LG Electronics India Pvt. Ltd. v. ACIT

140 ITD 41Income Tax Appellate Tribunal2013#1007 most cited

What is LG Electronics India Pvt. Ltd. v. ACIT authority for?

The Assessing Officer or Transfer Pricing Officer can benchmark Advertisement, Marketing, and Promotion (AMP) expenses as an international transaction if it creates or is intended to create economic or commercial benefit for an associated enterprise. The 'bright line' method can be used for this purpose.

107

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2015 to 2026.

Also referred to as

LG Electronics India Pvt. Ltd. v. ACIT · 140 ITD 41 · AMP expenses · international transaction · section 92B · section 92F · bright line method · benchmarking · associated enterprise

Sections most often in play

Section 1938Section 143(3)Section 92BSection 92CA(1)Section 115BSection 143(2)Section 14ASection 1999

Issues it is cited on

bright line testamp expendituresection 92(1)comparable uncontrolled price methodcost plus methodsection 92ffunctional analysissection 92c(3)section 80jjasection 80jjaamanagement feesbenchmarking analysis

Judgments citing LG Electronics India Pvt. Ltd. v. ACIT

Samsung India Electronics Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

ITA 6741/DEL/2014[2010-11]Status: DisposedITAT Delhi04 Oct 2019AY 2010-11

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: S/Shri Himanshu Sinha, ShriFor Respondent: Shri H.K. Choudhary, CIT-D.R

…nd the CIT(A) in respect of the AMP expenditure has come to be known as the “Bright line test” which has been subject matter of extensive litigation before the ITAT and the High Courts. The Special Bench of this Tribunal in the case of L.G. Electronics [2013] 140 ITD 41 had approved this approach and had held that excessive expenditure could be treated as a separate international transaction that could be subjected to arm’s length exercise on its own. While holding so, the Special Bench had laid down extensive guidelines to determine the value of the international transaction and the ALP of the same. Subsequently…

ACIT, New Delhi vs. M/S Samsung India Electronics Ltd., Gurgaon

ITA 3410/DEL/2012[2005-06]Status: DisposedITAT Delhi04 Oct 2019AY 2005-06

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: S/Shri Himanshu Sinha, ShriFor Respondent: Shri H.K. Choudhary, CIT-D.R

…nd the CIT(A) in respect of the AMP expenditure has come to be known as the “Bright line test” which has been subject matter of extensive litigation before the ITAT and the High Courts. The Special Bench of this Tribunal in the case of L.G. Electronics [2013] 140 ITD 41 had approved this approach and had held that excessive expenditure could be treated as a separate international transaction that could be subjected to arm’s length exercise on its own. While holding so, the Special Bench had laid down extensive guidelines to determine the value of the international transaction and the ALP of the same. Subsequently…

Samsung India Electronics Pvt. Ltd., Gurgaon vs. Addl. CIT, New Delhi

ITA 3248/DEL/2012[2005-06]Status: DisposedITAT Delhi04 Oct 2019AY 2005-06

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: S/Shri Himanshu Sinha, ShriFor Respondent: Shri H.K. Choudhary, CIT-D.R

…nd the CIT(A) in respect of the AMP expenditure has come to be known as the “Bright line test” which has been subject matter of extensive litigation before the ITAT and the High Courts. The Special Bench of this Tribunal in the case of L.G. Electronics [2013] 140 ITD 41 had approved this approach and had held that excessive expenditure could be treated as a separate international transaction that could be subjected to arm’s length exercise on its own. While holding so, the Special Bench had laid down extensive guidelines to determine the value of the international transaction and the ALP of the same. Subsequently…

Samsung India Electronics Pvt. Ltd., Gurgaon vs. Addl. CIT, New Delhi

ITA 5315/DEL/2011[2007-08]Status: DisposedITAT Delhi04 Oct 2019AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: S/Shri Himanshu Sinha, ShriFor Respondent: Shri H.K. Choudhary, CIT-D.R

…nd the CIT(A) in respect of the AMP expenditure has come to be known as the “Bright line test” which has been subject matter of extensive litigation before the ITAT and the High Courts. The Special Bench of this Tribunal in the case of L.G. Electronics [2013] 140 ITD 41 had approved this approach and had held that excessive expenditure could be treated as a separate international transaction that could be subjected to arm’s length exercise on its own. While holding so, the Special Bench had laid down extensive guidelines to determine the value of the international transaction and the ALP of the same. Subsequently…

Colagate-Palmolive (I) Ltd, Mumbai vs. Addl CIT 10(3), Mumbai

In the result, appeal of the assessee is allowed

ITA 8428/MUM/2010[2006-07]Status: DisposedITAT Mumbai11 Sept 2019AY 2006-07

Bench: Shri G.S. Pannu & Shri Pawan Singhcolgate Palmolive (India) Ltd., Additional Commissioner Of Colgate Research Centre, Income Tax-10(3) Main Street, Vs. Hiranandani, Gardens, Pawai, Mumbai-400076 Pan: Aaacc4309B Appellant Respondent

For Appellant: Sh. Perci J Pardiwala, AdvocateFor Respondent: Shri Anand Mohan (CIT- DR)
Section 14(2)Section 143(3)Section 14ASection 14A(2)Section 254(1)Section 80ISection 92B

…has not followed any specific method as 2006-07 is the first year, the matter could be restored to TPO to decide it afresh after considering the guidelines laid down by Special Bench (Delhi) in the case of L.G. Electronics India (P.) Ltd. v. Asstt. CIT [2013]140 ITD 41/29 taxmann.com 300. He submitted that the AE, parent company of the assessee should reimburse the expenses as assessee company has created brand in India which is owned by parent company by incurring the expenditure. 40. We have considered the order of the TPO/AO and the submissions of ld. Representatives of the parties. We observe that the TPO h…

Lg Electronics Inc., Korea (Lgek), Noida vs. DCIT, Circle- 2(2)(1), International Taxation, New Delhi

In the result all the 9 appeals filed by the assessee are allowed with above direction for statistical purposes

ITA 3327/DEL/2018[2013-14]Status: HeardITAT Delhi02 Sept 2019AY 2013-14

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 143(3)Section 147

…me Court to decide the issue regarding existence of PE uninfluenced by the observation of the Hon’ble Allahabad High Court. For the aforesaid proposition reliance was placed by the CIT DR on para 8.9 of the Special Bench decision in the case of LG Electronics 140 ITD 41. He submitted that Hon apex Court while disposing of the SLP filed by the Appellant categorically observed that- “8. In these matters the DRP/Assessing Officer have come to the conclusion that the petitioner has a PE in India. However, the petitioner prays for permission to withdraw these five special leave petitions and to pursue the statutory re…

M/S. Lg Electronics Inc., Korea (Lgek), Noida vs. DCIT (International Taxation), Noida

In the result all the 9 appeals filed by the assessee are allowed with above direction for statistical purposes

ITA 1946/DEL/2017[2007-08]Status: HeardITAT Delhi02 Sept 2019AY 2007-08

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 143(3)Section 147

…me Court to decide the issue regarding existence of PE uninfluenced by the observation of the Hon’ble Allahabad High Court. For the aforesaid proposition reliance was placed by the CIT DR on para 8.9 of the Special Bench decision in the case of LG Electronics 140 ITD 41. He submitted that Hon apex Court while disposing of the SLP filed by the Appellant categorically observed that- “8. In these matters the DRP/Assessing Officer have come to the conclusion that the petitioner has a PE in India. However, the petitioner prays for permission to withdraw these five special leave petitions and to pursue the statutory re…

Lg Electronics Inc., Korea (Lgek), Noida vs. DCIT, Circle- Noida, International Taxation, Noida

In the result all the 9 appeals filed by the assessee are allowed with above direction for statistical purposes

ITA 6916/DEL/2017[2008-09]Status: HeardITAT Delhi02 Sept 2019AY 2008-09

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 143(3)Section 147

…me Court to decide the issue regarding existence of PE uninfluenced by the observation of the Hon’ble Allahabad High Court. For the aforesaid proposition reliance was placed by the CIT DR on para 8.9 of the Special Bench decision in the case of LG Electronics 140 ITD 41. He submitted that Hon apex Court while disposing of the SLP filed by the Appellant categorically observed that- “8. In these matters the DRP/Assessing Officer have come to the conclusion that the petitioner has a PE in India. However, the petitioner prays for permission to withdraw these five special leave petitions and to pursue the statutory re…

Idbi Federal Life Insurance Co. Ltd, Mumbai vs. DCIT Cir 6(3)(1), Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are allowed in term of the above

ITA 1045/MUM/2018[2013-14]Status: DisposedITAT Mumbai24 Jul 2019AY 2013-14

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

For Appellant: Shri Manoj Kumar Singh, DRFor Respondent: Ms. Aarati Vissanji, AR
Section 10(34)Section 143(3)Section 44

…O.70/MUM/2018 & 1044/MUM/2018: 3. The first issue in the appeal of Revenue is against the order of CIT(A) allowing adjustment from the actuarial valuation relying on the decision of ITAT in the case of ICICI Prudential Life Insurance Co. Ltd. Vs. ACIT, (2013) 140 ITD 41 (Mum). For this, the Revenue has raised the following Ground of appeal: - In ITA No. 70,71,1044,1045/Mum/2018 6948 & 6970/Mum/2017 “1. On the facts and in the circumstances of the case and in Law the Ld.CIT(A) erred, in relying on the order of ITAT in the case of ICICI Prudential Life Insurance CO. Ltd. for earlier years and in the case of IDBI F…

Idbi Federal Life Insurance Co. Ltd, Mumbai vs. DCIT Cir 6(3)(1), Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are allowed in term of the above

ITA 6970/MUM/2017[2014-15]Status: DisposedITAT Mumbai24 Jul 2019AY 2014-15

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

For Appellant: Shri Manoj Kumar Singh, DRFor Respondent: Ms. Aarati Vissanji, AR
Section 10(34)Section 143(3)Section 44

…O.70/MUM/2018 & 1044/MUM/2018: 3. The first issue in the appeal of Revenue is against the order of CIT(A) allowing adjustment from the actuarial valuation relying on the decision of ITAT in the case of ICICI Prudential Life Insurance Co. Ltd. Vs. ACIT, (2013) 140 ITD 41 (Mum). For this, the Revenue has raised the following Ground of appeal: - In ITA No. 70,71,1044,1045/Mum/2018 6948 & 6970/Mum/2017 “1. On the facts and in the circumstances of the case and in Law the Ld.CIT(A) erred, in relying on the order of ITAT in the case of ICICI Prudential Life Insurance CO. Ltd. for earlier years and in the case of IDBI F…

DCIT Cir 6(3)(1), Mumbai vs. Idbi Federal Life Insurance Co. Ltd, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are allowed in term of the above

ITA 6948/MUM/2017[2014-15]Status: DisposedITAT Mumbai24 Jul 2019AY 2014-15

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

For Appellant: Shri Manoj Kumar Singh, DRFor Respondent: Ms. Aarati Vissanji, AR
Section 10(34)Section 143(3)Section 44

…O.70/MUM/2018 & 1044/MUM/2018: 3. The first issue in the appeal of Revenue is against the order of CIT(A) allowing adjustment from the actuarial valuation relying on the decision of ITAT in the case of ICICI Prudential Life Insurance Co. Ltd. Vs. ACIT, (2013) 140 ITD 41 (Mum). For this, the Revenue has raised the following Ground of appeal: - In ITA No. 70,71,1044,1045/Mum/2018 6948 & 6970/Mum/2017 “1. On the facts and in the circumstances of the case and in Law the Ld.CIT(A) erred, in relying on the order of ITAT in the case of ICICI Prudential Life Insurance CO. Ltd. for earlier years and in the case of IDBI F…

DCIT Cir 6(3)(1), Mumbai vs. Idbi Federal Life Insurance Co. Pvt. Ltd, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are allowed in term of the above

ITA 71/MUM/2018[2013-14]Status: DisposedITAT Mumbai24 Jul 2019AY 2013-14

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

For Appellant: Shri Manoj Kumar Singh, DRFor Respondent: Ms. Aarati Vissanji, AR
Section 10(34)Section 143(3)Section 44

…O.70/MUM/2018 & 1044/MUM/2018: 3. The first issue in the appeal of Revenue is against the order of CIT(A) allowing adjustment from the actuarial valuation relying on the decision of ITAT in the case of ICICI Prudential Life Insurance Co. Ltd. Vs. ACIT, (2013) 140 ITD 41 (Mum). For this, the Revenue has raised the following Ground of appeal: - In ITA No. 70,71,1044,1045/Mum/2018 6948 & 6970/Mum/2017 “1. On the facts and in the circumstances of the case and in Law the Ld.CIT(A) erred, in relying on the order of ITAT in the case of ICICI Prudential Life Insurance CO. Ltd. for earlier years and in the case of IDBI F…

DCIT Cir 6(3)(1), Mumbai vs. Idbi Federal Life Insurance Co. Pvt. Ltd, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are allowed in term of the above

ITA 70/MUM/2018[2012-13]Status: DisposedITAT Mumbai24 Jul 2019AY 2012-13

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

For Appellant: Shri Manoj Kumar Singh, DRFor Respondent: Ms. Aarati Vissanji, AR
Section 10(34)Section 143(3)Section 44

…O.70/MUM/2018 & 1044/MUM/2018: 3. The first issue in the appeal of Revenue is against the order of CIT(A) allowing adjustment from the actuarial valuation relying on the decision of ITAT in the case of ICICI Prudential Life Insurance Co. Ltd. Vs. ACIT, (2013) 140 ITD 41 (Mum). For this, the Revenue has raised the following Ground of appeal: - In ITA No. 70,71,1044,1045/Mum/2018 6948 & 6970/Mum/2017 “1. On the facts and in the circumstances of the case and in Law the Ld.CIT(A) erred, in relying on the order of ITAT in the case of ICICI Prudential Life Insurance CO. Ltd. for earlier years and in the case of IDBI F…

Kellogg India P.Ltd, Mumbai vs. DCIT 10(3), Mumbai

In the result, assessee’s appeal is partly allowed

ITA 2866/MUM/2014[2009-10]Status: DisposedITAT Mumbai19 Jul 2019AY 2009-10

Bench: Shri Saktijit Deyand Shri N.K. Pradhan

For Appellant: Shri Dhanesh Bafna a/wFor Respondent: Shri Rajneesh Yadav
Section 143(3)Section 144C(13)Section 92B

…IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBERAND SHRI N.K. PRADHAN, ACCOUNTANT MEMBER ITA no.2866/Mum./2014 (Assessment Year : 2009–10) Kellogg India Pvt. Ltd. 501, Delphi, B–Wing Hirnandani Business Park ……………. Appellant Powai, Mumbai 400 076 PAN – AAACK1748A v/s Dy. Commissioner of Income Tax ……………. Respondent Circle–10(3), Mumbai ITA no.2888/Mum./2014 (Assessment Year : 2009–10) Dy. Commissioner of Income Tax ……………. Appellant Circle–10(3), Mumbai v/s Kellogg India Pvt. Ltd. 501, Delphi, B–Wing Hirnandani Business Park ……………. Respondent Powai, Mumbai 400 0…

DCIT, New Delhi vs. M/S. Casio India (P) Ltd., New Delhi

ITA 2276/DEL/2015[2010-11]Status: DisposedITAT Delhi22 Apr 2019AY 2010-11

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Nageshwar Rao & SandeepFor Respondent: Shri H. K. Choudhary CIT DR &
Section 144CSection 92B

…and contentions raised by the parties, we find that both TPO and ld. DRP have ultimately benchmarked the AMP expenditure by applying Bright Line Test, willfully relying upon the decision of Special Bench in the case of LG Electronics India Pvt. Ltd. vs. ACIT, 140 ITD 41, wherein this approach was 22 I.T.As. No.1764 & 2276/DEL/2015 upheld. However, subsequently the Hon'ble Delhi High Court in the case of Sony Ericson Mobile Communication India Pvt. Ltd. (supra) categorically held that BLT was not a valid test for determining the ALP transaction as it was not statutorily mandated. Later on, the Hon'ble Jurisdictio…

Casio India Co. Pvt. Ltd., New Delhi vs. DCIT, New Delhi

ITA 1764/DEL/2015[2010-11]Status: DisposedITAT Delhi22 Apr 2019AY 2010-11

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Nageshwar Rao & SandeepFor Respondent: Shri H. K. Choudhary CIT DR &
Section 144CSection 92B

…and contentions raised by the parties, we find that both TPO and ld. DRP have ultimately benchmarked the AMP expenditure by applying Bright Line Test, willfully relying upon the decision of Special Bench in the case of LG Electronics India Pvt. Ltd. vs. ACIT, 140 ITD 41, wherein this approach was 22 I.T.As. No.1764 & 2276/DEL/2015 upheld. However, subsequently the Hon'ble Delhi High Court in the case of Sony Ericson Mobile Communication India Pvt. Ltd. (supra) categorically held that BLT was not a valid test for determining the ALP transaction as it was not statutorily mandated. Later on, the Hon'ble Jurisdictio…

Amadeus India Pvt. Ltd., New Delhi vs. ACIT, Circle- 2(2), New Delhi

In the result, ITA NO. 7691/Del/2017 stands allowed

ITA 7691/DEL/2017[2013-14]Status: DisposedITAT Delhi27 Feb 2019AY 2013-14

Bench: Shri N.S. Saini & Shri Sudhanshu Srivastava

For Appellant: Sh. Tarundeep Singh & Tarun Singh, AdvFor Respondent: Shri Sanjay I.Bara, CIT-DR & Sh. Sandeep Kr
Section 144CSection 92BSection 92F

…t Establishment of the AE; (d) Amendments made to provisions of section 92B by Finance Act 2012; 16 Stay No. 475, 476/d/2018& ITA no. 1662/d/2016 (Amadeus India P. Ltd.) (e) Decision given by the Special Bench of ITAT in case of LG Electronics reported in 140 ITD 41 (Del) (Trib); (f) Decision of the Hon’ble Delhi High Court in the case of Sony Ericsson Mobile (supra). 3.1 In this regard, the Ld. AR, in his written synopsis, has submitted as under:- “1. At the outset it is relevant to note that a detailed analysis was conducted by the TPO vis a vis benchmarking analysis adopted by the ‘A’ for reported Interna…

Amadeus India Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, ITA NO. 7691/Del/2017 stands allowed

ITA 1811/DEL/2017[2012-13]Status: DisposedITAT Delhi27 Feb 2019AY 2012-13

Bench: Shri N.S. Saini & Shri Sudhanshu Srivastava

For Appellant: Sh. Tarundeep Singh & Tarun Singh, AdvFor Respondent: Shri Sanjay I.Bara, CIT-DR & Sh. Sandeep Kr
Section 144CSection 92BSection 92F

…t Establishment of the AE; (d) Amendments made to provisions of section 92B by Finance Act 2012; 16 Stay No. 475, 476/d/2018& ITA no. 1662/d/2016 (Amadeus India P. Ltd.) (e) Decision given by the Special Bench of ITAT in case of LG Electronics reported in 140 ITD 41 (Del) (Trib); (f) Decision of the Hon’ble Delhi High Court in the case of Sony Ericsson Mobile (supra). 3.1 In this regard, the Ld. AR, in his written synopsis, has submitted as under:- “1. At the outset it is relevant to note that a detailed analysis was conducted by the TPO vis a vis benchmarking analysis adopted by the ‘A’ for reported Interna…

Amadeus India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, ITA NO. 7691/Del/2017 stands allowed

ITA 1662/DEL/2016[2011-12]Status: DisposedITAT Delhi27 Feb 2019AY 2011-12

Bench: Shri N.S. Saini & Shri Sudhanshu Srivastava

For Appellant: Sh. Tarundeep Singh & Tarun Singh, AdvFor Respondent: Shri Sanjay I.Bara, CIT-DR & Sh. Sandeep Kr
Section 144CSection 92BSection 92F

…t Establishment of the AE; (d) Amendments made to provisions of section 92B by Finance Act 2012; 16 Stay No. 475, 476/d/2018& ITA no. 1662/d/2016 (Amadeus India P. Ltd.) (e) Decision given by the Special Bench of ITAT in case of LG Electronics reported in 140 ITD 41 (Del) (Trib); (f) Decision of the Hon’ble Delhi High Court in the case of Sony Ericsson Mobile (supra). 3.1 In this regard, the Ld. AR, in his written synopsis, has submitted as under:- “1. At the outset it is relevant to note that a detailed analysis was conducted by the TPO vis a vis benchmarking analysis adopted by the ‘A’ for reported Interna…

Pepsico India Holdings Pvt. Ltd., Gurgaon vs. ACIT, Central Circle- 7, New Delhi

In the result, all the appeals of the assessee are treated as partly allowed

ITA 6582/DEL/2017[2013-14]Status: DisposedITAT Delhi03 Dec 2018AY 2013-14

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Respondent: Mr. H.K. Chaudhary, CIT-DR
Section 115JSection 145ASection 271(1)(c)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I-2” NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.As. No. 1334/CHANDI/2010, 1203/ CHANDI /2011, 2511/DEL/2013, 1044/DEL/2014 & 4516/DEL/2016 ASSESSMENT YEARS: 2006-07 to 2010-11 M/s PepsiCo India Holdings Pvt vs. Additional Commissioner Ltd, of Income TaX, Range 1, (erstwhile M/s Pepsi Foods Pvt. Chandigarh Ltd.), Level 3-6, Pioneer Square, Sector- 62, Near Golf Course EXtension Road, Gurugram, Haryana - 122101 TAN/PAN: AAACP 1272G (Appellant) (Respondent) I.T.As. No. 4517/DEL/2016, 4518/DEL/2016, 6537/DE…