Sumitomo Corporation India Pvt.Ltd. v. DCIT

LM WIND POWER AS ,DENMARK vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE INTERNATIONAL TAX 2(2)(1), DELHI

In the result, ground raised by the assessee is allowed

Bench: Shris.Rifaur Rahman & Shri Yogesh Kumar U.S.Lm Wind Power As, Vs, Acit, Circle Juptervej 6, 6000 Kolding, International Tax 2(2)(1), Denmark – 999999. Delhi (Pan :Aabcl8590Q) (Appellant) (Respondent) Assessee By : Shri Ajay Vohra, Sr. Advocate Shri Aditya Vohra, Advocate Shri Arpitgoyal, Ca Revenue By : Shri Saroj Kumar Dubey, Cit Dr Date Of Hearing : 27.08.2025 Date Of Order : 21.11.2025 Order Per S. Rifaur Rahman: 1. This Appealpreferred By The Assessee Is Directed Against The Assessment Order Dated 27.01.2025 Passed By The Acit, Circle Int. Tax 2(2)(1), Delhi Under Section 143(3) R.W.S. 144C(13) Of The Income-Tax Act, 1961 (For Short ‘The Act”) For Assessment Year 2020-21 Pursuant To The Directions Of The Dispute Resolution Panel U/S 144C(5) Of The Act Raising Following Grounds Of Appeal :- “1. That On The Facts & Circumstances Of The Case & In Law, The Assessment Order Dated 29.07.2024 Passed Under Section 143(3) Read With Section 144C(13) Of The Income-Tax Act, 1961 (He Act") For Assessment Year 2020-21 Assessing The Total Income Of The Assessee At Rs.81,14, 14,893 Is Bad In Law, Void- Ab-Initio & Therefore, Liable To Be Quashed And/ Or Set Aside.

…dia-Japan DTAA, held that the said term has to be construed in the sense of something ‘really connected’ and connection has to be seen not in the form but in real substance. The Appeal of the Revenue against the aforesaid decision has been dismissed in [2016] 382 ITR 75 (Del). SLP of the Revenue has also been dismissed by the Supreme Court against the aforesaid decision of Delhi High Court in [2018] 257 Taxman 554 (SC). This Hon’ble Tribunal in the case of CGG Marine SAS vs ADIT: [2015] 153 ITD 470 (Del Trib.) held that for invoking provisions of section 44DA of the Act to tax FTS, it is essential that contract f…

SAMSUNG SDI INDIA PVT LTD.,NOIDA vs. DCIT,CIRCLE-5(2)(1), NOIDA

In the result, appeal of the assessee is partly allowed

Bench: Shri Challa Nagendra Prasad & Shri Manish Agarwal

…considered the Berry Ratio, i.e. Gross Profit/ Value Added Expenses ('GP/VAE') as the Profit Level Indicator ('PLI'). 32. Judicial precedents relied by the Appellant 32.1. In Sumitomo Corporation India (P.) Ltd. v. CIT [2016] 71 taxmann.com 290/242 Тахman 260/387 ITR 611 (Delhi), (refer pg. 1 of CLC) Hon'ble jurisdictional High Court, while considering applicability of Berry Ratio, has observed that it can be used effectively in cases where the value of goods have no role to play in the profit earned by the assessee and the profits earned are directly linked with the operating expenditure incurred by the Assessee…

SAMSUNG SDI INDIA PVT LTD,NOIDA vs. ASSESSMENT UNIT, INCOME-TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE NEW DELHI, NEW DELHI

Bench: Shri Challa Nagendra Prasad & Shri Manish Agarwal

…onsidered the Berry Ratio, i.e. Gross Profit/Value Added Expenses ('GP/VAE') as the Profit Level Indicator ('PLI'). 32. Judicial precedents relied by the Appellant 32. 1. In Sumitomo Corporation India (P.) Ltd. v. CIT [2016] 71 taxmann.com 290/242 Taxman 260/387 ITR 611 (Delhi), (refer pg. 1 of CLC) Hon'ble jurisdictional High Court, while considering applicability of Berry Ratio, has observed that it can be used effectively in cases where the value of goods have no role to play in the profit earned by the assessee and the profits earned are directly linked with the operating expenditure incurred by the Assessee…

TELENOR ASA,NEW DELHI vs. DCIT, NEW DELHI

In the result, the appeal of the assessee is dismissed

Bench: Sh. Kul Bharatdr. B. R. R. Kumar(Through Video Conferencing) Ita No. 1307/Del/2015 : Asstt. Year : 2010-11 Telenor Asa, Vs Dcit, C/O Vaish Associates Advocates, Circle-Gurgaon, Intl. Taxation, 1St Floor, Mohandev Building, 13, New Delhi-110002 Tolstoy Marg, New Delhi-110001 (Appellant) (Respondent) Pan No. Aadct5705F Assessee By : Sh. Ajay Vohra, Sr. Adv. Revenue By : Dr. Prabha Kant, Cit Dr Date Of Hearing: 03.06.2021 Date Of Pronouncement: 12.08.2021

…ties, unless there is commercial coherence between the said activities, the duration test of six months has to be applied with reference to each activity. - Sumitomo Corporation v. DCIT: 114 ITD 61 (Del IT AT) - Para 76 to 80 -affirmed by Delhi High Court in 382 ITR 75 (Delhi), against which Revenue’s SLP has been dismissed by the Supreme Court in 257 Taxman 554 - ADIT v. Krupp Uhde GmbH : (2008) 28 SOT 254 (Del ITAT) - ADIT v. Valentine (Mauritius) Ltd.: 130 TTJ 417 (Mum ITAT) - Valentine Maritime (Gulf) LLC vs. ACIT 45 SOT 359 (Mum ITAT) - DCIT vs. J. Ray McDerrmott Eastern Hemisphere Limited: (2012) 54 SOT 36…

MAKEMYTRIP (INDIA) PVT. LTD.,GURGAON vs. DCIT, NEW DELHI

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

Bench: : Shri Bhavnesh Saini & Shri L.P. Sahuassessment Year: 2006-07

…substantiate the reliance placed on the guidelines issued by the OCED in relation to the" application of transfer pricing methodologies/reliance is placed on the ruling of Hon'ble High Court in case of Sumitomo Corporation India (P.) Ltd. vs. CIT reported in 387 ITR 611 (Delhi), wherein the Delhi bench has placed reliance on the aforesaid guidelines issued by OECD in relation to the application of the berry ratio to benchmark the margins earned by the- taxpayer. The relevant extracts are produced below: [Quote] "44. Subsequently, in 1990, Berry ratio was included as an acceptable PLl in certain circumstances und…

AVERY DENNISON (INDIA) PVT. LTD.,NEW DELHI vs. DCIT, NEW DELHI

In the result the appeal of the assessee with respect to ground No

Bench: Shri Prashant Maharishi & Shri K. Narasimha Charyavery Dennison (India) Pvt. Ltd, Dcit, B-92, 9Th Floor, Himalaya Hs, Circle-3(2), Cr Building, Vs. 23 Kg Marg, Central Delhi, Ip Estate, New Delhi New Delhi Pan: Aaaca6163D (Appellant) (Respondent)

…d for benchmarking. He submitted that the aggregation of the transactions have been made only on the basis of above aspects which is not the correct approach. He further relied on the decision of the Hon’ble Delhi High Court in Sumitomo Corporation versus CIT 387 ITR 611 (Del) to support his contention. 11. We have carefully considered the rival contentions. The identical issue in case of the assessee has been dealt with by the coordinate bench for Assessment Year 2010-11 and 2011-12 wherein, vide order dated 09.09.2016 the coordinate bench has decided this issue as under:- “4. The ld. counsel for the assessee s…

M/S. IVECO SPA,NEW DELHI vs. ADIT, NEW DELHI

In the result, appeal of the assessee for AY 2007-08 is party allowed

Bench: Shri I. C. Sudhir & Shri Prashant Maharishiiveco Spa, Adit, Copia Corporate Suite, Circle-1(2), Plot No.9, Jasola District Vs. International Taxation, Centre, New Delhi New Delhi Pan:Aabci2759L (Appellant) (Respondent) Iveco Spa, Adit, (Now Fiat Gestione Partecipazioni Circle-1(2), Spa), Vs. International Taxation, 301-304, Plot No.9, Copia Corporate New Delhi Suites, Jasola, Dist Center, New Delhi Pan:Aabci2759L (Appellant) (Respondent)

…east, facilitate, assist or aid in performance of such services irrespective of the other activities PE performs. Revenue could not bring any material on record, which proves above facts in substance. Honourable Delhi high court in CIT V Sumitomo Corporation [382 ITR 75] held as under : “27. Article 12(5) of the Double Taxation Avoidance Agreement is on the lines of the OECD Model Convention. It is noticed that the clause in the OECD Model Convention allows the State, where the permanent establishment is located, to "tax only those profits which are economically attributable to the permanent establishment". The…

IVECO SPA,NEW DELHI vs. ADIT, NEW DELHI

In the result, appeal of the assessee for AY 2007-08 is party allowed

Bench: Shri I. C. Sudhir & Shri Prashant Maharishiiveco Spa, Adit, Copia Corporate Suite, Circle-1(2), Plot No.9, Jasola District Vs. International Taxation, Centre, New Delhi New Delhi Pan:Aabci2759L (Appellant) (Respondent) Iveco Spa, Adit, (Now Fiat Gestione Partecipazioni Circle-1(2), Spa), Vs. International Taxation, 301-304, Plot No.9, Copia Corporate New Delhi Suites, Jasola, Dist Center, New Delhi Pan:Aabci2759L (Appellant) (Respondent)

…east, facilitate, assist or aid in performance of such services irrespective of the other activities PE performs. Revenue could not bring any material on record, which proves above facts in substance. Honourable Delhi high court in CIT V Sumitomo Corporation [382 ITR 75] held as under : “27. Article 12(5) of the Double Taxation Avoidance Agreement is on the lines of the OECD Model Convention. It is noticed that the clause in the OECD Model Convention allows the State, where the permanent establishment is located, to "tax only those profits which are economically attributable to the permanent establishment". The…