Maruti Suzuki India Ltd. v. CIT

381 ITR 117High Court2016#408 most cited

What is Maruti Suzuki India Ltd. v. CIT authority for?

The Bright Line Test (BLT) is not a recognized method under the Income-tax Act and Rules for benchmarking advertising, marketing, and promotion (AMP) expenses or for determining the existence of an international transaction or its Arm's Length Price. The Revenue must first establish the existence and price of an international transaction before seeking an ALP adjustment.

220

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2015 to 2026.

Also referred to as

Maruti Suzuki India Ltd. v. CIT · 381 ITR 117 · Bright Line Test · BLT · AMP expenditure · international transaction · arm's length price · ALP · section 92B · section 92C · burden of proof · transfer pricing method

Also reported as

64 Taxmann.com 150237 Taxmann 256

Sections most often in play

Section 92B Section 143(3)Section 92C Section 144C(13)Section 144C(5)Section 234B Section 271(1)(c)Section 92F

Read the full judgment

Issues it is cited on

bright line test section 92f(v)amp expenditure section 92f cost plus method comparable uncontrolled price method section 92(1)section 92b functional analysis transactional net margin method section 92c(3)tested party

Judgments citing Maruti Suzuki India Ltd. v. CIT

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

ITA 868/DEL/2016[2011-12]Status: DisposedITAT Delhi04 Oct 2019AY 2011-12

Bench: Shri Amit Shukla & Shri Prashant Maharishi

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

…t statutorily mandated. The High Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this the Hon’ble Delhi High Court expanded the jurisprudence in this regard in the cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Court further held A…

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

…t statutorily mandated. The High Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this the Hon’ble Delhi High Court expanded the jurisprudence in this regard in the cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Court further held A…

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

…t statutorily mandated. The High Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this the Hon’ble Delhi High Court expanded the jurisprudence in this regard in the cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Court further held A…

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

…t statutorily mandated. The High Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this the Hon’ble Delhi High Court expanded the jurisprudence in this regard in the cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Court further held A…

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

…t statutorily mandated. The High Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this the Hon’ble Delhi High Court expanded the jurisprudence in this regard in the cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Court further held A…

Pr. CIT-9, New Delhi vs. M/S Timex Group India Ltd. First Floor, Tower B

ITA/795/2019HC Delhi03 Sept 2019

Bench: HON'BLE MR. JUSTICE VIPIN SANGHI,HON'BLE MR. JUSTICE SANJEEV NARULA

…. Thus, we find no merit in the Appellant’s aforesaid submissions. 16. The issue relating to adjustment of AMP is covered by the decision of the Court in Sony Ericsson Indio Pvt. Ltd. v. LIT (2015) 374 ITR liS (Del.) and Maruti Suzuki India Ltd. v. CIT (2016) 381 ITR 117 . 17. The Tribunal while dealing with said issue held as under:- ITA 795/2019 Page 5 of 7 “20. Bare perusal of the order under challenge passed by the ld. TPO particularly at pages 67, 73 and 75 goes to prove that the entire adjustment qua AMP expenses has been made by the TPO on the basis of bright line method and no material whatsoever has be…

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

…decision been reversed by the Hon’ble Delhi High Court in the case of Sony Ericsson Mobile Communications India Pvt. Ltd. Vs. Commissioner of Income Tax [2015] 374 ITR 118 (Del) para 156 at page 1072 of paper book 3, Maruti Suzuki India Limited vs. CIT [2016] 381 ITR 117 (Del) para 52 to 55 at page 1137 and 138. Having regard to the aforesaid, the question regarding existence of PE in India has to be looked into by the Tribunal de novo without being influenced by any observation of the Hon’ble Allahabad High Court to the contrary. 63. On the issue of manner in which those statements must be appreciated, he submit…

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

…decision been reversed by the Hon’ble Delhi High Court in the case of Sony Ericsson Mobile Communications India Pvt. Ltd. Vs. Commissioner of Income Tax [2015] 374 ITR 118 (Del) para 156 at page 1072 of paper book 3, Maruti Suzuki India Limited vs. CIT [2016] 381 ITR 117 (Del) para 52 to 55 at page 1137 and 138. Having regard to the aforesaid, the question regarding existence of PE in India has to be looked into by the Tribunal de novo without being influenced by any observation of the Hon’ble Allahabad High Court to the contrary. 63. On the issue of manner in which those statements must be appreciated, he submit…

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

…decision been reversed by the Hon’ble Delhi High Court in the case of Sony Ericsson Mobile Communications India Pvt. Ltd. Vs. Commissioner of Income Tax [2015] 374 ITR 118 (Del) para 156 at page 1072 of paper book 3, Maruti Suzuki India Limited vs. CIT [2016] 381 ITR 117 (Del) para 52 to 55 at page 1137 and 138. Having regard to the aforesaid, the question regarding existence of PE in India has to be looked into by the Tribunal de novo without being influenced by any observation of the Hon’ble Allahabad High Court to the contrary. 63. On the issue of manner in which those statements must be appreciated, he submit…

M/S. Beam Global Spirits & Wine (India) Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 1604/DEL/2014[2009-10]Status: DisposedITAT Delhi21 Aug 2019AY 2009-10

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2009-10] & [A.Y 2012-13]

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri Sanjay I Bara, CIT-DR

…al transaction before undertaking bench marking of AMP expenses and such transactions cannot be inferred merely on the basis of BLT. For this proposition, we draw support from the judgment of the Hon'ble Delhi High Court in the case of Maruti Suzuki India Ltd 381 ITR 117. “13. In this case, the Hon'ble High Court held that existence of an international transaction needs to be established de hors the Bright Line Test. The relevant finding of the Hon’ble High Court reads as under: “43. Secondly, the cases which were disposed of by the judgment, i.e. of the three Assessees Canon, Reebok and Sony Ericsson were all o…

Beam Global Spirits & Wine India Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 1214/DEL/2017[2012-13]Status: DisposedITAT Delhi21 Aug 2019AY 2012-13

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2009-10] & [A.Y 2012-13]

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri Sanjay I Bara, CIT-DR

…al transaction before undertaking bench marking of AMP expenses and such transactions cannot be inferred merely on the basis of BLT. For this proposition, we draw support from the judgment of the Hon'ble Delhi High Court in the case of Maruti Suzuki India Ltd 381 ITR 117. “13. In this case, the Hon'ble High Court held that existence of an international transaction needs to be established de hors the Bright Line Test. The relevant finding of the Hon’ble High Court reads as under: “43. Secondly, the cases which were disposed of by the judgment, i.e. of the three Assessees Canon, Reebok and Sony Ericsson were all o…

Adidas India Marketing Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, both the appeals of the assessee are allowed partly for statistical purposes

ITA 729/DEL/2017[2012-13]Status: DisposedITAT Delhi31 Jul 2019AY 2012-13

Bench: Shri Amit Shukla & Shri O.P. Kantassessment Years: 2011-12 M/S. Adidas India Marketing Vs. Income Tax Officer, Pvt. Ltd., Ward-1(3), Range-1, New C/O Pricewaterhousecoopers Delhi Pvt. Ltd., Sucheta Bhawan, Gate No.2, 1St Floor 11-A, Vishnu Digambar Marg, New Delhi. Pan :Aaaca5313P (Appellant) (Respondent) & Assessment Years: 2012-13 M/S. Adidas India Marketing Vs. Dy. Cit, Pvt. Ltd., Circle-1(2), New Delhi C/O Pricewaterhousecoopers Pvt. Ltd., Sucheta Bhawan, Gate No.2, 1St Floor 11-A, Vishnu Digambar Marg, New Delhi. Pan :Aaaca5313P (Appellant) (Respondent) Assessee By Shri Kanchan Kaushal, Ar Department By Shri Sanjay I. Bara, Cit(Dr)

Section 144C(8)Section 92B

…ricson Mobile Communication India Pvt.Ltd (supra) in support of aforestated observations. 8.2. Further it has been submitted by both sides that facts and circumstances in present appeal are no manner different with that of Maruti Suzuki Inida Ltd. Reported in 381 ITR 117; and Soney Ericson Mobile Communications (supra), wherein Hon’ble High Court has held that existence of international transaction must be established de hors the Bright Line Test before undertaking bench marking of AMP expenses. We therefore respectfully follow the view taken by this Hon’ble Delhi High Court in Sony Ericson Mobile Communications…

Adidas India Marketing Pvt. Ltd., New Delhi vs. ITO, New Delhi

In the result, both the appeals of the assessee are allowed partly for statistical purposes

ITA 953/DEL/2016[2011-12]Status: DisposedITAT Delhi31 Jul 2019AY 2011-12

Bench: Shri Amit Shukla & Shri O.P. Kantassessment Years: 2011-12 M/S. Adidas India Marketing Vs. Income Tax Officer, Pvt. Ltd., Ward-1(3), Range-1, New C/O Pricewaterhousecoopers Delhi Pvt. Ltd., Sucheta Bhawan, Gate No.2, 1St Floor 11-A, Vishnu Digambar Marg, New Delhi. Pan :Aaaca5313P (Appellant) (Respondent) & Assessment Years: 2012-13 M/S. Adidas India Marketing Vs. Dy. Cit, Pvt. Ltd., Circle-1(2), New Delhi C/O Pricewaterhousecoopers Pvt. Ltd., Sucheta Bhawan, Gate No.2, 1St Floor 11-A, Vishnu Digambar Marg, New Delhi. Pan :Aaaca5313P (Appellant) (Respondent) Assessee By Shri Kanchan Kaushal, Ar Department By Shri Sanjay I. Bara, Cit(Dr)

Section 144C(8)Section 92B

…ricson Mobile Communication India Pvt.Ltd (supra) in support of aforestated observations. 8.2. Further it has been submitted by both sides that facts and circumstances in present appeal are no manner different with that of Maruti Suzuki Inida Ltd. Reported in 381 ITR 117; and Soney Ericson Mobile Communications (supra), wherein Hon’ble High Court has held that existence of international transaction must be established de hors the Bright Line Test before undertaking bench marking of AMP expenses. We therefore respectfully follow the view taken by this Hon’ble Delhi High Court in Sony Ericson Mobile Communications…

M/S. Adidas India Marketing (P) Ltd., Gurgaon vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed

ITA 1431/DEL/2015[2010-11]Status: DisposedITAT Delhi29 Jul 2019AY 2010-11

Bench: Shri Amit Shukla & Shri O.P. Kantassessment Year: 2010-11 M/S. Adidas India Marketing Vs. Income Tax Officer, (P.) Ltd., Ward-1(3), New Delhi 5Th Floor, Unitech Commercial Tower-Ii, Sector- 45, Block-B, Greenwoods City, Gurgaon Pan : Aaaca5313P (Appellant) (Respondent) Appellant By Shri Ajay Vohra, Sr. Adv; Ms. Shaily Gupta, Ca; & Mr. Ramit Katyal, Ca Respondent By Shri Sanjay I. Bara, Cit(Dr)

Section 143(3)Section 144CSection 92Section 92BSection 92C

…cson Mobile Communication India Pvt. Ltd (supra) in support of afore-stated observations. 8.2. Further it has been submitted by both sides that facts and circumstances in present appeal are no manner different with that of Maruti Suzuki India Ltd. Reported in 381 ITR 117; and Soney Ericson Mobile Communications (supra), wherein Hon’ble High Court has held that existence of international transaction must be established de hors the Bright Line Test before undertaking bench marking of AMP expenses. We therefore respectfully follow the view taken by this Hon’ble Delhi High Court in Sony Ericson Mobile Communications…

India Medtronic P.Ltd, Mumbai vs. DCIT (OSD) 8(2), Mumbai

ITA 2168/MUM/2014[2009-10]Status: DisposedITAT Mumbai24 Jul 2019AY 2009-10

Bench: Shri G. Manjunatha & Shri Ravish Soodita No.2168/Mum/2014 & C.O. No. 213/Mum/2014 (Arising Out Of Ita No. 2121/Mum/2014) (Assessment Year: 2009-10) India Medtronic Private Ltd. Assistant Commissioner Of 1241, Solitaire Corporate Park, Income Tax, Circle-10(1)(1), Building No.12, 209, Aaykar Bhavan, Vs. 4Th Floor, Andheri Ghatkopar Churchgate, Link Road, Andheri (East), Mumbai –20 Mumbai 400 093 Pan – Aaaci4227Q (Appellant) (Respondent) Assistant Commissioner Of M/S India Medtronic Pvt. Ltd. Income Tax (Osd)-8(2), Solitaire Corporate Park, Room No. 218, Aayakar Bhavan, Bldg. No. 12, 4Th Floor, M.K. Marg, Vs. Andheri Ghatkopar Link Rd., Mumbai – 400020 Andheri (East), Mumbai- 400093

For Appellant: Shri Rajan R. Vora, A.RFor Respondent: Shri Anand Mohan, D.R

Section 115JSection 143(1)Section 143(2)Section 143(3)Section 144C(13)Section 254

…MP expenditure incurred by the assessee. The TPO while taking recourse to BLT while benchmarking the AMP expenditure incurred by the assesse, observed, that the judgment of the Hon‟ble High Court of Delhi in the case of Maruti Suzuki India Ltd. Vs. CIT (2016) 381 ITR 117 (Del) was distinguishable on facts as against those involved in the case of the assessee which was a distributor of the products manufactured by the foreign AEs, and was not manufacturing the products as a licensed manufacturer. Apart there from, it was observed by the TPO that as the revenue had not accepted the judgment of the Hon‟ble High Cour…

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

…Special Bench decision of the Tribunal, in case ofLG 6 Kellogg India Pvt. Ltd. Electronics India Pvt. Ltd. (supra) approving BLT method is no more a good law in view of the decision of the Hon’ble Delhi High Court in Maruti Suzuki India Ltd. v/s CIT, [2015] 381 ITR 117 (Del.). Further, he relied upon the following decisions:– i) Maruti Suzuki India Ltd. v/s CIT, ITA no.110 of 2014 (Del. HC); ii) Johnson & Hohnson Pvt. Ltd. v/s ACIT, ITA no.6142/ Mum./2017, (Mum. Trib.); iii) Mondelez India Foods Pvt. Ltd. v/s ACIT, ITA no.5470/ Mum./2012 (Mum. Trib.); iv) Nivea India Pvt. Ltd. v/s ACIT, ITA no.7744/Mum./2012 (…

Edwards Lifesciences (India) P.Ltd, Mumbai vs. Asst CIT Cir 9(2)(2), Mumbai

In the result, appeal of the assessee is allowed

ITA 1189/MUM/2017[2012-13]Status: DisposedITAT Mumbai10 Jul 2019AY 2012-13

Bench: Shri C.N. Prasad, Jm & Shri M.Balaganesh, Am

…y should have 11,422,850 been reimbursed by A.E, and for which the adjustment is proposed to be made 5.5. We find that the application of Bright Line Test has been negatived by the Hon‟ble Delhi High Court in the case of Maruti Suzuki India Ltd., reported in 381 ITR 117. Hence, the action of the lower authorities would not be justified even on that count. Accordingly, the ground No. 2 raised by the assessee for A.Y.2013-14 is disposed off in line with the A.Y.2012- 13 supra and in view of the decision of Hon‟ble Delhi High Court supra. 6. The last issue to be decided in the appeal for A.Y.2013-14 is with regard…

Pernod Ricard India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the recalled matter of the appeal in ITA No

ITA 914/DEL/2015[2011-12]Status: DisposedITAT Delhi10 Jul 2019AY 2011-12

Bench: Shri Amit Shukla & Shri O.P. Kant

Section 144C(13)Section 194HSection 40

…nal transaction before undertaking bench marking of AMP expenses and such transaction cannot be inferred merely on the basis of BLT. For this proposition, we draw support from the judgment of the Hon'ble Delhi High Court in the case of Maruti Suzuki India Ltd 381 ITR 117. 13. In this case, the Hon'ble High Court held that existence of an international transaction needs to be established de hors the Bright Line Test. The relevant finding of the Hon’ble High Court reads as under: “43. Secondly, the cases which were disposed of by the judgment, i.e. of the three Assessees Canon, Reebok and Sony Ericsson were all of…

Pernod Ricard India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the recalled matter of the appeal in ITA No

ITA 912/DEL/2015[2009-10]Status: DisposedITAT Delhi10 Jul 2019AY 2009-10

Bench: Shri Amit Shukla & Shri O.P. Kant

Section 144C(13)Section 194HSection 40

…nal transaction before undertaking bench marking of AMP expenses and such transaction cannot be inferred merely on the basis of BLT. For this proposition, we draw support from the judgment of the Hon'ble Delhi High Court in the case of Maruti Suzuki India Ltd 381 ITR 117. 13. In this case, the Hon'ble High Court held that existence of an international transaction needs to be established de hors the Bright Line Test. The relevant finding of the Hon’ble High Court reads as under: “43. Secondly, the cases which were disposed of by the judgment, i.e. of the three Assessees Canon, Reebok and Sony Ericsson were all of…

Pernod Ricard India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the recalled matter of the appeal in ITA No

ITA 911/DEL/2015[2008-09]Status: DisposedITAT Delhi10 Jul 2019AY 2008-09

Bench: Shri Amit Shukla & Shri O.P. Kant

Section 144C(13)Section 194HSection 40

…nal transaction before undertaking bench marking of AMP expenses and such transaction cannot be inferred merely on the basis of BLT. For this proposition, we draw support from the judgment of the Hon'ble Delhi High Court in the case of Maruti Suzuki India Ltd 381 ITR 117. 13. In this case, the Hon'ble High Court held that existence of an international transaction needs to be established de hors the Bright Line Test. The relevant finding of the Hon’ble High Court reads as under: “43. Secondly, the cases which were disposed of by the judgment, i.e. of the three Assessees Canon, Reebok and Sony Ericsson were all of…