Mentor Graphics (Noida) (P) Ltd. v. DCIT

109 ITD 101Income Tax Appellate Tribunal2007#1345 most cited

What is Mentor Graphics (Noida) (P) Ltd. v. DCIT authority for?

A working capital adjustment is mandated and a prerequisite for correctly determining the Arm's Length Price (ALP) under Rule 10B(1)(e) and Rule 10B(3) of the Income Tax Rules, 1962. This adjustment accounts for differences in working capital and outstanding receivables between the assessee and comparable companies.

85

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2026.

Also referred to as

Mentor Graphics (Noida) (P) Ltd. v. DCIT · 109 ITD 101 · ITAT 2007 · transfer pricing adjustment · working capital adjustment · arm's length price · Rule 10B(3) · Section 92B · comparable companies · outstanding receivables

Sections most often in play

Section 143(3)Section 144BSection 144C(13)Section 92CA(3)Section 92BSection 10B(3)Section 144C(5)Section 234C

Issues it is cited on

interest on outstanding receivablesworking capital adjustmenttested partycomparable companiesbenchmarking analysissection 92bmost appropriate methodarm's length pricetransfer pricing adjustmentsection 144c(13)tnmmdirections of the drp

Judgments citing Mentor Graphics (Noida) (P) Ltd. v. DCIT

M/S. Vijayalaxmicashew Co., Kollam vs. The ACIT, Kollam

In the result, the appeals of the assessees in ITA Nos

ITA 49/COCH/2016[2011-12]Status: DisposedITAT Cochin03 Feb 2020AY 2011-12

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

…lant from these sister concerns for export were also accepted. d) CIT(A) ought to have appreciated that ALP does not necessarily mean a priceabove cost, maximum price or maximum profit in the range as rightly observed by Hon'ble Delhi Bench of ITAT in (2007) 109 ITD 101 & (2007) 288 ITR9(SC) 3) (a) CIT (A) erred in concluding that appellant has no case as he/she failed to discharge his/her onus that there was no diversion of profit to sister concerns to enable them to enjoy tax exemptions. He missed the vital point that 80HHC giving tax incentives to appellant and sister concerns went out of statute book from A…

M/S. Vijayalaxmicashew Co., Kollam vs. The ACIT, Kollam

In the result, the appeals of the assessees in ITA Nos

ITA 48/COCH/2016[2010-11]Status: DisposedITAT Cochin03 Feb 2020AY 2010-11

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

…lant from these sister concerns for export were also accepted. d) CIT(A) ought to have appreciated that ALP does not necessarily mean a priceabove cost, maximum price or maximum profit in the range as rightly observed by Hon'ble Delhi Bench of ITAT in (2007) 109 ITD 101 & (2007) 288 ITR9(SC) 3) (a) CIT (A) erred in concluding that appellant has no case as he/she failed to discharge his/her onus that there was no diversion of profit to sister concerns to enable them to enjoy tax exemptions. He missed the vital point that 80HHC giving tax incentives to appellant and sister concerns went out of statute book from A…

M/S. Vijayalaxmicashew Co., Kollam vs. The ACIT, Kollam

In the result, the appeals of the assessees in ITA Nos

ITA 47/COCH/2016[2008-09]Status: DisposedITAT Cochin03 Feb 2020AY 2008-09

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

…lant from these sister concerns for export were also accepted. d) CIT(A) ought to have appreciated that ALP does not necessarily mean a priceabove cost, maximum price or maximum profit in the range as rightly observed by Hon'ble Delhi Bench of ITAT in (2007) 109 ITD 101 & (2007) 288 ITR9(SC) 3) (a) CIT (A) erred in concluding that appellant has no case as he/she failed to discharge his/her onus that there was no diversion of profit to sister concerns to enable them to enjoy tax exemptions. He missed the vital point that 80HHC giving tax incentives to appellant and sister concerns went out of statute book from A…

Sri.K.Ravindranathan Nair, Kollam vs. The ACIT, Kollam

In the result, the appeals of the assessees in ITA Nos

ITA 46/COCH/2016[2008-09]Status: DisposedITAT Cochin03 Feb 2020AY 2008-09

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

…lant from these sister concerns for export were also accepted. d) CIT(A) ought to have appreciated that ALP does not necessarily mean a priceabove cost, maximum price or maximum profit in the range as rightly observed by Hon'ble Delhi Bench of ITAT in (2007) 109 ITD 101 & (2007) 288 ITR9(SC) 3) (a) CIT (A) erred in concluding that appellant has no case as he/she failed to discharge his/her onus that there was no diversion of profit to sister concerns to enable them to enjoy tax exemptions. He missed the vital point that 80HHC giving tax incentives to appellant and sister concerns went out of statute book from A…

Smt. T.C. Usha, Kollam vs. The ACIT, Kollam

In the result, the appeals of the assessees in ITA Nos

ITA 45/COCH/2016[2010-11]Status: DisposedITAT Cochin03 Feb 2020AY 2010-11

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

…lant from these sister concerns for export were also accepted. d) CIT(A) ought to have appreciated that ALP does not necessarily mean a priceabove cost, maximum price or maximum profit in the range as rightly observed by Hon'ble Delhi Bench of ITAT in (2007) 109 ITD 101 & (2007) 288 ITR9(SC) 3) (a) CIT (A) erred in concluding that appellant has no case as he/she failed to discharge his/her onus that there was no diversion of profit to sister concerns to enable them to enjoy tax exemptions. He missed the vital point that 80HHC giving tax incentives to appellant and sister concerns went out of statute book from A…

Smt. T.C. Usha, Kollam vs. The ACIT, Kollam

In the result, the appeals of the assessees in ITA Nos

ITA 44/COCH/2016[2009-10]Status: DisposedITAT Cochin03 Feb 2020AY 2009-10

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

…lant from these sister concerns for export were also accepted. d) CIT(A) ought to have appreciated that ALP does not necessarily mean a priceabove cost, maximum price or maximum profit in the range as rightly observed by Hon'ble Delhi Bench of ITAT in (2007) 109 ITD 101 & (2007) 288 ITR9(SC) 3) (a) CIT (A) erred in concluding that appellant has no case as he/she failed to discharge his/her onus that there was no diversion of profit to sister concerns to enable them to enjoy tax exemptions. He missed the vital point that 80HHC giving tax incentives to appellant and sister concerns went out of statute book from A…

Sri.R.Prakash, Kollam vs. The ACIT, Kollam

In the result, the appeals of the assessees in ITA Nos

ITA 43/COCH/2016[2011-12]Status: DisposedITAT Cochin03 Feb 2020AY 2011-12

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

…lant from these sister concerns for export were also accepted. d) CIT(A) ought to have appreciated that ALP does not necessarily mean a priceabove cost, maximum price or maximum profit in the range as rightly observed by Hon'ble Delhi Bench of ITAT in (2007) 109 ITD 101 & (2007) 288 ITR9(SC) 3) (a) CIT (A) erred in concluding that appellant has no case as he/she failed to discharge his/her onus that there was no diversion of profit to sister concerns to enable them to enjoy tax exemptions. He missed the vital point that 80HHC giving tax incentives to appellant and sister concerns went out of statute book from A…

Sri.R.Prakash, Kollam vs. The ACIT, Kollam

In the result, the appeals of the assessees in ITA Nos

ITA 42/COCH/2016[2010-11]Status: DisposedITAT Cochin03 Feb 2020AY 2010-11

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

…lant from these sister concerns for export were also accepted. d) CIT(A) ought to have appreciated that ALP does not necessarily mean a priceabove cost, maximum price or maximum profit in the range as rightly observed by Hon'ble Delhi Bench of ITAT in (2007) 109 ITD 101 & (2007) 288 ITR9(SC) 3) (a) CIT (A) erred in concluding that appellant has no case as he/she failed to discharge his/her onus that there was no diversion of profit to sister concerns to enable them to enjoy tax exemptions. He missed the vital point that 80HHC giving tax incentives to appellant and sister concerns went out of statute book from A…

Sri.R.Prakash, Kollam vs. The ACIT, Kollam

In the result, the appeals of the assessees in ITA Nos

ITA 41/COCH/2016[2009-10]Status: DisposedITAT Cochin03 Feb 2020AY 2009-10

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

…lant from these sister concerns for export were also accepted. d) CIT(A) ought to have appreciated that ALP does not necessarily mean a priceabove cost, maximum price or maximum profit in the range as rightly observed by Hon'ble Delhi Bench of ITAT in (2007) 109 ITD 101 & (2007) 288 ITR9(SC) 3) (a) CIT (A) erred in concluding that appellant has no case as he/she failed to discharge his/her onus that there was no diversion of profit to sister concerns to enable them to enjoy tax exemptions. He missed the vital point that 80HHC giving tax incentives to appellant and sister concerns went out of statute book from A…

Sri.R.Prakash, Kollam vs. The ACIT, Kollam

In the result, the appeals of the assessees in ITA Nos

ITA 40/COCH/2016[2010-11]Status: DisposedITAT Cochin03 Feb 2020AY 2010-11

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

…lant from these sister concerns for export were also accepted. d) CIT(A) ought to have appreciated that ALP does not necessarily mean a priceabove cost, maximum price or maximum profit in the range as rightly observed by Hon'ble Delhi Bench of ITAT in (2007) 109 ITD 101 & (2007) 288 ITR9(SC) 3) (a) CIT (A) erred in concluding that appellant has no case as he/she failed to discharge his/her onus that there was no diversion of profit to sister concerns to enable them to enjoy tax exemptions. He missed the vital point that 80HHC giving tax incentives to appellant and sister concerns went out of statute book from A…

Sri.R. Pratap, Kollam vs. The ACIT, Kollam

In the result, the appeals of the assessees in ITA Nos

ITA 39/COCH/2016[2010-11]Status: DisposedITAT Cochin03 Feb 2020AY 2010-11

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

…lant from these sister concerns for export were also accepted. d) CIT(A) ought to have appreciated that ALP does not necessarily mean a priceabove cost, maximum price or maximum profit in the range as rightly observed by Hon'ble Delhi Bench of ITAT in (2007) 109 ITD 101 & (2007) 288 ITR9(SC) 3) (a) CIT (A) erred in concluding that appellant has no case as he/she failed to discharge his/her onus that there was no diversion of profit to sister concerns to enable them to enjoy tax exemptions. He missed the vital point that 80HHC giving tax incentives to appellant and sister concerns went out of statute book from A…

Sri.R. Pratap, Kollam vs. The ACIT, Kollam

In the result, the appeals of the assessees in ITA Nos

ITA 38/COCH/2016[2010-11]Status: DisposedITAT Cochin03 Feb 2020AY 2010-11

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

…lant from these sister concerns for export were also accepted. d) CIT(A) ought to have appreciated that ALP does not necessarily mean a priceabove cost, maximum price or maximum profit in the range as rightly observed by Hon'ble Delhi Bench of ITAT in (2007) 109 ITD 101 & (2007) 288 ITR9(SC) 3) (a) CIT (A) erred in concluding that appellant has no case as he/she failed to discharge his/her onus that there was no diversion of profit to sister concerns to enable them to enjoy tax exemptions. He missed the vital point that 80HHC giving tax incentives to appellant and sister concerns went out of statute book from A…

Sri.R. Pratap, Kollam vs. The ACIT, Kollam

In the result, the appeals of the assessees in ITA Nos

ITA 37/COCH/2016[2009-10]Status: DisposedITAT Cochin03 Feb 2020AY 2009-10

Bench: S/Shri Chandra Poojari, Am&George George K., Jm

…lant from these sister concerns for export were also accepted. d) CIT(A) ought to have appreciated that ALP does not necessarily mean a priceabove cost, maximum price or maximum profit in the range as rightly observed by Hon'ble Delhi Bench of ITAT in (2007) 109 ITD 101 & (2007) 288 ITR9(SC) 3) (a) CIT (A) erred in concluding that appellant has no case as he/she failed to discharge his/her onus that there was no diversion of profit to sister concerns to enable them to enjoy tax exemptions. He missed the vital point that 80HHC giving tax incentives to appellant and sister concerns went out of statute book from A…

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

ITA 1567/DEL/2014[2009-10]Status: DisposedITAT Delhi04 Oct 2019AY 2009-10

Bench: Shri Amit Shukla & Shri Prashant Maharishi

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

…R(T) 546 (Delhi - Trib.) (para 162.1) (f) _________________________________ Qualcomm India Pvt. Ltd. v. ACIT Circle 14(1) ITA No.5239/DEL/ 2010, [2014] 147 ITD 17 (Delhi - Trib.) (para 41) (g) ________________________________ Mentor Graphics (Noida) (P) Ltd. (109 ITD 101) 135. The Ld. CIT (DR) relied on the orders of the lower authorities. 136. The issue of grant of adjustment for difference in levels of working capitals between the assessee and the comparable companies is now well recognized by this Tribunal and is no longer res-integra. Differences in inventory levels, credit period allowed by the suppliers a…

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

ITA 52/DEL/2013[2008-09]Status: DisposedITAT Delhi04 Oct 2019AY 2008-09

Bench: Shri Amit Shukla & Shri Prashant Maharishi

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

…R(T) 546 (Delhi - Trib.) (para 162.1) (f) _________________________________ Qualcomm India Pvt. Ltd. v. ACIT Circle 14(1) ITA No.5239/DEL/ 2010, [2014] 147 ITD 17 (Delhi - Trib.) (para 41) (g) ________________________________ Mentor Graphics (Noida) (P) Ltd. (109 ITD 101) 135. The Ld. CIT (DR) relied on the orders of the lower authorities. 136. The issue of grant of adjustment for difference in levels of working capitals between the assessee and the comparable companies is now well recognized by this Tribunal and is no longer res-integra. Differences in inventory levels, credit period allowed by the suppliers a…

Sansung India Electronics Pvt. Ltd., Gurgaon vs. Addl. CIT, Special Range- 8, New Delhi

ITA 2511/DEL/2018[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

…R(T) 546 (Delhi - Trib.) (para 162.1) (f) _________________________________ Qualcomm India Pvt. Ltd. v. ACIT Circle 14(1) ITA No.5239/DEL/ 2010, [2014] 147 ITD 17 (Delhi - Trib.) (para 41) (g) ________________________________ Mentor Graphics (Noida) (P) Ltd. (109 ITD 101) 135. The Ld. CIT (DR) relied on the orders of the lower authorities. 136. The issue of grant of adjustment for difference in levels of working capitals between the assessee and the comparable companies is now well recognized by this Tribunal and is no longer res-integra. Differences in inventory levels, credit period allowed by the suppliers a…

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

…R(T) 546 (Delhi - Trib.) (para 162.1) (f) _________________________________ Qualcomm India Pvt. Ltd. v. ACIT Circle 14(1) ITA No.5239/DEL/ 2010, [2014] 147 ITD 17 (Delhi - Trib.) (para 41) (g) ________________________________ Mentor Graphics (Noida) (P) Ltd. (109 ITD 101) 135. The Ld. CIT (DR) relied on the orders of the lower authorities. 136. The issue of grant of adjustment for difference in levels of working capitals between the assessee and the comparable companies is now well recognized by this Tribunal and is no longer res-integra. Differences in inventory levels, credit period allowed by the suppliers 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

…R(T) 546 (Delhi - Trib.) (para 162.1) (f) _________________________________ Qualcomm India Pvt. Ltd. v. ACIT Circle 14(1) ITA No.5239/DEL/ 2010, [2014] 147 ITD 17 (Delhi - Trib.) (para 41) (g) ________________________________ Mentor Graphics (Noida) (P) Ltd. (109 ITD 101) 135. The Ld. CIT (DR) relied on the orders of the lower authorities. 136. The issue of grant of adjustment for difference in levels of working capitals between the assessee and the comparable companies is now well recognized by this Tribunal and is no longer res-integra. Differences in inventory levels, credit period allowed by the suppliers 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

…R(T) 546 (Delhi - Trib.) (para 162.1) (f) _________________________________ Qualcomm India Pvt. Ltd. v. ACIT Circle 14(1) ITA No.5239/DEL/ 2010, [2014] 147 ITD 17 (Delhi - Trib.) (para 41) (g) ________________________________ Mentor Graphics (Noida) (P) Ltd. (109 ITD 101) 135. The Ld. CIT (DR) relied on the orders of the lower authorities. 136. The issue of grant of adjustment for difference in levels of working capitals between the assessee and the comparable companies is now well recognized by this Tribunal and is no longer res-integra. Differences in inventory levels, credit period allowed by the suppliers 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

…R(T) 546 (Delhi - Trib.) (para 162.1) (f) _________________________________ Qualcomm India Pvt. Ltd. v. ACIT Circle 14(1) ITA No.5239/DEL/ 2010, [2014] 147 ITD 17 (Delhi - Trib.) (para 41) (g) ________________________________ Mentor Graphics (Noida) (P) Ltd. (109 ITD 101) 135. The Ld. CIT (DR) relied on the orders of the lower authorities. 136. The issue of grant of adjustment for difference in levels of working capitals between the assessee and the comparable companies is now well recognized by this Tribunal and is no longer res-integra. Differences in inventory levels, credit period allowed by the suppliers a…