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

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

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

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2013-14 Vs. Dcit, Circle -3(1), Gurgaon M/S. Nikon India Pvt. Ltd., Plot No. 71, Sector -32, Institutional Area, Gurgaon, Pan : Aaccn5100F (Appellant) (Respondent) & S.A. No. 570/Del/2017 [In Ita No. 6299/Del/2017] Assessment Year: 2013-14 Vs. Dcit, Circle -3(1), Gurgaon M/S. Nikon India Pvt. Ltd., Plot No. 71, Sector -32, Institutional Area, Gurgaon, Pan : Aaccn5100F (Appellant) (Respondent) Assessee By Sh. Gourav Gupta, Adv. Department By Sh. H.K. Choudhary, Cit(Dr) Date Of Hearing 17.10.2017 Date Of Pronouncement 06.11.2017 Order Per O.P. Kant, A.M.:

…on – Held, yes” 7. We find that BLT has been discarded as a method for computing arm’s length price for international transactions of AMP by the Hon’ble Delhi High Court in the case of Sony Ericsson Mobile Communications India Private Limited Vs. CIT (2015), 374 ITR 118 (Delhi), thus, no addition could be sustained applying the BLT even on protective basis. Since in the year under consideration also, the only addition of AMP adjustment amounting to Rs.42,90,27,103/- made applying BLT on protective basis has been challenged before us, respectfully following the S.A. No. 570/Del/2017 above decision of the Tribuna…

Louis Vuitton India Retail Pvt. Ltd., Gurugram vs. DCIT, Gurgaon

The appeal of the assessee stands allowed

Bench: Shri R.S. Syal & Shri Sudhanshu Srivastavaay: 2012-13 Louis Vuitton India Retail Pvt. Ltd., Vs Dcit, 901-A, Ninth Floor, Time Tower, Circle-2, Mehrauli Gurgaon Road, Gurgaon. Gurgaon-122002 (Pan: Aaacl8230E)

…ight of the earlier judgment in Sony Ericsson Mobile Communications India Pvt. Ltd. (supra). The Ld. CIT DR argued that the Hon’ble Delhi High Court in its earlier decision in Sony Ericson Mobile Communications (India) Pvt. Ltd. vs. CIT reported in (2015) 374 ITR 118 (Del) had held AMP expenses to be an international transaction. It was argued the matter should be restored for a fresh determination. 5. We have heard the rival submissions. We find that when the TPO held AMP expenses to be an international transaction, he had the benefit of only some of judgments of the Hon’ble Jurisdictional High Court. Now…

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

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.4574/Del./2017 (ASSESSMENT YEAR : 2010-11) M/s. Nikon India Pvt. Ltd., vs. DCIT, Circle 3 (1), Plot No.71, Sector 32, Gurgaon. Institutional Area, Gurgaon – 122 001. (PAN : AACCN5100F) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Vishal Kalra, Advocate REVENUE BY : Shri H.K. Choudhary, CIT DR Date of Hearing : 07.09.2017 Date of Order : 20.09.2017 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : The Appellant, M/s. Nikon India Pvt. Ltd. (hereinafter referred to…

Valvoline Cummins Private Limited vs. Dy. Commissioner of Income-Tax

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

…l transaction and the appellant cannot be expected to seek compensation for the allegedly excess AMP expenditure incurred by it.” 9. The Assessee drew the attention of the ITAT to the decision of this Court in Sony Ericsson India Pvt. Ltd. v. CIT (2015) 374 ITR 118 (Del) whereby the Court had declared that the BLT had no statutory mandate and considering the excess expenditure beyond the bright line as an international transaction was ‘unwarranted’. 10. In para 5 of the impugned order, the ITAT noted as under: “5. On enquiry from the Bench, Ld. Counsel of the assessee submitted that the facts and f…

Valvoline Cummins Private Ltd vs. Dy. Commissioner of Income-Tax

…l transaction and the appellant cannot be expected to seek compensation for the allegedly excess AMP expenditure incurred by it.” 9. The Assessee drew the attention of the ITAT to the decision of this Court in Sony Ericsson India Pvt. Ltd. v. CIT (2015) 374 ITR 118 (Del) whereby the Court had declared that the BLT had no statutory mandate and considering the excess expenditure beyond the bright line as an international transaction was ‘unwarranted’. 10. In para 5 of the impugned order, the ITAT noted as under: “5. On enquiry from the Bench, Ld. Counsel of the assessee submitted that the facts and f…

Pr. Commissioner of Income Tax-6, New Delhi vs. Msd Pharmaceuticals Pvt. Ltd

Appeals are disposed of in the above terms

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

…$-41 &26 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 432/2017 PR. COMMISSIONER OF INCOME TAX-6, NEW DELHI Appellant Through: Mr. Asheesh Jain, Senior Standing Counsel. versus MSD PHARMACEUTICALS PVT. LTD. Respondent Through : Ms. Rashmi Chopra, Advocate. With + ITA 52^017 MSD PHARMACEUTICALS PVT LTD Appellant Through ; Ms. Rashmi Chopra, Advocate. versus ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE-6 NEW DELHI & ANR. Respondents Through: Mr. Asheesh Jain, Senior Standing Counsel. CORAM: JUSTICE S.MURALIDHAR JUSTICE PRATHIBA M. SINGH ORDER % 19.07.2017 CM No.25169/2017 (delay in filing^ in ITA No.524/2017 1. F…

Msd Pharmaceuticals Pvt Ltd vs. Additional Commissioner of Income Tax, Range-6 New Delhi & Anr

Appeals are disposed of in the above terms

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

…$-41 &26 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 432/2017 PR. COMMISSIONER OF INCOME TAX-6, NEW DELHI Appellant Through: Mr. Asheesh Jain, Senior Standing Counsel. versus MSD PHARMACEUTICALS PVT. LTD. Respondent Through : Ms. Rashmi Chopra, Advocate. With + ITA 52^017 MSD PHARMACEUTICALS PVT LTD Appellant Through ; Ms. Rashmi Chopra, Advocate. versus ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE-6 NEW DELHI & ANR. Respondents Through: Mr. Asheesh Jain, Senior Standing Counsel. CORAM: JUSTICE S.MURALIDHAR JUSTICE PRATHIBA M. SINGH ORDER % 19.07.2017 CM No.25169/2017 (delay in filing^ in ITA No.524/2017 1. F…

M/S. Gruner India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

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

Bench: Sh. N. K. Saini, Am & Sh. Kuldip Singh, Jm Ita No. 771/Del/2017 : Asstt. Year : 2012-13 Gruner India Pvt. Ltd. Vs Deputy Commissioner Of Income C/O-S.S. Kothari Mehta & Co., Tax, Circle-10(2), Chartered Accountants, 146, New Delhi Tribhuvan Complex, Ishwar Nagar, Mathura Road, New Delhi-110065 (Appellant) (Respondent) Pan No. Aadcg2938H Assessee By : Sh. H. P. Agarwal, Adv. Revenue By : Sh. Amendra Kumar, Cit Dr Date Of Hearing : 27.03.2017 Date Of Pronouncement : 16.06.2017 Order Per N. K. Saini, Am: This Is An Appeal By The Assessee Against The Order Dated 19.01.2017 Of The Ao Passed U/S 143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961 (Hereinafter Referred To As The Act).

…. to the TPO for reconsideration of the aggregation approach in view of the ratio laid down in the following cases: " Magneti Marelli Powertrain India Pvt. Ltd. vs DCIT [(2016) 290 CTR 60 (Del) " Sony Ericsson Mobile Communication India (P) Ltd. vs CIT (2015) 374 ITR 118 (Del.) Copies of the aforesaid orders of the Hon’ble Delhi High Court in the case of the assessee and M/s Magneti Marelli was furnished which are placed at page nos. 45 to 64 of the assessee’s paper book. 10. The ld. Counsel for the assessee submitted that the product was manufactured by the assessee by using the required technology & technical…

M/S Luxottica India Eyewear Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

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

Bench: Shri R.S. Syal & Shri Sudhanshu Srivastavaassessment Year : 2010-11 Assessment Year : 2011-12 Assessment Year : 2012-13

…determining its ALP and, ex consequenti, making the transfer pricing adjustment, be set aside. 5. In the oppugnation, the ld. DR, relied on the judgment of the Hon’ble Delhi High Court in Sony Ericson Mobile Communications (India) Pvt. Ltd. vs. CIT (2015) 374 ITR 118 (Del) in which AMP expenses have been held to be an international transaction and the matter of determination of its ALP has been restored. He also relied on a later judgment of the Hon’ble jurisdictional High Court in Yum Restaurants (India) P. Ltd. vs. ITO (2016) 380 ITR 637 (Del) and still another judgment dated 28.1.2016 of the Hon’ble D…

M/S. Luxottica Eyewear India Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

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

Bench: Shri R.S. Syal & Shri Sudhanshu Srivastavaassessment Year : 2010-11 Assessment Year : 2011-12 Assessment Year : 2012-13

…determining its ALP and, ex consequenti, making the transfer pricing adjustment, be set aside. 5. In the oppugnation, the ld. DR, relied on the judgment of the Hon’ble Delhi High Court in Sony Ericson Mobile Communications (India) Pvt. Ltd. vs. CIT (2015) 374 ITR 118 (Del) in which AMP expenses have been held to be an international transaction and the matter of determination of its ALP has been restored. He also relied on a later judgment of the Hon’ble jurisdictional High Court in Yum Restaurants (India) P. Ltd. vs. ITO (2016) 380 ITR 637 (Del) and still another judgment dated 28.1.2016 of the Hon’ble D…

ACIT, New Delhi vs. M/S. Luxottica India Eyewear Pvt. Ltd., Gurgaon

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

Bench: Shri R.S. Syal & Shri Sudhanshu Srivastavaassessment Year : 2010-11 Assessment Year : 2011-12 Assessment Year : 2012-13

…determining its ALP and, ex consequenti, making the transfer pricing adjustment, be set aside. 5. In the oppugnation, the ld. DR, relied on the judgment of the Hon’ble Delhi High Court in Sony Ericson Mobile Communications (India) Pvt. Ltd. vs. CIT (2015) 374 ITR 118 (Del) in which AMP expenses have been held to be an international transaction and the matter of determination of its ALP has been restored. He also relied on a later judgment of the Hon’ble jurisdictional High Court in Yum Restaurants (India) P. Ltd. vs. ITO (2016) 380 ITR 637 (Del) and still another judgment dated 28.1.2016 of the Hon’ble D…

M/S. Perfetti Van Melle India Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

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

Bench: Shri R.S. Syal & Shri Sudhanshu Srivastavaassessment Year : 2012-13

…n international transaction between the assessee and its AE on account of AMP expenses. In view of the fact that the Department has not accepted the judgment of the Hon'ble Delhi High Court in Sony Ericson Mobile Communications India (P) Ltd. vs. CIT (2015) 374 ITR 118 (Del), directing the exclusion of selling expenses from the total AMP expenses, the DRP held that the selling expenses excluded by the TPO ought to have been included for calculating the ALP of AMP expenses. Without prejudice to its findings upholding the action of the TPO, the DRP held 4 that if the TP adjustment is not approved by the higher…

M/S Perfetti Van Melle India Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

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

Bench: Shri S.V. Mehrotra & Shri Kuldip Singhassessment Year : 2009-10

…an international transaction, in others as not an international transactions, while still in some others, the matter has been restored for fresh consideration in the light of the judgment in Sony Ericsson Mobile Communications (India) Pvt. Ltd. Vs. CIT (2015) 374 ITR 118 (Del), in which the AMP expenses as an international transaction has been accepted. In another judgment dated 28.1.2016 of the Hon’ble Delhi High Court in Sony Ericson Mobile Communications (India) Pvt. Ltd. (for A.Y. 2010-11), the question as to whether AMP expenses is an international transaction, has been restored for a fresh determination. Th…

DCIT, New Delhi vs. M/S. Cornell Overseas (P) Ltd., New Delhi

In the result, appeal of the department is dismissed

Bench: Sh. N. K. Saini, Am & Smt. Beena Pillai, Jm Ita No. 2166/Del/2011 : Asstt. Year : 2003-04 Dcit, Vs Cornell Overseas (P) Ltd., Circle-3(1), B-235, Okhla Indl. Area, Phase-I, New Delhi New Delhi-110020 (Appellant) (Respondent) Pan No. Aaacc0034F Assessee By : Ms. Vandana Bhandari, Ca Revenue By : Sh. Neeraj Kumar, Sr. Dr Date Of Hearing : 03.02.2017 Date Of Pronouncement : 02.05.2017 Order Per N. K. Saini, Am: This Is An Appeal By The Department Against The Order Dated 28.02.2011 Of Ld. Cit(A)-Xx, New Delhi.

…& 1070/2011 (Del.) 58 Cornell Overseas (P) Ltd. " LG Electronics India Pvt. Ltd. Vs ACIT in ITA No. 5140/Del/2011 (ITAT S.B.) " Kodak India Pvt. Ltd. Vs ACIT in ITA No. 7349/Mum/2012 (ITAT Mumbai) " Sony Ericsson Mobile Communications India Pvt. Ltd. (2015) 374 ITR 118 (Del.) " Cushman & Wakefield (India) Pvt. Ltd. (2014) 367 ITR 730 (Del.) " Hero Honda Motors in ITA No. 5130/Del/2010 (ITAT Delhi) " Dresser Rand India Pvt. Ltd. in " CA Computer Associates Vs Assessee in ITA Nos. 5420 & 5421/Mum./2006 (ITAT Mumbai) " LGE & C-NCC (Joint Venture) Vs ITO in ITA Nos. 281/Hyd./2011 and 1021/Hyd./2012 (ITAT Hyderabad)…

DCIT, New Delhi vs. M/S Segram India Pvt. Ltd., New Delhi

Bench: Shri J.S. Reddy & Shri Sudhanshu Srivastavaay: 2004-05 Ay: 2005-06

…at the very outset submitted that the issue under consideration deserves to be set aside to the TPO/AO as the issue now has been settled by the Hon'ble Jurisdictional High Court in the case of Sony Ericsson Mobile Communications Pvt. Ltd. vs. CIT reported at 374 ITR 118 and in the case of Maruti Suzuki India Ltd. vs. CITin ITA no. 110/214 and 710/2015 order dated 11 December, 2015. It was further submitted that the aforesaid orders were not available to the T.P.O. / D.R.P. at the time of passing of their respective orders. It was also submitted the TPO/AO/DRP (In ITA No. 944/Del/2016) have not brought any eviden…

Pernod Richard India Pvt. Ltd, Gurgaon vs. DCIT, New Delhi

Bench: Shri J.S. Reddy & Shri Sudhanshu Srivastavaay: 2004-05 Ay: 2005-06

…at the very outset submitted that the issue under consideration deserves to be set aside to the TPO/AO as the issue now has been settled by the Hon'ble Jurisdictional High Court in the case of Sony Ericsson Mobile Communications Pvt. Ltd. vs. CIT reported at 374 ITR 118 and in the case of Maruti Suzuki India Ltd. vs. CITin ITA no. 110/214 and 710/2015 order dated 11 December, 2015. It was further submitted that the aforesaid orders were not available to the T.P.O. / D.R.P. at the time of passing of their respective orders. It was also submitted the TPO/AO/DRP (In ITA No. 944/Del/2016) have not brought any eviden…

Pernod Ricard India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

Bench: Shri J.S. Reddy & Shri Sudhanshu Srivastavaay: 2004-05 Ay: 2005-06

…at the very outset submitted that the issue under consideration deserves to be set aside to the TPO/AO as the issue now has been settled by the Hon'ble Jurisdictional High Court in the case of Sony Ericsson Mobile Communications Pvt. Ltd. vs. CIT reported at 374 ITR 118 and in the case of Maruti Suzuki India Ltd. vs. CITin ITA no. 110/214 and 710/2015 order dated 11 December, 2015. It was further submitted that the aforesaid orders were not available to the T.P.O. / D.R.P. at the time of passing of their respective orders. It was also submitted the TPO/AO/DRP (In ITA No. 944/Del/2016) have not brought any eviden…

ACIT, New Delhi vs. Pernod Ricard (India) Pvt. Ltd., Gurgaon

Bench: Shri J.S. Reddy & Shri Sudhanshu Srivastavaay: 2004-05 Ay: 2005-06

…at the very outset submitted that the issue under consideration deserves to be set aside to the TPO/AO as the issue now has been settled by the Hon'ble Jurisdictional High Court in the case of Sony Ericsson Mobile Communications Pvt. Ltd. vs. CIT reported at 374 ITR 118 and in the case of Maruti Suzuki India Ltd. vs. CITin ITA no. 110/214 and 710/2015 order dated 11 December, 2015. It was further submitted that the aforesaid orders were not available to the T.P.O. / D.R.P. at the time of passing of their respective orders. It was also submitted the TPO/AO/DRP (In ITA No. 944/Del/2016) have not brought any eviden…

M/S. Perfetti Van Melle India Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

In the result, this appeal is partly allowed for statistical purpose

Bench: Shri N. K. Saini & Smt Suchitra Kamble

…n of Special bench, TPO presumed existence of international transaction of AMP by adopting Bright Line Test ('BIT') and alleged that AE was benefited by way of increased business. The Ld. AR further submits that though the DRP had benefit of both Sony Ericson 374 ITR 118 and Maruti Suzuki 381 ITR 117 decisions of Hon'ble High court. The Ld. AR submits that the DRP deliberately ignored said decision in Maruti Suzuki and upheld existence of international transaction of AMP solely on basis of paras 52 of Sony Ericsson and other decisions i.e., presumption which was directly contrary to evidence/facts. The Ld. AR fur…