Sony India (P) Ltd. v. DCIT

Sansung India Electronics Pvt. Ltd., Gurgaon vs. Addl. CIT, Special Range- 8, New Delhi

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…of glass shells, funnels and panels which are used in manufacturing of colour TV. Videocon enjoys cost benefits due to captive manufacturing of CTV shells. The Ld. Counsel relied on the decision of this Tribunal in the case of Sony India P. LTD V DCIT [2008] 114 ITD 448 (Del) in this regard where on similar facts Videocon was held to be incomparable to Sony India, a company that was engaged in the manufacture of TVs and other consumer goods, on the ground that it undertakes manufacturing of components for CTV units which renders it functionally incomparable to companies which import the same parts. 61. We have…

Samsung India Electronics Pvt. Ltd., Gurgaon vs. JCIT, New Delhi

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…of glass shells, funnels and panels which are used in manufacturing of colour TV. Videocon enjoys cost benefits due to captive manufacturing of CTV shells. The Ld. Counsel relied on the decision of this Tribunal in the case of Sony India P. LTD V DCIT [2008] 114 ITD 448 (Del) in this regard where on similar facts Videocon was held to be incomparable to Sony India, a company that was engaged in the manufacture of TVs and other consumer goods, on the ground that it undertakes manufacturing of components for CTV units which renders it functionally incomparable to companies which import the same parts. 61. We have…

Samsung India Electronics Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…of glass shells, funnels and panels which are used in manufacturing of colour TV. Videocon enjoys cost benefits due to captive manufacturing of CTV shells. The Ld. Counsel relied on the decision of this Tribunal in the case of Sony India P. LTD V DCIT [2008] 114 ITD 448 (Del) in this regard where on similar facts Videocon was held to be incomparable to Sony India, a company that was engaged in the manufacture of TVs and other consumer goods, on the ground that it undertakes manufacturing of components for CTV units which renders it functionally incomparable to companies which import the same parts. 61. We have…

ACIT, New Delhi vs. M/S Samsung India Electronics Ltd., Gurgaon

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…of glass shells, funnels and panels which are used in manufacturing of colour TV. Videocon enjoys cost benefits due to captive manufacturing of CTV shells. The Ld. Counsel relied on the decision of this Tribunal in the case of Sony India P. LTD V DCIT [2008] 114 ITD 448 (Del) in this regard where on similar facts Videocon was held to be incomparable to Sony India, a company that was engaged in the manufacture of TVs and other consumer goods, on the ground that it undertakes manufacturing of components for CTV units which renders it functionally incomparable to companies which import the same parts. 61. We have…

Samsung India Electronics Pvt. Ltd., Gurgaon vs. Addl. CIT, New Delhi

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…of glass shells, funnels and panels which are used in manufacturing of colour TV. Videocon enjoys cost benefits due to captive manufacturing of CTV shells. The Ld. Counsel relied on the decision of this Tribunal in the case of Sony India P. LTD V DCIT [2008] 114 ITD 448 (Del) in this regard where on similar facts Videocon was held to be incomparable to Sony India, a company that was engaged in the manufacture of TVs and other consumer goods, on the ground that it undertakes manufacturing of components for CTV units which renders it functionally incomparable to companies which import the same parts. 61. We have…

Samsung India Electronics Pvt. Ltd., Gurgaon vs. Addl. CIT, New Delhi

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…of glass shells, funnels and panels which are used in manufacturing of colour TV. Videocon enjoys cost benefits due to captive manufacturing of CTV shells. The Ld. Counsel relied on the decision of this Tribunal in the case of Sony India P. LTD V DCIT [2008] 114 ITD 448 (Del) in this regard where on similar facts Videocon was held to be incomparable to Sony India, a company that was engaged in the manufacture of TVs and other consumer goods, on the ground that it undertakes manufacturing of components for CTV units which renders it functionally incomparable to companies which import the same parts. 61. We have…

ACIT, New Delhi vs. M/S. Stanley Electric Engineering India Pvt. Ltd., Gurgaon

In the result, the appeal of the revenue is dismissed and the CO of the assessee is allowed

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 944/Del/2012 : Asstt. Year : 2007-08 Asstt. Commissioner Of Income Vs M/S Stanley Electric Engineering Tax, Circle-9(1), India Pvt. Ltd., Plot No. 164, New Delhi Sector-5, Imt, Manesar, Gurgaon-122050 (Appellant) (Respondent) Pan No. Aafcs5100F Co No. 115/Del/2014 : Asstt. Year : 2007-08 M/S Stanley Electric Engineering Vs Asstt. Commissioner Of Income India Pvt. Ltd., Plot No. 164, Tax, Circle-9(1), Sector-5, Imt, Manesar, New Delhi Gurgaon-122050 (Appellant) (Respondent) Pan No. Aafcs5100F Assessee By : Sh. R. R. Maurya, Adv. & Sh. Bhuvan Mahajan, Adv. Revenue By : Ms. Nidhi Sharma, Sr. Dr Date Of Hearing: 29.08.2019 Date Of Pronouncement: 01.10.2019 Order Per Dr. B. R. R. Kumar: The Appeal By The Revenue & The Cross Objection By The Assessee Are Directed Against The Order Of The Ld. Cit(A)-Xx, New Delhi Dated 21.12.2011. 2. Following Grounds Have Been Raised By The Revenue: “1. The Ld. Cit (A) Erred In Law & On The Facts Of The Case In Allowing Working Capital Adjustment To The Assessee While Computing Its Arm’S Length Price 2 Co No. 115/Del/2014 Stanley Electric Engg. India Pvt. Ltd. Margin Even Though The Same Is Not Warranted On The Facts Of The Case & Despite The Assessee Not Even Asking For The Same Before The Tpo. 2. The Ld. Cit (A) Erred In Law & On Facts Of The Case In Rejecting One Of The Four Comparables Namely Sumi Motherson Innovative Engg. Ltd. On The Ground That It Has Very High Related Party Transaction Which Resulted In Relief Of Rs.32,73,326/- To The Assessee.”

…ent of 76.70% of its sales. We also find that the ld. CIT (A) followed the decisions of ITAT Delhi Bench 'C' in the case of Global Logic India Pvt. Ltd. Vs DCIT, Circle 12(1), New Delhi [2011] 12 taxmann.com 295 (Delhi) and Sony India Pvt. Ltd. v. DCIT [2008] 114 ITD 448 (Delhi). Since, the Related Party Transactions are to the extent of 76%, we hereby hold that it would not fit into the selection of objective comparables. Hence, we decline with the order of the ld. CIT (A). 6. In the Cross Objection, the assessee has taken up the issue of TPO making adjustments to the total revenue instead of international tran…

Fujitsu Consulting India P.Ltd, New Delhi vs. ACIT, Circle-9(2), New Delhi

The appeal of the assessee stands allowed for statistical purposes

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaassessment Year: 2014-15 Fujitsu Consulting India P. Ltd., Acit, N-63, Lajpat Nagar-Iv, Circle-9(2), Vs New Delhi- 110024 New Delhi. (Pan: Aaach8894G) Appellant Respondent Assessee By: S/Shri Nageswar Rao, Purushottam Anand, Advocates Department By: Shri Sanjay I. Bara, C.I.T. Dr Date Of Hearing: 15.05.2019 Date Of Pronouncement: 09.08.2019 O R D E R

…d the initial error of billing on the basis budgetary expenditure was necessarily to be corrected by issuance of credit notes. 3.7 The Ld. authorised representative referred to order of the ITAT in the case of Sony India (Private) Limited reported in (2008) 114 ITD 448 wherein it had been held that form and substance of a transaction should be respected as long as there is a written agreement in place. It was submitted that the agreements which were very much in place and were on record had been completely ignored by the lower authorities. Placing reliance on this decision it was submitted that in absence o…

Stmicroelectronics Pvt. Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal is partly allowed as discussed above

Bench: : Shri Bhavnesh Saini & Shri L.P. Sahu

…and accordingly excluded the same from the operating cost. It is submitted that provision for bad debts and advances is a routine expenditure linked to the operations of a company and cannot be regarded as non operating in nature (ref. Sony India Pvt 20 Ltd 114 ITD 448 (Del) (@ pg 603-604) and Suessen Asia Pvt Ltd (ITA No 1629/PUN/2011) (@pg 545-548). In view of the aforesaid, it is submitted that expenditure on account of provision for bad debts and advances ought to be considered as operating expenditure and after including the same in the operating cost of this company, the operating margin reduces to 7% as…

Haldor Topsoe (I) Pvt Ltd, New Delhi vs. DCIT, New Delhi

In the result, the appeal is partly allowed

Bench: Shri Bhavnesh Saini & Shri Anadee Nath Misshra

…) 28 Copy of Nokia India (P.) Ltd. v. DCIT [2018] 91 taxmann.com 288 (Delhi - Trib.) Copy of Finastra Software Solutions (India) (P.) Ltd. v. ACIT [2018] 93 taxmann.com 29 460 (Bangalore - Trib.) Copy of Relevant extract of Sony India (P.) Ltd. v. DCIT [2008] 114 ITD 448 (Delhi 30 Trib.) Copy of Sony Mobile Communications International AB v. DDIT [2016] 69 31 taxmann.com 404 (Delhi - Trib.) 32 Copy of Eli Lily & Co. (India) Ltd. v. ACIT [2018] 98 taxmann.com 380 (Delhi - Trib.) Page 93 of 112 ITA No.-654/Del/2015. Haldor Topsoe India Pvt. Ltd., New Delhi. (5.2) During the appellate proceedings the Assessee als…

Metlife Global Operations Support Center Pvt. Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeal is allowed

Bench: : Shri Bhavnesh Saini & Shri L.P. Sahu

…the written agreement between the assessee and the AE regarding credit period allowed to the AE. In this respect, he drew our kind attention to the decision of the jurisdictional Delhi bench of the Hon’ble ITAT in the case of Sony India Private Limited (2008) 114 ITD 448 wherein it was held that form and substance of a transaction should be respected as long as there is a written agreement in place. In the absence of information to the contrary, the business and commercial substance of a transaction should not be challenged. The relevant extracts of the decision are provided for ready reference as under: "We are,…