein it was held as follows: "We heard both parties. From the submissions made by the assessee the economic and market conditions of Thailand and Vietnam are totally different. The ld. CIT (A) has held that both the countries are located in Far East Asia and have similar demographical constitution.......... We find that the TPO and the CIT(A) h…

At&S India Private Limited, Karnataka vs. D.C.I.T., Circle-11(1), Kolkata

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

ITA 69/KOL/2018[2013-14]Status: DisposedITAT Kolkata10 Oct 2018AY 2013-14

Bench: Shri S. S. Godara, Jm & Dr. A.L.Saini, Am At&S India Private Limited Vs. Dcit, Circle 11(1), Kolkata P-7, Chowringhee Square, 12A, Industrial Area, Nanjangud – 571 301 Kolkata – 700 069. Mysore District, Karnataka, India "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaeca 2930 J (अपीलाथ" /Appellant) (""यथ" / Respondent) ..

For Appellant: Shri Anup Sinha & Ms. Rituparna Sinha, ARFor Respondent: Shri P.K. Srihari, CIT, DR
Section 143(3)Section 144C(13)Section 37(1)Section 92C

…e & Technologies Services Ltd. v. Asstt. CIT [2007] 107 ITD 141/162 Taxman 119 (Bang.) (SB) - UCB India (P.) Ltd. v. Asstt. CIT [2009] 30 SOT 95 (Mum.) - Gharda Chemicals Ltd. v. Oy. CIT [2010] 35 SOT 406 (Mum.) - Intervet India (P.) Ltd. v. Asstt. CIT [2010] 39 SOT 93 (Mum.) - Asstt. CIT v. Dufon Laboratories [2010] 39 SOT 59 (Mum.) 11. Reliance in this regard is also placed on the decision of Hon'ble Mumbai Tribunal in the case of Serdia Pharmaceuticals (India) (P.) Ltd. v. Asstt. CIT reported in [2011] 44 SOT 391/9 taxmann.com 13 wherein the Hon'ble Tribunal while dealing with the priority of applications of m…

DCIT/ACIT, Circle-6(2), Kolkata vs. M/S. Emami Limited, Kolkata

In the result, the appeal filed by the Revenue ( in ITA No

ITA 1066/KOL/2017[2012-13]Status: DisposedITAT Kolkata15 Jun 2018AY 2012-13

Bench: Shri S. S. Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.1065 & 1066/Kol/2017 ("नधा"रणवष" / Assessment Years: 2011-12& 2012-13)

For Appellant: Shri S. Dasgupta, Addl. CIT(DR)For Respondent: Shri Akkal Dudhwewala, FCA
Section 143(3)Section 144CSection 92C

…f comparability is required. The CUP cannot be applied without adjustments on account of differences in market and economic conditions of countries in which products have been sold to independent third parties. In case of Internet India Private Limited (2010) 39 SOT 93, the Hon'ble Mumbai Tribunal has observed that standard of comparable data while applying CUP method is more stringent and need to be of similar economic relevant transactions is of paramount importance. (ii) While applying CUP method by the Ld.TPO, it was seen that in few instances [12 products out of 56, as picked up for comparison by the Ld.s TP…

DCIT/ACIT, Circle-6(2), Kolkata vs. M/S. Emami Limited, Kolkata

In the result, the appeal filed by the Revenue ( in ITA No

ITA 1065/KOL/2017[2011-12]Status: DisposedITAT Kolkata15 Jun 2018AY 2011-12

Bench: Shri S. S. Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.1065 & 1066/Kol/2017 ("नधा"रणवष" / Assessment Years: 2011-12& 2012-13)

For Appellant: Shri S. Dasgupta, Addl. CIT(DR)For Respondent: Shri Akkal Dudhwewala, FCA
Section 143(3)Section 144CSection 92C

…f comparability is required. The CUP cannot be applied without adjustments on account of differences in market and economic conditions of countries in which products have been sold to independent third parties. In case of Internet India Private Limited (2010) 39 SOT 93, the Hon'ble Mumbai Tribunal has observed that standard of comparable data while applying CUP method is more stringent and need to be of similar economic relevant transactions is of paramount importance. (ii) While applying CUP method by the Ld.TPO, it was seen that in few instances [12 products out of 56, as picked up for comparison by the Ld.s TP…

At&S India Private Limited vs. D.C.I.T., Circle-11(1), Kolkata

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

ITA 77/KOL/2017[2012-13]Status: DisposedITAT Kolkata11 May 2018AY 2012-13

Bench: Shri A. T. Varkey, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.77/Kol/2017 ("नधा"रणवष" / Assessment Year: 2012-13) At & S India (P) Ltd. Vs. D.C.I.T, Circle-11(1), Kolkata

For Appellant: Smt. Rituparna Sinha, ARFor Respondent: Shri G. Mallikarjuna, CIT(DR)
Section 143(3)Section 144CSection 37Section 92C

…e & Technologies Services Ltd. v. Asstt. CIT [2007] 107 ITD 141/162 Taxman 119 (Bang.) (SB) - UCB India (P.) Ltd. v. Asstt. CIT [2009] 30 SOT 95 (Mum.) - Gharda Chemicals Ltd. v. Oy. CIT [2010] 35 SOT 406 (Mum.) - Intervet India (P.) Ltd. v. Asstt. CIT [2010] 39 SOT 93 (Mum.) - Asstt. CIT v. Dufon Laboratories [2010] 39 SOT 59 (Mum.) 11. Reliance in this regard is also placed on the decision of Hon'ble Mumbai Tribunal in the case of Serdia Pharmaceuticals (India) (P.) Ltd. v. Asstt. CIT reported in [2011] 44 SOT 391/9 taxmann.com 13 wherein the Hon'ble Tribunal while dealing with the priority of applications of m…

D.E. Shaw India Advisory Services Pvt. Ltd., New Delhi vs. DCIT, New Delhi

Appeals of the assessee stand partly allowed in terms of our specific observations and

ITA 1681/DEL/2015[2010-11]Status: DisposedITAT Delhi04 Sept 2017AY 2010-11

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaay: 2010-11 Ay: 2011-12 Ay: 2012-13 D.E. Shaw India Advisory Services Pvt. Ltd., Vs Dcit, E-20, 1St & 2Nd Floor, Circle 7(1), Main Market, Hauz Khas, New Delhi. New Delhi-110016 (Pan: Aabce6097P) (Appellant) (Respondent) Appellant By : Shri Kapil Hirani, Ca Shri Suresh Tolani, Adv. Shri Darpan Kirpalani Respondent By : Shri T.M. Shivakumar, Cit ( Dr)

For Appellant: Shri Kapil Hirani, CAFor Respondent: Shri T.M. Shivakumar, CIT ( DR)
Section 143(3)Section 144CSection 92D

…ger the duration of funding/ loan provided, the higher is the interest rate charged, since in such cases, the risk of credit default tends to be higher. In this regard, the Appellant places reliance on following rulings: Intervet India Private Limited (2010) (39 SOT 93); and E-Gain Communications Private Limited (2008) (23 SOT 385). 16. Further for undertaking comparability analysis, the TPO has conducted enquiries from CRISIL by exercising powers under section 133(6) of the Act and has proposed to use the rates provided by CRISIL and adjustments suggested by FIMMDA to arrive at the arm's length rate of interest…

M/S D.E. Shaw India Advisory Services Pvt. Ltd., New Delhi vs. JCIT, New Delhi

Appeals of the assessee stand partly allowed in terms of our specific observations and

ITA 75/DEL/2017[2012-13]Status: DisposedITAT Delhi04 Sept 2017AY 2012-13

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaay: 2010-11 Ay: 2011-12 Ay: 2012-13 D.E. Shaw India Advisory Services Pvt. Ltd., Vs Dcit, E-20, 1St & 2Nd Floor, Circle 7(1), Main Market, Hauz Khas, New Delhi. New Delhi-110016 (Pan: Aabce6097P) (Appellant) (Respondent) Appellant By : Shri Kapil Hirani, Ca Shri Suresh Tolani, Adv. Shri Darpan Kirpalani Respondent By : Shri T.M. Shivakumar, Cit ( Dr)

For Appellant: Shri Kapil Hirani, CAFor Respondent: Shri T.M. Shivakumar, CIT ( DR)
Section 143(3)Section 144CSection 92D

…ger the duration of funding/ loan provided, the higher is the interest rate charged, since in such cases, the risk of credit default tends to be higher. In this regard, the Appellant places reliance on following rulings: Intervet India Private Limited (2010) (39 SOT 93); and E-Gain Communications Private Limited (2008) (23 SOT 385). 16. Further for undertaking comparability analysis, the TPO has conducted enquiries from CRISIL by exercising powers under section 133(6) of the Act and has proposed to use the rates provided by CRISIL and adjustments suggested by FIMMDA to arrive at the arm's length rate of interest…

D.E. Shaw India Advisory Services Pvt. Ltd., New Delhi vs. DCIT, New Delhi

Appeals of the assessee stand partly allowed in terms of our specific observations and

ITA 1018/DEL/2016[2011-12]Status: DisposedITAT Delhi04 Sept 2017AY 2011-12

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaay: 2010-11 Ay: 2011-12 Ay: 2012-13 D.E. Shaw India Advisory Services Pvt. Ltd., Vs Dcit, E-20, 1St & 2Nd Floor, Circle 7(1), Main Market, Hauz Khas, New Delhi. New Delhi-110016 (Pan: Aabce6097P) (Appellant) (Respondent) Appellant By : Shri Kapil Hirani, Ca Shri Suresh Tolani, Adv. Shri Darpan Kirpalani Respondent By : Shri T.M. Shivakumar, Cit ( Dr)

For Appellant: Shri Kapil Hirani, CAFor Respondent: Shri T.M. Shivakumar, CIT ( DR)
Section 143(3)Section 144CSection 92D

…ger the duration of funding/ loan provided, the higher is the interest rate charged, since in such cases, the risk of credit default tends to be higher. In this regard, the Appellant places reliance on following rulings: Intervet India Private Limited (2010) (39 SOT 93); and E-Gain Communications Private Limited (2008) (23 SOT 385). 16. Further for undertaking comparability analysis, the TPO has conducted enquiries from CRISIL by exercising powers under section 133(6) of the Act and has proposed to use the rates provided by CRISIL and adjustments suggested by FIMMDA to arrive at the arm's length rate of interest…

At & S India Pvt. Ltd., Karnataka vs. DCIT, Cir-11(1), Kolkata

In the result, assessee’s appeal stands allowed

ITA 179/KOL/2016[2011-2012]Status: DisposedITAT Kolkata03 Aug 2016AY 2011-2012

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Years:2011-12

Section 143(3)

…Software & Technologies Services Ltd. vs. Asstt. CIT [2009] 107 ITO 141/162 Taxman 179 (Bang.)(SB) - UCB India (P) Ltd. v. Asstt CIT [2009130 SOT 95 (Mum.) - Gharda Chemicals Ltd. v. Dy. CIT [2070135 SOT 406(Mum.) - Intervet India (P) Ltd. v. Asstt CIT [2070139 SOT 93 (Mum.) - Asstt. CIT v. Dufon Laboratories [2070139 SOT 59 (Mum.) ITA No.179/Kol/2016 A.Y 2011-12 AT & S India Pvt. Ltd. vs. DCIT Cir-11(1), Kol Page 19 2.7.76. Reliance in this regard is also placed on the decision of Hon 'ble Mumbai Tribunal in the case of Serdia Pharmaceuticals (India) (P) Ltd v. Asstt. CIT reported in [2011] 44SOT 391/9 taxmann…

Moser Baer India Ltd vs. DCIT Circle -5 (1)

In the result appeal is allowed

ITA 882/DEL/2008[2002-2003]Status: DisposedITAT Delhi08 Dec 2015AY 2002-2003

Bench: Shri A.T. Varkey & Shri S.V.Mehrotra

For Appellant: Shri Neeraj Jain, Adv, Rama Katyal CA &For Respondent: Shri Amrender Kumar, CIT DR
Section 92C

…y, (ii) geographical differences from country to country owing to economic scenario/purchasing power, level of competition, etc. (iii) market condition, etc. The Mumbai Bench of Tribunal in the case of Intervet India (P) Ltd. vs. Asstt. CIT [2010] 130 TTJ 301 39 SOT 93, held that market conditions of Thailand and Vietnam are totally different and appropriate adjustments are required to be made to account for the effect of differences in geographical locations. Reliance in this regard is also placed on the following decisions wherein it has been held that appropriate adjustments need to made to account for the eff…

Gharda Chemicals Ltd. v. Oy. CIT (39 SOT 93) — Cited in 16 Judgments | BharatTax