Knorr-Bremse India (P) Ltd. v. ACIT

380 ITR 307High Court2016#1799 most cited

What is Knorr-Bremse India (P) Ltd. v. ACIT authority for?

When transactions are part of a package deal with a composite price or are interdependent such that an assessee must accept all of them together, they must be aggregated and treated as a single international transaction for transfer pricing purposes.

63

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2025.

Also referred to as

Knorr-Bremse India (P) Ltd. v. ACIT · 380 ITR 307 · aggregation of international transactions · transfer pricing · package deal · composite price · interdependent transactions · single international transaction · Section 92CA · Section 144C · related party transaction

Sections most often in play

Section 144C(13)Section 92CASection 10BSection 142(1)Section 143(2)Section 143(3)Section 144C(1)Section 234A
Read the full judgment

Issues it is cited on

use of equipmentcomparable uncontrolled price methodintra group servicesfar analysistransfer pricing orderrelated party transactioncup methodtested partyright to receivemlimost appropriate methodcomparable companies

Judgments citing Knorr-Bremse India (P) Ltd. v. ACIT

M/S. Gruner India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal is allowed for statistical purposes

ITA 6794/DEL/2015[2011-12]Status: DisposedITAT Delhi29 Apr 2016AY 2011-12

Bench: Shri R.S. Syal, Am & Shri Kuldip Singh, Jm Assessment Year : 2011-12

For Appellant: Shri Alok Gupta, FCAFor Respondent: Shri A.M. Govil, CIT, DR
Section 143(3)Section 144C

…osely linked transactions can be aggregated, but, the transactions which are not closely related to each other would require determination in a segregated manner. 7 5.4. The Hon’ble Punjab & Haryana High Court in Knorr Bremse India P. Ltd. vs. ACIT (2016) 380 ITR 307 (P&H), has held that in case of a package deal where each item is not separately valued, but, all are given a composite price, this should be considered as one international transaction and processed accordingly for the transfer pricing purpose. It further held that where a number of transactions are priced differently, but, on the understandi…

Mitsui Prime Advanced Composites India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, the appeal is allowed

ITA 550/DEL/2016[2010-11]Status: DisposedITAT Delhi28 Apr 2016AY 2010-11

Bench: Shri R.S. Syal, Am & Shri C.M. Garg, Jm Assessment Year : 2010-11

For Appellant: Shri Kanchan Kaushal, CA &For Respondent: Shri Amrendra Kumar, CIT, DR
Section 271(1)(c)

…ceived by the assessee amounted to duplication of services. 15. Be that as it may, we find that on the `Benefit test’ as applied by the TPO for determining the ALP at Nil, the Hon’ble Punjab & Haryana High Court in Knorr-Bremse India P. Ltd. vs. ACIT (2016)380 ITR 307 (P&H) has held that the question whether a transaction is at an arm’s length price or not is not dependent on whether the transaction results in an increase in the assessee’s profit. A view to the contrary would then raise a question as to the extent of profitability necessary for an assessee to establish that the transaction was at an arm’s le…

Jcb India Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal is allowed for statistical purposes

ITA 1075/DEL/2016[2011-12]Status: DisposedITAT Delhi31 Mar 2016AY 2011-12

Bench: Shri R.S. Syal, Am & Shri Kuldip Singh, Jm Assessment Year : 2011-12

For Appellant: Shri M.S. Syali, Sr. Advocate &For Respondent: Shri Amrendra Kumar, CIT, DR
Section 143(3)Section 144C(1)

…related transactions is permissible, but there is no rule that all the related and unrelated transactions can be combined and shown at ALP under the TNMM on entity level. The Hon’ble Punjab & Haryana High Court in 20 Knorr-Bremse India P. Ltd. vs. ACIT (2016)380 ITR 307 (P&H) has held that in order to combine two or more transactions, it is essential that they should be either inextricably linked to each other either by way of a package deal or that a number of transactions are priced differently but on the understanding that the assessee will accept all of them together (i.e. either take all or leave all). It…