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

374 ITR 118High Court2015#139 most cited

What is Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT authority for?

The existence of an international transaction for Advertising and Marketing Promotion (AMP) expenditure requires the revenue to discharge the burden of proof. An explanation inserted under Section 92B does not automatically make AMP expenditure an international transaction.

499

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT · 374 ITR 118 · Section 92B · AMP expenditure · international transaction · bright line test · burden of proof · revenue

Also reported as

2015 SCC OnLine DEL 8083

Sections most often in play

Section 143(3)Section 92BSection 144C(13)Section 92CSection 234BSection 14ASection 37Section 37(1)
Read the full judgment

Issues it is cited on

bright line testamp expendituresection 92ffunctional analysiscost plus methodtested partysection 92c(3)section 92btransactional net margin methodcup methodbenchmarking analysiscomparable companies

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

Pr. Commissioner of Income Tax- 2, Delhi vs. M/S. Burberry India Pvt. Ltd

ITA/471/2019HC Delhi24 Oct 2024

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE DR. JUSTICE SWARANA KANTA SHARMA

Section 260ASection 92C

…s Court in its decision in Bausch & Lomb Eyecare (India) Pvt. Ltd. v. Addl. CIT (2016) 381 ITR 227/237 Taxman 24/65 taxmann.com 141 (Delhi), while considering the decision of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT (2015) 374 ITR 118/231 Taxman 113/55 taxmann.com 240 (Delhi), 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.” 38. The aforesaid decision was a…

Kh Facility Solutions India Private Limited, Hyderabad vs. Deputy Commissioner of Income Tax, Circle--5(1), Hyderabad

In the result, the appeal filed by the assessee is partly allowed in above terms

ITA 201/HYD/2022[2017-18]Status: DisposedITAT Hyderabad09 Sept 2024AY 2017-18

Bench: Shri Prakash Chand Yadav & Shri Madhusudan Sawdia

For Appellant: Shri H. Srinivasulu, AdvocateFor Respondent: : Ms. N. Swapna, CIT-DR
Section 143(1)Section 270A

…n the interest of business. A reference can be made to the following judgements: ITA No.201/Hyd/2022 6 i) Baush and Lomb Eye Care India Pvt. Ltd. 381 ITR 227 (Del) ii) Whirlpool India 381 ITR 154 (Del) iii) Sony Ericsson Mobile Communication India Pvt. Ltd. 374 ITR 118 (Del) iv) Ekal Applications 345 ITR 241 (Del) 8. In view of the above we allow the claim of the assessee and direct the AO to delete the addition. (Ground number 2 decided accordingly). 9. Ground No.3 relates to regional support services provided by the assessee. The learned counsel for the assessee has filed certain additional evidences to rebut…

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

In the result, appeal filed by the assessee is partly allowed as indicated above and appeal filed by the revenue is dismissed

ITA 1166/DEL/2015[2010-11]Status: DisposedITAT Delhi30 Aug 2024AY 2010-11

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

For Appellant: Shri Nageshwar Rao, AdvocateFor Respondent: Shri Rajesh Kumar, CIT DR
Section 143Section 143(2)Section 143(3)Section 92C

…749-766 of convenience compendium). By reference to para 43 of Hon'ble High court decision in Maruti 381 ITR 117 (pg 767-791 of convenience compendium) it is submitted that Hon'ble court notes that conclusion on international transaction in Sony Ericsson case 374 ITR 118 (pg 377-452 of convenience compendium) appears to result from none of the parties questioning existence of international transaction of AMP. By reference to para 70 of Hon'ble High court decision in Maruti it is out respectful submission that burden of showing existence of international transaction of AMP is on the revenue, which in present case…

Sony India Private Limited, New Delhi vs. Deputy Commissioner of Income-Tax, New Delhi

In the result, appeal filed by the assessee is partly allowed as indicated above and appeal filed by the revenue is dismissed

ITA 1026/DEL/2015[2010-11]Status: DisposedITAT Delhi30 Aug 2024AY 2010-11

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

For Appellant: Shri Nageshwar Rao, AdvocateFor Respondent: Shri Rajesh Kumar, CIT DR
Section 143Section 143(2)Section 143(3)Section 92C

…749-766 of convenience compendium). By reference to para 43 of Hon'ble High court decision in Maruti 381 ITR 117 (pg 767-791 of convenience compendium) it is submitted that Hon'ble court notes that conclusion on international transaction in Sony Ericsson case 374 ITR 118 (pg 377-452 of convenience compendium) appears to result from none of the parties questioning existence of international transaction of AMP. By reference to para 70 of Hon'ble High court decision in Maruti it is out respectful submission that burden of showing existence of international transaction of AMP is on the revenue, which in present case…

Pr. Commissioner of Income Tax, (Central)-3, New Delhi vs. M/S Pernod Ricard (India) Pvt. Lt

ITA/872/2019HC Delhi29 Aug 2024

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE RAVINDER DUDEJA

Section 14ASection 37

…ITA 872/2019 & connected matters Page 1 of 8 $~61 to 68 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 872/2019 PR. COMMISSIONER OF INCOME TAX, (CENTRAL)-3, NEW DELHI .....Appellant Through: Mr. Anurag Ojha, SSC along with Ms. Hemlata Rawat & Mr. V.K. Saksena, JSCs. versus M/S PERNOD RICARD (INDIA) PVT. LT .....Respondent Through: Mr. Deepak Chopra, Mr. Anmol Anand, Ms. Priya Tandon and Ms. Sheetal Kandpal, Advs. 62 + ITA 49/2020 PR.COMMISSIONER OF INCOME TAX CENTRAL -3 ND .....Appellant Through: Mr. Anurag Ojha, S…

Gates India Pvt Ltd, Delhi vs. ACIT, Circle-10(1), Delhi

In the result, the appeal of the assessee is allowed

ITA 2379/DEL/2022[2018-19]Status: DisposedITAT Delhi22 Aug 2024AY 2018-19

Bench: Shri Saktijit Dey & Shri Pradip Kumar Kedia

For Appellant: Shri M.P. Rastogi, AdvFor Respondent: Shri Rajesh Kumar, CIT-(DR)
Section 143(3)Section 144CSection 144C(13)Section 144C(5)Section 92CSection 92C(1)

…ices cannot be seen in isolation. For benchmarking such aggregate services, the cost based TNMM method is the most appropriate method. A reference was made to judgment of the Hon’ble Delhi High Court in the case of Sony Ericson Mobile Communication vs. CIT in 374 ITR 118 for the proposition that clause (d) of Rule 10A of the Income Tax Rules r.w. sub section (1) of Section 92C of the Act, does not bar or prohibit clubbing of closely connected or interwinded or continuous transactions. The ld. counsel submitted that in the light of the observations in Sony Ericson (supra), the TNMM method adopted by the assessee o…

The Pr. Commissioner of Income Tax -7 vs. Samsung India Electronics Pvt. Ltd

ITA - 419 / 2024HC Delhi05 Aug 2024

…$~340 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 419/2024 THE PR. COMMISSIONER OF INCOME TAX -7 ...Appellant Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, Mr. Pratyaksh Gupta, Advs. versus SAMSUNG INDIA ELECTRONICS PVT. LTD. ..Respondent Through: Mr. Himanshu S. Sinha, Mr. Prashant Meharchandani & Mr. Jainender Singh, Advs. CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE RAVINDER DUDEJA O R D E R % 05.08.2024 CM APPL. 44386/2024 (760 Days Delay in Refiling) Bearing in mind the disclosures made, the delay in refiling…

Silver Wings Life Spaces, Kota vs. DCIT Circle-1 Kota, Kota

In the result, the appeal of the assessee is allowed

ITA 511/JPR/2024[2017-18]Status: DisposedITAT Jaipur31 Jul 2024AY 2017-18

Bench: Learned Cit(A), Which Appeal Was Filed By The Assessee

For Appellant: Sh. Shrawan Kumar Gupta, AdvFor Respondent: Sh. A. S. Nehra(Addl. CIT)
Section 115BSection 143(3)Section 145(3)Section 234ASection 69

…ion. Said judgment is accordingly overruled.” (ii) Ansal Housing and Construction Ltd. vsACIT (2016) 389 ITR 373, Delhi HC. (iii) Vodafone International Holdings v. UOI (2012) 6 SCC 613 (SC) (iv) Sony Ericsson Mobile Communication India Pvt. Ltd. CIT (2015) 374 ITR 118 (Delhi) (v) CIT v. Alom Extrusions Ltd. [2009] 319 ITR 306 (SC) vi) (vi) CIT v. Ansal Land Mark Township (P) Ltd. (ITA 160/2015 dated 28.05.2015 Delhi High Court) 28 Silver Wings Life Spaces vs DCIT, Kota (vii) CIT v. NGC Network India Pvt. Ltd. (ITA No. 397/2015 dated 29th January 2018) (viii) CIT v. M/s Revathi Equipment Ltd. [2008] 298 IT…

Samsung India Electronics Pvt. Ltd., Gurgaon vs. DCIT Circle-22(2), New Delhi

In the result, the appeal of the assessee is partly allowed in the aforesaid manner

ITA 9482/DEL/2019[2015-16]Status: DisposedITAT Delhi29 Jul 2024AY 2015-16

Bench: Shri G. S. Pannu & Shri Yogesh Kumar U.S.

For Appellant: S/Shri Himanshu S. Sinha & Bhuwan Dhoopar, AdvFor Respondent: S/Shri Mahesh Shah, CIT(DR) & Kanv Bali, Sr. DR
Section 142(1)Section 143(2)Section 144C(1)Section 144C(13)Section 92C

…ve erred applying the ‘bright line’ test as a tool to identify and benchmark the alleged AMP transaction which has no statutory mandate under the Act as laid down by the Hon’ble Delhi HC in the case of Sony Ericson Mobile Communications India Pvt. Ltd. [2015] 374 ITR 118 (Delhi). 20. That on the facts and circumstances of the case and in law, the Ld. DRP/AO/TPO have erred in levying a further mark up on the alleged AMP expenses incurred over and above the so-called ‘bright-line’ limit, stating that it tantamount to services being provided by Appellant to its AEs. GROUNDS AGAINST SUBSTANTIVE ADJUSTMENT MADE UNDER…

Goodyear India Ltd., Faridabad vs. DCIT, Circle-10(1), New Delhi

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

ITA 346/DEL/2022[2017-18]Status: DisposedITAT Delhi26 Jul 2024AY 2017-18

Bench: Shri G. S. Pannu & Shri Yogesh Kumar U.S.

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vivek Verma CIT (DR ) and Sh. Kanv Bali, Sr. DR
Section 143(3)Section 144BSection 144CSection 92B

…ourt in the case of ACIT vs. Lumax Industries Ltd. (ITA No. 102/2014). 11. The assessee has also rightly made reference to the decision of Delhi High Court in the case of Sony Ericsson Mobile Communications India Pvt. Ltd vs. CIT (ITA No 16/2014) reported at 374 ITR 118, wherein, the Court has upheld clubbing of closely linked transactions for undertaking benchmarking analysis applying entity wise TNMM. In fact, in the case of CIT vs. Reebok India Co Ltd Goodyear India Ltd. (ITA no 213/2014), being part of the decision of Hon’ble High Court in the case of Sony Erickson, the Court has held as under: “185. Roya…

Goodyear India Ltd, Faridabad vs. ACIT, Circle-10(1), New Delhi

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

ITA 1451/DEL/2022[2018-19]Status: DisposedITAT Delhi26 Jul 2024AY 2018-19

Bench: Shri G. S. Pannu & Shri Yogesh Kumar U.S.

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vivek Verma CIT (DR ) and Sh. Kanv Bali, Sr. DR
Section 143(3)Section 144BSection 144CSection 92B

…ourt in the case of ACIT vs. Lumax Industries Ltd. (ITA No. 102/2014). 11. The assessee has also rightly made reference to the decision of Delhi High Court in the case of Sony Ericsson Mobile Communications India Pvt. Ltd vs. CIT (ITA No 16/2014) reported at 374 ITR 118, wherein, the Court has upheld clubbing of closely linked transactions for undertaking benchmarking analysis applying entity wise TNMM. In fact, in the case of CIT vs. Reebok India Co Ltd Goodyear India Ltd. (ITA no 213/2014), being part of the decision of Hon’ble High Court in the case of Sony Erickson, the Court has held as under: “185. Roya…

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

ITA 7440/DEL/2017[2012-13]Status: DisposedITAT Delhi24 Jul 2024AY 2012-13

Bench: or at the time of hearing of the appeal.”

Section 142(3)Section 143(1)Section 143(2)Section 143(3)Section 144CSection 144C(1)

…sfer pricing adjustment in respect of such transaction under Chapter X does not arise. The Hon'ble High Court has followed its 6 ACIT Vs. Wrigley India Pvt. Ltd. earlier decision in the case of Sony Ericsson Mobile Communication India Pvt. Ltd. vs. CIT (2015) 374 ITR 118 (Del). Respectfully following the ratio laid down in the cited decision of the Hon'ble High Court in the case of Maruti Suzuki India Ltd. (supra), we hold that AMP expenses incurred by the appellant cannot be treated and categorized as an international transaction u/s 92B of the Act, and in view of this finding the TPO was not justified in making…

Astrazeneca Pharma India Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-1(1)(1), Bangalore

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

ITA 284/BANG/2021[2016-17]Status: DisposedITAT Bangalore25 Jun 2024AY 2016-17

Bench: Shri Chandra Poojari & Shri Soundararajan K.

For Appellant: Sri Nikhil Tiwari, A.RFor Respondent: Ms. Neera Malhotra, D.R
Section 143(3)Section 37Section 37(1)

…er APA 9.70% 6.50% (on operating revenue) Revised Operating Profit 4,96,96,212 - 11.24 In this regard, the ld. A.R. placed reliance on the Hon’ble Delhi High Court’s ruling of Sony Ericsson Mobile Communications India Pvt Ltd vs. Commissioner of Income tax [374 ITR 118 (Del)], whereby the Hon’ble Delhi High Court has held the following: “101. However, once the Assessing Officer/TPO accepts and adopts TNM Method, but then chooses to treat a particular expenditure like AMP as a separate international transaction without bifurcation/segregation, it would as noticed above, lead to unusual and incongruous results as…

Crm Services India Private Limited, New Delhi vs. DCIT, Circle-4(2), New Delhi

The appeals of the assessee are allowed with consequential effect

ITA 1519/DEL/2022[2010-11]Status: DisposedITAT Delhi08 Apr 2024AY 2010-11

Bench: Shri Shamim Yahya & Shri Anubhav Sharma

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Rajesh Kumar, CIT-DR
Section 254

…barring exceptional cases, the tax administration should not disregard / re-characterize the actual transaction or substitute other transactions for them. Similarly, he relied the Hon’ble High Court judgment in the case of Sony Ericsson Mobile Communications 374 ITR 118, where Hon’ble High Court has held as under: “147. Tax authorities examine a related and associated parties transaction as actually undertaken and structured by the parties. Normally, tax authorities cannot disregard the actual transaction or substitute the same for another transaction as per their perception. Restructuring of legitimate business…

Crm Services India Private Limited, New Delhi vs. DCIT, Circle-4(2), New Delhi

The appeals of the assessee are allowed with consequential effect

ITA 1518/DEL/2022[2009-10]Status: DisposedITAT Delhi08 Apr 2024AY 2009-10

Bench: Shri Shamim Yahya & Shri Anubhav Sharma

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Rajesh Kumar, CIT-DR
Section 254

…barring exceptional cases, the tax administration should not disregard / re-characterize the actual transaction or substitute other transactions for them. Similarly, he relied the Hon’ble High Court judgment in the case of Sony Ericsson Mobile Communications 374 ITR 118, where Hon’ble High Court has held as under: “147. Tax authorities examine a related and associated parties transaction as actually undertaken and structured by the parties. Normally, tax authorities cannot disregard the actual transaction or substitute the same for another transaction as per their perception. Restructuring of legitimate business…

Shree Cement Limited, Beawar vs. National Faceless Assessment Centre, Delhi

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

ITA 500/JPR/2023[215-16]Status: DisposedITAT Jaipur21 Feb 2024

Bench: or at the time of hearing of this appeal.

For Appellant: Sh. Dilip B Desai(C.A.)For Respondent: Sh. Alka Gautam (CIT) (V.H) &
Section 115JSection 143Section 143(3)Section 144BSection 144B(1)(xvi)Section 80Section 80I

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA. Nos. 489 to 492/JP/2023 fu/kZkj.k o"kZ@Assessment Years : 2015-16 to 2018-19 cuke Assisstant Commissioner of Shree Cement Limited Vs. Income Tax, ADM, Block, Masuda Road, Circle-2 Bangur Nagar, Beawar, Ajmer Ajmer LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AACCS 8796 G vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA. Nos. 496 to…

Shree Cement Limited, Beawar vs. National Faceless Assessment Centre, Deputy Commissionerof Income Tax, Circle -2, Ajmer

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

ITA 496/JPR/2023[2016-17]Status: DisposedITAT Jaipur21 Feb 2024AY 2016-17

Bench: or at the time of hearing of this appeal.

For Appellant: Sh. Dilip B Desai(C.A.)For Respondent: Sh. Alka Gautam (CIT) (V.H) &
Section 115JSection 143Section 143(3)Section 144BSection 144B(1)(xvi)Section 80Section 80I

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA. Nos. 489 to 492/JP/2023 fu/kZkj.k o"kZ@Assessment Years : 2015-16 to 2018-19 cuke Assisstant Commissioner of Shree Cement Limited Vs. Income Tax, ADM, Block, Masuda Road, Circle-2 Bangur Nagar, Beawar, Ajmer Ajmer LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AACCS 8796 G vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA. Nos. 496 to…

Luxottica India Eyewear Private Ltd., Haryana vs. Circle 13(1), Delhi

ITA 793/DEL/2022[2017-18]Status: DisposedITAT Delhi07 Dec 2023AY 2017-18

Bench: Sh. Shamim Yahya & Sh. Anubhav Sharmaita No. 793/Del/2022, A.Y. 2017-18 Luxottica India Eyewear Pvt. Vs. Dcit Ltd. Circle 13(1), 7Th Floor, Dlf Cyber City, Delhi Gurgaon, Haryana-122002 Pan : Aabcl3871C (Appellant) (Respondent)

For Appellant: Shri Nageswar Rao &For Respondent: Sh. Manvendra Goyal, CIT(DR)
Section 143(3)Section 144BSection 144CSection 92C

…een ‘a function’ and ‘a transaction’ and that every expenditure forming part of the function cannot be construed as a transaction.” We are satisfied with the view taken by the TPO in this regard, which is also supported by the judgment in Sony Ericsson (2015) 374 ITR 118 (Del) in wdiich it has been observed in para 166 that: On behalf of the assessee, it was initially argued that the TPO cannot account for or treat AMP as a function. This argument on behalf of the assessee is flawed and fallacious for several reasons. There are inherent flaws in the said argument’. Then, it has been held in para 165 that ; 'An ex…

Principal Commissioner of Income Tax-7, Delhi vs. M/S Timex Group India Ltd

ITA/697/2023HC Delhi06 Dec 2023

Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA

…Marketing, and Promotion expenses did not qualify as international transactions? 11. In this behalf, we had taken recourse to the decision rendered by coordinate benches of this court in Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT (2015) 374 ITR 118 (Del) and Maruti Suzuki India Digitally Signed By:VAISHALI CHAUHAN Signing Date:26.12.2023 15:41:56 Signature Not Verified ITA 697/2023 Page 3 of 3 Ltd. v. CIT (2016) 381 ITR 117. 12. Thus, having regard to the aforesaid position, the appeal is closed. 13. We are told that the appellant/revenue has preferred an…

Principal Commissioner of Income Tax-7, Delhi vs. M/S Timex Group India Ltd

ITA - 697 / 2023HC Delhi06 Dec 2023

…Marketing, and Promotion expenses did not qualify as international transactions? 11. In this behalf, we had taken recourse to the decision rendered by coordinate benches of this court in Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT (2015) 374 ITR 118 (Del) and Maruti Suzuki India Digitally Signed By:VAISHALI CHAUHAN Signing Date:26.12.2023 15:41:56 Signature Not Verified ITA 697/2023 Page 3 of 3 Ltd. v. CIT (2016) 381 ITR 117. 12. Thus, having regard to the aforesaid position, the appeal is closed. 13. We are told that the appellant/revenue has preferred an…