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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

M/S. Vee Technologies Private Limited, Bengaluru vs. The Income Tax Officer, Ward- 7(1)(2), Bengaluru

In the result, appeal of the assessee is partly allowed

ITA 2042/BANG/2019[2014-15]Status: DisposedITAT Bangalore07 Mar 2022AY 2014-15

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year : 2014-15 M/S. Vee Technologies Pvt. Ltd., Vs. The Principal Commissioner Of Income Tax, No.71, Sona Towers, Millers Road, Bengaluru – 7, Bengaluru – 560 052. Bengaluru. Pan : Aabcv 0100 C Appellant Respondent It(Tp)A No.2042/Bang/2019 Assessment Year : 2014-15 M/S. Vee Technologies Pvt. Ltd., Vs. Ito, No.71, Sona Towers, Millers Road, Ward – 7[1][2], Bengaluru – 560 052. Bengaluru. Pan : Aabcv 0100 C Appellant Respondent Appellant By : Shri. Suresh Muthukrishna, Ca Respondent By : Shri. Sumer Singh Meena, Cit(Dr)(Itat), Bengaluru Date Of Hearing : 02.03.2022 Date Of Pronouncement : 07.03.2022 O R D E R Per N. V. Vasudevan:

For Appellant: Shri. Suresh Muthukrishna, CAFor Respondent: Shri. Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 10BSection 143(3)Section 263Section 92C

reference to the Transfer Pricing Officer (TPO) u/s.92CA of the Act, for determination of Arm’s Length Price (ALP) in respect of an international transaction of rendering back-office services by the assessee to its Associated Enterprise (AE). The approval for reference to the TPO was accorded by the Office ... also had transactions in ITeS with unrelated parties. The breakup of the services of income from related parties and unrelated parties is as follows: International transaction Basis of Domastic Total Related Praties Others Allocation Transactions Particulars Revenue from Operations(Gross

Altran Technologies India Pvt Ltd, Bengaluru vs. Deputy Commissioner of Income Tax, Circle-1(1)(1), Bengaluru

In the result the appeal filed by assessee stands partly allowed

ITA 2904/BANG/2017[2013-14]Status: DisposedITAT Bangalore07 Mar 2022AY 2013-14

Bench: Shri. B.R. Baskaran & Smt. Beena Pillaiit(Tp)A No. 2904/Bang/2017 Assessment Year : 2013-14 M/S. Altran Technologies India Pvt. Ltd., C/O Ernst & Young Llp, The Deputy Ground & 1St Floor, Commissioner Of Income ‘A’ Wing, Divyasree Chambers, Tax, Vs. #11, O’ Shaughnessy Road, Circle – 1 (1)(1), Langford Gardens, Bangalore. Bangalore – 560 025. Pan: Aaaca7125R Appellant Respondent Assessee By : Shri Nageswar Rao, Advocate Revenue By : Shri Pradeep Kumar, Cit-Dr Date Of Hearing : 27-12-2021 Date Of Pronouncement : 07-03-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against The Final Assessment Order Dated 31/10/2017 Passed By The Ld.Dcit, Circle – 1(1)(1), Bangalore For Assessment Year 2013-14 On Following Grounds Of Appeal: “Based On The Facts & Circumstances Of The Case & In Law, Altran Technologies India Private Limited (The 'Appellant') Respectfully Craves Leave To Prefer An Appeal Against The Order Passed By The Learned Assessing Officer (Hereinafter Referred To As The 'Id. Ao') Under Section 143(3) Read With Section 144C Of The Income-Tax Act, 1961 (The 'Act') Pursuant To The Directions Issued By The Hon'Ble Dispute Resolution Panel (`Drp') On The Following Grounds:

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Shri Pradeep Kumar, CIT-DR
Section 133(6)Section 143(3)Section 144C

have erred, in law and in facts, by rejecting the transfer pricing (`TP') documentation maintained by the Appellant in relation to the international transaction of provision of engineering consulting/ design services and by not accepting the economic analysis based on the comparable uncontrolled price (`CUP') method undertaken by the Appellant ... Appellant's contention that the CUP method adopted by the Appellant in its TP documentation is the most appropriate method to benchmark its international transaction of provision of engineering consulting/ design services to AEs, the Id. AO/ TPO/ DRP have erred in their manner of applying the TNMM in determining

Amicrop Management India Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax Circle-1(1)(2), Bangalore

In the result appeals filed by assessee for assessment years

ITA 2171/BANG/2017[2013-14]Status: DisposedITAT Bangalore07 Mar 2022AY 2013-14

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 210/Bang/2017 Assessment Year : 2012-13 M/S. Amicorp Management India Pvt. Ltd., Unit No. 701 & 702, The Income Tax Officer, 7Th Floor, Campus 6B, Ward – 1 (1)(3), Rmz Ecoworld, Sarjapur, Bangalore. Marathalli Outer Ring Road, Vs. Bangalore – 560 103. Pan: Aafca1468C Appellant Respondent & It(Tp)A No. 2171/Bang/2017 Assessment Year : 2013-14 M/S. Amicorp Management India Pvt. Ltd., The Deputy Unit No. 701 & 702, Commissioner Of 7Th Floor, Campus 6B, Income Tax, Rmz Ecoworld, Sarjapur, Circle – 1 (1)(2), Marathalli Outer Ring Road, Vs. Bangalore. Bangalore – 560 103. Pan: Aafca1468C Appellant Respondent Assessee By : Ms. Sherry Goyal, Advocate Revenue By : Shri Sanjay Kumar, Cit Dr Date Of Hearing : 21-12-2021 Date Of Pronouncement : 07-03-2022

For Appellant: Ms. Sherry Goyal, AdvocateFor Respondent: Shri Sanjay Kumar, CIT DR
Section 115JSection 143(3)Section 144CSection 144C(13)Section 234BSection 271(1)(c)

accepting the economic analysis undertaken by the Appellant with respect to recovery of expenses from associated enterprises and holding that the Appellant's international transaction is not at arm's length, thereby making a TP adjustment of Rs. 6,09,708 2. The learned AO/ Hon'ble DRP erred ... accepting the economic analysis undertaken by the Appellant with respect to recovery of expenses from associated enterprises and holding that the Appellant's international transaction is not at arm's length, thereby making a TP adjustment of INR 13,13,200; 2. The learned AO/ Hon'ble DRP erred

Amicrop Management India Private Limited, Bangalore vs. Income Tax Officer, Ward - 1(1)(3), Bangalore

In the result appeals filed by assessee for assessment years

ITA 210/BANG/2017[2012 -2013]Status: DisposedITAT Bangalore07 Mar 2022

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 210/Bang/2017 Assessment Year : 2012-13 M/S. Amicorp Management India Pvt. Ltd., Unit No. 701 & 702, The Income Tax Officer, 7Th Floor, Campus 6B, Ward – 1 (1)(3), Rmz Ecoworld, Sarjapur, Bangalore. Marathalli Outer Ring Road, Vs. Bangalore – 560 103. Pan: Aafca1468C Appellant Respondent & It(Tp)A No. 2171/Bang/2017 Assessment Year : 2013-14 M/S. Amicorp Management India Pvt. Ltd., The Deputy Unit No. 701 & 702, Commissioner Of 7Th Floor, Campus 6B, Income Tax, Rmz Ecoworld, Sarjapur, Circle – 1 (1)(2), Marathalli Outer Ring Road, Vs. Bangalore. Bangalore – 560 103. Pan: Aafca1468C Appellant Respondent Assessee By : Ms. Sherry Goyal, Advocate Revenue By : Shri Sanjay Kumar, Cit Dr Date Of Hearing : 21-12-2021 Date Of Pronouncement : 07-03-2022

For Appellant: Ms. Sherry Goyal, AdvocateFor Respondent: Shri Sanjay Kumar, CIT DR
Section 115JSection 143(3)Section 144CSection 144C(13)Section 234BSection 271(1)(c)

accepting the economic analysis undertaken by the Appellant with respect to recovery of expenses from associated enterprises and holding that the Appellant's international transaction is not at arm's length, thereby making a TP adjustment of Rs. 6,09,708 2. The learned AO/ Hon'ble DRP erred ... accepting the economic analysis undertaken by the Appellant with respect to recovery of expenses from associated enterprises and holding that the Appellant's international transaction is not at arm's length, thereby making a TP adjustment of INR 13,13,200; 2. The learned AO/ Hon'ble DRP erred

Trigyn Technologies Ltd., Mumbai vs. ACIT 11(3)(1), Mumbai

In the result, assessee‟s appeal is partly allowed in terms indicated above

ITA 6585/MUM/2019[2004-05]Status: DisposedITAT Mumbai04 Mar 2022AY 2004-05

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Vijay MehtaFor Respondent: Shri Tejinder Pal Singh
Section 143(3)Section 250(6)Section 92C

shore facilities in addition to on–shore service provided by it. 5. During the year under consideration, the assessee entered into following international transactions as per Form no.3CEB, details of which are as under:– Sr. Nature of Service Amount (Rs.) no. 1. Software Consulting Services 6,88,01,068 Reimbursement ... passed under section 92CA(3) of the Act, in the first round of proceedings proposed an adjustment of Rs.73,92,756/– to the international transactions entered into by the assessee. The AO passed the assessment order under section 143(3) of the Act, inter–alia, on the basis of adjustment

DCIT 3(1)(1), Mumbai vs. Diesel Fashion India Reliance Pvt. Ltd., Mumbai

Accordingly it is to be dismissed as such

ITA 2931/MUM/2019[2013-14]Status: DisposedITAT Mumbai04 Mar 2022AY 2013-14
Section 143(3)

following grievances which we will take up together:- 2. Erred in partly confirming the adjustment made by the Learned TPO in relation to the international transaction involving payment of royalty undertaken by Diesel India with its Associated Enterprise („AE‟). 3. Erred in adopting an inconsistent approach by considering „Rampage ... taken up together:- 6. Erred in confirming the adjustment of INR 14,00,761 made by the Learned TPO in relation to the international transaction of payment of design fees undertaken by the Appellant with its AE. 7. Erred in rejecting the Comparable Uncontrolled Price („CUP‟) Method as the most

Ecl Finance Ltd., Mumbai vs. A.C.I.T. - 3(1)(2), Mumbai

In the result, this appeal by the assessee stands partly allowed

ITA 899/MUM/2018[2013-14]Status: DisposedITAT Mumbai04 Mar 2022AY 2013-14
Section 143(3)Section 144C(5)Section 92C(3)

term basis. Besides, the Company also trades in securities. During the Assessment Year 2013-14 ('AY 2013-14'), ECLF had entered into the following international transaction and specified domestic transactions with its AEs. Sr. No. Nature of Transaction Amount Method Specified Domestic Transactions 1 Interest on Demand Loans Paid ... been noticed above that the provisions of section 92CA requiring the passing of the order by the TPO determining the ALP of the international transactions, came into being by the Finance Act, 2002. As per sub-section (3) of section 92C, the TPO is required to pass the order determining

DCIT 15(2)(1), Mumbai vs. Nomura Structured Finance Services P.Ltd, Mumbai

In the result, the appeal by the Revenue is dismissed in terms of our aforesaid findings

ITA 1711/MUM/2015[2010-11]Status: DisposedITAT Mumbai03 Mar 2022AY 2010-11

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Farrokh IraniFor Respondent: Smt. Vatsalya Jha
Section 143(3)Section 144C(13)Section 92C

restored.” 3. In this appeal, Revenue has challenged the inclusion of M/s. CG VAK Software and Exports Ltd. as a comparable for benchmarking the international transactions entered into by the assessee with its associated enterprises. M/s. Nomura Structured Finance Services Private Limited ITA No. 1711/Mum./2015 and C.O. No. 69/Mum ... inter-alia, include providing investment / securities research services and capital market services to its associated enterprises. The assessee, an Indian Company, entered into following international transactions with its associated enterprises. (i) Provision of ITeS Services (ii) Provision of Research Support Services (iii) Reimbursement of expenses charged to assessee

Diamond Dye-Chem Ltd, Mumbai vs. Asst CIT Cir 6(2)(2), Mumbai

In the result, appeals filed by the assessee are allowed as indicated above

ITA 596/MUM/2015[2010-11]Status: DisposedITAT Mumbai01 Mar 2022AY 2010-11

Bench: Shri Pramod Kumar & Shri Pavan Kumar Gadalediamond Dye-Chem Ltd Vs. Acit, Circle – 6(2)(2) (Now Merged With Basf 5Th Floor, Aayakar India Ltd) Bhavan, Plot No. 37, Chandivali Mumbai – 400 001. Farm Road, Chandivali, Andheri (East), Mumbai – 400 072. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacd3478N Appellant .. Respondent Appellant By : Mr.Nitesh Joshi.Ar Respondent By : Dr.Yogesh Kamat, Cit Dr & Sri.Satya Pinisetty.Dr Date Of Hearing 27.01.2022 Date Of Pronouncement 03.03.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm:

For Appellant: Mr.Nitesh Joshi.ARFor Respondent: Dr.Yogesh Kamat, CIT DR &
Section 143(3)Section 92CSection 92C(3)

Additional Commissioner of Income Tax ("CIT")- Transfer Pricing ("Addl. CITTP")-1(3), Mumbai for determination of Arm's Length Price ("ALP") of international transactions reported in Form 3CEB. In view of this reference, the Add]. CIT - TP 1(3) issued notices & questionnaire to the assessee for seeking information in support ... these international transactions. After seeking information as required from time to time & hearing the case, the Addl. CIT- TP-(1)(3), Mumbai has passed the Transfer Pricing Order dated 31st Dec 2013 u/s 92CA(3) of the Act. However. as per Explanation to Sec. 92CA, "Transfer Pricing Officer ("TPO") means

Morgan Stanley Solutions India P. Ltd, Mumbai vs. DCIT Cir 9(2), Mumbai

In the result, appeal filed by the assesse is allowed

ITA 626/MUM/2014[2009-10]Status: DisposedITAT Mumbai01 Mar 2022AY 2009-10

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Amarjit Singh, Hon'Blemorgan Stanley Advantage Services Pvt. Ltd., V. Dcit – Circle – 9(2) {Successor To Morgan Stanley Solutions Room No. 261, 2Nd Floor India Pvt. Ltd.,} Aayakar Bhavan, M.K. Road Antena Building No.5 Mumbai - 400020 Sector 30, Mindspace, Goregaon (W) Mumbai – 400090 Pan: Aadcm7403M Appellant Respondent

For Appellant: Shri Tajendra Pal SinghFor Respondent: Dr. Sunil M. Lala
Section 144C(5)Section 234D

erred in making an upward adjustment of Rs 3,34,57,335 in determining the arm’s length price (ALP) of the international transaction of Information Technology Enabled Services (hereinafter referred to as ITES) rendered by the Appellant. 2. On the facts and circumstances of the case, the learned ... provisions of the Act read with the Income-tax Rules, 1962 (hereinafter referred to as the Rules) and holding that the Appellant's international transaction is not at arm’s length; 2.3. Further, in conducting a fresh economic analysis for the determination of the ALP in connection with the impugned

M/S Cypress Semiconductor Technology India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-2(1)(1), Bangalore

In the result, appeal of the assessee stands partly allowed

ITA 3133/BANG/2018[2014-15]Status: DisposedITAT Bangalore28 Feb 2022AY 2014-15

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 3133/Bang/2018 Assessment Year : 2014-15 M/S. Cypress Semiconductor Technology India Pvt. Ltd., The Deputy No. 65/2, Bagmane Laurel, Commissioner Of Block C, Bagmane Tech Park, Income Tax, C.V Raman Nagar, Circle – 2 (1)(1), Bangalore – 560 093. Bangalore. Vs. Pan: Aabcc2470Q Appellant Respondent

For Respondent: Smt. Tanmayee Rajkumar
Section 133(6)Section 92CSection 92D

circumstances of the case, the learned AO/ learned TPO erred in making an upward adjustment to the transfer price of the Appellant's international transactions of INR 111,953,486 in respect of software development services and INR 39,529,834 on account of imputation of notional interest on outstanding ... considering the multiple year/prior year data of comparable companies while determining the arm's length price in relation to the Assessee's international transactions with its AEs. 4.5. Using information under section 133(6) of the Act, which tantamount to choosing secret comparable companies whose information was not available

Acuity Knowledge Centre (India) Private Limited (Formerly Known As Moody'S Analytics Knowledge Services (India) Private Limited), Bengaluru vs. Deputy Commissioner of Income Tax, Circle-4(1)(2), Bengaluru

In the result, appeal of the assessee is partly allowed

ITA 2689/BANG/2017[2013-14]Status: DisposedITAT Bangalore28 Feb 2022AY 2013-14

Bench: Shri N. V. Vasudevan & Shri B. R. Baskaranit(Tp)A No.2689/Bang/2017 Assessment Year : 2013-14 Dcit, M/S. Acuity Knowledge Centre (India) Pvt. Ltd., Vs. (Formerly Known As Moody’S Analytics Knowledge Circle – 4(1)(2), Services (India)Private Limited), Bengaluru. Elixir Chancery Building, 7Th Floor, Municipal Door #135/1-2, Residency Road, Bengaluru – 560 025. Pan : Aaeca 9391 H Assessee Respondent Assessee By : Shri. Chavali Narayan, Ca Revenue By : Shri. Sumer Singh Meena, Cit(Dr)(Itat), Bengaluru Date Of Hearing : 24.02.2022 Date Of Pronouncement : 28.02.2022 O R D E R Per N V Vasudevan

For Appellant: Shri. Chavali Narayan, CAFor Respondent: Shri. Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 92

assessee is a company and it is engaged in providing ITeS to its AE. The transaction of providing ITeS to the AE was an international transaction and income arising from the said international transaction had to be determined having regard to ALP as envisaged under section

JCIT, Bangalore vs. M/S Pmc Sierra India Pvt. Ltd., Bangalore

In the result, appeal of the revenue stands dismissed and the cross objection of assessee stands partly allowed

ITA 1139/BANG/2016[2009-10]Status: DisposedITAT Bangalore28 Feb 2022AY 2009-10

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 1139/Bang/2016 Assessment Year : 2009-10 M/S. Micro Semi Storage Solutions India Pvt. Ltd., The Deputy (Formerly Known As Commissioner Of Pmc-Sierra India Pvt. Income Tax, Ltd.) Circle – 4(1)(1), 19, Church Street, Bangalore. Vs. Bangalore – 560 001. Pan: Aadcp6802F Appellant Respondent & C.O. No. 84/Bang/2017 (In It(Tp)A No. 1139/Bang/2016) (By Assessee) : Smt. Tanmayee Rajkumar, Assessee By Advocate : Shri Sankar Ganesh K, Jcit & Revenue By Shri Sumer Singh Meena, Cit Dr Date Of Hearing : 23-12-2021 Date Of Pronouncement : 28-02-2022 Order Per Beena Pillaipresent Cross Appeals Are Filed By Revenue As Well As Assessee Against The Assessment Order Dated 30.04.2013 By The Ld.Dcit

Section 143(3)Section 92C

sales support services to its AEs for which it is compensated on a cost plus mark-up basis. During the year under consideration, the international transactions that took place between the Assessee and its AEs was the provision of SWD services by the Assessee at a price of Rs.63 ... value of the international transactions was more than Rs. 15 Crores, reference was made to the Ld.TPO. On receipt of the reference, the Ld.TPO called for economic analysis of the international transaction in form 3CEB. The Ld.TPO observed that assessee had following international transactions with its Associated Enterprises: Amount

Kirloskar Toyota Textile Machinery Private Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeal by the assessee is treated as partly allowed

ITA 197/BANG/2015[2009-10]Status: DisposedITAT Bangalore28 Feb 2022AY 2009-10

Bench: Shri N. V. Vasudevan & Shri B. R. Baskaranit(Tp)A No.197/Bang/2015 Assessment Year : 2009-10 M/S. Toyota Industries Engine India Pvt. Ltd., Vs. Dcit, (Formerly Known As Kirloskar Toyota Textile Circle – 11(5), Machinery Pvt. Ltd.,) Bengaluru. Plot No.09, 2Nd Phase, Jigani Industrial Area, Bengaluru – 560 105. Pan : Aaack 7425 Q Assessee Respondent Assessee By : Shri. Ajit Tolani, Ca Revenue By : Shri. Sumer Singh Meena, Cit(Dr)(Itat), Bengaluru Date Of Hearing : 24.02.2022 Date Of Pronouncement : 28.02.2022 O R D E R Per N V Vasudevan

For Appellant: Shri. Ajit Tolani, CAFor Respondent: Shri. Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru

orders of the Revenue authorities in so far as it relates to determination of Arm’s Length Price (ALP) in respect of an international transaction of material handling equipment distribution service rendered by the assessee to its Associate Enterprise (AE). 3. The assessee imports Material Handling Equipment (MHE) from Toyota ... operating expenses, which could be different from enterprise to enterprise. It was further contended that as provided in Rule l0B, under RPM price of international transaction needs to be computed on the basis of gross profit margin earned in uncontrolled Bangalore transactions, while under TNMM price of international transaction

American Power Conversion (India) Private Limited, Bangalore vs. Addl.C.I.T., Bangalore

In the result, appeal of the assessee stands partly allowed as indicated herein above

ITA 1111/BANG/2012[2008-09]Status: DisposedITAT Bangalore28 Feb 2022AY 2008-09

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 1111/Bang/2012 Assessment Year : 2008-09

For Appellant: Shri Ketan Ved, CA
Section 133(6)Section 143(3)Section 92C

learned Transfer Pricing Officer ("TPO") grossly erred in law and facts of the case in determining the arm's length price (`ALF') of the international transaction of the Appellant Page 2 of 52 IT(TP)A No. 1111/Bang/2012 and thereby making an adjustment with respect to payments made ... payer u/s 92CA of the Income Tax Act for the following international transactions: 1. Software development services:-Rs. 42,07,843/-; 2. Research and development services ("R&D"):- Rs.1,33,15,066/-; 3. Royalty Payment:- Rs. 8,99,53,689/-; and. 4. Interest on Outstanding receivables:- Rs.24

Red Hat India P. Ltd, Mumbai vs. Addl/Jt/Dy/Asstt/CIT/ITO, NFAC, Delhi

ITA 1379/MUM/2021[2016-17]Status: DisposedITAT Mumbai25 Feb 2022AY 2016-17

Bench: Shri Pramod Kumar & Shri Kuldip Singhassessment Year: 2016-17

For Appellant: Shri Ajit Jain, A.R. &For Respondent: Ms. Vatsala Jha, D.R
Section 143(3)Section 144B

grounds as set out herein: The following grounds are independent of, and without prejudice to, one another: Transfer Pricing Adjustment relating to international transaction pertaining to payment of royalty and service fee (subscription segment) — INR 171,407,494 1. The Ld. AO [along with the Learned Transfer Pricing Officer ... adjustment disregarding the draft Assessment order and rectification application filed before the Ld. TPO/AO; and 1.7 not granting proportionate adjustment for the value of international transactions, thereby extending the quantum of transfer pricing adjustment to transactions with the non- associated enterprises also. Adjustment relating to international transaction pertaining to payment

Timblo Shipyards P. Ltd., Mumbai vs. Assesseing Officer/ National E-Assessment Centre, Delhi

In the result, the appeal filed by the assessee is allowed

ITA 1168/MUM/2021[2016-17]Status: DisposedITAT Mumbai25 Feb 2022AY 2016-17

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm Assessing Officer, National E- Timblo Shipyards Private Assessment Centre, Delhi Limited Income Tax Department, 64 Bajaj Bhavan Nariman National E-Assessment Vs. Point, Mumbai-400 021 Centre, New Delhi, Delhi-110003 (Appellant) (Respondent) Pan No. Aadct4852B Assessee By : None Revenue By : Shri Tejinder Pal Singh, Dr Date Of Hearing: 09.02.2022 Date Of Pronouncement : 25.02.2022

For Appellant: NoneFor Respondent: Shri Tejinder Pal Singh, DR
Section 143(3)Section 144C(13)Section 156

filed returned income at ₹nil. 05. The learned Transfer Pricing Officer (in short TPO) proposed an addition of ₹73,74,174/- to the international transaction of providing interest free loans on USD 40,93,000/- to its foreign subsidiary. Further, the learned Assessing Officer noted that the assessee has claimed

M/S Te Connectivity India Private Limited, Bangalore vs. Assistant Commissioner of Income Tax Circle-2 Ltpu, Bangalore

In the result, the appeal by the assessee is treated as partly allowed for 37

ITA 3373/BANG/2018[2014-15]Status: DisposedITAT Bangalore25 Feb 2022AY 2014-15

Bench: Shri N. V. Vasudevan & Shri B. R. Baskaranit(Tp)A No.3373/Bang/2018 Assessment Year : 2014-15 M/S. Te Connectivity India Private Limited, Vs. Acit, Te Park, 22B, Doddenakundi Corporation, 2Nd Circle - 2, Large Taxpayer Unit, Phase, Industrial Area, Whitefield Road, Bengaluru. Bengaluru – 560 048. Pan : Aabct 7374 C Assessee Respondent Assessee By : Shri. Sriram Seshadri, Advocate Revenue By : Shri. Sumer Singh Meena, Cit(Dr)(Itat), Bengaluru Date Of Hearing : 22.02.2022 Date Of Pronouncement : 25.02.2022 O R D E R Per N V Vasudevan

For Appellant: Shri. Sriram Seshadri, AdvocateFor Respondent: Shri. Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 144C

Income Tax Rules, 1962, (“IT Rules”) and conducting a fresh economic analysis for the determination of the ALP in connection with the impugned international transactions and holding that the Appellant’s international transactions are not at arm’s length. 4.2. The lower authorities erred in disregarding the bona fide segment ... segment level, in relation to the Appellant’s margin from its licensed manufacturing segment, without restricting such adjustment to the proportion of its international transactions in the said segment. B. TP Adjustment - IS charges and corporate service charges[Original GoA - No. 14 - 15] 9. ALP cannot be 9.1. The lower

M/S Fmc India Private Limited, Bangalore vs. The Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore

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

ITA 3313/BANG/2018[2014-15]Status: DisposedITAT Bangalore25 Feb 2022AY 2014-15

Bench: Shri B. R. Baskaran & Smt. Beena Pillaiassessmentyear: 2014-15

For Appellant: Shri Nageswar Rao, A.RFor Respondent: Shri Pradeep Kumar, D.R
Section 143(3)Section 35(1)(iv)Section 40

assessee is contending that the transfer pricing adjustment should be M/s. FMC India Private Ltd., Bangalore Page 5 of 20 restricted to the international transactions entered with the associated enterprises only. 4.5 We shall first take up Ground No.2.10. With regard to the plea of the assessee to restrict ... transfer pricing adjustment to international transactions entered with A.E only, the Ld. A.R. placed his reliance on the decision rendered by Mumbai bench of Tribunal in the case of Hindustan Unilever Ltd. Vs. ACIT (2012) 28 Taxmann.com 142, wherein the Tribunal held that the transfer pricing adjustment should be restricted

M/S. Praxair India Pvt. Ltd, Bangalore vs. Assistant Commissioner of Income-Tax, Bangalore

In the result, the appeal of the assessee is allowed

ITA 2209/BANG/2016[2012-13]Status: DisposedITAT Bangalore25 Feb 2022AY 2012-13

Bench: Shri George George K & Ms. Padmavathy S

For Appellant: Shri T Suryanarayana, AdvocateFor Respondent: Smt. Vandana Sagar, CIT(DR)
Section 143(2)Section 143(3)Section 14ASection 37Section 40Section 40aSection 92C

29/11/2012 admitting a total loss of Rs.63,15,18,190/-. The assessee company during the relevant assessment year has entered into certain international transactions with its AEs. Two of the international transactions the assessee entered with its AEs were payment of royalty and payment of interest on Compulsory Convertible Debentures ... royalty with certain Page 3 of 25 other transactions and benchmarked on application of Transactional Net Margin Method (TNMM). The assessee concluded the international transaction of payment of royalty at 4% as being at arm’s length. In respect of the transaction of payment of interest on CCDs