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

Cairn India Ltd., Gurgaon vs. DCIT, Gurgaon

In the result, the appeal of the assessee in ITA Nos

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2011-12] & [A.Y 2012-13] Cairn India Ltd., Vs. The A.C.I.T, Dlf Atria Building, Circle-1(1), Jacaranda Marg, N Block, Gurgaon. Dlf City Phase Ii, Gurgaon. [Pan: Aaccc 8799D] [Appellant] [Respondent] Date Of Hearing : 17.10.2018 Date Of Pronouncement : 24.10.2018 Assessee By : Shri Ajay Vohra, Sr. Adv Shri Ravi Sharma, Adv

…x any notional income but to ensure that the real income is brought to tax under the Act. This has also been explained by a Division Bench of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. and Ors. v. Commissioner of Income Tax-III and Ors. 374 ITR 118 in the following words:- “77. As a concept and principle Chapter X does not artificially broaden, expand or deviate from the concept of "real income". "Real income", as held by the Supreme Court in Poona Electricity Supply Company Limited versus CIT, : [1965] 57 ITR 521 (SC), means profits arrived at on commercial principles, subject to the prov…

Perfetti Van Melle India Pvt. Ltd., Gurgaon vs. DCIT, Circle- 3, Gurgaon

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

Bench: Sh. R.K. Pand & Sh. K. N. Charyassessment Year: 2010-11

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘I-2’, NEW DELHI BEFORE SH. R.K. PAND, ACCOUNTANT MEMBER AND SH. K. N. CHARY, JUDICIAL MEMBER Assessment Year: 2010-11 Vs Deputy Commissioner of M/s. Perfetti Van Melle India Income Tax Circle 3, Private Limited, 47th Gurgaon Milestone, Delhi, Jaipur Highway, Manesr, Gurgaon- 122002 (Haryana) PAN AAACP2626A (APPELLANT) (RESPONDENT) Appellant by Sh. Nageshwar Rao, Advocate Respondent by Sh. H. K. Choudhary, CIT DR Date of hearing: 01/08/2018 Date of Pronouncement: 23/10/2018 ORDER PER R.K. PANDA, AM: This appeal filed by the assessee is directed against the o…

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

The appeal of the assessee are allowed accordingly

Bench: Shri Amit Shukla & Shri Prashant Maharishiwrigley India Pvt. Ltd, Vs. Dcit, 206, Okhla Industrial Estate, Circle-27(2), Phase-Iii, New Delhi New Delhi Pan: Aaacw1789P (Appellant) (Respondent)

…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…

Sennheiser Electronics India Pvt. Ltd., Gurgaon vs. ACIT, Circle- 4(1), Gurgaon

In the result, the appeal filed by the assessee in ITA No

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava[A.Y 2013-14] M/S Sennheiser Electronics India Ltd Vs. The A.C.I.T 102-A, First Floor, Time Tower Circle – 4(1) M.G. Road, Gurgaon, Haryana Gurgaon Pan : Aakcs 4629 Q [Appellant] [Respondent]

…orce in the contention of the ld. DR because the TPO, while framing the order u/s 92CA(3) of the Act was well aware with the decision of the Hon'ble jurisdictional High Court of Delhi in the case of Soni Ericcson Mobile Communication India Pvt Ltd reported at 276 CTR 97, and therefore, it cannot be said that the TPO was not aware that the Bright Line test has been discarded by the Hon'ble High Court of Delhi. Relevant observations of the TPO are at page 8 of his order. It was only on the basis of Bright Line test that the impugned ALP adjustment was made, but that approach has already been negatived by the Hon'bl…

The Pr. Commissioner of Income Tax -6 vs. Mary Kay Cosmetic Pvt. Ltd

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR

…entitled to deduction of advertisement and sales promotion expenses under Section 37(1) of the Act is covered against the Revenue by decision of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. vs. Commissioner of Income Tax - III, (2015) 374 ITR 118 (Delhi) and Commissioner of Income Tax vs. Whirlpool of India Ltd., (2016) 381 ITR 154 (Delhi). In Sony Ericsson Mobile Communications India Pvt. Ltd. (supra), a decision authored by one of us (Sanjiv Khanna, J.), "Bright Line Method" has been disapproved and rejected. 9. We have examined the Assessment Order and do not find any good grou…

Borgwarner Emissions Systems India Pvt. Ltd., New Delhi vs. ACIT, Circle- 5(1), New Delhi

In the result ground No. 3 of the appeal which is in substance appeal against the addition of Rs

Bench: Smt Diva Singh & Shri Prashant Maharishiborgwarner Emissions Systems Vs. Acit, India Pvt. Ltd, Circle-5(1), 16A/20Wea, Azmal Khan Road, New Delhi Karol Bagh, New Delhi Pan: Aabce7232N (Appellant) (Respondent)

…ng the order of the ld TPO where he has considered on page No. 15 and 16 of his order but surprisingly he has not considered para No 136 to 139 of the decision of the Hon'ble Delhi High Court in case of Sony Ericson Mobile Communication India Pvt. Ltd Vs. CIT 374 ITR 118. The Hon'ble High Court has held that the aggregation of transaction seems desirable if the nature of the transactions taken as a whole are so interrelated that it will be more reliable means of determining the arm‟s length transaction for the controlled transaction. It is further held that a „broad brush approach‟ cannot be advocated. Such decis…

M/S. Moet Hennessy India Pvt. Ltd., Mumbai vs. ACIT, New Delhi

In the result, the appeal of the assessee is allowed

…ause, what has been termed as, AMP expenses are excessive, and by applying bright line test. Learned counsel submits that this approach has been specifically rejected by Hon’ble Delhi High Court in the case of Sony Ericsson Mobile Communications Vs CIT [2015) 374 ITR 118 (Del)]. It is submitted that the very foundation of the impugned thus ceases to hold good in law. He then contends that there has to be explicit agreement or understanding for promotion of brand of the foreign AE in India and existence of an international transaction cannot be a matter of inference or deduction. In support of this proposition, he…

Burberry India Pvt. Ltd., New Delhi vs. ITO, Ward- 5(2), New Delhi

In the result, both the appeals of the assessee are allowed

Bench: Shri Prashant Maharishi & Shri K.N. Chary

…s decision in Bausch & Lomb Eyecare (India) Pvt. Ltd. v. Additional Commissioner of Income Tax, (2016) 381 ITR 227 (Del), while considering the decision of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. v. Commissioner of Income Tax, (2015) 374 ITR 118 (Del), noted that: "The RP Method loses its accuracy and reliability where the reseller adds substantially to the value of the product or the goods are further processed or incorporated into a more sophisticated product or when the product/service is transformed." 12. Therefore, a contrario, when the reseller does not add any value to the product…

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

In the result, both the appeals of the assessee are allowed

Bench: Shri Prashant Maharishi & Shri K.N. Chary

…s decision in Bausch & Lomb Eyecare (India) Pvt. Ltd. v. Additional Commissioner of Income Tax, (2016) 381 ITR 227 (Del), while considering the decision of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. v. Commissioner of Income Tax, (2015) 374 ITR 118 (Del), noted that: "The RP Method loses its accuracy and reliability where the reseller adds substantially to the value of the product or the goods are further processed or incorporated into a more sophisticated product or when the product/service is transformed." 12. Therefore, a contrario, when the reseller does not add any value to the product…