Whirlpool of India Ltd. v. DCIT

381 ITR 154High Court2016#883 most cited

What is Whirlpool of India Ltd. v. DCIT authority for?

Advertisement, Marketing, and Promotion (AMP) expenditure incurred by an Indian entity directly benefits its own business and cannot be automatically treated as an international transaction for global brand building by associated enterprises without specific statutory provisions or proper analysis.

119

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

Whirlpool of India Ltd. · section 92B · section 92C · section 92F(v) · AMP expenditure · bright line test · international transaction · brand building · transfer pricing adjustment · functional analysis

Sections most often in play

Section 143(3)Section 92BSection 144BSection 234BSection 92CSection 92CA(3)Section 92FSection 10B
Read the full judgment

Issues it is cited on

bright line testsection 92f(v)amp expendituresection 92ffunctional analysissection 92(1)comparable uncontrolled price methodsection 92c(3)cost plus methodprofit split methodsection 92bsection 92b(1)

Judgments citing Whirlpool of India Ltd. v. DCIT

M/S. Motorola Solutions India Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

Appeal of the assessee is partly allowed for statistical purpose

ITA 5797/DEL/2012[2008-09]Status: DisposedITAT Delhi31 Oct 2019AY 2008-09

Bench: Shri N.K. Billaiya & Ms Suchitra Kamble, [Assessment Year: 2008-09]

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

…High Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this, the Hon’ble Delhi High Court expanded the jurisprudence in this regard in cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Hon’ble High Court further held AMP was a function…

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

ITA 1567/DEL/2014[2009-10]Status: DisposedITAT Delhi04 Oct 2019AY 2009-10

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: S/Shri Himanshu Sinha, ShriFor Respondent: Shri H.K. Choudhary, CIT-D.R

…gh Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this the Hon’ble Delhi High Court expanded the jurisprudence in this regard in the cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Court further held AMP was a function and not a tr…

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

ITA 52/DEL/2013[2008-09]Status: DisposedITAT Delhi04 Oct 2019AY 2008-09

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: S/Shri Himanshu Sinha, ShriFor Respondent: Shri H.K. Choudhary, CIT-D.R

…gh Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this the Hon’ble Delhi High Court expanded the jurisprudence in this regard in the cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Court further held AMP was a function and not a tr…

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

ITA 2511/DEL/2018[2011-12]Status: DisposedITAT Delhi04 Oct 2019AY 2011-12

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: S/Shri Himanshu Sinha, ShriFor Respondent: Shri H.K. Choudhary, CIT-D.R

…gh Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this the Hon’ble Delhi High Court expanded the jurisprudence in this regard in the cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Court further held AMP was a function and not a tr…

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

ITA 868/DEL/2016[2011-12]Status: DisposedITAT Delhi04 Oct 2019AY 2011-12

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: S/Shri Himanshu Sinha, ShriFor Respondent: Shri H.K. Choudhary, CIT-D.R

…gh Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this the Hon’ble Delhi High Court expanded the jurisprudence in this regard in the cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Court further held AMP was a function and not a tr…

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

ITA 6741/DEL/2014[2010-11]Status: DisposedITAT Delhi04 Oct 2019AY 2010-11

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: S/Shri Himanshu Sinha, ShriFor Respondent: Shri H.K. Choudhary, CIT-D.R

…gh Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this the Hon’ble Delhi High Court expanded the jurisprudence in this regard in the cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Court further held AMP was a function and not a tr…

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

ITA 3410/DEL/2012[2005-06]Status: DisposedITAT Delhi04 Oct 2019AY 2005-06

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: S/Shri Himanshu Sinha, ShriFor Respondent: Shri H.K. Choudhary, CIT-D.R

…gh Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this the Hon’ble Delhi High Court expanded the jurisprudence in this regard in the cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Court further held AMP was a function and not a tr…

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

ITA 3248/DEL/2012[2005-06]Status: DisposedITAT Delhi04 Oct 2019AY 2005-06

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: S/Shri Himanshu Sinha, ShriFor Respondent: Shri H.K. Choudhary, CIT-D.R

…gh Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this the Hon’ble Delhi High Court expanded the jurisprudence in this regard in the cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Court further held AMP was a function and not a tr…

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

ITA 5315/DEL/2011[2007-08]Status: DisposedITAT Delhi04 Oct 2019AY 2007-08

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: S/Shri Himanshu Sinha, ShriFor Respondent: Shri H.K. Choudhary, CIT-D.R

…gh Court further laid down numerous guidelines and principles to determine the ALP of AMP transaction. Subsequent to this the Hon’ble Delhi High Court expanded the jurisprudence in this regard in the cases of Maruti Suzuki [2016] 381 ITR 117, Whirlpool [2016] 381 ITR 154 and Bausch & Lomb [2016] 381 ITR 227 by holding that existence of an international transaction merely on the ground of excess AMP expenditure cannot be presumed. It has to be shown to be existing based on mutual understanding or arrangement between the assessee and its associated enterprise. The Court further held AMP was a function and not a tr…

Colagate-Palmolive (I) Ltd, Mumbai vs. Addl CIT 10(3), Mumbai

In the result, appeal of the assessee is allowed

ITA 8428/MUM/2010[2006-07]Status: DisposedITAT Mumbai11 Sept 2019AY 2006-07

Bench: Shri G.S. Pannu & Shri Pawan Singhcolgate Palmolive (India) Ltd., Additional Commissioner Of Colgate Research Centre, Income Tax-10(3) Main Street, Vs. Hiranandani, Gardens, Pawai, Mumbai-400076 Pan: Aaacc4309B Appellant Respondent

For Appellant: Sh. Perci J Pardiwala, AdvocateFor Respondent: Shri Anand Mohan (CIT- DR)
Section 14(2)Section 143(3)Section 14ASection 14A(2)Section 254(1)Section 80ISection 92B

…estion of law. Thus, not entertained. 5.5 Similar view has been taken by Hon'ble Delhi High Court in catena of subsequent decisions, few of which are as follows:- (i) Maruti Suzuki India Ltd. v. CIT 2015 64 Taxmnn.com 150 (ii) CIT v. Whirlpool of India Ltd. 381 ITR 154 (iii) Bausch & Lomb Eyecare (India) (P.) Ltd. v. Addl.CIT 381 ITR 237 (iv) Yum Restaurants (India) (P.) Ltd. v. ITO 380 ITR 637 In the above-mentioned decisions, it has categorically been held that in the absence of agreement between the assessee and its AE obliging the assessee to incur AMP expenditure on behalf of its AE, no international tra…

Loreal India P.Ltd, Mumbai vs. DCIT, Circle 7(1)(2), Mumbai

The appeal of the assessee is allowed in terms of our aforesaid observations

ITA 7194/MUM/2017[2013-14]Status: DisposedITAT Mumbai23 Aug 2019AY 2013-14

Bench: Shri M.Balaganesh & Shri Ravish Soodm/S L‘Oreal India Pvt. Ltd. Deputy Commissioner Of A-Wing, 8Th Floor, Income Tax, Circle 7(1)(2), Marathan Futurex, Aayakar Bhavan, Vs. N.M. Joshi Marg, Lower Parel, Maharishi Karve Road, Mumbai – 400013 Mumbai - 400020

For Appellant: Shri Niraj Sheth, A.RFor Respondent: Shri Anand Mohan, CIT D.R
Section 143(3)Section 144C(13)Section 4Section 92Section 92B

…P a g e | 1 ITA No.7194/Mum/2017 AY.2013-14 M/s L’Oreal India Pvt. Ltd. Vs. Deputy Commissioner of Income Tax, Circle 7(1)(2) IN THE INCOME TAX APPELLATE TRIBUNAL “K” Bench, Mumbai Before Shri M.Balaganesh, Accountant Member and Shri Ravish Sood, Judicial Member M/s L‘Oreal India Pvt. Ltd. Deputy Commissioner of A-Wing, 8th Floor, Income Tax, Circle 7(1)(2), Marathan Futurex, Aayakar Bhavan, Vs. N.M. Joshi Marg, Lower Parel, Maharishi Karve Road, Mumbai – 400013 Mumbai - 400020 PAN – AAACL0738K (Appellant) (Respondent) Appellant by: Shri Niraj Sheth, A.R Respondent by: Shri Anand Mohan, CIT D.R Date of Hearin…

M/S. Beam Global Spirits & Wine (India) Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

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

ITA 1604/DEL/2014[2009-10]Status: DisposedITAT Delhi21 Aug 2019AY 2009-10

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2009-10] & [A.Y 2012-13]

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri Sanjay I Bara, CIT-DR
Section 143(3)

…evidence that there exists an international transaction between the assessee and the AE. Needless to mention, that the existence of such a transaction cannot be a matter of inference. 25. The Hon'ble Delhi High Court in case of Whirlpool of India Ltd vs DCIT 381 ITR 154 has held that there should be some tangible evidence on record to demonstrate that there exists an international transaction in relation with incurring of AMP expenses for development of brand owned by the AE. In our considered opinion, in the absence of such demonstration, there is no question of undertaking any benchmarking of AMP expenses. Th…

Beam Global Spirits & Wine India Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

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

ITA 1214/DEL/2017[2012-13]Status: DisposedITAT Delhi21 Aug 2019AY 2012-13

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2009-10] & [A.Y 2012-13]

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri Sanjay I Bara, CIT-DR
Section 143(3)

…evidence that there exists an international transaction between the assessee and the AE. Needless to mention, that the existence of such a transaction cannot be a matter of inference. 25. The Hon'ble Delhi High Court in case of Whirlpool of India Ltd vs DCIT 381 ITR 154 has held that there should be some tangible evidence on record to demonstrate that there exists an international transaction in relation with incurring of AMP expenses for development of brand owned by the AE. In our considered opinion, in the absence of such demonstration, there is no question of undertaking any benchmarking of AMP expenses. Th…

Pernod Ricard India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the recalled matter of the appeal in ITA No

ITA 914/DEL/2015[2011-12]Status: DisposedITAT Delhi10 Jul 2019AY 2011-12

Bench: Shri Amit Shukla & Shri O.P. Kant

Section 144C(13)Section 194HSection 40

…evidence that there exists an international transaction between the assessee and the AE. Needless to mention, that the existence of such a transaction cannot be a matter of inference. 15. The Hon'ble Delhi High Court in case of Whirlpool of India Ltd vs DCIT 381 ITR 154 has held that there should be some tangible evidence on record to demonstrate that there exists an international transaction in relation with incurring of AMP expenses for development of brand owned by the AE. In our considered opinion, in the absence of such demonstration, there is no question of undertaking any benchmarking of AMP expenses. The…

Pernod Ricard India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the recalled matter of the appeal in ITA No

ITA 912/DEL/2015[2009-10]Status: DisposedITAT Delhi10 Jul 2019AY 2009-10

Bench: Shri Amit Shukla & Shri O.P. Kant

Section 144C(13)Section 194HSection 40

…evidence that there exists an international transaction between the assessee and the AE. Needless to mention, that the existence of such a transaction cannot be a matter of inference. 15. The Hon'ble Delhi High Court in case of Whirlpool of India Ltd vs DCIT 381 ITR 154 has held that there should be some tangible evidence on record to demonstrate that there exists an international transaction in relation with incurring of AMP expenses for development of brand owned by the AE. In our considered opinion, in the absence of such demonstration, there is no question of undertaking any benchmarking of AMP expenses. The…

Pernod Ricard India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the recalled matter of the appeal in ITA No

ITA 911/DEL/2015[2008-09]Status: DisposedITAT Delhi10 Jul 2019AY 2008-09

Bench: Shri Amit Shukla & Shri O.P. Kant

Section 144C(13)Section 194HSection 40

…evidence that there exists an international transaction between the assessee and the AE. Needless to mention, that the existence of such a transaction cannot be a matter of inference. 15. The Hon'ble Delhi High Court in case of Whirlpool of India Ltd vs DCIT 381 ITR 154 has held that there should be some tangible evidence on record to demonstrate that there exists an international transaction in relation with incurring of AMP expenses for development of brand owned by the AE. In our considered opinion, in the absence of such demonstration, there is no question of undertaking any benchmarking of AMP expenses. The…

Godrej Cosumer Products Ltd, Mumbai vs. Asst CIT Cir 14(1)(2), Mumbai

Appeal stands dismissed whereas the assessee’s appeal stands partly allowed in terms of our above order

ITA 1102/MUM/2015[2010-11]Status: DisposedITAT Mumbai19 Jun 2019AY 2010-11

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri Farrokh V.Irani- Ld. ARFor Respondent: Shri Anand Mohan-CIT-DR
Section 143(3)Section 144C(5)Section 32

…Chapter-X of the Act as laid down in decisions of this Tribunal in Johnson & Johnson Pvt. Ltd. [ITA No.6142/Mum/2017], Hon’ble Delhi High Court in Maruti Suzuki India Ltd. [381 ITR 117], Honda Siel Power products Ltd. [283 CTR 322] & Whirlpool of India Ltd. [381 ITR 154]. It has been submitted there is no sanction to application of Bright Line Test on the basis of presumed / M/s Godrej Consumer Products Ltd. Assessment Year : 2010-11 alleged benefits to the Associated Enterprises [AE]. Our attention is further drawn to the fact that assessee company was joint venture between Godrej Group and Sara Lee Group in t…

M/S Bmw India Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

In the result ground number 7 – 12 of the appeal of the assessee are allowed accordingly

ITA 1163/DEL/2017[2012-13]Status: DisposedITAT Delhi14 Jun 2019AY 2012-13

Bench: Shri Kuldip Singh & Shri Prashant Maharishibmw India Pvt. Ltd, Vs. Dcit, 7Th Floor, Tower-B, Building No. Circle-1(1), 8, Gurgaon Gurgaon Pan: Aabcb7104C (Appellant) (Respondent)

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri H. K. Choudhary, CIT DR
Section 143Section 144CSection 92BSection 92p

…there exists an international transaction between the assessee and the AE. Needless to mention, that 16 | P a g e the existence of such a transaction cannot be a matter of inference. 34. The Hon'ble Delhi High Court in case of Whirlpool of India Ltd vs DCIT 381 ITR 154 has held that there should be some tangible evidence on record to demonstrate that there exists an international transaction in relation with incurring of AMP expenses for development of brand owned by the AE. In our considered opinion, in the absence of such demonstration, there is no question of undertaking any benchmarking of AMP expenses. The…

Zimmer India Private Ltd, Gurgaon vs. DCIT, Gurgaon

The appeal of the assessee are dismissed

ITA 6804/DEL/2015[2011-12]Status: DisposedITAT Delhi14 Jun 2019AY 2011-12

Bench: Shri Kuldip Singh & Shri Prashant Maharishizimmer India Private Ltd, Dcit, Vs. 14Th Floor, Tower-B, Dlf Circle-4(1), Building No. 05, Cyber City, Gurgaon Phase-Iii, Gurgaon Pan: Aaecs7432H (Appellant) (Respondent)

For Appellant: Shri Manoneet Dalal, AdvFor Respondent: Shri H. K. Choudhary, CIT DR
Section 143(3)Section 144C(13)Section 92Section 92C

…al transaction in so far as AMP spend is concerned. In support of his contention, the ld. AR relied upon the decision of the Hon'ble High Court of Delhi in the case of Maruti Suzuki India Ltd 381 ITR 117 = 2015-TII-58-HC-DEL-TP, Whirlpool of India Ltd vs DCIT 381 ITR 154 = 2015-TII-62-HC-DEL-TP, Bausch & Lomb Eye Care [India] Pvt Ltd TA No. 643/2014 and 675/2014 = 2015-TII-65-HC-DEL-TP, Valvoline Cummins Pvt Ltd TA No. 158/2016 = 2017-TII-57-HC-DEL-TP and Mary Kay Cosmetic Pvt. Ltd in ITA No. 1010/2018 = 2018-TII-256-HC-DEL- TP. Hon'ble High Court of Delhi in these cases have categorically held that the onus is o…

M/S. Acer India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, both the appeals of the assessee are partly allowed

ITA 502/BANG/2017[2012-13]Status: DisposedITAT Bangalore10 May 2019AY 2012-13

Bench: Shri B.R Baskaran & Shri Pavan Kumar Gadale

For Appellant: Shri Ajay Vohra, Sr. Advocate & Shri Niranjan, AdvocateFor Respondent: Dr. Pradeep Kumar, CIT (DR)
Section 143(3)Section 144C(13)Section 153Section 234BSection 271(1)(c)Section 40

…)A Nos.502 & 2837/Bang/2017 Page 32 of 45 transaction between the assessee and the AE. Needless to mention, that the existence of such a transaction cannot be a matter of inference. 15. The Hon'ble Delhi High Court in case of Whirlpool of India Ltd vs DCIT 381 ITR 154 has held that there should be some tangible evidence on record to demonstrate that there exists an international transaction in relation with incurring of AMP expenses for development of brand owned by the AE. In our considered opinion, in the absence of such demonstration, there is no question of undertaking any benchmarking of AMP expenses. The…