Vodafone India Services (P.) Ltd. v. Union of India

368 ITR 1High Court2014#563 most cited

What is Vodafone India Services (P.) Ltd. v. Union of India authority for?

The issue of shares and share premium is a capital account transaction, not an income-generating event, therefore Chapter X (Transfer Pricing) provisions are not attracted to deem notional or hypothetical income from such transactions.

172

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

Vodafone India Services v. UOI · issue of shares · share premium · capital account transaction · transfer pricing · Chapter X applicability · international transaction · notional income · section 92 · section 56(2)(viib)

Also reported as

50 Taxmann.com 300228 Taxmann 25

Sections most often in play

Section 143(3)Section 68Section 147Section 131Section 144C(13)Section 148Section 263Section 144C
Read the full judgment

Issues it is cited on

section 56(1)section 92(1)section 56(2)(viib)dcf methodonus of proofshare capital and share premiumsource of sourcesection 40a(2)(b)disallowance of interest expenditureshare application moneysection 40a(2)section 92b

Judgments citing Vodafone India Services (P.) Ltd. v. Union of India

M/S Tally Solutions Pvt. Ltd., Bangalore vs. ACIT, Bangalore

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

ITA 1364/BANG/2011[2007-08]Status: DisposedITAT Bangalore19 Aug 2016AY 2007-08

Bench: Shri A.K. Garodia & Shri Vijay Pal Rao

For Appellant: Shri Arvind Sonde, Senior CounselFor Respondent: Smt. Neera Malhotra, CIT-II (D.R)
Section 143(3)Section 928Section 92C

…income arising from the transaction the computation of ALP is not mandated under Chapter X of the Act. In support of his contention, he has relied upon the decision of Hon’ble Bombay High Court in the case of Vodafone India Services Pvt. Ltd. Vs. UOI (2014) 368 ITR 1(Bom) and submitted that the Hon'ble High Court has held that income as understood in the Act must arises from an international transaction 15 IT(TP)A No.1364/Bang/2011 Tally Solutions Pvt. Ltd. then only the measure is to be found on application of arm’s length so far Chapter X of the Act is concerned. The computation of ALP does not convert non…

New Delhi Television Ltd., New Delhi vs. ACIT, New Delhi

In the result this ground is allowed for statistical purposes

ITA 2851/DEL/2013[2007-08]Status: DisposedITAT Delhi17 Aug 2016AY 2007-08

Bench: Shri J. Sudhakar Reddy & Ms. Suchitra Kamblea.Y. 2007-08

For Appellant: Sh. C.S.Aggarwal, Sr.Adv. &For Respondent: Sh. Amit Mohan Govil, CIT, D.R
Section 143(3)Section 92C

…al aspect as to whether the transaction in question i.e. share holder activity can be classified as an international transaction itself. For this proposition he relied on the judgement of Hon’ble Mumbai High Court in the case of Vodafone India Services P.Ltd. 368 ITR 1 (Bom) and submitted that advice given prior to incorporation is not an international transaction and hence such activity is outside the ambit of Transfer Pricing provisions. He submitted that, as a parent company, the assessee was performing its obligation of setting up of a Subsidiary. (j) He pointed out that the TPO has not charged any mark up on…

DCIT, New Delhi vs. M/S New Delhi Television Ltd., New Delhi

In the result this ground is allowed for statistical purposes

ITA 2752/DEL/2013[2007-08]Status: DisposedITAT Delhi17 Aug 2016AY 2007-08

Bench: Shri J. Sudhakar Reddy & Ms. Suchitra Kamblea.Y. 2007-08

For Appellant: Sh. C.S.Aggarwal, Sr.Adv. &For Respondent: Sh. Amit Mohan Govil, CIT, D.R
Section 143(3)Section 92C

…al aspect as to whether the transaction in question i.e. share holder activity can be classified as an international transaction itself. For this proposition he relied on the judgement of Hon’ble Mumbai High Court in the case of Vodafone India Services P.Ltd. 368 ITR 1 (Bom) and submitted that advice given prior to incorporation is not an international transaction and hence such activity is outside the ambit of Transfer Pricing provisions. He submitted that, as a parent company, the assessee was performing its obligation of setting up of a Subsidiary. (j) He pointed out that the TPO has not charged any mark up on…

Credit Suisse Business Analystics (India) Private Limited, Mumbai vs. Asstt.CIT- 15(1)(2), Mumbai

ITA 993/MUM/2015[2010-11]Status: DisposedITAT Mumbai05 Aug 2016AY 2010-11
For Appellant: Shri F.V. IraniFor Respondent: Shri Manjunath Swamy-DR
Section 143Section 254(1)Section 56Section 56(1)Section 78

…आयकर अपीलीय अिधकरण, मुंबई “ई” खंडपीठ Income-tax Appellate Tribunal -“E”Bench Mumbai सव"ी राजे"" राजे"",लेखा लेखा सद"य सद"य एवं एवं सी सी. एन एन. "साद "साद,"याियक "याियक सद"य सद"य सव"ी सव"ी सव"ी राजे"" राजे"" लेखा लेखा सद"य सद"य एवं एवं सी सी एन एन "साद "साद "याियक "याियक सद"य सद"य Before S/Shri Rajendra,Accountant Member and C.N. Prasad,Judicial Member वष" /Assessment Years: 2010-11 आयकर अपील अपील संसंसंसं./ITA/993/Mum/2015,िनधा" रण वष" आयकर िनधा"रण आयकर आयकर अपील अपील िनधा" िनधा" रण रण वष" वष" Credit Suisse Business Analysis (India) ACIT, Circle-15(1)(2) Aayakar Bhavan, 4th Floor, Room-403 Pvt. Ltd. Third and Fo…

M/S Instrumentarium Corporation Ltd., Kolkata vs. DDIT (It)-1(1), Kolkata

ITA 1549/KOL/2009[2004-05]Status: DisposedITAT Kolkata15 Jul 2016AY 2004-05

Bench: The Special Bench:

…I.T.A. Nos.1548 and 1549/Kol/2009 Assessment years: 2003-04 and 2004-05 Page 1 of 41 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA SPECIAL BENCH ‘A’, KOLKATA [Coram: Justice D D Sud (President), N V Vasudevan JM and Pramod Kumar AM] I.T.A. Nos.1548 and 1549/Kol/2009 Assessment years: 2003-04 and 2004-05 Instrumentarium Corporation Limited, Finland ………….Appellant PO Box 100, Fl 00031, GE Finland [PAN: AAADCG1535E] Vs. Assistant Director of Income Tax International Taxation I Kolkata ……..…Respondent Appearances by: N Venkatraman alongwith Avra Mazumdar, Prasun Kumar Maiti, Manish Sheth, Rahul Daga, and Nikita Chapp…

M/S. Dlf Hotel Holdings Limited, New Delhi vs. DCIT, New Delhi

ITA 6336/DEL/2012[2008-09]Status: DisposedITAT Delhi30 Jun 2016AY 2008-09

Bench: Smt Diva Singh & Sh.L.P.Sahu

Section 143(3)Section 14ASection 271(1)(c)Section 92C

…submission that it is a matter of record that shares were allotted in accordance with the statutory guidelines. Accordingly relying upon the decision of the ITAT in Soma Textiles & Industries and judgement of the Hon’ble Bombay High Court in Vodafone India 369 ITR 511 (Bomb.) and CBDT circular dated 29.01.2015 it was submitted that addition by way of adjustment towards arm’s length price in the facts of the present case could not have been made. Copies of Page 4 of 46 I.T.A .No.-6336/Del/2012 these decisions and relevant documents placed at Paper Book pages 7 to 17; Paper Book Page-115 and Paper Book Page…

Petrochem Middle East India P.Ltd, Mumbai vs. DCIT 8(2), Mumbai

The appeal of the AO stands dismissed

ITA 2255/MUM/2014[2009-10]Status: DisposedITAT Mumbai27 Apr 2016AY 2009-10
For Appellant: S/Shri Harsh R. Shah, Pratik Poddar &For Respondent: Shri N.k. Chand
Section 143(3)Section 254(1)

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण,मुंबई आयकर अपीलीय अिधकरण मुंबई मुंबई “केकेकेके” खंडपीठ मुंबई खंडपीठ खंडपीठ खंडपीठ Income-tax Appellate Tribunal -“K”Bench Mumbai सव"ी राजे"",लेखा सद"य एवं सी. एन. "साद,"याियक सद"य Before S/Sh.Rajendra,Accountant Member and C.N. Prasad,Judicial Member आयकर अपील अपील संसंसंसं./I.T.A./2255/Mum/2014,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2009-10 आयकर आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" M/s. Petrochem Middle East India Dy. CIT-8(2) Pvt. Ltd.201, “B”Wing Business Aayakar Bhavan, M.K. Road Square,Andheri Kurla Road, Vs. Mumbai-400020. Andheri (E),Mumb…

DCIT 4(3), Mumbai vs. Kotak Securities Ltd, Mumbai

The appeal of the AO stands dismissed

ITA 2096/MUM/2014[2010-11]Status: DisposedITAT Mumbai11 Mar 2016AY 2010-11

Bench: S/Sh.Rajendra & Amit Shuklaआयकर अपील सं./I.T.A./2096/Mum/2014,िनधा"रण वष" /Assessment Year: 2010-11 Dcit-4(3), M/S. Kotak Securities Ltd. 6Th Floor, Room No.649 1St Floor, Bakhtawar,229 Vs. Aayakar Bhavan Nariman Point,Mumbai-400 021. Mumbai-400 020. Pan: Aaack 3436 F (अपीलाथ" /Appellant) (""थ" / Respondent) आयकर अपील सं./I.T.A./1232/Mum/2014,िनधा"रण वष" /Assessment Year: 2010-11 M/S. Kotak Securities Ltd. Vs. Dcit-4(3), Mumbai. Mumbai-400 020. (अपीलाथ" /Appellant) (""थ" / Respondent) Revenue By: Ms. Malathi Sridharan Assessee By: F.V. Irani सुनवाई की तारीख / Date Of Hearing: 09.03.2016 घोषणा की तारीख / Date Of Pronouncement: 11.03.2016 आयकर अिधिनयम,1961 की धारा 254(1)के अ"ग"त आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद" राजे" के अनुसार Per Rajendra, Am- Challenging The Order, Dated 24/01/2014, Of The Cit(A)-8,Mumbai The Assessing Officer (Ao) & The Assessee Have Filed The Cross Appeals For The Year Under Consideration Raising Various Grounds Of Appeals.Assessee-Company,Engaged In The Business Of Share Broking Etc.,Filed Its Return Of Income On 28/09/2010,Declaring Total Income Of Rs.3,96,43,36,790/-. The Ao Completed The Assess -Ment,U/S.143 (3) Of The Act,On 01/03/2013,Determining The Income Of The Assessee At Rs.4,08, 95,72,691/-.

For Appellant: F.V. IraniFor Respondent: Ms. Malathi Sridharan
Section 14Section 143Section 14ASection 254(1)

…आयकर अपीलीय अिधकरण, , , , मुंबई ए खंडपीठ Income-tax Appellate Tribunal -“A”Bench Mumbai सव"ी राजे",लेखा सद" एवं अिमत शु" "ाियक सद" Before S/Sh.Rajendra,Accountant Member and Amit Shukla,Judicial Member आयकर अपील सं./I.T.A./2096/Mum/2014,िनधा"रण वष" /Assessment Year: 2010-11 DCIT-4(3), M/s. Kotak Securities Ltd. 6th Floor, Room No.649 1st Floor, Bakhtawar,229 Vs. Aayakar Bhavan Nariman Point,Mumbai-400 021. Mumbai-400 020. PAN: AAACK 3436 F (अपीलाथ" /Appellant) (""थ" / Respondent) आयकर अपील सं./I.T.A./1232/Mum/2014,िनधा"रण वष" /Assessment Year: 2010-11 M/s. Kotak Securities Ltd. Vs. DCIT-4(3), Mumbai. Mumbai-40…

Kotak Securities Ltd, Mumbai vs. Addl CIT RG 4(3), Mumbai

The appeal of the AO stands dismissed

ITA 1232/MUM/2014[2010-11]Status: DisposedITAT Mumbai11 Mar 2016AY 2010-11

Bench: S/Sh.Rajendra & Amit Shuklaआयकर अपील सं./I.T.A./2096/Mum/2014,िनधा"रण वष" /Assessment Year: 2010-11 Dcit-4(3), M/S. Kotak Securities Ltd. 6Th Floor, Room No.649 1St Floor, Bakhtawar,229 Vs. Aayakar Bhavan Nariman Point,Mumbai-400 021. Mumbai-400 020. Pan: Aaack 3436 F (अपीलाथ" /Appellant) (""थ" / Respondent) आयकर अपील सं./I.T.A./1232/Mum/2014,िनधा"रण वष" /Assessment Year: 2010-11 M/S. Kotak Securities Ltd. Vs. Dcit-4(3), Mumbai. Mumbai-400 020. (अपीलाथ" /Appellant) (""थ" / Respondent) Revenue By: Ms. Malathi Sridharan Assessee By: F.V. Irani सुनवाई की तारीख / Date Of Hearing: 09.03.2016 घोषणा की तारीख / Date Of Pronouncement: 11.03.2016 आयकर अिधिनयम,1961 की धारा 254(1)के अ"ग"त आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद" राजे" के अनुसार Per Rajendra, Am- Challenging The Order, Dated 24/01/2014, Of The Cit(A)-8,Mumbai The Assessing Officer (Ao) & The Assessee Have Filed The Cross Appeals For The Year Under Consideration Raising Various Grounds Of Appeals.Assessee-Company,Engaged In The Business Of Share Broking Etc.,Filed Its Return Of Income On 28/09/2010,Declaring Total Income Of Rs.3,96,43,36,790/-. The Ao Completed The Assess -Ment,U/S.143 (3) Of The Act,On 01/03/2013,Determining The Income Of The Assessee At Rs.4,08, 95,72,691/-.

For Appellant: F.V. IraniFor Respondent: Ms. Malathi Sridharan
Section 14Section 143Section 14ASection 254(1)

…आयकर अपीलीय अिधकरण, , , , मुंबई ए खंडपीठ Income-tax Appellate Tribunal -“A”Bench Mumbai सव"ी राजे",लेखा सद" एवं अिमत शु" "ाियक सद" Before S/Sh.Rajendra,Accountant Member and Amit Shukla,Judicial Member आयकर अपील सं./I.T.A./2096/Mum/2014,िनधा"रण वष" /Assessment Year: 2010-11 DCIT-4(3), M/s. Kotak Securities Ltd. 6th Floor, Room No.649 1st Floor, Bakhtawar,229 Vs. Aayakar Bhavan Nariman Point,Mumbai-400 021. Mumbai-400 020. PAN: AAACK 3436 F (अपीलाथ" /Appellant) (""थ" / Respondent) आयकर अपील सं./I.T.A./1232/Mum/2014,िनधा"रण वष" /Assessment Year: 2010-11 M/s. Kotak Securities Ltd. Vs. DCIT-4(3), Mumbai. Mumbai-40…

Topsgrup Electronics Systems Ltd, Mumbai vs. ITO WD 8(3)(3), Mumbai

In the result, the assessee’s appeal for assessment year 2009-10 is allowed as indicated above

ITA 2115/MUM/2015[2009-10]Status: DisposedITAT Mumbai15 Feb 2016AY 2009-10

Bench: Shri Jason P. Boaz & Shri Amit Shuklam/S. Topsgrup Electronic Systems Income Tax Officer-8(3)(3) Ltd. (Previsously Tops Sequipment Ltd.) Àayakar Bhavan, M.K. Road 5, Royal Palms Golf & Country Club Vs. Mumbai 400020 Aarey Milk Colony, Goregaon (E) Mumbai 400065 Pan - Aaact3291K Appellant Respondent

For Appellant: Shri S.M. LalaFor Respondent: Shri Mukesh Kumar Shah
Section 143(3)Section 92C

…ed that in the case of PMP Auto Components relied on by the learned D.R., the Coordinate Bench did not have the benefit of the judgements of the jurisdictional High Court in the case of Besix Kier Dabhol SA [TS-661-HC-2012 (Bom)], Vodafone Services Pvt. Ltd. (368 ITR 1) (Bom), Coordinate Bench of ITAT, Mumbai judgements in the case of Aegis Limited [TS-342-ITAT-2015 (Mum) -TP], Parle Biscuits Pvt. Ltd. [TS-127-ITAT-2014 (Mum) - TP] and of the ITAT, Hyderabad Bench in the case of Vijay Electrical Ltd (60 SOT 77) (Hyd) and Hill Country Properties Ltd. [48 taxmann.com 94 (Hyd)]. It was also contended that the invest…

DCIT 7(2), Mumbai vs. Solvay Specialities India P. Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 1702/MUM/2014[2009-10]Status: DisposedITAT Mumbai04 Nov 2015AY 2009-10

Bench: Shri D. Karunakara Rao & Shri Lalit Kumar

For Appellant: Shri M.P. Lohia & Shri HemanFor Respondent: Shri N.K. Chand – CIT, DR

…of the TP provisions to the international transactions involving with AEs equity shares, Ld Representatives of both the parties mentioned that this issue is now covered in favour of the assessee by various decisions in the case of Vodafone vs. Union of India (368 ITR 1), dated 10.10.2014. He also referred a Circular of CBDT, Instruction No.2 of 2013, copy of which is placed at page no.225 of the paper book, which contains the advice to the AO to accept the decision of the Hon‟ble Bombay High Court in the case of Vodafone (supra) without further litigation in the matter. Further, on hearing both the parties, we f…

Supergems (I) P.Ltd, Mumbai vs. Asst CIT Cir 5(3), Mumbai

In the result, appeal of the assessee is allowed

ITA 789/MUM/2013[2008-09]Status: DisposedITAT Mumbai28 Oct 2015AY 2008-09

Bench: Shri D. Karunakara Rao & Shri Pawan Singh

For Appellant: Shri F.B. AndhyarujinaFor Respondent: Shri Mahesh Shah
Section 143(3)Section 92

…the appeal, Ld Counsel for the assessee submitted that this is a legal issue and the same stands covered in favour of the assessee by the ratio of the Hon‟ble jurisdictional High Court in the case of Vodafone India Services (P.) Ltd vs. Union of India [2014] (368 ITR 1); Vodafone India Services (P.) Ltd vs. Union of India [2015] (369 ITR 511) and Shell India Markets (P.) Ltd vs. ACIT (2014) 51 taxmann.com 519 (Bombay). The said judgments are relevant the legal proposition that “no income can be benchmarked as per the TP studies that will arise out the share premium transactions which actually falls in the capital…