LI and Fung India Pvt. Ltd. v. CIT

WNS GLOBAL SERVICES P. LTD.,MUMBAI vs. ADDL/JT/DY/ASSTT/CIT/ITO, NATIONA FACELESS ASSESSMENT CENTRE,, DILHI

In the result, appeal filed by the assessee is allowed

Bench: Shri Vikas Awasthy & Shri Gagan Goyalwns Global Services Pvt. Ltd., Pl 10, Gate No.4, Godrej & Boyce Complex, Pirojshanagar, Lbs Marg, Vikhroli (West), Mumbai-400079. Pan: Aaacw2598L ...... Appellant Vs.. Addl./Jt/Dy./Acit/Ito/Nfac, Room No. 455, Circle-14(3)(1), Mumbai. ..... Respondent Appellant/Assessee By : Sh. Porus Kaka, Sr. Adv. & Sh. Manish Kant Respondent/Revenue By : Sh. Jasdeep Singh, Cit-Dr

…seh Products India (P) Ltd. v. ACIT (ITA 1686 (HYD) OF 2010) Social Media India Ltd. v. ACIT (28 ITR(T) 212) (Hyderabad-Trib) Firmenich Armatics India (P) Ltd. v. DCIT [2018] 96 Taxmann.com 649 Hon'ble Delhi High Court in Li & Fung India (P) Ltd v. CIT (2014) 361 ITR 85 VII. Appropriateness of the valuation obtained from the independent valuation expert cannot be challenged (Refer para 10.7 on page 39 of the DRP Application) TPO’s Actions: The learned TPO rejected the valuation report submitted by the Assessee and reworked the valuation as discussed on Page 17 to 19 Assessee’s Rebuttals: Valuation of shares requi…

DHL LOGISTICS PVT.LTD,MUMBAI vs. ADDL/JT/DY/ACIT/ITO/NFAC, DELHI

In the result, appeal of the assessee is partly allowed for statistical purpose

Bench: Kuldip Singh () & Shri Om Prakash Kant ()

…ad been reimbursed by the AE, could not have been included in the total costs of the assessee for the purpose of determining its 8 ITA 553/Mum/2022 profit margin. Also, the Hon‟ble High Court of Delhi in the case of LI and Fung India Pvt. Ltd. Vs. CIT (2014) 361 ITR 85 (Del), had observed, that for applying the TNMM the assesse‟s net profit margin realised from the international transactions had to be calculated only with reference to the cost incurred by it and not by any other entity either third party vendors or the associated enterprise. It was further observed by the Hon‟ble High Court, that Rule 10B(e)(i)…

ACIT, CIR- 14(1)(2), MUMBAI vs. WNS GLOBAL SERVICES PVT. LTD., MUMBAI

In the result, appeal filed by the assessee is allowed

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…sis, that too, by entertaining doubts with regard to business expediency of payment and in process stepping into shoes of the AO for making disallowance u/s. 37(1) of the Act. The Hon’ble Delhi High Court in the case of Li & Fung India (P) LTd. vs. CIT [2014] 361 ITR 85, has held that section 92C(1) states that “ALP in relation to an “”international transaction could be determined by any of the methods provided in the said sub- section which is “most appropriate” having regard to the nature of transactions or class of transaction or class of associated persons or functions performed by such persons or such other…

ACIT, CIRCLE 14 (1)(2), MUMBAI vs. WNS GLOBAL SERVICES PVT. LTD., MUMBAI

In the result, appeal filed by the assessee is allowed

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…sis, that too, by entertaining doubts with regard to business expediency of payment and in process stepping into shoes of the AO for making disallowance u/s. 37(1) of the Act. The Hon’ble Delhi High Court in the case of Li & Fung India (P) LTd. vs. CIT [2014] 361 ITR 85, has held that section 92C(1) states that “ALP in relation to an “”international transaction could be determined by any of the methods provided in the said sub- section which is “most appropriate” having regard to the nature of transactions or class of transaction or class of associated persons or functions performed by such persons or such other…

DHL LOGISTICS P.LTD,MUMBAI vs. DCIT CIR 9(3)(1), MUMBAI

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

Bench: Shri Pramod Kumar & Shri Pavan Kumar Gadaledhl Logistics Pvt Ltd Vs. Acit – 9(3)(1) 201A, Silver Utopia, Room No. 215, Cardinal Gracias Road 2Nd Floor, Aayakar Chakala, Andheri (E) Bhavan, M.K.Road, Mumbai – 400099 Mumbai – 400020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacm6824A Appellant .. Respondent Appellant By : Shri. Madhur Agarwal.Ar Respondent By : Dr. Yogesh Kamat.Cit.Dr Date Of Hearing 27.01.2022 Date Of Pronouncement 15.03.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm:

…lf of the AE which had been reimbursed by the AE, could not have been included in the total costs of the assessee for the purpose of determining its profit margin. Also, the Hon‟ble High Court of Delhi in the case of LI and Fung India Pvt. Ltd. Vs. CIT (2014) 361 ITR 85 (Del), had observed, that for applying the TNMM the assesse‟s net profit margin realised from the international transactions had to be calculated only with reference to the cost incurred by it and not by any other entity either third party vendors or the associated enterprise. It was further observed by the Hon‟ble High Court, that Rule 10B(e)(i)…

AGILITY LOGISTICS P.LTD,MUMBAI vs. DCIT RANGE-9(1)(1), MUMBAI

The appeal of the assessee is partly allowed in terms of our aforesaid observations

Bench: Shri S. Rifaur Rahman & Shri Ravish Soodagility Logistics Private Limited Deputy Commissioner Of Polaris, A-501/502, 5Th Floor, Income Tax Circle 9(1)(1), Off Marol Maroshi Road, Marol, Mumbai, Room No. 210/260A, Vs. Andheri (East), 2Nd Floor, Aayakar Bhavan, M.K. Road, Mumbai 400 059 Mumbai – 400 020 Pan – Aaacl3717A (Appellant) (Respondent) Agility Logistics Private Limited Asstt. Commissioner Of Polaris, A-501/502, 5Th Floor, Income Tax, Range 9(1)(1), Off Marol Maroshi Road, Marol, Room No. 203, 2Nd Floor, Vs. Andheri (East), Mumbai 400 067 Aayakar Bhavan,M.K. Road, Mumbai - 400020

…lf of the AE which had been reimbursed by the AE, could not have been included in the total costs of the assessee for the purpose of determining its profit margin. Also, the Hon’ble High Court of Delhi in the case of LI and Fung India Pvt. Ltd. Vs. CIT (2014) 361 ITR 85 (Del), had observed, that for applying the TNMM the assesse‟s net profit margin realised from the international transactions had to be calculated only with reference to the cost incurred by it and not by any other entity either third party vendors or the associated enterprise. It was further observed by the Hon‟ble High Court, that Rule 10B(e)(i)…

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

…ther the transfer pricing analysis placed by the taxpayer is exhaustive of attribution of profits and that would depend on the functional and factual analysis to be undertaken in each case.” The Hon’ble Delhi High Court in Li & Fung India (P) Ltd v. CIT(2014) 361 ITR 85(Del.) has held that FAR analysis plays a critical role in determining the ALP of an international transaction entered between AEs. The Hon’ble Delhi High Court in Rampgreen Sales Pvt. Ltd. v. CIT (2015) 377 ITR 533 (Del) has held that the comparables should be selected on the basis of similarity. Thus it is evident that the functional comparabili…

DCIT 9(3)(1), MUMBAI vs. DHL LOGISTICS P.LTD, MUMBAI

In the result, appeal of the assessee is allowed

Bench: Shri R.C. Sharma & Shri Pawan Singhdcit-9(3)(1) M/S. Dhl Logistics Pvt. Ltd. 215, 2Nd Floor, Aayakar 201, Silver Utopia, Cardinal Bhavan, M.K. Road, Gracias Road, Chakala, Mumbai-400020. Andheri (East), Vs. Mumbai-400099. Pan: Aaacm6824H Appellant Respondent C.O. No.159/Mum/2016 (Assessment Year 2011-12) M/S. Dhl Logistics Pvt. Ltd. Dcit-9(3)(1) 201, Silver Utopia, Cardinal 215, 2Nd Floor, Aayakar Gracias Road, Chakala, Bhavan, M.K. Road, Andheri (East), Mumbai-400020. Vs. Mumbai-400099. Pan: Aaacm6824H Appellant Respondent It(Tp) A No.1385/Mum/2016 (Assessment Year 2011-12) M/S. Dhl Logistics Pvt. Ltd. Dcit-9(3)(1) 201, Silver Utopia, Cardinal 215, 2Nd Floor, Aayakar Gracias Road, Chakala, Bhavan, M.K. Road, Andheri (East), Mumbai-400020. Vs. Mumbai-400099. Pan: Aaacm6824H Appellant Respondent Appellant By : Shri Anand Mohan (Cit-Dr) Respondent By : Shri Madhur Agrawal (Ar) Date Of Hearing : 24.07.2020 Date Of Pronouncement : 10.08.2020 Order Under Section 254(1)Of Income Tax Act

…lf of the AE which had been reimbursed by the AE, could not have been included in the total costs of the assessee for the purpose of determining its profit margin. Also, the Hon’ble High Court of Delhi in the case of LI and Fung India Pvt. Ltd. Vs. CIT (2014) 361 ITR 85 (Del), had observed, that for applying the TNMM the assesse’s net profit margin realised from the international transactions had to be calculated only with reference to the cost incurred by it and not by any other entity either third party vendors or the associated enterprise. It was further observed by the Hon’ble High Court, that Rule 10B(e)(i)…

WNS GLOBAL SERVICES P.LTD,MUMBAI vs. DCIT CIR 14(3)(1), MUMBAI

In the result, the appeals are partly allowed

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiita No.2257/Mum/2017 Assessment Year : 2012 -13 Ita No.1955/Mum/2016 Assessment Year : 2011 -12

…ining doubts with regard to business expediency of payment and in process stepping into the shoes of the AO for making disallowance u/s. 37(1). He further relied on the decision of Hon’ble Delhi High Court in the case of Li & Fung India (P) Ltd. v. CIT [2014] 361 ITR 85, wherein it has been held that Section 92C(1) states that “ALP in relation to an international transaction could be determined by any of the methods provided in the said sub-section which is most appropriate having regard to the nature of transactions or class of transaction or class of associated persons or functions performed by such persons or…

WNS GLOBAL SERVICES P. LTD,MUMBAI vs. DCIT CIR 14(3)(1), MUMBAI

In the result, the appeals are partly allowed

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiita No.2257/Mum/2017 Assessment Year : 2012 -13 Ita No.1955/Mum/2016 Assessment Year : 2011 -12

…ining doubts with regard to business expediency of payment and in process stepping into the shoes of the AO for making disallowance u/s. 37(1). He further relied on the decision of Hon’ble Delhi High Court in the case of Li & Fung India (P) Ltd. v. CIT [2014] 361 ITR 85, wherein it has been held that Section 92C(1) states that “ALP in relation to an international transaction could be determined by any of the methods provided in the said sub-section which is most appropriate having regard to the nature of transactions or class of transaction or class of associated persons or functions performed by such persons or…

DHL LOGISTICS P.LTD,MUMBAI vs. DCIT CIR 9(3)(1), MUMBAI

The appeal of the assessee is partly allowed in terms of our aforesaid observations

Bench: Shri M. Balaganesh & Shri Ravish Sooddhl Logistics Private Limited Deputy Commissioner Of 201A,Silver Utopia, Income Tax Circle 9(3)(1), Cardinal Gracias Road, Mumbai Vs. Chakala, Andheri (East) Mumbai 400 059 Pan – Aaacm6824H (Appellant) (Respondent)

…lf of the AE which had been reimbursed by the AE, could not have been included in the total costs of the assessee for the purpose of determining its profit margin. Also, the Hon‟ble High Court of Delhi in the case of LI and Fung India Pvt. Ltd. Vs. CIT (2014) 361 ITR 85 (Del), had observed, that for applying the TNMM the assesse‟s net profit margin realised from the international transactions had to be calculated only with reference to the cost incurred by it and not by any other entity either third party vendors or the associated enterprise. It was further observed by the Hon‟ble High Court, that Rule 10B(e)(i)…

INDIA MEDTRONIC P.LTD,MUMBAI vs. ASST CIT 10(1)(1), MUMBAI

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

Bench: Shri Mahavir Singh & Shri Rajesh Kumarit(Tp)A No.2160/Mum/2017 Assessment Year : 2012-13 India Meditronic Pvt. Ltd., Acit 10(1)(1) 1241 Solitaire Corporate Park, Mumbai Vs. Bldg. No.12, 4Th Floor, Andheri Ghatkopar Link Road, Andheri (East), Mumbai 400 093

…ng AMP expenditure on behalf of the AE, that the selling and distribution expenses were not even 1% of the total expenses, that the DRP had followed order of the then DRP for 2009-10 and had adopted Brightline Method. He also referred to cases of Li and Fung (361 ITR 85 of Hon'ble Delhi High Court),Thomas Cook India Ltd. (ITA.s/1261& 1238/ Mum/ 2015,dtd 31/5/16),L’Oreal India Pvt. Ltd.(ITA/7714/& Ors./Mum/12, dtd.4/5/16). The Departmental Representative (DR)that there was obligation on part of the AE to compensate the assessee, that it was an IT., that the AE had entered in to three agreements with the assessee,…

NGC NETWORK INDIA P. LTD,MUMBAI vs. ASST CIT CIR 16(1), MUMBAI

In the result, appeal is partly allowed

Bench: Shri Saktijit Dey & Shri Rajesh Kumar

…parable is a Government Company, even a PSU cannot be considered as a comparable since it is protected by Government in many ways including grant of subsidy. Relying upon the decision of the Hon'ble Delhi High Court in Li & Fung India Pvt. Ltd. v/s CIT, (2014)361 ITR 85, the learned Sr. Counsel submitted, the standard of comparability under Transactional Net Margin Method (TNMM) is not less than any other applicable methods. Further, he submitted, this company cannot be considered as comparable due to functional difference and lack of segmental break up. In support of such contention he relied upon the following…

DCIT 10(1)(1), MUMBAI vs. INDIA MEDTRONIC P.LTD, MUMBAI

The appeal of the AO is dismissed

…rring AMP expenditure on behalf of the AE,that the selling and distribution expenses were not even 1% of the total expenses,that the DRP had followed order of the then DRP for 2009-10 and had adopted Brightline Method.He also referred to cases of Li and Fung (361 ITR 85 of Hon'ble Delhi High Court),Thomas Cook India Ltd. (ITA.s/1261& 1238/ Mum/ 2015,dtd 31/5/16),L’Oreal India Pvt.Ltd.(ITA/7714/& Ors./Mum/12, dtd.4/5/16). The Departmental Representative (DR)that there was obligation on part of the AE to compensate the assessee,that it was an IT.,that the AE had entered in to three agreements with the assessee, tha…

INDIA MEDTRONIC P.LTD,MUMBAI vs. DCIT 10(1)(1), MUMBAI

The appeal of the AO is dismissed

…rring AMP expenditure on behalf of the AE,that the selling and distribution expenses were not even 1% of the total expenses,that the DRP had followed order of the then DRP for 2009-10 and had adopted Brightline Method.He also referred to cases of Li and Fung (361 ITR 85 of Hon'ble Delhi High Court),Thomas Cook India Ltd. (ITA.s/1261& 1238/ Mum/ 2015,dtd 31/5/16),L’Oreal India Pvt.Ltd.(ITA/7714/& Ors./Mum/12, dtd.4/5/16). The Departmental Representative (DR)that there was obligation on part of the AE to compensate the assessee,that it was an IT.,that the AE had entered in to three agreements with the assessee, tha…

INDIA MEDTRONIC PRIVATE LIMITED,MUMBAI vs. DCIT , 10(1)(1), MUMBAI

…rring AMP expenditure on behalf of the AE,that the selling and distribution expenses were not even 1% of the total expenses,that the DRP had followed order of the then DRP for 2009-10 and had adopted Brightline Method.He also referred to cases of Li and Fung (361 ITR 85 of Hon'ble Delhi High Court),Thomas Cook India Ltd. (ITA.s/1261& 1238/ Mum/ 2015,dtd 31/5/16),L’Oreal India Pvt.Ltd.(ITA/7714/& Ors./Mum/12, dtd.4/5/16). The Departmental Representative (DR)that there was obligation on part of the AE to compensate the assessee,that it was an IT.,that the AE had entered in to three agreements with the assessee, tha…