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

Denso Haryana Pvt. Ltd., New Delhi vs. DCIT, Circle- 10(1), New Delhi

In the result, appeal is allowed

ITA 3811/DEL/2017[2010-11]Status: DisposedITAT Delhi17 Nov 2023AY 2010-11

Bench: Shri Saktijit Dey, Vice- & Dr. Brr Kumarassessment Year: 2010-11 Denso Haryana Pvt. Ltd., Versus Dcit, Circle 10(1), B-1/D-4, Ground Floor, Mohan New Delhi. Cooperative Industrial Estate, Mathura Road, Badarpur, New Delhi. Pan:Aaacd6817F (Appellant) (Respondent) Assessee By : Sh. Himanshu S. Sinha, Adv. Sh. Bhuwan Dhoopar, Adv. Revenue By : Sh. Rajesh Kumar, Cit-Dr Date Of Hearing : 04.09.2023 Date Of Pronouncement: 17.11.2023

For Appellant: Sh. Himanshu S. Sinha, AdvFor Respondent: Sh. Rajesh Kumar, CIT-DR
Section 92B

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘I’, NEW DELHI BEFORE SHRI SAKTIJIT DEY, VICE-PRESIDENT AND DR. BRR KUMAR, ACCOUNTANT MEMBER Assessment Year: 2010-11 Denso Haryana Pvt. Ltd., Versus DCIT, Circle 10(1), B-1/D-4, Ground Floor, Mohan New Delhi. Cooperative Industrial Estate, Mathura Road, Badarpur, New Delhi. PAN:AAACD6817F (Appellant) (Respondent) Assessee by : Sh. Himanshu S. Sinha, Adv. Sh. Bhuwan Dhoopar, Adv. Revenue by : Sh. Rajesh Kumar, CIT-DR Date of hearing : 04.09.2023 Date of pronouncement: 17.11.2023 ORDER Captioned appeal by the assessee arises out of order dated 13.12.2016 of learne…

The Pr. Commissioner of Income Tax -3 vs. Fujitsu India Private Limited

Appeals are disposed of, in the

ITA/243/2019HC Delhi12 Oct 2023

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

Section 143(3)Section 144C

…ision 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.” 15. Having regard to the findings of fact returned by the Tribunal and the…

The Pr. Commissioner of Income Tax -3 vs. Fujitsu India Private Limited

Appeals are disposed of, in the

ITA/34/2019HC Delhi12 Oct 2023

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

Section 143(3)Section 144C

…ision 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.” 15. Having regard to the findings of fact returned by the Tribunal and the…

Gurner India Private Ltd., Delhi vs. Circle 10(2), Delhi

The appeal of the assessee is hereby allowed

ITA 796/DEL/2022[2017-18]Status: DisposedITAT Delhi10 Oct 2023AY 2017-18

Bench: Sh. Shamim Yahya & Sh. Anubhav Sharmaita No. 796/Del/2022, A.Y. 2017-18 M/S. Gurner India Pvt. Ltd. Vs. National Faceless Assessmetn 714, International Trade Centre, Tower, Nehru Place, New Delhi Delhi-110019 Pan : Aadcg2938H (Appellant) (Respondent)

Section 143(3)Section 144BSection 144CSection 92C

…y the order of the Hon'ble High Court of Delhi vide order dated 20.12.2016. The Hon'ble High Court considered the issue of payment of assistance fee as held in the case of, 1. Magnetic Marelli (290 CTR 60) 2. EKL Appliances Ltd.(345 ITR241) 3. Sony Ericsson (374 ITR 118) 4. Denso India Ltd. (240 Taxman 713) and remanded the matter to the revenue. 10. We find that the turnover of finished goods is Rs.92 Cr. and export sales to AE was Rs.24 Cr. The import of raw materia! was Rs.28 Cr. Royalty has been paid on the total sales. 12. In the specific facts of this case and export of goods to AE, the TNMM is the MAM.…

Computer Sciences Corporation India Private Limited, Chennai vs. ACIT, Chennai

ITA 1654/CHNY/2011[2007-08]Status: DisposedITAT Indore06 Oct 2023AY 2007-08

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniassessment Year: 2007-08 Computer Sciences Acit, Corporation India Private Company Circle 1(3), Limited, Chennai [Formerly Covansys (India) Private Limited], बनाम/ Unit 13, Block 2, Sdf Buildings, Vs. Madras Export Processing Zone, Tambaram, Chennai (Assessee / Appellant) (Revenue / Respondent) Pan: Aaacc1351M Assessee By Shri Neeraj Jain, Adv. Shri Abhishek Agrawal, Ca Revenue By Shri P.K. Mishra, Cit Dr Date Of Hearing 12.07.2023 Date Of Pronouncement

Section 10ASection 143(2)Section 143(3)Section 144C(5)Section 14ASection 92C

…on’ and that is very right also because ‘internal comparison’ is better, more reliable and accurate than ‘external comparison’. Ld. AR has also relied upon the judicial ruling to this effect given in Sony Ericsson Mobile Communications India Pvt. Ltd. Vs. CIT 374 ITR 118 (Para 85 of order). Page 26 of 47 Computer Sciences Corporation India Private Limited, Chennai Assessment year 2007-08 18. Per contra, Ld. DR drew our attention to Page No. 11-13 of DRP order and emphasized the observations made by DRP. He submitted that the DRP has mentioned that the assessee himself did not apply “internal comparable” of Mu…

M/S Celio Future Fashion Private Limited, Mumbai vs. Addl/Jt/CIT/Dy/Asstt/ITO/NFAC, Delhi

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

ITA 741/MUM/2022[2017-18]Status: DisposedITAT Mumbai08 Sept 2023AY 2017-18

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Sumant ChadhaFor Respondent: Shri Pravin Salunkhe
Section 115BSection 143(3)Section 144BSection 144C(13)Section 144C(5)Section 144C(8)Section 69CSection 920Section 92C

…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…

Pr. Commissioner of Income Tax-7, Delhi vs. Xerox India Ltd. (Previously Known As Xerox Modicorp Ltd.)

ITA - 431 / 2023HC Delhi07 Aug 2023
Section 92F

…TAT is perverse in holding that AMP does not constitute an “international transaction” when the issue of AMP has been ruled as an international transaction in the case of M/s Sony Ericsson Mobile Communication Pvt. Ltd. by Hon‟ble Delhi High Court [(2015) 374 ITR 118 (Del)]? C. Whether on the facts and circumstances of the case and in law, the Hon‟ble ITAT was justified in holding that the Bright Line Test was not mandated in law and hence impermissible without considering the fact that the BLT was not used as a method to determine the price but only as an economic tool to arrive at the cost of service…

Shree Cement Limited, Beawar vs. Deputy Commissioner of Income Tax, Ajmer

In the result, this appeal of the assessee is partly allowed and appeal of the Revenue is dismissed

ITA 152/JPR/2023[2014-15]Status: DisposedITAT Jaipur07 Aug 2023AY 2014-15

Bench: HON’BLE SHRI SANDEEP GOSAIN, JM & HON’BLE SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Vijay Shah, CAFor Respondent: Shri Arvind Kumar, CIT
Section 115JSection 250Section 32(1)(ii)Section 80Section 80I

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR Jh lanhi xkslkbZ] U;kf;d lnL; ,oa Jh jkBkSM+ deys'k t;arHkkbZ] ys[kk lnL; ds le{k BEFORE: HON’BLE SHRI SANDEEP GOSAIN, JM & HON’BLE SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 152/JP/2023 fu/kZkj.k o"kZ@Assessment Year : 2014-15. cuke Shree Cement Limited, Deputy Commissioner of Vs. Bangur Nagar, Admin Block, Income-tax, Circle -2, Post box No. 33, Masuda Road, Ajmer. Beawar. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No. AACCS 8796 G vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA No. 14…

Nikon India P.Ltd, Gurgaon vs. ACIT, Circle-3(1), Gurgaon

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

ITA 1800/DEL/2022[2017-18]Status: DisposedITAT Delhi27 Jul 2023AY 2017-18

Bench: Shri M. Balaganesh & Shri Yogesh Kumar U.S.Assessment Year: 2017-18 & Stay Application No.256/Del/2022 (Ita No.1800/Del/2022) Assessment Year: 2017-18 Nikon India Pvt. Ltd., Vs Acit, Plot No.71, Sector-32, Circle-3(1), Institutional Area, Gurgaon. Gurgaon, Haryana – 122001. Pan: Aaccn5100F (Appellant) (Respondent) Assessee By : Shri Vishal Kalra & Shri Ankit Sahani, Advocates; & Shri Yishu Goel, Ar Revenue By : Shri Rajesh Kumar, Cit-Dr Date Of Hearing : 19.07.2023 Date Of Pronouncement : 27.07.2023 Order Per M. Balaganesh, Am: The Appeal In Ita No.1800/Del/2022 & The Stay Application In Sa No.256/Del/2022 Filed By The Assessee Arise Out Of The Order Of Assessment Passed U/S 143(3) R.W.S. 144C(13) R.W.S. 144B Of The Income-Tax Act, 1961 Sa No.256/Del/2022 (Hereinafter Referred To As ‘The Act’) Dated 25.07.2022 By The Assessment Unit, Of The Income Tax Department (Hereinafter Referred To As ‘Ld. Ao’).

For Appellant: Shri Vishal Kalra &For Respondent: Shri Rajesh Kumar, CIT-DR
Section 143(3)Section 144C(5)Section 92C

…leged excessive AMP expenditure whilst bench marking under both substantive as well protective basis. The Ld. AR has placed reliance on the judgment of the Hon’ble Delhi High Court in the case of Sony Ericsson Mobile Communication India (P) Ltd vs. CIT (2015) 374 ITR 118 (Del) and has argued that direct marketing and sales expenditure cannot be treated as AMP expenditure as the same had not been incurred for brand enhancement but was connected to direct sales of products in India. The Ld AR also pointed that directions for exclusion of sales related expenses have been given earlier as well in favour of the assess…

DCIT Central Circle-7, New Delhi vs. Farm2Plate Dairy Produce Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 7595/DEL/2019[2013-14]Status: DisposedITAT Delhi17 Jul 2023AY 2013-14

Bench: Shri M. Balaganesh & Shri Anubhav Sharmaassessment Year: 2013-14 Dcit, Vs Farm2Plate Dairy Produce Pvt. Ltd., Central Circle-7, F-2/7, Okhla Indl. Area Phase I, New Delhi. New Delhi – 110 020. (Applicant) (Respondent) Assessee By : Shri Rajat Jain & Shri Akshat Jain, Fca Revenue By : Shri Rajesh Kumar, Cit-Dr Date Of Hearing : 04.07.2023 Date Of Pronouncement : 17.07.2023 Order Per M. Balaganesh, Am: This Appeal In Ita No.7595/Del/2019 For Ay 2013-14 Arises Out Of The Order Of The Commissioner Of Income-Tax (Appeal)-44, New Delhi, In Appeal No.32/2018- 19/Cit(A)-44 Dated 28.06.2019 [Hereinafter Referred To As ‘Ld. Cit(A)’, In Short] Against The Order Of Assessment Passed U/S 143(3) R.W.S. 144C Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) Dated 11.01.2017 By The Ld. Income- Tax Officer, Circle 9(1), New Delhi (Hereinafter Referred To As ‘Ld. Ao’). 2. The Only Issue To Be Decided In This Appeal Is As To Whether The Ld.Cit(A) Was Justified In Excluding The Selling Expenses From The Ambit Of Amp Expenses In The Facts & Circumstances Of The Instant Case.

For Appellant: Shri Rajat Jain & Shri Akshat Jain, FCAFor Respondent: Shri Rajesh Kumar, CIT-DR
Section 143Section 143(3)Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : I : DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER Assessment Year: 2013-14 DCIT, Vs Farm2Plate Dairy Produce Pvt. Ltd., Central Circle-7, F-2/7, Okhla Indl. Area Phase I, New Delhi. New Delhi – 110 020. (Applicant) (Respondent) Assessee by : Shri Rajat Jain & Shri Akshat Jain, FCA Revenue by : Shri Rajesh Kumar, CIT-DR Date of Hearing : 04.07.2023 Date of Pronouncement : 17.07.2023 ORDER PER M. BALAGANESH, AM: This appeal in ITA No.7595/Del/2019 for AY 2013-14 arises out of the order of the Commissioner of Income-ta…

Gruner India Pvt. Ltd., New Delhi vs. ACIT, Circle- 10(2), New Delhi

In the result, the appeal of the assessee is allowed

ITA 4062/DEL/2019[2012-13]Status: DisposedITAT Delhi03 Jul 2023AY 2012-13

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Usita No. 4062/Del/2019 : Asstt. Year : 2012-13 M/S Gruner India Pvt. Ltd., Vs Acit, 15 Dsidc, Okhla Industrial Area, Circle-10(2), Phase-Ii, Scheme-1, New Delhi New Delhi-110020 (Appellant) (Respondent) Pan No. Aadcg2938H Assessee By : Sh. Pancham Sethi, Ca Revenue By : Sh. Mrinal Kumar Das, Sr. Dr Date Of Hearing: 05.04.2023 Date Of Pronouncement: 03.07.2023 Order Per Dr. B. R. R. Kumar: The Present Appeal Has Been Filed By The Assessee Against The Order Dated Xx.02.2019 Passed By The Ao U/S 254/143(3) R.W.S. 144C Of The Income Tax Act, 1961. 2. Following Grounds Have Been Raised By The Assessee:

For Appellant: Sh. Pancham Sethi, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 234BSection 254Section 271(1)(c)Section 92C

…hi High Court on the same facts in the case of assessee for AY 2011-12, requiring to follow the directions issued in Magneti Marelli Powertrain India Pvt. Ltd. vs. DCTT [(2016) 389 ITR 469] and Sony Ericsson Mobile Communication India (P) Ltd. us. CIT [(2015) 374 ITR 118)] 6. Ld. TPO failed to apply CUP as directed by Hon'ble ITAT. DRP Directions 2.2.1. These grounds (3-6) relate to the segregated approach adopted by the TPO, treating royalty and FTS transactions as separate 'International Transaction' for the purposes of benchmarking the arm's length price. It is also alleged that the TPO failed to follow the…

Adm Agro Industries Kota & Akola P.Ltd, Gurugram vs. ACIT, Circle-1(1), New Delhi

In the result, appeal is partly allowed

ITA 2281/DEL/2022[2018-19]Status: DisposedITAT Delhi13 Jun 2023AY 2018-19

Bench: Shri G.S. Pannu & Shri Saktijit Deyassessment Year: 2018-19 Adm Agro Industries Kota & Versus Acit, Circle 1(1), Akola P. Ltd., 3Rd Floor, Vatika New Delhi Professional Point, Golf Course Extension Road, Sector-66, Gurgaon. Pan: Aabcs9646L (Appellant) (Respondent)

For Appellant: Sh. Ajay Vohra, Sr. Advocate &For Respondent: Sh. Rajesh Kumar, CIT-DR
Section 143(3)Section 144C(13)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘I’, NEW DLEHI BEFORE SHRI G.S. PANNU, PRESIDENT AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER Assessment Year: 2018-19 ADM Agro Industries Kota & Versus ACIT, Circle 1(1), Akola P. Ltd., 3rd Floor, Vatika New Delhi Professional Point, Golf Course Extension road, Sector-66, Gurgaon. PAN: AABCS9646L (Appellant) (Respondent) Assessee by : Sh. Ajay Vohra, Sr. Advocate & Ms.AnanyaKapoor, Advocate Revenue by : Sh. Rajesh Kumar, CIT-DR Date of hearing : 15.03.2023 Date of pronouncement : 13.06.2023 ORDER PER SAKTIJIT DEY, J.M.: Captioned appeal has been filed by the assesse…

Pr. Commissioner of Income Tax, Delhi-7 vs. Tupperware India Pvt. Ltd

ITA - 304 / 2023HC Delhi25 May 2023

Bench: The Next Date Of Hearing. Cm Appl.28278/2023 3. This Is An Application Filed On Behalf Of The Appellant/Revenue Seeking Condonation Of Delay In Re-Filing The Appeal. 4. Given The Period Of Delay Involved, We Are Inclined To Condone The Delay In Re-Filing The Appeal. 4.1 It Is Ordered Accordingly.

…Insofar as the first issue is concerned, it is not disputed by Mr Rai, that the view taken by the Tribunal is in consonance with the judgment of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. v. Commissioner of Income Tax - III, (2015) 374 ITR 118 (Del.). 10. Mr Rai, however, says that the aforementioned decision of this Court has been challenged by the appellant/revenue, by way of an SLP. We are informed, that the said SLP is pending adjudication. ITA 304/2023 page 2 of 3 This is a digitally signed order. The authenticity of the order can be re-verified fro…

M/S Herbalife International India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-11(4), Bangalore

In the result, the appeal filed by the assessee stands allowed

ITA 440/BANG/2022[2017-18]Status: DisposedITAT Bangalore17 May 2023AY 2017-18

Bench: Smt. Beena Pillai & Ms. Padmavathy Sit(Tp)A No. 440/Bang/2022 Assessment Year : 2017-18 M/S. Herbalife International India The Deputy Pvt. Ltd., Commissioner Of Rmz Pinnacle, No. 15, Income Tax, Commissariat Road, Circle – 3(1)(1), Bengaluru – 560 025. Bangalore. Vs. Pan: Aaach8025R Appellant Respondent : Shri Percy Pardiwala, Assessee By Sr. Counsel Revenue By : Shri D.K. Mishra, Cit (Dr) Date Of Hearing : 28-03-2023 Date Of Pronouncement : 17-05-2023 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against The Final Assessment Order Dated 26.03.2022 Passed By The National Faceless Assessment Centre, Delhi On Following Grounds Of Appeal:

For Respondent: Shri Percy Pardiwala

…t is not applicable, as it does not fit into any of the 5 methods prescribed under the transfer pricing regulations. He placed reliance on the decision of Hon’ble Delhi High Court in case of Sony Ericsson Mobile Communication India (P) Ltd. reported in (2015) 374 ITR 118 wherein the Hon’ble High Court held that the direct marketing / sales related expenses or discounts/concessions would not form part of the AMP expenditure. He emphasised on the following observations of the Hon’ble High Court in case of Sony Ericsson Mobile Communication India (P) Ltd. (supra). “176. The aforesaid argument, when AMP expenses are…

M/S. Tata Power Solar Systems Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle- 7(1)(1), Bangalore

In the result, the appeal of the assessee stands allowed

ITA 2396/BANG/2019[2004-05]Status: DisposedITAT Bangalore17 May 2023AY 2004-05

Bench: Shri George George K & Shri Laxmi Prasad Sahuassessment Year : 2004-05 M/S. Tata Power Solar Systems Limited, Acit, No.78, Hosur Road, Circle – 7(1)(1), Electronic City, Vs. Bengaluru. Bengaluru – 560 100. Pan : Aaact 4660 J Appellant Respondent Assessee By : Shri. Vikram Udupa, Advocate Revenue By : Shri. Sunil Kumar Singh, Cit-2(Dr)(Itat), Bengaluru Date Of Hearing : 08.05.2023 Date Of Pronouncement : 17.05.2023

For Appellant: Shri. Vikram Udupa, AdvocateFor Respondent: Shri. Sunil Kumar Singh, CIT-2(DR)(ITAT), Bengaluru
Section 143(3)Section 250Section 40Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER Assessment Year : 2004-05 M/s. Tata Power Solar Systems Limited, ACIT, No.78, Hosur Road, Circle – 7(1)(1), Electronic City, Vs. Bengaluru. Bengaluru – 560 100. PAN : AAACT 4660 J APPELLANT RESPONDENT Assessee by : Shri. Vikram Udupa, Advocate Revenue by : Shri. Sunil Kumar Singh, CIT-2(DR)(ITAT), Bengaluru Date of hearing : 08.05.2023 Date of Pronouncement : 17.05.2023 O R D E R Per George George K, Judicial Member : This appeal at the instance of the assessee…

ACIT, New Delhi vs. M/S. Schlumberger Measurement & Systems India Ltd., New Delhi

In the result, the order of the Ld

ITA 5225/DEL/2011[2002-03]Status: DisposedITAT Delhi11 May 2023AY 2002-03
Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘I’: NEW DELHI BEFORE, SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER Asst. CIT M/s Thales DIS India Circle-25(1) Pvt. Ltd. New Delhi (Earlier known as Vs. Gemalto Digital Security Pvt. Ltd.) 4th Floor, A-Wing, Lotus Tower, Community Centre, New Friends Colony, New Delhi PAN-AABCS 5455P (Appellant) (Respondent) Appellant by Shri Rajesh Kumar, CIT-DR Respondent by Ms. Shashi M. Kapila, Advocate Shri R.R.Maura, Pravesh Sharma and Sushil Kumar, Advs. Date of Hearing 03/04/2023 Date of Pronouncement 11/05/2023 ORDER PER YOGE…

Lenovo (India) Private Limited, Bangalore vs. Income Tax Officer Ward- 4(1)(1), Bangalore

In the result, the appeal of the assessee is partly allowed for above terms

ITA 281/BANG/2021[2016-17]Status: DisposedITAT Bangalore24 Mar 2023AY 2016-17

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahu

For Appellant: Shri Padam Chand Kincha, C.AFor Respondent: Shri Sankar K Ganeshan, CIT (D.R)
Section 143(3)Section 144C(13)Section 144C(5)Section 92CSection 92C(3)

…ant does not constitute an international transaction under Chapter X of the Act, the Appellant would like to bring to your Honor’s notice the principles coming out of the Delhi HC ruling in the case of Sony Ericsson Mobile Communications India P. Ltd. v. CIT, 374 ITR 118 (Del). The relevant extract of the ruling of the Delhi High Court is as under: “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…

Carrier Midea India Pvt. Ltd., Gurgaon vs. DCIT, Tp 1(3)(1), New Delhi

In the result, the appeal of the assessee is allowed

ITA 344/DEL/2022[2017-18]Status: DisposedITAT Delhi13 Mar 2023AY 2017-18

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Usita No. 344/Del/2022 : Asstt. Year: 2017-18 Carrier Midea India Pvt. Ltd, Vs Dcit, 1St Floor, Pearl Tower, Plot No. 51, Tp 1(3)(1), Sector-32, Gurgaon-122003 New Delhi (Appellant) (Respondent) Pan No. Aaecc5616R

For Appellant: Sh. Ved Jain, CAFor Respondent: Sh. Bhaskar Goswami, CIT (DR)
Section 143(3)Section 92C

….” 5. On this issue, we are guided by the judgment of Hon’ble Delhi High Court in the case of Valvoline Cummins Pvt. Ltd. Vs DCIT in ITA 158/2016 vide order dated 31.07.2017, Maruti Suzuki Ltd. Vs. CIT 381 ITR 117 (Del.), Sony Ericsson India Pvt. Ltd. Vs CIT 374 ITR 118 (Del.), Le Passage to India Tour & Travels (P) Ltd. Vs DCIT (2017) 391 ITR 207, Bausch & Lomb Eye Care (India) Pvt. Ltd. Vs. Addl. CIT (2016) 381 ITR 227 (Del.), Honda Siel Power Products Ltd. Vs. DCIT (2016) 237 Taxmann 304 and L.G. Electronics India Pvt. Ltd. Vs. ACIT (2013) 22 ITR (Trib.)1. 6. The Hon’ble High Court in Sony Ericsson India Pvt.…

M/S. Lenovo (India) Private Limited, Bangalore vs. Income-Tax Officer, Ward-4(1)(1), Bangalore

The appeal of the assessee is partly allowed

ITA 195/BANG/2022[2017-18]Status: DisposedITAT Bangalore27 Jan 2023AY 2017-18

Bench: Shri George George K. & Ms. Padmavathy S

For Appellant: Shri Padam Chand Khincha, CAFor Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 234BSection 92C

…an that the TPO has accepted the entity level margins earned by the assessee with respect to Trading Segment but proceeded to make TP adjustment on AMP expenses. The Hon’ble Delhi High Court in Sony Ericsson Mobile Communications India (P.) Ltd. v. CIT [2015] 374 ITR 118 held that once the revenue accepts the entity level margins as per the most appropriate method, it would be inappropriate to treat a particular expenditure as a separate international transaction. It was held that such an exercise would lead to unusual and absurd results. Relevant observations from the above decision in this context are as under:…

Alcon Laboratories (India) Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-1(1)(1), Bangalore

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

ITA 224/BANG/2021[2016-17]Status: DisposedITAT Bangalore19 Dec 2022AY 2016-17

Bench: Shri N.V. Vasudevan & Ms. Padmavathy S

For Appellant: Shri Percy Pardiwala, Sr. CounselFor Respondent: Shri K. Sankar Ganesh, Jt.CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 143(3)Section 92C

…eated to be an international transaction. In support, he placed reliance on the decision of Hon’ble Delhi High Court in case of Maruti Suzuki India Ltd. vs. CIT, reported in 381 ITR 117 and M/s. Sony Ericsson Mobile Communications Pvt. Ltd. vs CIT reported in 374 ITR 118. 9.5 On the contrary the Ld. CIT.DR placed reliance on orders passed by authorities below. 9.6 We have perused submissions advanced by both sides in light of records placed before us. 9.7 We know that the DRP refused to follow the above decisions of Hon’ble Delhi High Court by observing that these decisions have not been accepted by the Departmen…