Ranbaxy Laboratories Ltd. v. Additional Commissioner of Income-tax

110 ITD 428Income Tax Appellate Tribunal2008#5170 most cited

What is Ranbaxy Laboratories Ltd. v. Additional Commissioner of Income-tax authority for?

The tested party in a transfer pricing analysis should be the entity for which reliable comparable data is readily available and requires the fewest adjustments. This generally means selecting the party with the less complex functional analysis.

22

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2023.

Also referred to as

Ranbaxy Laboratories Ltd · ITAT · 110 ITD 428 · transfer pricing · tested party · comparable data · functional analysis · international transaction · associated enterprise · arm's length price

Judgments citing Ranbaxy Laboratories Ltd. v. Additional Commissioner of Income-tax

Ranbaxy Laboratories Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, we direct the AO to reduce the book profit u/s 115JB of the Act by the amount of reversal of the provision of Rs

ITA 196/DEL/2013[2008-09]Status: DisposedITAT Delhi25 Apr 2016AY 2008-09

Bench: Sh. I. C.Sudhir Judicialmember & Sh. Prashant Maharishia.Y.: - 2008-09 Ranbaxy Laboratories Ltd. Vs Acit 12Th Floor, Devika Tower, Range -15 6, Nehru Place New Delhi New Delhi Pan No. Aaacr0127N (Appellant) (Respondent)

For Appellant: 1. Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Amrendra Kumar, CIT, DR
Section 143Section 143(3)Section 92D

…undertaken by the taxpayer with Datacore US is at arm‘s length for both the assessment years.‖ ITA 196 Del 2013 Ranbaxy Laboratories limited V ACIT A.Y. 2008-09 Page 37 of 134 (iii) In the case of Ranbaxy Laboratories Limited v. Additional CIT reported in 110 ITD 428, the Hon‘ble Delhi Tribunal had recorded its findings that – ―58. ……………………………………………………………….. The tested party normally should be the party in respect of which reliable data for comparison is easily and readily available and fewest adjustments in computations are needed. It may be local or foreign entity, i.e., one party to the transaction. The ob…

India Debt Management P.Ltd, Mumbai vs. DCIT Cir 3(2)(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 7518/MUM/2014[2010-11]Status: DisposedITAT Mumbai10 Mar 2016AY 2010-11

Bench: Shri J P Boaz & Shri Amit Shuklait(Tp) A No. : 7518/Mum/2014 (Assessment Year: 2004-05) इं"डया डै"ट मैनेजम"ट "ाइवेट "ल"मटेड Vs The Deputy Commissioner Of Income Tax Circle-3(2)(1), India Debt Management Pvt Ltd, Aayakar Bhavan, M K Road, 45, 4The Floor, Maker Cambers Vi, Mumbai -400 020 Nariman Point, Mumbai -400 021 "थयी लेखा सं.:Pan: Aaact 1982 D अपीलाथ" (Appellant) ""यथ" (Respondent) Appellant By "ी जे डी "म""ी : Shri J D Mistry Respondent By : "ी एन के चाँद Shri N K Chand सुनवाई क" तार"ख /Date Of Hearing : 14-12-2015 घोषणा क" तार"ख /Date Of Pronouncement : 10-03-2016 आदेश Order अिमत शु"ला : "या. स.: Per Amit Shukla, Jm: The Aforesaid Appeal Has Been Filed By The Assessee Against Impugned Final Assessment Order Dated 27Th November, 2014 Passed Under Section 143(3) R.W.S. 144C(13) By Deputy Commissioner Of Income-Tax, Circle -3(2)(1), Mumbai In Pursuance Of Direction Given By Dispute Resolution Panel –I, Mumbai (Drp) Under Section 144C(5), Vide Order Dated 16.10.2014. In The Various Grounds Of Appeal, The Assessee Has Mainly Challenged Following Issues:

Section 143(3)Section 144C(5)Section 14ASection 234ASection 234B

…ustments for such differences are not available then, information derived from uncontrolled comparables in the most similar market for which the reliable data is available may be used. Thereafter, referring to Delhi ITAT decision in Ranbaxy Laboratories Ltd. (110 ITD 428) and other decisions on the concept of “tested party” and reiterating the reasoning of the TPO, Ld. DRP upheld the arm’s length rate of 5.68% and thereby the quantum of adjustment made by the TPO as per the discussion appearing from pages 25 to 29 of the impugned order. 8. Before us on behalf of the assessee, Ld. Senior Counsel, Shri J.D. Mistry…