Perot Systems TSI (India) Ltd. v. DCIT

37 SOT 358Income Tax Appellate Tribunal2010#2110 most cited

What is Perot Systems TSI (India) Ltd. v. DCIT authority for?

Interest-free loans given to 100% foreign subsidiaries are not accepted as quasi-capital, and the arm's length price of such loans can be determined and added to total income.

55

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2026.

Also referred to as

Perot Systems TSI v. DCIT · 37 SOT 358 · ITAT Delhi · interest free loans · foreign subsidiaries · quasi equity · arm's length price · transfer pricing · loan transactions

Also reported as

144 ITD 2655 ITR (Trib) 106

Sections most often in play

Section 143(3)Section 133ASection 148Section 271(1)(c)Section 147Section 10AASection 10CSection 10D

Issues it is cited on

section 80iesection 75section 10basection 35(1)(iv)section 92(1)section 100interest on outstanding receivablesprofit split methodsection 10(2a)bright line testresale price methodsection 36(l)(va)

Judgments citing Perot Systems TSI (India) Ltd. v. DCIT

M/S. Dabur India Ltd., New Delhi vs. Addl.CIT, New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 3241/DEL/2014[2007-08]Status: DisposedITAT Delhi18 Feb 2021AY 2007-08

Bench: Shri R.K. Panda & Ms Suchitra Kamble

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : I-2 : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA Nos.3241 & 6525/Del/2014 Assessment Years: 2007-08 & 2008-09 Dabur India Ltd., Vs Addl. CIT, Punjabi Bhawan, 4th Floor, Range-10, 10, Rouse Avenue, New Delhi. New Delhi. PAN : AAACD0474C ITA Nos.3114 & 6256/Del/2014 Assessment Years: 2007-08 & 2008-09 Addl. CIT, Vs. Dabur India Ltd., Punjabi Bhawan, 4th Floor, Range-10, New Delhi. 10, Rouse Avenue, New Delhi. PAN : AAACD0474C (Appellant) (Respondent) Assessee by : Shri Ajay Vohra, Sr. Advocate, Shri Rohit Jain,…

DCIT, New Delhi vs. M/S. Dabur India Ltd., New Delhi

In the result, the appeals filed by the Revenue are partly allowed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 3114/DEL/2014[2007-08]Status: DisposedITAT Delhi18 Feb 2021AY 2007-08

Bench: Shri R.K. Panda & Ms Suchitra Kamble

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Anupam Kant Garg, CIT-DR
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 80GSection 80ISection 92CSection 92E

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : I-2 : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA Nos.3241 & 6525/Del/2014 Assessment Years: 2007-08 & 2008-09 Dabur India Ltd., Vs Addl. CIT, Punjabi Bhawan, 4th Floor, Range-10, 10, Rouse Avenue, New Delhi. New Delhi. PAN : AAACD0474C ITA Nos.3114 & 6256/Del/2014 Assessment Years: 2007-08 & 2008-09 Addl. CIT, Vs. Dabur India Ltd., Punjabi Bhawan, 4th Floor, Range-10, New Delhi. 10, Rouse Avenue, New Delhi. PAN : AAACD0474C (Appellant) (Respondent) Assessee by : Shri Ajay Vohra, Sr. Advocate, Shri Rohit Jain,…

Bilakhia Holdings Pvt. Ltd., Vapi vs. The ACIT., Vapi Circle, Vapi

In the result, the appeal of the assessee is allowed for assessment year 2010-11

ITA 795/AHD/2016[2011-12]Status: DisposedITAT Surat04 Feb 2020AY 2011-12

Bench: Shri Sandeep Gosain & Shri O.P.Meena, Accoutant Member आ.अ.सं/.I.T.A No.507/Ahd/2013: िनधा"रण वष"/Assessment Year: 2008-09 आ.अ.सं/.I.T.A.No.1415Ahd/2015: िनधा"रण वष"/Assessment Year: 2009-10 आ.अ.सं/.I.T.A No.1416/Ahd/2015:िनधा"रण वष"/Assessment Year: 2010-11 आ.अ.सं/.I.T.A No.795/Ahd/2016: िनधा"रण वष"/Assessment Year: 2011-12 M/S. Bialkhia Holdings Pvt. Vs. Addl.Cit Range - Vapi / Ltd., Bilakhia House, Assistant Commissioner Of Muktanand Marg, Chala Income Tax Vapi Circle Vapi, Vapi, Gujarat. Shivam Commercial Complex, [Pan: Aadcs 4420 J] National Highway No.8, Vapi. अपीलाथ" Appellant ""यथ"/Respondent

Section 115JSection 143(3)Section 144C

…contentions of the assessee company that the loan transactions be considered as quasi equity or otherwise falling within the domain of shareholders activity. The TPO relied upon the decision of ITAT Delhi Bench in the case of Perot Systems TSI v. DCIT [2010] 37 SOT 358 (Delhi-Trib), wherein, interest free loans given to 100% foreign subsidiaries were not accepted as quasi capital and arms length price of the loans was determined and added to the total income. It was submitted that the assessee had invested US $ 2 Million in equity shares and US $ 38 Million in redeemable preferential shares as part of equity in…

Bilakhia Holdings Pvt. Ltd., Vapi vs. The Addl.CIT., Vapi Range, Vapi

In the result, the appeal of the assessee is allowed for assessment year 2010-11

ITA 1416/AHD/2015[2010-11]Status: DisposedITAT Surat04 Feb 2020AY 2010-11

Bench: Shri Sandeep Gosain & Shri O.P.Meena, Accoutant Member आ.अ.सं/.I.T.A No.507/Ahd/2013: िनधा"रण वष"/Assessment Year: 2008-09 आ.अ.सं/.I.T.A.No.1415Ahd/2015: िनधा"रण वष"/Assessment Year: 2009-10 आ.अ.सं/.I.T.A No.1416/Ahd/2015:िनधा"रण वष"/Assessment Year: 2010-11 आ.अ.सं/.I.T.A No.795/Ahd/2016: िनधा"रण वष"/Assessment Year: 2011-12 M/S. Bialkhia Holdings Pvt. Vs. Addl.Cit Range - Vapi / Ltd., Bilakhia House, Assistant Commissioner Of Muktanand Marg, Chala Income Tax Vapi Circle Vapi, Vapi, Gujarat. Shivam Commercial Complex, [Pan: Aadcs 4420 J] National Highway No.8, Vapi. अपीलाथ" Appellant ""यथ"/Respondent

Section 115JSection 143(3)Section 144C

…contentions of the assessee company that the loan transactions be considered as quasi equity or otherwise falling within the domain of shareholders activity. The TPO relied upon the decision of ITAT Delhi Bench in the case of Perot Systems TSI v. DCIT [2010] 37 SOT 358 (Delhi-Trib), wherein, interest free loans given to 100% foreign subsidiaries were not accepted as quasi capital and arms length price of the loans was determined and added to the total income. It was submitted that the assessee had invested US $ 2 Million in equity shares and US $ 38 Million in redeemable preferential shares as part of equity in…

Bilakhia Holdings Pvt. Ltd., Vapi vs. The Jt.CIT., Vapi Range, Vapi

In the result, the appeal of the assessee is allowed for assessment year 2010-11

ITA 1415/AHD/2015[2009-10]Status: DisposedITAT Surat04 Feb 2020AY 2009-10

Bench: Shri Sandeep Gosain & Shri O.P.Meena, Accoutant Member आ.अ.सं/.I.T.A No.507/Ahd/2013: िनधा"रण वष"/Assessment Year: 2008-09 आ.अ.सं/.I.T.A.No.1415Ahd/2015: िनधा"रण वष"/Assessment Year: 2009-10 आ.अ.सं/.I.T.A No.1416/Ahd/2015:िनधा"रण वष"/Assessment Year: 2010-11 आ.अ.सं/.I.T.A No.795/Ahd/2016: िनधा"रण वष"/Assessment Year: 2011-12 M/S. Bialkhia Holdings Pvt. Vs. Addl.Cit Range - Vapi / Ltd., Bilakhia House, Assistant Commissioner Of Muktanand Marg, Chala Income Tax Vapi Circle Vapi, Vapi, Gujarat. Shivam Commercial Complex, [Pan: Aadcs 4420 J] National Highway No.8, Vapi. अपीलाथ" Appellant ""यथ"/Respondent

Section 115JSection 143(3)Section 144C

…contentions of the assessee company that the loan transactions be considered as quasi equity or otherwise falling within the domain of shareholders activity. The TPO relied upon the decision of ITAT Delhi Bench in the case of Perot Systems TSI v. DCIT [2010] 37 SOT 358 (Delhi-Trib), wherein, interest free loans given to 100% foreign subsidiaries were not accepted as quasi capital and arms length price of the loans was determined and added to the total income. It was submitted that the assessee had invested US $ 2 Million in equity shares and US $ 38 Million in redeemable preferential shares as part of equity in…

Bilakhia Holding P Ltd, Vapi vs. The Jt.CIT., Vapi Range, Vapi

In the result, the appeal of the assessee is allowed for assessment year 2010-11

ITA 507/AHD/2013[2008-09]Status: DisposedITAT Surat04 Feb 2020AY 2008-09

Bench: Shri Sandeep Gosain & Shri O.P.Meena, Accoutant Member आ.अ.सं/.I.T.A No.507/Ahd/2013: िनधा"रण वष"/Assessment Year: 2008-09 आ.अ.सं/.I.T.A.No.1415Ahd/2015: िनधा"रण वष"/Assessment Year: 2009-10 आ.अ.सं/.I.T.A No.1416/Ahd/2015:िनधा"रण वष"/Assessment Year: 2010-11 आ.अ.सं/.I.T.A No.795/Ahd/2016: िनधा"रण वष"/Assessment Year: 2011-12 M/S. Bialkhia Holdings Pvt. Vs. Addl.Cit Range - Vapi / Ltd., Bilakhia House, Assistant Commissioner Of Muktanand Marg, Chala Income Tax Vapi Circle Vapi, Vapi, Gujarat. Shivam Commercial Complex, [Pan: Aadcs 4420 J] National Highway No.8, Vapi. अपीलाथ" Appellant ""यथ"/Respondent

Section 115JSection 143(3)Section 144C

…contentions of the assessee company that the loan transactions be considered as quasi equity or otherwise falling within the domain of shareholders activity. The TPO relied upon the decision of ITAT Delhi Bench in the case of Perot Systems TSI v. DCIT [2010] 37 SOT 358 (Delhi-Trib), wherein, interest free loans given to 100% foreign subsidiaries were not accepted as quasi capital and arms length price of the loans was determined and added to the total income. It was submitted that the assessee had invested US $ 2 Million in equity shares and US $ 38 Million in redeemable preferential shares as part of equity in…

Bombay Rayon Holdings Limited, Mumbai vs. ITO-9(2)(2), Mumbai

In the result, appeals of the assessee are partly allowed

ITA 5986/MUM/2018[2009-10]Status: DisposedITAT Mumbai06 Jan 2020AY 2009-10

Bench: Shri Shamim Yahya & Shri Pawan Singh

For Appellant: Shri. Madhur Agrawal, Shri Ajit KumarFor Respondent: Shri. Anand Mohan
Section 131Section 133Section 143(3)Section 144CSection 144C(13)Section 148Section 92(1)Section 92C(1)

…ral case laws. The TPO further rejected the assessee‟s contention that the loan was provided due to business/commercial expediency. In this regard he referred to several case laws as under:- S.No. Citation Paras 10-12 1. Perot Systems TSI (India) Ltd. [2010] 37 SOT 358 (Delhi) The ITAT did not accept the argument of commercial expediency as well as the reliance on the decision of Hon’ble Supreme Court in the case of S.A. Builders. A reference may be made to para 10-12 of the decision. 2 VVF Ltd., 4-6 The ITAT has not accepted the argument of commercial expediency as well as the reliance on the decision of Hon’bl…

M/S Jindal Dyechem Industries Pvt. Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, ITA No.3253/Del/2011 filed by the Revenue is dismissed and ITA No

ITA 2242/DEL/2011[2005-06]Status: DisposedITAT Delhi13 Dec 2019AY 2005-06
For Appellant: Shri Salil Aggarwal, Advocate &
Section 69ASection 92Section 92C

…e and, ambit of the Act and hence, without jurisdiction. 1.2 That while upholding the addition, the learned Commissioner of Income Tax (Appeals) has mechanically applied the decision of Delhi Bench of Tribunal in the case of Perot Systems vs. DCIT reported in 130 TTJ 685 and, overlooked the following judicial pronouncements wherein it has been held that, section 92 of the Act does not apply to transactions where income is not chargeable to tax: a) 227 CTR 44 (AAR) Dana Corporation b) 289 ITR 464 (AAR) Vanenburg Group B. V. c) 35 DTR 178 (AAR) Amiantit International Holding Ltd. 1.3 That the learned Commissioner o…

DCIT, New Delhi vs. M/S Jindal Dyechem Industries Pvt. Ltd., New Delhi

In the result, ITA No.3253/Del/2011 filed by the Revenue is dismissed and ITA No

ITA 3253/DEL/2011[2005-06]Status: DisposedITAT Delhi13 Dec 2019AY 2005-06
For Appellant: Shri Salil Aggarwal, Advocate &
Section 69ASection 92Section 92C

…e and, ambit of the Act and hence, without jurisdiction. 1.2 That while upholding the addition, the learned Commissioner of Income Tax (Appeals) has mechanically applied the decision of Delhi Bench of Tribunal in the case of Perot Systems vs. DCIT reported in 130 TTJ 685 and, overlooked the following judicial pronouncements wherein it has been held that, section 92 of the Act does not apply to transactions where income is not chargeable to tax: a) 227 CTR 44 (AAR) Dana Corporation b) 289 ITR 464 (AAR) Vanenburg Group B. V. c) 35 DTR 178 (AAR) Amiantit International Holding Ltd. 1.3 That the learned Commissioner o…

ACIT, Alwar vs. Vijay Solvex Limited, Alwar

In the result, revenue’s appeal as well as the C

ITA 292/JPR/2014[2008-09]Status: DisposedITAT Jaipur24 Aug 2018AY 2008-09
For Appellant: Shri P.C. Parwal (CA)For Respondent: Mrs. Roshanta Meena (JCIT) fu/kZkfjrh dh vksj ls@
Section 14ASection 92C

…od. The power to determine the arm's length price under comparable uncontrolled price (CUP) method was not unabridged. The TPO had referred to the decision of Income-Tax Appellate Tribunal, Bench-Delhi in the case of Perot Systems TSI (India) Limited Vs DCIT (37 SOT 358) HAT, (Delhi) however it was clearly distinguishable as the charging of interest for intra ground loans had been upheld in the said case, whereas, this was not the issue here. The assessee had not disputed the charging of interest on intra-group loans. In the cited case, the loan was advanced interest free to associate enterprise (AE), whereas in…

A.W Faber Castell India P.Ltd, Mumbai vs. DCIT 9(1)(1), Mumbai

The appeal of the assessee is treated as allowed for statistical purposes

ITA 1018/MUM/2016[2011-12]Status: DisposedITAT Mumbai30 Sept 2016AY 2011-12

Bench: Shri D. Karunakara Rao & Shri Sanjay Gargit(Tp)A No.1018/M/2016 Assessment Year: 2011-12 M/S. A.W. Faber Castell (India) Dcit 9(1)(1), Pvt. Ltd., Mumbai – 400 005 801, Kamla Executive Park, Vs. Off. M.V. Road, J.B. Nagar, Andheri (East), Mumbai – 400 059 Pan: Aacca3117H (Appellant) (Respondent) Present For: Assessee By : Shri M.P. Lohia, A.R. & Shri Pranay Gandhi, A.R. Revenue By : Shri N.K. Chand, D.R. Date Of Hearing : 19.05.2016 Date Of Pronouncement : 30.09.2016

For Appellant: Shri M.P. Lohia, A.R. & Shri Pranay Gandhi, A.RFor Respondent: Shri N.K. Chand, D.R
Section 143(3)Section 144C(13)Section 36(1)(va)

…pproval / FIPB approval is entirely different and cannot be equated with the arm's length principle. In this respect, the Ld. D.R. has relied upon the following decisions: 1. SKOL Brewaries Ltd., (29 taxmann.com 111) (Mumbai) 2. Perot System TSI (India) Ltd., 37 SOT 358 (Del) 7 IT(TP)A No.1018/M/2016 M/s. A.W. Faber Castell (India) Pvt. Ltd. 3. Tata Autocomp Systems Ltd., (21 taxmann.com 48) dt. 30/04/2012 (Mumbai ITAT) 4. Tata Autocomp Systems Ltd., ITA No. 1320 of 2012 dt. 3/2/2015 (Bombay High Court) Tata Autocomp Systems Ltd., ITA No. 774 & 1508/M/ 2014 5. dt.18/11/2015. The D.R. has further submitted that…

Taurian Iron & Steel Co. P.Ltd, Mumbai vs. Addl CIT RG 4(3), Mumbai

In the result, appeal of the assessee is partly allowed, in terms indicated hereinabove

ITA 5920/MUM/2012[2008-09]Status: DisposedITAT Mumbai16 Sept 2016AY 2008-09
For Appellant: Shri K.B.DesaiFor Respondent: Shri N.K.Chand
Section 143(3)Section 250(6)

…owards share application money, therefore the TPO was precluded from determining the arm's length interest on the said interest free loan, therein relied on the order of the ITAT, Delhi 'F' Bench in the case of : Perot Systems TSI (India) Ltd. Vs. DCIT (2010) 130 TTJ 685 (Del), wherein the Tribunal held as under : "Lending or borrowing money between two cross border AE's comes within the ambit of International transaction and it has to be considered as to whether the same is at ALP, when interest free loan is given to an overseas AE, income on account of interest cannot be excluded from the arms length considerat…

Sara Lee Ttk Ltd ( Now Amalgamated Into Godrej Consumer Products Ltd), Mumbai vs. DCIT 10(2), Mumbai

In the result, appeal of assessee is allowed for statistical purposes

ITA 376/MUM/2012[2007-08]Status: DisposedITAT Mumbai24 Aug 2016AY 2007-08
For Appellant: Shri F.V.Irani, Ms.Sonali GodboleFor Respondent: Shri N.K.Chand, Shri Peeyush Sonkar
Section 143(3)

…ended that the payment is towards the use of trademarks / brand only. Relying on the decision of the Hon'ble Delhi High Court in the case of Nestle India Ltd, the Hon'ble P & H High court decision reported in 177 Taxmann 103 , the Hon'ble ITAT Del decision in 37 SOT 358 Del in Perot systems TSI (India) Ltd etc, the DR contended that the RBI's approval is in connection with foreign exchange and it would look into the matter from that angle only. Their approval for the purpose of remittance/ outflow of foreign exchange, does not ipso facto, partake the character of ALP, which has to be determined as per TP regulati…

Sterling Oil Resources Ltd, Mumbai vs. ITO 9(3)(2), Mumbai

In the result, the appeal of the Assessing Officer is dismissed and the appeal of the assessee is allowed

ITA 1970/MUM/2014[2009-10]Status: DisposedITAT Mumbai29 Feb 2016AY 2009-10
For Appellant: Ground No. 1
Section 143(3)Section 144CSection 92(2)Section 92CSection 92C(3)

…ITA Nos.1791 & 1970/Mum/2014 Assessment Year: 2009-10 Page 1 of 11 IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI ‘K’ BENCH, MUMBAI [Coram: Pramod Kumar AM and Pawan Singh JM] Assessment Year: 2009-10 Income Tax Officer, Ward 9(3)(2), Mumbai ..........………………….Appellant Vs. Sterling Oil Resources Pvt. Ltd. ..........………….…Respondent 329, Sandesara House, Jawahar Nagar, Road No.13, Goregaon (W), Mumbai. [PAN: AAKCS 0055 J] Assessment Year: 2009-10 Sterling Oil Resources Pvt. Ltd. ........………………….Appellant 329, Sandesara House, Jawahar Nagar, Road No.13, Goregaon (W), Mumbai. [PAN: AAKCS 0055 J] Vs. Income Tax Offic…

ITO 9(3)(2), Mumbai vs. Sterling Oil Resources P.Ltd, Mumbai

In the result, the appeal of the Assessing Officer is dismissed and the appeal of the assessee is allowed

ITA 1791/MUM/2014[2009-10]Status: DisposedITAT Mumbai29 Feb 2016AY 2009-10
For Appellant: Ground No. 1
Section 143(3)Section 144CSection 92(2)Section 92CSection 92C(3)

…ITA Nos.1791 & 1970/Mum/2014 Assessment Year: 2009-10 Page 1 of 11 IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI ‘K’ BENCH, MUMBAI [Coram: Pramod Kumar AM and Pawan Singh JM] Assessment Year: 2009-10 Income Tax Officer, Ward 9(3)(2), Mumbai ..........………………….Appellant Vs. Sterling Oil Resources Pvt. Ltd. ..........………….…Respondent 329, Sandesara House, Jawahar Nagar, Road No.13, Goregaon (W), Mumbai. [PAN: AAKCS 0055 J] Assessment Year: 2009-10 Sterling Oil Resources Pvt. Ltd. ........………………….Appellant 329, Sandesara House, Jawahar Nagar, Road No.13, Goregaon (W), Mumbai. [PAN: AAKCS 0055 J] Vs. Income Tax Offic…