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“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

Joint Commissioner of Income Tax, Ltu, Bangalore vs. M/S. Texas Instruments (India) Private Limited, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 1447/BANG/2019[2013-14]Status: DisposedITAT Bangalore17 May 2022AY 2013-14

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

Revenue. 17. Ground Nos.4 to 6 raised by the Revenue are with regard to depreciation of Arm’s Length Price (ALP) in respect of international transaction of providing marking support services by the assessee to its AE. The assessee provided marking support services to its AE. There is no doubt ... that the transaction of providing MSS is an international transaction and the arm’s length remuneration received by the assessee for providing such services satisfy the test of ALP as envisaged under section 92 of the Act. Both the assessee and TPO adopted Transaction Net Margin Method (TNMM

Joint Commissioner of Income Tax, Ltu, Bangalore vs. M/S. Texas Instruments (India) Private Limited, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 1446/BANG/2019[2012-13]Status: DisposedITAT Bangalore17 May 2022AY 2012-13

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

Revenue. 17. Ground Nos.4 to 6 raised by the Revenue are with regard to depreciation of Arm’s Length Price (ALP) in respect of international transaction of providing marking support services by the assessee to its AE. The assessee provided marking support services to its AE. There is no doubt ... that the transaction of providing MSS is an international transaction and the arm’s length remuneration received by the assessee for providing such services satisfy the test of ALP as envisaged under section 92 of the Act. Both the assessee and TPO adopted Transaction Net Margin Method (TNMM

M/S. Texas Instruments (India) Private Limited, Bangalore vs. Joint Commissioner of Income Tax, Ltu, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 1076/BANG/2019[2013-14]Status: DisposedITAT Bangalore17 May 2022AY 2013-14

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

Revenue. 17. Ground Nos.4 to 6 raised by the Revenue are with regard to depreciation of Arm’s Length Price (ALP) in respect of international transaction of providing marking support services by the assessee to its AE. The assessee provided marking support services to its AE. There is no doubt ... that the transaction of providing MSS is an international transaction and the arm’s length remuneration received by the assessee for providing such services satisfy the test of ALP as envisaged under section 92 of the Act. Both the assessee and TPO adopted Transaction Net Margin Method (TNMM

M/S. Texas Instruments (India) Private Limited, Bangalore vs. Joint Commissioner of Income Tax, Ltu, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 1075/BANG/2019[2012-13]Status: DisposedITAT Bangalore17 May 2022AY 2012-13

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

Revenue. 17. Ground Nos.4 to 6 raised by the Revenue are with regard to depreciation of Arm’s Length Price (ALP) in respect of international transaction of providing marking support services by the assessee to its AE. The assessee provided marking support services to its AE. There is no doubt ... that the transaction of providing MSS is an international transaction and the arm’s length remuneration received by the assessee for providing such services satisfy the test of ALP as envisaged under section 92 of the Act. Both the assessee and TPO adopted Transaction Net Margin Method (TNMM

Joint Commissioner of Income-Tax(Ltu), Bangalore vs. M/S. Texas Instruments(India) Pvt. Ltd, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 1967/BANG/2018[2010-11]Status: DisposedITAT Bangalore17 May 2022AY 2010-11

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sappeal Nos. & Appellant Respondent Assessment Year Acit (Ltu)

For Appellant: Shri. Sharath Rao, CAFor Respondent: Mrs. Susan D. George, CIT (DR) (ITAT), Bengaluru

Revenue. 17. Ground Nos.4 to 6 raised by the Revenue are with regard to depreciation of Arm’s Length Price (ALP) in respect of international transaction of providing marking support services by the assessee to its AE. The assessee provided marking support services to its AE. There is no doubt ... that the transaction of providing MSS is an international transaction and the arm’s length remuneration received by the assessee for providing such services satisfy the test of ALP as envisaged under section 92 of the Act. Both the assessee and TPO adopted Transaction Net Margin Method (TNMM

M/S Unisys India Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax Circle-7(1)(1), Bangalore

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

ITA 2027/BANG/2017[2010-11]Status: DisposedITAT Bangalore17 May 2022AY 2010-11

Bench: Shri N.V Vasudevan & Ms. Padmavathy Sassessment Year : 2010-11

For Appellant: Shri Dhanesh Bafna, AR & Shri PratikFor Respondent: Shri Srinivasa T Bidari, CIT(DR)
Section 92Section 92(1)Section 92B(1)

Sec.92B(1) of the Act, the transaction of providing IT enabled services (ITES) and Software Development (IT) to its overseas group companies were “international transaction” i.e., a transaction between two or more associated enterprises, either or both of whom are non- residents, in the nature of purchase, sale or lease ... provided to any one or more of such enterprises. In terms of Sec.92(1) of the Act, the any income arising from an international transaction shall be computed having regard to the arm’s length price. In this appeal by the Assessee and the revenue, the dispute is with regard

Deputy Commissioner of Income Tax Circle-7(1)(1), Bangalore vs. M/S Unisys India Pvt Ltd, Bangalore

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

ITA 2024/BANG/2017[2010-11]Status: DisposedITAT Bangalore17 May 2022AY 2010-11

Bench: Shri N.V Vasudevan & Ms. Padmavathy Sassessment Year : 2010-11

For Appellant: Shri Dhanesh Bafna, AR & Shri PratikFor Respondent: Shri Srinivasa T Bidari, CIT(DR)
Section 92Section 92(1)Section 92B(1)

Sec.92B(1) of the Act, the transaction of providing IT enabled services (ITES) and Software Development (IT) to its overseas group companies were “international transaction” i.e., a transaction between two or more associated enterprises, either or both of whom are non- residents, in the nature of purchase, sale or lease ... provided to any one or more of such enterprises. In terms of Sec.92(1) of the Act, the any income arising from an international transaction shall be computed having regard to the arm’s length price. In this appeal by the Assessee and the revenue, the dispute is with regard

DCIT (It)-4(1) (2), Mumbai vs. M/S. Taj Tv. Ltd, Mumbai

The appeals are dismissed

ITA 1718/MUM/2021[2014-15]Status: DisposedITAT Mumbai13 May 2022AY 2014-15

Bench: Shri M. Balaganesh & Shri Kuldip Singh

For Appellant: Shri Madhur Agarwal, A.R. &For Respondent: Shri Rajneesh Yadav, D.R

facts and circumstance of the case and in law, the Ld CIT (A) erred in holding that if the arm's length price of international transactions between the assessee and Taj India has ITA No.1460/M/2021 & ors. 3 M/s. Taj TV Ltd been accepted by the TPO, no further profit ... facts and circumstance of the case and in law, the Ld CIT(A) erred in holding that if the arm's length price of international transactions has been accepted by the TPO, between the assessee and Taj India, no further revenue/profit is attributable to the assessee's PE in India

DCIT (It) -4(1) (2), Mumbai vs. M/S. Taj Tv Ltd, Mumbai

The appeals are dismissed

ITA 1717/MUM/2021[2016-17]Status: DisposedITAT Mumbai13 May 2022AY 2016-17

Bench: Shri M. Balaganesh & Shri Kuldip Singh

For Appellant: Shri Madhur Agarwal, A.R. &For Respondent: Shri Rajneesh Yadav, D.R

facts and circumstance of the case and in law, the Ld CIT (A) erred in holding that if the arm's length price of international transactions between the assessee and Taj India has ITA No.1460/M/2021 & ors. 3 M/s. Taj TV Ltd been accepted by the TPO, no further profit ... facts and circumstance of the case and in law, the Ld CIT(A) erred in holding that if the arm's length price of international transactions has been accepted by the TPO, between the assessee and Taj India, no further revenue/profit is attributable to the assessee's PE in India

Taj Tv Ltd, Mumbai vs. DCIT (International Taxation -4(1) (2), Mumbai

The appeals are dismissed

ITA 1462/MUM/2021[2016-17]Status: DisposedITAT Mumbai13 May 2022AY 2016-17

Bench: Shri M. Balaganesh & Shri Kuldip Singh

For Appellant: Shri Madhur Agarwal, A.R. &For Respondent: Shri Rajneesh Yadav, D.R

facts and circumstance of the case and in law, the Ld CIT (A) erred in holding that if the arm's length price of international transactions between the assessee and Taj India has ITA No.1460/M/2021 & ors. 3 M/s. Taj TV Ltd been accepted by the TPO, no further profit ... facts and circumstance of the case and in law, the Ld CIT(A) erred in holding that if the arm's length price of international transactions has been accepted by the TPO, between the assessee and Taj India, no further revenue/profit is attributable to the assessee's PE in India

Taj Tv Ltd, Mumbai vs. DCIT (International Taxation) -4 (1) (2), Mumbai

The appeals are dismissed

ITA 1461/MUM/2021[2015-16]Status: DisposedITAT Mumbai13 May 2022AY 2015-16

Bench: Shri M. Balaganesh & Shri Kuldip Singh

For Appellant: Shri Madhur Agarwal, A.R. &For Respondent: Shri Rajneesh Yadav, D.R

facts and circumstance of the case and in law, the Ld CIT (A) erred in holding that if the arm's length price of international transactions between the assessee and Taj India has ITA No.1460/M/2021 & ors. 3 M/s. Taj TV Ltd been accepted by the TPO, no further profit ... facts and circumstance of the case and in law, the Ld CIT(A) erred in holding that if the arm's length price of international transactions has been accepted by the TPO, between the assessee and Taj India, no further revenue/profit is attributable to the assessee's PE in India

Taj Tv Ltd, Mauritius vs. DCIT (International Taxation)- 4 (1) (2), Mumbai

The appeals are dismissed

ITA 1460/MUM/2021[2014-15]Status: DisposedITAT Mumbai13 May 2022AY 2014-15

Bench: Shri M. Balaganesh & Shri Kuldip Singh

For Appellant: Shri Madhur Agarwal, A.R. &For Respondent: Shri Rajneesh Yadav, D.R

facts and circumstance of the case and in law, the Ld CIT (A) erred in holding that if the arm's length price of international transactions between the assessee and Taj India has ITA No.1460/M/2021 & ors. 3 M/s. Taj TV Ltd been accepted by the TPO, no further profit ... facts and circumstance of the case and in law, the Ld CIT(A) erred in holding that if the arm's length price of international transactions has been accepted by the TPO, between the assessee and Taj India, no further revenue/profit is attributable to the assessee's PE in India

Shipping Corporation of India Ltd., Mumbai vs. DCIT (Ltu)-Circle, Mumbai

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

ITA 30/MUM/2019[2014-15]Status: DisposedITAT Mumbai13 May 2022AY 2014-15

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Year: 2014-15 The Shipping Corporation Of India Deputy Commissioner Of Limited, Income Tax (L.T.U.)-Circle-2, 245, Shipping House, Madam Cama Vs. 29Th Floor, Centre-2, World Road, Nariman Point, Trade Centre, Cuffe Parade, Mumbai-400021. Mumbai-400006. Pan No. Aaact 1524 F Appellant Respondent

For Appellant: Mr. Vinay Deshmane, ARFor Respondent: Mr. Vijay Shankar, CIT-DR
Section 115JSection 115VSection 143(3)Section 144C(13)Section 253(1)Section 28

income filed by the assessee was selected for scrutiny and statutory notices under the Act were issued and complied with. In view of international transactions carried out by the assessee with its Associated Enterprises (AEs), matter was referred to the Transfer Pricing Officer (Ld. TPO) for determination ... Length Price (ALP) of the international transactions. After getting order of Transfer Pricing Officer, the Ld. Assessing Officer issued a draft assessment order on 20.12.2017 wherein, he following the finding of the Assessing Officer in earlier The Shipping Corporation of India Ltd. 5 years, excluded the reimbursement of over head

Aquity Solutions India Pvt. Ltd. (Earlier Known As Mmodel Global Services Ltd.), Mumbai vs. DCIT - 15 (2)(2), Mumbai

In the result, appeal of the assessee is partly allowed in the terms aforesaid

ITA 1161/MUM/2019[2005-06]Status: DisposedITAT Mumbai13 May 2022AY 2005-06

Bench: Vikas Awasthy & Shri Prashant Maharishi

For Appellant: Ms.Karishma R. Phatarphekar with S/Shri Harsh Shah/ Paras Savla/For Respondent: Ms. Vatsalaa Jha

year the primary reason for rejecting CUP is that the assessee in TP study had adopted TNMM as the most appropriate method to benchmark international transaction with AE. The ld.Counsel for the assessee giving brief history of the assessee submitted that the assessee company was incorporated as wholly owned subsidiary ... have erred in rejecting Comparable Uncontrolled Price ('CUP') method and adopting Transactional Net Margin Method (TNMM') as the most appropriate method to benchmark the international transaction of the Appellant” 12. The issue before us is in narrow compass i.e. Whether CUP can be adopted over TNMM as most appropriate method

Cbay Systems (India) Private Limited, Bangalore vs. ITO, Bangalore

In the result, appeal of the assessee is partly allowed in the terms aforesaid

ITA 1351/BANG/2011[2007-08]Status: DisposedITAT Mumbai13 May 2022AY 2007-08

Bench: Vikas Awasthy & Shri Prashant Maharishi

For Appellant: Ms.Karishma R. Phatarphekar with S/Shri Harsh Shah/ Paras Savla/For Respondent: Ms. Vatsalaa Jha

year the primary reason for rejecting CUP is that the assessee in TP study had adopted TNMM as the most appropriate method to benchmark international transaction with AE. The ld.Counsel for the assessee giving brief history of the assessee submitted that the assessee company was incorporated as wholly owned subsidiary ... have erred in rejecting Comparable Uncontrolled Price ('CUP') method and adopting Transactional Net Margin Method (TNMM') as the most appropriate method to benchmark the international transaction of the Appellant” 12. The issue before us is in narrow compass i.e. Whether CUP can be adopted over TNMM as most appropriate method

M/S Aci Worldwide Solutions Private Ltd., Bangalore vs. The Assistant Commissioner of Income Tax, Circle 1(1)(1), Bangalore

In the result, ground 11 is allowed for statistical purposes

ITA 106/BANG/2022[2017-18]Status: HeardITAT Bangalore13 May 2022AY 2017-18

Bench: Shri George George K, Jm & Shri Laxmi Prasad Sahu, Am It(Tp)A No.106/Bang/2022 : Asst.Year 2017-2018 M/S.Aci Worldwide Solutions The Assistant Commissioner Private Limited Of Income-Tax, Circle 1(1)(1) V. Bangalore. No.9, Salarpuria Cambridge Mall Bangalore – 560 008. Pan : Aaacv7566R. (Appellant) (Respondent) Appellant By : Sri.Narendra Kumar Jain, Advocate Respondent By : Sri.Sumer Singh Meena, Cit-Dr Date Of Pronouncement : 13.05.2022 Date Of Hearing : 12.05.2022 O R D E R Per George George K, Jm : This Appeal At The Instance Of The Assessee Is Directed Against Final Assessment Order Dated 31.01.2011 Passed U/S 143(3) R.W.S. 144C(3) R.W.S. 144B Of The Income-Tax Act. The Relevant Assessment Year Is 2017-2018. 2. The Brief Facts Of The Case Are As Follows: The Assessee Is Engaged In The Business Of Rendering Software Development Services & Sales & Marketing Support Services To Its Associated Enterprises (Aes). The Services Are Provided On Cost Plus Basis. The Assessee Is Also Engaged In Software Distribution Activities. During The Course Of Assessment Proceedings, Reference Was Made To The Tpo To Determine The Arm’S Length Price (Alp) Of International Transactions Undertaken By The Assessee With Its Aes. The 2 It(Tp)A No.106/Bang/2022. M/S.Aci Worldwide Solutions Private Limited. Tpo Vide Order Dated 26.01.2021 U/S 92Ca Of The I.T.Act, Proposed The Following Tp Adjustments:-

For Appellant: Sri.Narendra Kumar Jain, AdvocateFor Respondent: Sri.Sumer Singh Meena, CIT-DR
Section 143(3)Section 92C

software distribution activities. During the course of assessment proceedings, reference was made to the TPO to determine the Arm’s Length Price (ALP) of international transactions undertaken by the assessee with its AEs. The 2 IT(TP)A No.106/Bang/2022. M/s.ACI Worldwide Solutions Private Limited. TPO vide order dated

M/S. Ocwen Financial Solutions Private Limited, Bengaluru vs. Joint Commissioner of Income Tax, Special Range - 5, Bangalore

In the result appeal filed by the assessee stands partly allowed

ITA 2411/BANG/2019[2015-16]Status: DisposedITAT Bangalore13 May 2022AY 2015-16

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 2411/Bang/2019 Assessment Year : 2015-16 M/S. Ocwen Financial Solutions Pvt. Ltd., Pritech Park, Block 12, The Joint Commissioner Unit 2, 5B & 6A Floors, Of Income-Tax, Bellandur Village, Special Range-5, Sarjapur Marathahalli Bangalore. Ring Road, Vs. Bangalore – 560 103. Pan: Aaaco3764E Appellant Respondent : Shri K.R. Vasudevan & Assessee By Ms. Rashmi, Advocates : Dr. Manjunath Karkihalli, Revenue By Cit-Dr Date Of Hearing : 02-03-2022 Date Of Pronouncement : 13-05-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against The Final Assessment Order Dated 24/09/2019 Passed By The Ld.Jcit, Special Range-5, Bangalore Under Section 143 (3) R.W.S 144C (13) Of The Act, For Assessment Year 2015-16 On Following Grounds Of Appeal: “I. Transfer Pricing The Grounds Mentioned Hereinafter Are Without Prejudice To One Another.

For Respondent: Shri K.R. Vasudevan &
Section 133(6)Section 143Section 92C

Honourable Dispute Resolution Panel ("Hon'ble DRP") grossly erred in adjusting the transfer price by INR 14,57,03,780/- with respect to the international transaction rendered by the Appellant under section 92CA of the Income-tax Act, 1961 ("the Act"). 2. The learned AO/ learned ... conducting a fresh comparability analysis by adopting various filters for the purpose of determining the Arm's Length Price (`ALP') of the international transaction. 4. The learned AO/learned TPO/Hon'ble DRP erred in applying the core service income filter of 75% to sales instead of 50%, leading to a narrower

Capgemini India P.Ltd, Bhiwandi vs. DCIT Cir 10(2), Mumbai

In the result ground number 12 of the appeal of the assessee is allowed with above directions

ITA 4727/MUM/2016[2010-11]Status: DisposedITAT Mumbai12 May 2022AY 2010-11

Bench: Shri Vikas Awasthy, Jm & Shri Prashant Maharishi, Am Capgemini India Pvt. Ltd. The Dy. Commissioner Of C/O Kalyaniwalla & Mistry, Income Tax, Army & Navy Bldg, Circle 10(2), 3Rd Floor, R. No. 475, Vs. 148, M.G. Road, Ayakar Bhavan, Fort, M.K. Road, Mumbai-400 001 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaack2632B Appellant By : Shri M M Golvala, Ar Respondent By : Ms. Vatsalaa Jha, Cit Dr Date Of Hearing: 15.02.2022 Date Of Pronouncement : 12.05.2022

For Appellant: Shri M M Golvala, ARFor Respondent: Ms. Vatsalaa Jha, CIT DR
Section 10ASection 1O

Assessee filed its return of income on 7 October 2010 declaring income of ₹113,19,82,875/-. As the assessee has entered into several international transactions, reference was made to the Learned Additional Commissioner of Income-Tax, Transfer Pricing, 1(3), Mumbai (Learned Transfer Pricing Officer/ TPO) for determination ... length price of those transactions. 06. Assessee in form no. 3CEB reported following ten international transactions:- Sr. International Transaction Total value of Method No. transactions A.Y. selected 10-11 1. Receipts for providing software services 20,682,507,653 TNMM 2. Licensing of intellectual Property

Xchanging Solutions Limited, Bangalore vs. The Assistant Commissioner of Income Tax, Circle-7(1)(1), Bangalore

In the result, grounds 20 to 23 are allowed for statistical purposes

ITA 294/BANG/2021[2016-17]Status: DisposedITAT Bangalore12 May 2022AY 2016-17
For Appellant: Sri.Padamchand Kincha, CAFor Respondent: Dr.Manjunath Karkaihalli, CIT-DR
Section 139(1)Section 143(3)Section 144BSection 144C(13)Section 144C(5)Section 40

I.T.Act on 25.11.2016 declaring income of Rs.17,03,54,780. During the relevant financial year, the assessee had entered into international transaction of provision of software development services to AEs as well as 2 IT(TP)A No.294/Bang/20201 M/s.Xchanging Solutions Limited non-AEs. The assessment was selected for scrutiny ... course of assessment proceedings, the matter was referred to the Transfer Pricing Officer (TPO) to determine Arm’s Length Price (ALP) of the international transaction undertaken by the assessee with its AEs. The TPO passed the transfer pricing order dated 30.10.2019 determining the total TP adjustment of Rs.3

Frost & Sullivan (India) P.Ltd, Chennai vs. DCIT (OSD) 8(1), Mumbai

In the result, the appeal filed by the assessee is treated as allowed and the appeal of the revenue is dismissed

ITA 1124/MUM/2014[2009-10]Status: DisposedITAT Mumbai11 May 2022AY 2009-10
Section 143(3)Section 144C(13)Section 36(1)(vii)Section 40

Enterprise (AE). The GIC Division operates as ‘back office support centre’ for its AE providing back office business support services. 4. The assessee benchmarked international transactions separately for CP division and GIC division. The Company claimed before the Transfer Pricing Officer (TPO) that it has adopted CUP method for benchmarking ... division. However, the TPO noticed that transfer pricing study has been done under ‘Transaction net margin’ method only, though it was claimed that that international transactions of CP division was bench marked under CUP method. The TPO rejected transfer pricing study of the assessee and proceeded to determine arms length