“international transaction”

Transfer PricingSection 92BSection 92B3,408 judgments

The decision most relied on for international transaction is Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT (374 ITR 118), cited in 499 judgments on BharatTax.

Leading authorities on international transaction

Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT

374 ITR 118 · 2015 · High Court

499

citing judgments

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.

CIT v. EKL Appliances Ltd.

345 ITR 241 · 2012 · High Court

422

citing judgments

Transfer pricing adjustments for outstanding receivables are permissible only if the Tax Officer establishes, through analysis over a period, a pattern indicating an international transaction intended to benefit an associated enterprise. The Tax Officer cannot question purely business decisions like royalty payments or exceed jurisdiction by applying cost-benefit analysis to determine the arm's length price of services.

India Vs. Azadi Bachao Andolan 263 ITR 706 (SC); and Vodafone International Holdings B.V v. Union of India

341 ITR 1 · 2012 · Supreme Court

295

citing judgments

Legitimate tax planning is permissible, allowing taxpayers to arrange their affairs to minimize tax liabilities while respecting the "look at test" for transaction genuineness and the separate entity principle in corporate taxation. The source of funds for treaty-beneficial structures does not automatically invalidate the transaction.

Maruti Suzuki India Ltd. v. CIT

381 ITR 117 · 2016 · High Court

220

citing judgments

The Bright Line Test (BLT) is not a recognized method under the Income-tax Act and Rules for benchmarking advertising, marketing, and promotion (AMP) expenses or for determining the existence of an international transaction or its Arm's Length Price. The Revenue must first establish the existence and price of an international transaction before seeking an ALP adjustment.

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

368 ITR 1 · 2014 · High Court

172

citing judgments

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.

Sir Kikabhai Premchand v. CIT

24 ITR 506 · 1953 · Supreme Court

156

citing judgments

One cannot make a taxable profit or loss from transactions with oneself, as profit only arises from dealings with external third parties, even when transferring assets between different accounts or divisions of the same entity.

PCIT v. Redington (India) Ltd.

430 ITR 298 · 2021 · High Court

132

citing judgments

A corporate guarantee issued to Associated Enterprises (AEs) is an international transaction under Section 92B, requiring adjustments for guarantee commission due to inherent risk. The reasonable arm's length rate for benchmarking such corporate guarantees can be determined using internal or external comparable uncontrolled prices.

Bausch & Lomb Eye Care (India) Pvt. Ltd. v. Additional CIT

381 ITR 227 · 2016 · High Court

127

citing judgments

The existence of an international transaction must be established before its arm's length price can be determined. An alleged 'excessive' AMP expenditure cannot unilaterally expand the scope of an international transaction if its existence is contested.

Judgments citing international transaction

Ahlstrom Fiber Composites (I) P. Ltd., Mundra (Kutch) vs. The Asstt. Commr. of Income Tax, Gandhidham Circle, Gandhidham

In the result, the appeals of the assessee are allowed for statistical purposes

ITA 85/RJT/2017[2012-13]Status: DisposedITAT Rajkot04 Aug 2023AY 2012-13

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyalit(Tp)A No.85& 287/Rjt/2017 Assessment Year :2012-13 & 2013-14

For Appellant: Shri S.N. Soparkar, ld.ARFor Respondent: Shri Shramdeep Sinha, ld.CIT-DR

Section 143(3)Section 144C(13)Section 92C

No.97/RJT/2016 Asst.Year 2011-12 4. Ground no.1 raised by the assessee reads as under: “Ground No. i: Transfer Pricing adjustment in relation to international transaction of sales to Associated Enterprises 1.1. On the facts and in the circumstances of the case and in law, the Learned Income-tax Officer, Deputy ... directions of Honourable Dispute Resolution Panel ('Hon'ble DRP'), erred in making an upward adjustment of Rs.15,83,20,738/- in relation to the international transaction of sales to Associated Enterprises ('AEs'). 1.2. On the facts and in the circumstances of the case

Ahlstrom Fiber Composites (I) P. Ltd., Mundra (Kutch) vs. The Asstt. Commr. of Income Tax, Gandhidham Circle, Gandhidham

In the result, the appeals of the assessee are allowed for statistical purposes

ITA 287/RJT/2017[2013-14]Status: DisposedITAT Rajkot04 Aug 2023AY 2013-14

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyalit(Tp)A No.85& 287/Rjt/2017 Assessment Year :2012-13 & 2013-14

For Appellant: Shri S.N. Soparkar, ld.ARFor Respondent: Shri Shramdeep Sinha, ld.CIT-DR

Section 143(3)Section 144C(13)Section 92C

Ahlstrom Fibercomposites India Pvt. Ltd., Mundra (Kutch) vs. The Dy. Commr. of Income Tax, Gandhidham Circle, Gandhidham

In the result, the appeals of the assessee are allowed for statistical purposes

ITA 97/RJT/2016[2011-12]Status: DisposedITAT Rajkot04 Aug 2023AY 2011-12

Bench: Smt.Annapurna Gupta & Shri Siddhartha Nautiyalit(Tp)A No.85& 287/Rjt/2017 Assessment Year :2012-13 & 2013-14

For Appellant: Shri S.N. Soparkar, ld.ARFor Respondent: Shri Shramdeep Sinha, ld.CIT-DR

Section 143(3)Section 144C(13)Section 92C

Egis International S.A., New Delhi vs. ACIT, Circle-Int. Tax 1(2)(2), New Delhi

In the result, the appeal of the assessee is treated as allowed for statistical purposes

ITA 1663/DEL/2021[2016-17]Status: DisposedITAT Delhi03 Aug 2023AY 2016-17

Bench: Shri M. Balaganesh & Ms. Astha Chandraasstt. Year: 2016-17 Egis International S.A. Vs. Acit T-305, Tf, Circle-1Nt. Tax 1(2)(2) Tirupati Plaza, New Delhi. Sector-11 (Mlu), Pocket 4, Plot No. 11 Dwarka, New Delhi – 110 075. Pan Aabcb7760L (Appellant) (Respondent)

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Shri Manu Chaurasia, Sr. DR

Section 92C(3)

AO/Ld. TPOL CITIA) grossly erred on facts and in saw by not computing the quant of transfer pricing addition on the value of international transaction, which stood at INR 27,29.08,356. 8. The Ld. AO/Ld. TPO/ Ld CIT(A) grossly erred on facts and in law by not appreciating ... erred on the facts and law by imputing interest on the outstanding receivables without appreciating the fact that outstanding receivable is not a separate international transaction and resulting from primary international transactions 12. The Ld AO/ Ld TPO/ Ld CIT(A) erred in on the facts and law by treating

Bridge India Fund, New Delhi vs. ACIT (Int Tax) Circle-1(3)(2), Mumbai

In the result ITA number 457/M/2023 for assessment year 2014 – 15 is partly allowed for statistical purposes

ITA 458/MUM/2023[2015-16]Status: DisposedITAT Mumbai01 Aug 2023AY 2015-16

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm

For Appellant: Shri S. Krishnan, ARFor Respondent: Shri Soumendu Kumar Das, DR

Section 142(1)Section 144Section 147

facts, submission in detail, synopsis of ITA Nos. 457 & 458/Mum/2023 Bridge India Fund; A.Ys. 14-15 & 15-16 the submission in brief, table containing international transaction and if the matter is covered in the case of the assessee then the soft copy of such order along with the power

Bridge India Fund, New Delhi vs. ACIT (Int Tax) Circle-1(3)(2), Mumbai

In the result ITA number 457/M/2023 for assessment year 2014 – 15 is partly allowed for statistical purposes

ITA 457/MUM/2023[2014-15]Status: DisposedITAT Mumbai01 Aug 2023AY 2014-15

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm

For Appellant: Shri S. Krishnan, ARFor Respondent: Shri Soumendu Kumar Das, DR

Section 142(1)Section 144Section 147

Thermo Fisher Scientific India Pvt Ltd., Mumbai vs. DCIT-15(3)(1), Mumbai

In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes

ITA 769/MUM/2023[2009-10]Status: DisposedITAT Mumbai31 Jul 2023AY 2009-10

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2009-10 Thermo Fisher Scientific India Dy. Cit-15(3)(1), Pvt. Ltd., Room No. 360, Aayakar Vs. 403-404, ‘B’ Wing, Delphi, Bhavan, New Marine Lines, Hiranandani Business Park, Mumbai-400020. Mumbai-400076. Pan No. Aabct 3207 A Appellant Respondent

For Appellant: Mr. Niraj ShethFor Respondent: Mr. Mudit Nagpal, CIT-DR

Section 43(1)

short ‘ The Act’) were tax Act, 1961( In short ‘ The Act’) were issued and complied with issued and complied with. In view of the international transactions . In view of the international transactions carried out by the assessee with its Associated E assessee with its Associated Enterprises nterprises (AEs), the Assessing ... Assessing Officer referred the matter of determination of the Assessing Officer referred the matter of determination of length price of those international transactions to the learned price of those international transactions to the learned price of those international transactions to the learned transfer pricing officer (TPO). The learned TPO proposed

Fedex Express International B.V., Mumbai vs. ACIT( International Taxation)-2(3)(1), Mumbai

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

ITA 2464/MUM/2022[2018-19]Status: DisposedITAT Mumbai31 Jul 2023AY 2018-19

Section 143(3)Section 244ASection 9(1)(i)

made a reference to the TP Officer under Section 92CA of the Act, for determining the arms length price of the international transactions undertaken by the assessee, which included the transactions between the assessee and its alleged PEs in India. In light of the above, the ld. TP Officer passed ... order dated 22.07.2021, under section 92CA (3) of the Act, without making any adjustments in respect of the assessee's international transactions with the Indian AES. 14. However, the AO concluded the assessment, alleging that the assessee has a business connection under section

Fedex Express International B.V., Mumbai vs. ACIT( International Taxation)-2(3)(1), Mumbai

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

ITA 2463/MUM/2022[2019-20]Status: DisposedITAT Mumbai31 Jul 2023AY 2019-20

Section 143(3)Section 244ASection 9(1)(i)

Solvay Specialities India Pvt. Ltd.(Successor to Erstwhile Rhodia Specialty Chemicals India Pvt. Ltd.), Mumbai vs. NFAC, Delhi

In the result, the appeal of the assessee is treated as allowed for statistical purposes

ITA 2430/MUM/2022[2018-19]Status: DisposedITAT Mumbai31 Jul 2023AY 2018-19

Bench: Shri B.R. Baskaran (Am) & Smt. Kavitha Rajagopal (Jm)

Section 143(3)Section 244ASection 40

evidences. According to Ld A.R, the consideration of the audited segmental results would have major impact in determining the Arms Length Price of the International Transactions. Accordingly, in order to render proper justice, we are of the view that the additional evidences need to be admitted. Accordingly, we admit ... additional evidences. 6. Since these additional evidences are said to have impact on ALP of international transactions, we are of the view that they require examination at the end of AO/TPO. Accordingly, we restore the issue relating to Transfer pricing adjustment to the file of AO/TPO for examining it afresh

Pr. CIT-9, Mumbai vs. E-Clinical Works India Pvt Ltd, Mumbai

In the result, appeal of the Revenue is partly allowed

ITA 4106/MUM/2019[2014-15]Status: DisposedITAT Mumbai31 Jul 2023AY 2014-15

Bench: Us, Ld. Counsel For The Assessee At The Outset Submitted That Even If One Comparable, I.E., M/S. Mps Limited Is Excluded, Then Other Two Comparables Even If They Are Not To Be Included Will Become Purely Academic Because Assessee Would Be Within The Arm’S Length Price.

Section 143(3)

risk is concerned is a very limited risk back office service provider rendering software support, call centre and ITES to its AEs. The international transaction entered with its AE was purely in respect of provision of IT enabled services of Rs.120,42,18,944/-. The assessee 9 E-Clinical Works

DCIT, Circle-9(1), New Delhi vs. Fabindia Overseas Pvt. Ltd., New Delhi

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

ITA 8288/DEL/2019[2013-14]Status: DisposedITAT Delhi31 Jul 2023AY 2013-14

Bench: Sh. Kul Bharatdr. B. R. R. Kumar

For Appellant: Sh. Rajan Bhatia, Adv. &For Respondent: Sh. Mrinal Kumar Das, Sr. DR

Section 197ASection 234CSection 32Section 40Section 48

investment in deferred shares of Fabindia Oveerseas Pvt. Ltd. East Limited, United Kingdom for Rs. 1,376,235 and reported the same as an international transaction in Annexure 3 of Form 3CEB. The TPO pointed out that though it was reported in Form 3CEB that "other method" was used ... contentions of the appellant regarding transfer pricing adjustment made by the TPO/AO are not accepted. The appellant has itself shown the transaction as an international transaction in Form 3CEB but has not benchmarked the same. It has not placed any valuation report of the deferred shares. The deferred shares carried

Fabindia Overseas Pvt. Ltd., New Delhi vs. Joint CIT Special Range-3, New Delhi

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

ITA 7980/DEL/2019[2013-14]Status: DisposedITAT Delhi31 Jul 2023AY 2013-14

Bench: Sh. Kul Bharatdr. B. R. R. Kumar

For Appellant: Sh. Rajan Bhatia, Adv. &For Respondent: Sh. Mrinal Kumar Das, Sr. DR

Section 197ASection 234CSection 32Section 40Section 48

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

dated 28.01.2021. 6. A reference u/s 92CA(1) of the Act was made by the ld. AO to the ld. TPO to benchmark the international transactions carried out by the assessee. The complete details of the international transactions carried out by the assessee as reflected in Form No.3CEB were fully ... observed that the assessee had incurred AMP expenses to the tune of Rs.108,55,75,662/- which was not reflected as an international transaction by the assessee in the transfer pricing study report as well as in Form No.3CEB. The ld. TPO held that this AMP expense was incurred

Income Tax Officer Ward - 1(1)(1), Surat vs. V R Surat Pvt. Ltd. Formerly Known As M/S Dhanlaxmi Infrastructure Pvt. Ltd., Surat

In the result, cross objection filed by the assessee (in CO

ITA 329/SRT/2022[2015-16]Status: DisposedITAT Surat27 Jul 2023AY 2015-16

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.329/Srt/2022 Assessment Year: (2015-16) (Physical Hearing) Income Tax Officer, Ward- Vs. V R Surat Pvt. Ltd. 1(1)(1), Surat, Room No.111, 1St (Formerly Known As M/S. Floor, Aayakar Bhawan, Majura Dhanlaxmi Infrastructure Pvt. Gate, Surat-395001 Ltd.,).F. No.29, Virtuous Retail, Surat Dumas, Nr. Dumas Resort, Magdalla, Surat– 395007 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaccd5578R (Assessee) (Respondent) ""या"ेप. सं./Co No.16/Srt/2022 [Arising Out Of Ita No.329/Srt/2022] Assessment Year: (2015-16)

Section 14Section 143(3)

crore to its Singapore AE. A reference u/s 92CA(1) of the Act for the computation of Arm's length price in relation to International Transactions was made with the prior approval of Pr. CIT-1, Ahmedabad to the Addl. Commissioner of Income Tax, Transfer Pricing Officer, Ahmedabad ... duly served on the assessee. The TPO, had vide his order dated 30.10.2018 quantified an upward adjustment at Rs.2,81,77,494/- on the international transactions entered into by the assessee. That is, an upward adjustment was made by TPO/assessing officer to the income shown by the assessee of Rs.2

Wns Global Services Private Limited, Mumbai vs. Assistant Comm. of Income Tax -14(1)(2), Mumbai

ITA 2451/MUM/2022[2017-18]Status: DisposedITAT Mumbai26 Jul 2023AY 2017-18

Bench: Vikas Awasthy () & Ms. Padmavathy S. ()

Section 143(1)Section 143(3)Section 14ASection 234CSection 43BSection 92C

case has been selected for scrutiny under CASS and the statutory notices were duly served on the assessee. Since the assessee had certain international transactions, a reference was made to 3 ITA 2450 & 2451/Mum/2022 WNS Global Services Pvt Ltd the Transfer Pricing Officer (TPO) in order to determine ... length price of the international transaction entered into by the assessee with its Associated Enterprises (AEs). The TPO vide order dated 29.01.2021 passed under section 92CA(3) made the following adjustments:- 1. Depreciation on business rights - Rs. 10,20,00,702/- 2. Interest on deemed loan

Wns Global Services Private Limited, Mumbai vs. Assistant Comm. of Income Tax-14(1)(2), Mumbai

ITA 2450/MUM/2022[208-2019]Status: DisposedITAT Mumbai26 Jul 2023

Bench: Vikas Awasthy () & Ms. Padmavathy S. ()

Section 143(1)Section 143(3)Section 14ASection 234CSection 43BSection 92C

Franklin Wardcorpp India Pvt. Ltd., Mumbai vs. Addll./Jt/ACIT, NFAC, Delhi

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 2487/MUM/2021[2017-18]Status: DisposedITAT Mumbai26 Jul 2023AY 2017-18

Bench: Shri Prashant Maharishi, Am & Ms Kavitha Rajagopal, Jm

For Appellant: Shri Ashok Rao &For Respondent: Ms. Vranda U. Matkari, DR

Section 143(3)Section 144BSection 144C(13)

respect to the Arm’s Length Price ITA No.1279/MUM/2021 & ITA No. 2487/MUM/2021 Franklin Wardcorpp India Private Limited.; A.Y. 2016-17, 2017-18 of the international transaction for purchase of components from its Associated Enterprises. 02. The assessee has raised following grounds of appeal:- “1. On the facts ... truck equipment for transportation of fuel from storage tank depot of oil companies in India to various retail outlets. The assessee has entered into international transaction for purchase of spares of ₹24,63,399/- and purchase of bottom loading tank truck fitting of ₹ 5,89,74,155/- from its Associated

Franklin Wardcorpp India P. Ltd., Mumbai vs. Addl/Jt/Dy/DIT/Asstt/ITO, National E-Assessment Centre, Delhi

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 1279/MUM/2021[2016-17]Status: DisposedITAT Mumbai26 Jul 2023AY 2016-17

Bench: Shri Prashant Maharishi, Am & Ms Kavitha Rajagopal, Jm

For Appellant: Shri Ashok Rao &For Respondent: Ms. Vranda U. Matkari, DR

Section 143(3)Section 144BSection 144C(13)

Sas Institute (India) P. Ltd, Mumbai vs. DCIT Cir 3(3), Mumbai

In the result, the appeal of the assessee is allowed for statistical purposes with above directions

ITA 1567/MUM/2014[2009-10]Status: DisposedITAT Mumbai26 Jul 2023AY 2009-10

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm Dy. Commissioner Of Income- M/S Sas Institute (India) Private Tax, Circle 3(3) Limited Apeejay House, 3 Rd Floor, Aaykar Bhavan, Vs. 3, Dinshaw Wachha Road, Maharshi Karve Road, Mumbai-400 020 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaecs3149K Assessee By : Shri M.P. Lohia, Ar Revenue By : Ms. Vranda U.Matkari, Dr Date Of Hearing: 28.04.2023 Date Of Pronouncement : 26.07.2023

For Appellant: Shri M.P. Lohia, ARFor Respondent: Ms. Vranda U.Matkari, DR

Section 140Section 143(3)Section 144CSection 144C(13)Section 144C(5)

appeal pertaining to transfer pricing adjustment; 1. Inappropriate transfer pricing adjustment amounting to Rs 14,67,22,782 even though the pricing of all international transactions of the Appellant was at arm's length. Erred in making confirming the transfer pricing adjustment to the international transactions of the Appellant pertaining ... software licensing revenue segment Le royalty and software licensing revenue sharing transactions and concluding that the value of the said international transactions is not at arm's length 2. Inappropriate nun acceptance of the approach and analysis provided by the Appellant in transfer pricing study report Erred by not accepting