Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT

Amadeus India Pvt. Ltd., New Delhi vs. ACIT, Circle- 2(2), New Delhi

In the result, ITA NO. 7691/Del/2017 stands allowed

Bench: Shri N.S. Saini & Shri Sudhanshu Srivastava

…aggrieved by the above proposed transfer pricing adjustment, the assessee filed detailed objections before the Ld. DRP. The Ld. DRP, while referring to decision of the Hon’ble Delhi High Court in the case of Sony Ericsson Mobile Communications reported in 374 ITR 118(Del), has examined the contentions put forth by the assessee before it as under:- Sub Grounds of Appeal summarized Sony Ericsson High Court order dt.16 as per issue from Form 35A March, 2015 Re-characterization of expenses Upheld at Para 64 page 48 of 142 and incurred for own business as a service para 147, page 111 to AE is not justified The b…

Amadeus India Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, ITA NO. 7691/Del/2017 stands allowed

Bench: Shri N.S. Saini & Shri Sudhanshu Srivastava

…aggrieved by the above proposed transfer pricing adjustment, the assessee filed detailed objections before the Ld. DRP. The Ld. DRP, while referring to decision of the Hon’ble Delhi High Court in the case of Sony Ericsson Mobile Communications reported in 374 ITR 118(Del), has examined the contentions put forth by the assessee before it as under:- Sub Grounds of Appeal summarized Sony Ericsson High Court order dt.16 as per issue from Form 35A March, 2015 Re-characterization of expenses Upheld at Para 64 page 48 of 142 and incurred for own business as a service para 147, page 111 to AE is not justified The b…

Amadeus India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, ITA NO. 7691/Del/2017 stands allowed

Bench: Shri N.S. Saini & Shri Sudhanshu Srivastava

…aggrieved by the above proposed transfer pricing adjustment, the assessee filed detailed objections before the Ld. DRP. The Ld. DRP, while referring to decision of the Hon’ble Delhi High Court in the case of Sony Ericsson Mobile Communications reported in 374 ITR 118(Del), has examined the contentions put forth by the assessee before it as under:- Sub Grounds of Appeal summarized Sony Ericsson High Court order dt.16 as per issue from Form 35A March, 2015 Re-characterization of expenses Upheld at Para 64 page 48 of 142 and incurred for own business as a service para 147, page 111 to AE is not justified The b…

Whirlpool of India Ltd., Gurgaon vs. ACIT, Ltu, Circle-1, New Delhi

In the result appeal filed by assessee for Assessment

Bench: Shri R.K.Panda & Smt. Beena A Pillai

…ian market. 3.16. That the TPO erred on facts and in law in relying on the ITA Nos. 8272 & 8273/Del/18 AYs:2013-14 & 2014-15 M/s Whirlpool of India Ltd. Vs. DCIT- LTU decision of the Hon’ble Delhi High Court in the case of Sony Ericsson Mobile communications 374 ITR 118 to hold that there exists an international transaction between the appellant and the associated enterprise in relation with incurring of AMP expenses not appreciating that the said decision was rendered on the facts of limited risk distributors and the existence of such transaction was not in dispute therein. 3.17. That the TPO erred on facts and…

Whirlpool of India Ltd., Gurgaon vs. ACIT, Ltu, Circle-1, New Delhi

In the result appeal filed by assessee for Assessment

Bench: Shri R.K.Panda & Smt. Beena A Pillai

…ian market. 3.16. That the TPO erred on facts and in law in relying on the ITA Nos. 8272 & 8273/Del/18 AYs:2013-14 & 2014-15 M/s Whirlpool of India Ltd. Vs. DCIT- LTU decision of the Hon’ble Delhi High Court in the case of Sony Ericsson Mobile communications 374 ITR 118 to hold that there exists an international transaction between the appellant and the associated enterprise in relation with incurring of AMP expenses not appreciating that the said decision was rendered on the facts of limited risk distributors and the existence of such transaction was not in dispute therein. 3.17. That the TPO erred on facts and…

M/S. Sony Mobile Communications India Pvt. Ltd. (Now Merged With M/S. Sony India Pvt. Ltd.), New Delhi vs. Addl. CIT, New Delhi

Bench: Shri R.K. Panda & Shri Kuldip Singh

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘I-2’ : NEW DELHI) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER and SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.1085/Del./2017 (ASSESSMENT YEAR : 2012--13) M/s. Sony Mobile Communication India vs. ACIT, Private Limited, Spl. Range 8, (now merged with M/s. Sony India Pvt.Ltd.), New Delhi. A – 31, Mohan Cooperative Indl. Estate, Mathura Road, New Delhi – 110 044. (PAN : AAKCS7996N) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Nageshwar Rao, Advocate REVENUE BY : Shri H.K. Choudhary, CIT DR Date of Hearing : 17.01.2019 Date of Order : 21.02.2019 O R D E R PER KULDIP SI…

M/S. Lg Electronics India Pvt. Ltd., Gautam Buidh Nagar vs. ACIT, Noida

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

Bench: Shri N. K. Billaiya & Ms. Suchitra Kamble[Assessment Year: 2009-10] Lg L.G Electronics India Pvt. Ltd. Vs. The A.C.I.T Vs. No.51, Udyog Vihar, Circle -3 Plot Surajpur Kasna Road Noida Greater Noida, Gautam Budh Nagar, Pan No. Aaacl 1745Q (Appellant) (Respondent)

…ITA No. 6253/DEL/2012 for assessment year 2008-09. The relevant findings of the co-ordinate bench read as under: “10. At the outset, we have to state that the Hon’ble High Court of Delhi in the case of Sony Ericsson Mobile Communications India Pvt Ltd vs CIT 374 ITR 118 has discarded the BLT. The Hon’ble High Court, at para 120 held as under: “120. Notwithstanding the above position, the argument of the Revenue goes beyond adequate and fair compensation and the ratio of the majority decision mandates that in each case where an Indian subsidiary of a foreign AE incurs AMP expenditure should be subjected to the b…

M/S Bmw India Pvt. Ltd., Gurgaon vs. ACIT, Gurgaon

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

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2011-12] Bmw India Private Ltd. Vs. The Dy. Dcit 7Th Floor, Tower-B, Building Circle-1(1) No. 8, Dlf Cyber City, Phase Gurgaon Ii, Gurgaon Pan:Aabcb7140C (Applicant) (Respondent) Assessee By : Shri Percy Pardiwala, Sr. Adv Shri Divyanshu Agarwal, Adv Department By : Shri H.K. Choudhary, Cit-Dr

…361/-. Aggrieved by this, the assessee is before us. 16. At the very outset, the ld. AR stated that Bright Line Test adopted by the TPO has been discarded by the Hon'ble Delhi High Court in the case of Sony Ericsson Mobile Communications India Pvt Ltd vs CIT 374 ITR 118. 17. The ld. AR further stated that nowhere the TPO has brought any tangible material on record to show that there exists an international transaction in so far as AMP spend is concerned. In support of his contention, the ld. AR relied upon the decision of the Hon'ble High Court of Delhi in the case of Maruti Suzuki India Ltd 381 ITR 117, Whirlpo…

Casio India Company Pvt. Ltd., New Delhi vs. DCIT, Circle- 5(2), New Delhi

In the result appeal filed by assessee stands partly allowed

Bench: Shri R.K.Panda & Smt. Beena A Pillaiay: 2014-15

…ITA No. 8060/Del/2018 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: Bench ‘I-1’, NEW DELHI BEFORE SHRI R.K.PANDA, ACCOUNTANT MEMBER AND SMT. BEENA A PILLAI, JUDICIAL MEMBER AY: 2014-15 Casio India Company Pvt. Ltd. vs. DCIT New Delhi Circle- 5(2) New Delhi PAN: AAACC3448H (Appellant) (Respondent) Appellant by : Sh. Nageswar Rao, Parth & Sandeep S. Karhail, Adv. Respondent by : Sh. Sanjay I Bara, CIT(D.R.) Date of Hearing : 17/01/2019 Date of Pronouncement : 24/01/2019 ORDER PER BEENA A PILLAI, JUDICIAL MEMBER Present appeal has been filed by assessee against the final assessment order dated 30/10…

Nikon India Pvt. Ltd., Gurgaon vs. DCIT, Circle- 3(1), Gurgaon

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

Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: 2014-15 Nikon India Pvt. Ltd., Vs. Dcit, Plot No.71, Sector-32, Circle-3(1), Institutional Area, Gurgaon. Gurgaon. Pan: Aaccn5100F (Appellant) (Respondent) Assessee By : Shri Vishal Kalra, Shri S.S. Tomar & Shri Ankit Shahni, Advocates Revenue By : Shri H.K. Choudhalry, Cit, Dr Date Of Hearing : 26.11.2018 Date Of Pronouncement : 24.01.2019 Order Per R.K. Panda, Am: This Appeal By The Assessee Is Directed Against The Order Dated 9Th October, 2018 Passed U/S 143(3) Read With Section 144C Of The It Act, 1961 For Assessment Year 2014-15. 2. Facts Of The Case, In Brief, Are That The Assessee Is A Company & Belongs To Nikon Group Of Cases Which Is Involved In A Broad Spectrum Of Business Centred On Precision Equipment, Imaging Products, Instruments & Other Business. The Activities Of The Nikon Group Are Carried Out Through The Following Divisions:- I) Precision Equipment Business, Ii) Imaging Products Business, Iii) Instruments Business, Iv) Other Businesses. 3. The Assessee Filed Its Return Of Income On 24.11.2014 Declaring Total Income Of Rs.66,47,37,700/-. The Assessing Officer Made A Reference U/S 92Ca(1) Of The It Act To Determine The Arm’S Length Price Of The International Transactions Entered Into By The Assessee With Its Aes During The F.Y. 2013-14. The Tpo, During The Course Of Tp Assessment Proceedings Observed That The Assessee Has Entered Into The Following International Transactions During The Year:- No. Nature Of Transaction Value (Inr) Method Applied 1. Purchase Of Goods, Promotional & 6,571,207,639 Rpm Other Supplies 2 Purchase Of Fixed Assets 7,049,548 Tnmm 3 Service Income 30,717,853 Tnmm 4 Warranty Reimbursements Received 69,937,244 Cup 5. Cost Reimbursements Received 2,619,750 Cup 6 Cost Reimbursements Paid 5,628,706 Cup

…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 Assessment Year: 2014-15 Nikon India Pvt. Ltd., Vs. DCIT, Plot No.71, Sector-32, Circle-3(1), Institutional Area, Gurgaon. Gurgaon. PAN: AACCN5100F (Appellant) (Respondent) Assessee by : Shri Vishal Kalra, Shri S.S. Tomar & Shri Ankit Shahni, Advocates Revenue by : Shri H.K. Choudhalry, CIT, DR Date of Hearing : 26.11.2018 Date of Pronouncement : 24.01.2019 ORDER PER R.K. PANDA, AM: This appeal by the assessee is directed against the order dated 9th October, 2018 pa…

Whirlpool of India Ltd., Gurgaon vs. ACIT, Circle- 1, Ltu, New Delhi

In the result appeal filed by assessee for Assessment Year 2011-12

Bench: Shri R.K.Panda & Smt. Beena A Pillaiay: 2010-11 Ay: 2011-12 Ay: 2012-13

…Special Bench decision of this Tribunal in case of LG Electronics India Pvt. Ltd., vs. ACIT reported in (2013) 29 Taxmann.com 300, which stands over ruled by decision of Hon’ble Delhi High Court in case of Sony Ericson India Pvt.Ltd vs. CIT reported in (2015) 55 Taxmann.com 240. Hon’ble Court while deciding Sony Ericson India Pvt.Ltd (supra) categorically held that bright line test is not an appropriate yardstick for determining existence of an international transaction for calculating arm’s length price. 7.2. Hon’ble Delhi High Court while deciding question of law raised for Assessment Year 2008-09 held as under…

M/S. Whirlpool of India Ltd., Gurgaon vs. DCIT (Ltu), New Delhi

In the result appeal filed by assessee for Assessment Year 2011-12

Bench: Shri R.K.Panda & Smt. Beena A Pillaiay: 2010-11 Ay: 2011-12 Ay: 2012-13

…Special Bench decision of this Tribunal in case of LG Electronics India Pvt. Ltd., vs. ACIT reported in (2013) 29 Taxmann.com 300, which stands over ruled by decision of Hon’ble Delhi High Court in case of Sony Ericson India Pvt.Ltd vs. CIT reported in (2015) 55 Taxmann.com 240. Hon’ble Court while deciding Sony Ericson India Pvt.Ltd (supra) categorically held that bright line test is not an appropriate yardstick for determining existence of an international transaction for calculating arm’s length price. 7.2. Hon’ble Delhi High Court while deciding question of law raised for Assessment Year 2008-09 held as under…

M/S. Whirlpool of India Ltd., Gurgaon vs. DCIT, New Delhi

In the result appeal filed by assessee for Assessment Year 2011-12

Bench: Shri R.K.Panda & Smt. Beena A Pillaiay: 2010-11 Ay: 2011-12 Ay: 2012-13

…Special Bench decision of this Tribunal in case of LG Electronics India Pvt. Ltd., vs. ACIT reported in (2013) 29 Taxmann.com 300, which stands over ruled by decision of Hon’ble Delhi High Court in case of Sony Ericson India Pvt.Ltd vs. CIT reported in (2015) 55 Taxmann.com 240. Hon’ble Court while deciding Sony Ericson India Pvt.Ltd (supra) categorically held that bright line test is not an appropriate yardstick for determining existence of an international transaction for calculating arm’s length price. 7.2. Hon’ble Delhi High Court while deciding question of law raised for Assessment Year 2008-09 held as under…

Lg Electronics India Pvt. Ltd., Uttar Pradesh vs. ACIT, Noida

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

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2008-09] L.G. Electronics India Pvt. Ltd Vs. The Asstt. C.I.T A-27, Mohan Co-Operative Industrial Circle - 3 Estate, Mathura Road Noida [U.P] New Delhi Pan : Aaacl 1745 Q [Appellant] [Respondent] Date Of Hearing : 13.12.2018 Date Of Pronouncement : 14.01.2019

…ing the expenses of international transaction by applying BLT by drawing support from the judgment of the Special Bench of the Tribunal in the case of assessee in ITA No. 5140/DEL/2011. 10. At the outset, we have to state that the Hon’ble High Court of vs CIT 374 ITR 118 has discarded the BLT. The Hon’ble High Court, at para 120 held as under: “120. Notwithstanding the above position, the argument of the Revenue goes beyond adequate and fair compensation and the ratio of the majority decision mandates that in each case where an Indian subsidiary of a foreign AE incurs AMP expenditure should be subjected to the b…

Toshiba India Pvt. Ltd., Gurgaon vs. DCIT, Circle- 25(2), New Delhi

In the result, appeal of the assessee is allowed

Bench: Shri Prashant Maharishi & Shri K.Narasimha Charyassessment Year: 2014-15

…d and it could be construed as the economic owner of the brand and entitled to residual profits in India; that inasmuch as it is a manufacturer and not just distributor, the judgment of the Hon’ble jurisdictional High Court in the case of Sony Ericsson (2015) 55 Taxmann.com 240(Del) has no application.Assessee placed reliance on the decision of the Delhi High Court in the case of Maruti Suzuki India Ltd., ITA No.110/2014 in support of their contentions and that AMP expenditure is not a transaction in case of manufacturers. 5. Learned TPO, however, brushed aside the contentions of the assessee and proposed to enh…

ACIT, New Delhi vs. M/S. Wrigley India Pvt. Ltd., New Delhi

In the result, appeal of Assessee is allowed and appeal of Department is dismissed

Bench: Shri Bhavnesh Saini, J.M. & Shri L.P. Sahu, A.M.

…f Income Tax (Appeals) in the appellant’s own case for AY 2012-13. d. The appellant seeks to rely on the following judgments where it has been held that Bright Line Test has no application: i. Sony Ericsson Mobile Communications India (P.) Ltd. vs. CLI [2015] 374 ITR 118 (Delhi) Where comparables adopted by assessee, with or without making adjustments as a bundled transaction had been accepted by TPO, it would be illogical and improper to treat AMP expenses as a separate transaction using bright line test; bright line test has no statutory mandate and in all cases costs or compensation paid for AMP expenses canno…

Wrigley India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal of Assessee is allowed and appeal of Department is dismissed

Bench: Shri Bhavnesh Saini, J.M. & Shri L.P. Sahu, A.M.

…f Income Tax (Appeals) in the appellant’s own case for AY 2012-13. d. The appellant seeks to rely on the following judgments where it has been held that Bright Line Test has no application: i. Sony Ericsson Mobile Communications India (P.) Ltd. vs. CLI [2015] 374 ITR 118 (Delhi) Where comparables adopted by assessee, with or without making adjustments as a bundled transaction had been accepted by TPO, it would be illogical and improper to treat AMP expenses as a separate transaction using bright line test; bright line test has no statutory mandate and in all cases costs or compensation paid for AMP expenses canno…