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

Lg Electronics India Pvt. Ltd., New Delhi vs. DCIT, Circle-15(2), New Delhi

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

Bench: Shri Mahavir Singh & Shri M. Balaganesh

…g 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 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 br…

Lg Electronics India Pvt. Ltd., New Delhi vs. Addl. CIT, Special Range- 5, New Delhi

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

Bench: Shri Mahavir Singh & Shri M. Balaganesh

…g 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 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 br…

Lg Electronics India Pvt. Ltd., New Delhi vs. Addl. CIT, Special Range- 5, New Delhi

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

Bench: Shri Mahavir Singh & Shri M. Balaganesh

…g 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 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 br…

M/S Lg Electronics India Pvt. Ltd., New Delhi vs. DCIT, Noida

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

Bench: Shri Mahavir Singh & Shri M. Balaganesh

…g 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 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 br…

DCIT, Noida vs. M/S. L.G. Electronics India Pvt. Ltd., Greater Noida

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

Bench: Shri Mahavir Singh & Shri M. Balaganesh

…g 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 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 br…

Pr. Commissioner of Income Tax-1 vs. Casio India Company Pvt. Ltd

Bench: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR

…angible material or evidence that there exists an international transaction regarding brand building by way of AMP expenses despite the fact that it was held by the Delhi High Court m the ease of Sony Ericsson Mobile Communications India (P.) Ltd. v. CIT [374 ITR 118] that transaction of excess AMP is an international transaction?” 5. We have been informed by learned counsels for parties that the issues forming subject matter of consideration in these appeals have already been considered and disposed of by this Court in the case of the respondent-assessee itself in Deputy Commissioner of Income Tax-5(2…

Maruti Suzuki India Ltd., New Delhi vs. DCIT, New Delhi

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

…eld similarly in the following decisions of the Hon’ble Delhi High Court:  Microsoft India (R&D) Pvt. Ltd. vs DCIT: [2021] 431 ITR 483 (Del)  Vedanta Limited vs ACIT, order dated 19.09.2022 in ITA 63/2021 (Del.)  Sony Ericsson Mobile Communications vs CIT: 276 CTR 97 (Del.) In similar circumstances, other Hon’ble High Courts have in the following decisions disapproved the approach of the Tribunal in remanding the matter to the lower authorities when all evidences and documents were available on records:  CIT vs. UTI Bank Ltd.: 223 Taxman 157 (Guj.)  Shivsagar Veg. Restaurant vs. ACIT: 317 ITR 433 (Bom.)  Co…

DCIT, New Delhi vs. M/S. Maruti Suzuki India Ltd., New Delhi

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

…eld similarly in the following decisions of the Hon’ble Delhi High Court:  Microsoft India (R&D) Pvt. Ltd. vs DCIT: [2021] 431 ITR 483 (Del)  Vedanta Limited vs ACIT, order dated 19.09.2022 in ITA 63/2021 (Del.)  Sony Ericsson Mobile Communications vs CIT: 276 CTR 97 (Del.) In similar circumstances, other Hon’ble High Courts have in the following decisions disapproved the approach of the Tribunal in remanding the matter to the lower authorities when all evidences and documents were available on records:  CIT vs. UTI Bank Ltd.: 223 Taxman 157 (Guj.)  Shivsagar Veg. Restaurant vs. ACIT: 317 ITR 433 (Bom.)  Co…

Pr. Commissioner of Income Tax-1 vs. Casio India Company Pvt. Ltd

Bench: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR

…$~7 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 336/2025 PR. COMMISSIONER OF INCOME TAX-1 .....Appellant Through: Mr Sanjay Kumar, SSC with Ms Monica Benjamin and Ms Esha, JSCs. versus CASIO INDIA COMPANY PVT. LTD. .....Respondent Through: Mr. Kamal Sawhney, Mr. Puru Medhira, Advs. CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR O R D E R % 03.09.2025 CM APPL. 52711/2025 (Delay in re-filing the appeal 988 days) 1. For the reasons stated in the application, the delay of 988 days in filing the captioned appeal is condoned. 2. The application stands dis…

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

In the result, the appeal filed by the assessee is allowed and appeal filed by the Revenue stands dismissed

Bench: Shri Prakash Chand Yadav & Shri Manish Agarwalcarlsberg India Private Limited, Dy. Cit, 4Th Floor, Rectangle No.1, Circle-5(2), Commercial Complex,D-4, Saket, Vs. New Delhi. New Delhi-110017. Pan-Aajcs8454J (Appellant) (Respondent) (Assessment Year 2010-11 Dy. Cit, Carlsberg India Private Circle-5(2), Limited, New Delhi. Vs. 4Th Floor, Rectangle No.1, Commercial Complex, D-4, Saket, New Delhi-110017. Pan-Aajcs8454J (Appellant) (Respondent) Assessee By Shri S.K. Aggarwal, Ca & Shri Paras Sharma, Ar & Ms. Ruchika Mittal, Ca Department By Shri S.K. Jadhav, Cit-Dr Date Of Hearing 28/07/2025 Date Of Pronouncement 31/07/2025 Order

…ted by TPO for computing the adjustments qua AMP expenses. It has further been submitted that the Ld. CIT(A) has relied upon the orders of Hon’ble Delhi High Court in the case of SoniEricssion Mobile Communication India (P) Ltd. vs. vs. CIT reported in [2015] 374 ITR 118 (Del-HC). Lastly it is pointed out that the Ld. CIT(A) has further observed that the assessee has entered into Advance Pricing Agreement with CBDT and carried out a role back of four years from Assessment Year 2011-12 to 2014-15. After applying a rate of 3.5% of the gross sales and 4.5% of the gross sales where the gross sales do not increase 500…

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

In the result, the appeal filed by the assessee is allowed and appeal filed by the Revenue stands dismissed

Bench: Shri Prakash Chand Yadav & Shri Manish Agarwalcarlsberg India Private Limited, Dy. Cit, 4Th Floor, Rectangle No.1, Circle-5(2), Commercial Complex,D-4, Saket, Vs. New Delhi. New Delhi-110017. Pan-Aajcs8454J (Appellant) (Respondent) (Assessment Year 2010-11 Dy. Cit, Carlsberg India Private Circle-5(2), Limited, New Delhi. Vs. 4Th Floor, Rectangle No.1, Commercial Complex, D-4, Saket, New Delhi-110017. Pan-Aajcs8454J (Appellant) (Respondent) Assessee By Shri S.K. Aggarwal, Ca & Shri Paras Sharma, Ar & Ms. Ruchika Mittal, Ca Department By Shri S.K. Jadhav, Cit-Dr Date Of Hearing 28/07/2025 Date Of Pronouncement 31/07/2025 Order

…ted by TPO for computing the adjustments qua AMP expenses. It has further been submitted that the Ld. CIT(A) has relied upon the orders of Hon’ble Delhi High Court in the case of SoniEricssion Mobile Communication India (P) Ltd. vs. vs. CIT reported in [2015] 374 ITR 118 (Del-HC). Lastly it is pointed out that the Ld. CIT(A) has further observed that the assessee has entered into Advance Pricing Agreement with CBDT and carried out a role back of four years from Assessment Year 2011-12 to 2014-15. After applying a rate of 3.5% of the gross sales and 4.5% of the gross sales where the gross sales do not increase 500…

Ucweb Mobile Private Limited, Gurgaon vs. Assessment Unit, Inocome Tax Department, Gurgaon

In the result, the appeal of the assessee is partly allowed

Bench: SHRI MAHAVIR SINGH (Vice President), SHRI MANISH AGARWAL (Accountant Member)

…t. AMP comparable companies is mark up to similar percentage. He further submits that the BLT approach has been held as not a proper method by the Hon’ble Jurisdictional High Court in the case of Sony Ericson Mobile Communications India (P) Ltd. vs CIT [2015] 374 ITR 118 (Delhi) & further by the Co-ordinate Bench of ITAT, Delhi in following cases and therefore, requested to delete the addition made on protective basis:- a. MSD Pharmaceuticals (P.) Ltd. vs ACIT [2017] 88 taxmann.com 54 (Delhi-Trib.); b. Toshiba India (P.) Ltd. vs ACIT [2018] 95 taxmann.com 344 (Delhi-Trib.); c. Nikon India (P.) Ltd. vs DCIT [2018]…

Wrigley India Private Limited, Delhi vs. ACIT, Circle-27(2), Delhi

Bench: Shri Vikas Awasthy & Shri Manish Agarwal

…the creation of world- wide brand owned by parent AE. With regard to application of Bright line test (BLT), 1d. CIT-DR fairly admitted that the Hon'ble Jurisdictional High Court in the case of Sony Ericsson Mobile Communications India (P.) Ltd. vs. CIT [2015] 374 ITR 118 (Delhi) has held BLT as not a valid and proper method. He further submitted that no rewards were made by the AE to the assessee against such expenses to cover up the losses by the assessee. Rather the assessee has to take loans from its AE and interest was paid and if the assessee was an independent manufacturer, this would not be done. He furthe…

DCIT, Circle-25(1), New Delhi vs. Wrigley India P.Ltd, New Delhi

Bench: Shri Vikas Awasthy & Shri Manish Agarwal

…the creation of world- wide brand owned by parent AE. With regard to application of Bright line test (BLT), 1d. CIT-DR fairly admitted that the Hon'ble Jurisdictional High Court in the case of Sony Ericsson Mobile Communications India (P.) Ltd. vs. CIT [2015] 374 ITR 118 (Delhi) has held BLT as not a valid and proper method. He further submitted that no rewards were made by the AE to the assessee against such expenses to cover up the losses by the assessee. Rather the assessee has to take loans from its AE and interest was paid and if the assessee was an independent manufacturer, this would not be done. He furthe…

DCIT, Circle- 25(1), New Delhi vs. Wrigley India Pvt. Ltd., New Delhi

Bench: Shri Vikas Awasthy & Shri Manish Agarwal

…the creation of world- wide brand owned by parent AE. With regard to application of Bright line test (BLT), 1d. CIT-DR fairly admitted that the Hon'ble Jurisdictional High Court in the case of Sony Ericsson Mobile Communications India (P.) Ltd. vs. CIT [2015] 374 ITR 118 (Delhi) has held BLT as not a valid and proper method. He further submitted that no rewards were made by the AE to the assessee against such expenses to cover up the losses by the assessee. Rather the assessee has to take loans from its AE and interest was paid and if the assessee was an independent manufacturer, this would not be done. He furthe…

JCIT, Circle-27(2), New Delhi vs. Wrigley India Pvt. Ltd., New Delhi

Bench: Shri Vikas Awasthy & Shri Manish Agarwal

…the creation of world- wide brand owned by parent AE. With regard to application of Bright line test (BLT), 1d. CIT-DR fairly admitted that the Hon'ble Jurisdictional High Court in the case of Sony Ericsson Mobile Communications India (P.) Ltd. vs. CIT [2015] 374 ITR 118 (Delhi) has held BLT as not a valid and proper method. He further submitted that no rewards were made by the AE to the assessee against such expenses to cover up the losses by the assessee. Rather the assessee has to take loans from its AE and interest was paid and if the assessee was an independent manufacturer, this would not be done. He furthe…

Pr. Commissioner of Income Tax-7, Delhi vs. M/S Wrigley India Pvt. Ltd

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

…the same were incurred as a transaction between the Assessee and its associate enterprises. Concededly, the said issue is covered in the favour of Assessee by the decisions of this Court in Sony Ericsson Mobile Communication India Pvt. Ltd. v. CIT-3:[2015] 374 ITR 118 (Delhi) and Maruti Suzuki India Ltd. v. CIT: (2016) 381 ITR 117. It is also relevant to note that in the Assessee’s own case being Principal Commissioner of Income Tax-9 v. Wrigley India Pvt. Ltd.: Neutral Citation No. 2023:DHC:7818-DB, this Court had, following the decision in the case of Maruti Suzuki India Ltd. v. CIT (supra) rejected th…