“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

Capacite Infraprojects Limited, Mumbai vs. ACIT/DCIT Central Circle 1(2) Mumbai, Mumbai

The appeal of the assessee are allowed in above terms

ITA 6309/MUM/2024[2018-19]Status: DisposedITAT Mumbai10 Sept 2025AY 2018-19

Bench: Shri. Om Prakash Kant & Shri. Raj Kumar Chauhan

Section 115JSection 132Section 153ASection 23(1)Section 250Section 270ASection 36(1)(VA)Section 9

account, (e) failure to record any receipt in books of account having a bearing on total income; and (1) failure to report any international transaction or any transaction deemed to be an international transaction or any specified domestic transaction, to which the provisions of Chapter X apply

DCIT-7(1)(1), Mumbai vs. Goldman Sachs (India) Securities Pvt. Ltd., Mumbai

ITA 4276/MUM/2025[2013-14]Status: DisposedITAT Mumbai09 Sept 2025AY 2013-14

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

For Appellant: Mr. Fenil BhattFor Respondent: Ms. Neena Jeph, CIT-DR

Section 143(2)Section 143(3)Section 144C(1)Section 37(1)Section 92C

Learned Assistant Commissioner of Income Tax- 7(1)(1), Mumbai (hereinafter referred to as ‘the Ld. Assessing Officer'). Having regard to the international transactions undertaken by the assessee with its Associated Enterprises (AEs), the Ld. Assessing Officer made a reference to the Learned Transfer Pricing Officer (Ld. TPO) for determination

Ust Global Technology Services (India) Private Limited, Kochi vs. DCIT, Corporate Circle 2(1), Kochi

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

ITA 1071/COCH/2024[2021-22]Status: DisposedITAT Cochin08 Sept 2025AY 2021-22

Bench: Shri Inturi Rama Rao, Am & Shri Rahul Chaudhary

For Appellant: Respondent byFor Respondent: Shri Rajakannam, Advocate

Section 143Section 92C

filed on 23/10/2022 declaring income of Rs. 11,83,12,700/-. The appellant company also reported the following international transactions in Form 3CEB:- Nature of International transactions Amount (in INR) Method used Provision of IT services 156,47,13,486 TNMM Corporate guarantee provided to the Assessee ... appellant-company also submitted TP study by adopting by adopting Transactional Net Margin Method (TNMM) as most appropriate method and sought to justify the international transactions are at arm's length price (ALP). On noticing the above international transaction, the AO referred the matter, under the provisions of section 92CA

M/S.Joy Alukkas India P. Ltd, Cochin vs. The ACIT, Cochin

In the result, the appeal filed by the Assessee stands partly allowed for statistical purposes

ITA 38/COCH/2017[2012-13]Status: DisposedITAT Cochin08 Sept 2025AY 2012-13

Bench: Shri Inturi Rama Rao, Am& Shri Rahul Chaudharyit (Tp) A No. 119/Coch/2016 (Assessment Year: 2011-12) & It (Tp) A Nos. 38 & 643/Coch/2017 (Assessment Years :2012-13 & 2013-14)

For Appellant: Smt. Parvathy Ammal, CAFor Respondent: Shri Sanjit Kumar Das, CIT-DR

Section 143(3)Section 36(1)(iii)Section 36(1)(viii)Section 92C

filed on 30/11/2011 declaring total income of Rs. 150,75,82,230/- 5. The appellant-company also reported the following international transactions with the Associated Enterprises (AEs):- Sr.No. Name of the AE Nature of Total amount Method adopted international transaction 1. Joy AlukkasJewellery Export of Jewellery Rs. TNMM LLC, Dubai ... appellant-company also submitted the TP study report adopting the internal TNMM as most appropriate method and sought to justify the above international transactions are at arm’s length price (ALP). On noticing the above, the AO referred the matter to 3 IT (TP) A No. 119/Coch/2016

M/S.Joy Alukkas India P. Ltd, Trichur vs. The ACIT, Ernakulam

In the result, the appeal filed by the Assessee stands partly allowed for statistical purposes

ITA 119/COCH/2016[2011-12]Status: DisposedITAT Cochin08 Sept 2025AY 2011-12

Bench: Shri Inturi Rama Rao, Am& Shri Rahul Chaudharyit (Tp) A No. 119/Coch/2016 (Assessment Year: 2011-12) & It (Tp) A Nos. 38 & 643/Coch/2017 (Assessment Years :2012-13 & 2013-14)

For Appellant: Smt. Parvathy Ammal, CAFor Respondent: Shri Sanjit Kumar Das, CIT-DR

Section 143(3)Section 36(1)(iii)Section 36(1)(viii)Section 92C

Lowes Services India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle 4(1)(1), Bangalore

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

ITA 1734/BANG/2024[AY 2020-21]Status: DisposedITAT Bangalore08 Sept 2025

Bench: Shri Prashant Maharishi & Shri Keshav Dubeyassessment Year: 2020-21

For Appellant: Shri Chavali Narayan, ARFor Respondent: Dr. Divya K J, CIT(DR)(ITAT), Bengaluru

Section 143(1)Section 143(3)Section 144CSection 144C(13)Section 144C(5)Section 36(1)(va)Section 80G

return was picked up for scrutiny and referred to ld. TPO, DCIT, TP 2(1)(1), Bangalore to determine the ALP of the international transaction. 4. Assessee has rendered provision of IT services amounting to Rs.680,90,08,592 and provision of ITeS of Rs.148,98,98,953. The assessee ... adopted TNMM as the most appropriate method selecting the PLI of Operating Profit/Operating Cost (OP/OC). It used AceTP and Capitaline Databases for benchmarking its international transaction. The assessee selected 14 comparables for Software Development Services segment and 25 comparables for ITeS segment. As the margin was on par with

Bhel Lcc Society Ltd, Hyderabad vs. DCIT., Circle-8(1), Hyderabad

In the result, appeal filed by the assessee is allowed

ITA 732/HYD/2025[2017-18]Status: DisposedITAT Hyderabad04 Sept 2025AY 2017-18

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Manjunatha, G.आ.अपी.सं /Ita No.732/Hyd/2025 (िनधा"रण वष"/Assessment Year: 2017-18) Bhel Lcc Society Ltd Vs. Dy.Cit Hyderabad Circle 8(1) Pan:Aaatb6430D Hyderabad (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Ca Sri Sai Keerthana राज" व "ारा/Revenue By:: Shri Dr. Sachin Kumar, Sr.Ar सुनवाई की तारीख/Date Of Hearing: 01/09/2025 घोषणा की तारीख/Pronouncement: 04/09/2025 आदेश/Order Per Vijay Pal Raothis Appeal By The Assessee Is Directed Against The Order Dated 27/02/2025 Of The Learned Cit (A)-Nfac Delhi, Arising From The Penalty Order Passed U/S 270A Of The I.T. Act For The A.Y.2017-18. 2. The Assessee Has Raised The Following Grounds Of Appeal:

For Appellant: CA Sri Sai KeerthanaFor Respondent: : Shri Dr. Sachin Kumar, Sr.AR

Section 143(1)Section 143(1)(a)Section 143(3)Section 2Section 270ASection 36

account; (e)failure to record any receipt in books of account having a bearing on total income; and (f)failure to report any international transaction or any transaction deemed to be an international transaction or any specified domestic transaction, to which the provisions of Chapter X apply.” 8. Therefore ... books of account, failure to record any receipt in the books of account having bearing on the total income and failure to report any international transaction or specified domestic transactions. In the case in hand, though the Assessing Officer has not enhanced the total income of the assessee while passing

M/S. Hydro Bs India Private Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle-3(1)(1), Bengaluru

The appeal of the assessee is partly allowed

ITA 2117/BANG/2024[2020-21]Status: DisposedITAT Bangalore04 Sept 2025AY 2020-21

Bench: Shri Prashant Maharishi & Shri Keshav Dubeyassessment Year: 2020-21

For Appellant: Shri Harsha, CAFor Respondent: Dr. Divya K J, CIT(DR)(ITAT), Bengaluru

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

Hydro group providing ITeS services to its AE. It filed its return of income on 29.5.2021 at Rs. Nil. The assessee has entered into international transaction of ITeS services receivable from its AE of Rs.19,24,11,966/-. Therefore reference was made to examine Arm’s length price of International ... transactions. 7. Assessee in its Transfer pricing Study Report [ TPSR] benchmarked this international Transaction adopting Transactional Net Margin Method [TNMM] as the most appropriate method selecting the Profit level indicator [PLI] of operating profit to operating cost [OP/OC] ratio, selecting 17 comparable from Capitaline Plus & AceTP databases computing weighted average

Avaada Sataramh Private Limited, Noida Gautam Budha Nagar, Up vs. ITO 5(1)(1) G Budh Nagar, Noida, Up

In the result, the appeal being ITA No

ITA 4916/DEL/2024[2021-22]Status: DisposedITAT Delhi03 Sept 2025AY 2021-22

Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

For Appellant: Shri Gautam Jain, AdvocateFor Respondent: Shri S.K. Jadhav, CIT DR

Section 115BSection 143(3)Section 144CSection 144C(13)Section 144C(5)Section 153

Large specified domestic transactions”. The AO referred the matter to the AO, Technical Unit to determine Arm’s Length Price (ALP) in respect of international transactions. During assessment proceedings, the Transfer Pricing Officer (TPO) observed that assessee has obtained a loan from Viraj Solar Maharashtra Pvt. Ltd. (VSMPL) and Avaada

Avaada Sustainable Rjproject Private Limited, Gautam Budha Nagar, Up vs. ITO 5 (1)(1), G Budh Nagar, Noida, Up

In the result, the appeal being ITA No

ITA 4884/DEL/2024[2021-22]Status: DisposedITAT Delhi03 Sept 2025AY 2021-22

Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

For Appellant: Shri Gautam Jain, AdvocateFor Respondent: Shri S.K. Jadhav, CIT DR

Section 115BSection 143(3)Section 144CSection 144C(13)Section 144C(5)Section 153

Hitachi Astemo Haryana Private Limited, Faridabad vs. Assistant Commissioner of Income Tax, Delhi

In the result, the Appeal of the Assessee is allowed

ITA 3353/DEL/2024[AY 2018-19]Status: DisposedITAT Delhi03 Sept 2025

Bench: S. Rifaur Rahman & Shri Yogesh Kumar U.S.Hitachi Astemo Haryana Private Vs Assistant Commissioner Limited Of Income Tax, Circle Plot No. 23-32, Sector-58, 10(1), C. R. Building, Behind Jcb India Ltd, Ito, Ip Estate, Faridabad, Haryana, India New Delhi Pan: Aabce5725G Appellant Respondent Assessee By Ms. Ananya Kapoor, Adv Revenue By Sh. S. K. Jadhav, Cit- Dr Date Of Hearing 06/08/2025 Date Of Pronouncement 03 /09/2025 Order Per Yogesh Kumar, U.S. Jm: This Appeal Is Filed By The Assessee Pertaining To Assessment

Section 143(3)Section 144C(13)Section 153(5)Section 254Section 270ASection 92C

passed an order u/s 92CA(3) of the Act on 29/07/2021 by suggesting to make adjustment in the arm’s length Price of international transactions of the Assessee, wherein proposed for adjustment of Rs. 5,54,33,729/- in the manufacturing segment

Ramasamy Pushpa, Namakkal vs. ITO, International Taxation Ward-2(1), Chennai

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

ITA 489/CHNY/2025[2016-17]Status: DisposedITAT Chennai02 Sept 2025AY 2016-17

Bench: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./I.T.A. No.489/Chny/2025 िनधा"रण वष"/Assessment Year: 2016-17 Ramasamy Pushpa, Vs. The Income Tax Officer, D.No. 2/31, Sankarampalayam Village, International Taxation Ward 2(1), Kumaripalayam Post, Chennai. Namakkal 637 015. [Pan:Cvwpp7128R] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri T.S. Lakshmi Venkataraman, F.C.A ""थ" की ओर से/Respondent By : Shri C. Sivakumar, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 21.08.2025 घोषणा की तारीख /Date Of Pronouncement : 02.09.2025 आदेश /O R D E R Per S.S. Viswanethra Ravi: This Appeal Filed By The Assessee Is Directed Against The Order Dated 13.01.2025 Passed By The Ld. Commissioner Of Income Tax (Appeals)-16, Chennai For The Assessment Year 2016-17. 2. The Assessee Raised 6 Grounds Of Appeal Amongst Which, The Only Issue Emanates For Our Consideration As To Whether The Ld. Cit(A) Is Justified In Confirming The Order Of The Assessing Officer Passed Under Section 147 R.W.S. 144 Of The Income Tax Act, 1961 [“Act” In Short]

For Appellant: Shri T.S. Lakshmi Venkataraman, F.C.A ""For Respondent: Shri C. Sivakumar, Addl. CIT

Section 144CSection 147Section 56

explains any “foreign company” and there is no mention of any non-resident. He argued that since no transfer pricing issue relating to international transaction involved in the year under consideration, draft assessment order passed under section 144C of the Act is not maintainable as the assessee

M/S.Apollo Tyres Ltd, Cochin vs. The Principal Commissioner of Incometax, Cochin

In the result, the appeal filed by the assessee stands partly allowed for statistical purposes

ITA 609/COCH/2017[2013-14]Status: DisposedITAT Cochin01 Sept 2025AY 2013-14

Bench: Shri Inturi Rama Rao, Am & Shri Rahul Chaudhary, Jm Assessment Year: 2013-14 Apollo Tyres Ltd. .......... Appellant 3Rd Floor, Areekal Mansion, Panampilly Nagar, Kochi 682036 [Pan: Aaaca6990Q] Vs. Dcit, Corporate Circle-1(1), Kochi ......... Respondent Assessee By: Shri Abraham Joseph Markos, Adv. Revenue By: Shri Sanjit Kumar Das, Cit-Dr Date Of Hearing: 20.08.2025 Date Of Pronouncement: 01.09.2025

For Appellant: Shri Abraham Joseph Markos, AdvFor Respondent: Shri Sanjit Kumar Das, CIT-DR

Section 115JSection 143(3)Section 32Section 32(1)(iia)Section 35Section 43(1)Section 92C

book profit u/s. 115JB of Rs. 410,09,91,004/-. The assessee company also reported the following international transactions in Form 3CEB: - S.No. Description of Transaction Amount 1 Sale of tyres 4,89,75,09,019 2 Sale of semi finished goods 26,73,908 3 Sale of raw material ... Reimbursement of expenses 1,07,78,001 16 Recovery of expenses 3,69,14,146 3. On noticing the above international transactions, the AO referred the matter to the Transfer Pricing Officer (TPO) u/s. 92CA(1) of the Act for the purpose of benchmarking the above international transactions

Ebix Travels Pvt. Ltd., New Delhi vs. DCIT, Circle 2(2)(1), Bangalore

In the result appeal of the assessee is partly allowed

ITA 47/BANG/2025[2021-22]Status: DisposedITAT Bangalore29 Aug 2025AY 2021-22

Bench: Shri Prashant Maharishi & Shri Soundararjan K

Section 143Section 144BSection 144CSection 234ASection 234BSection 32Section 92CSection 92D

Department (the learned AO) determining total income at ₹ 50,021,422/- wherein the variations made to the arm's-length price of the international transaction was computed at ₹ 48,175,807 and disallowance of depreciation of ₹ 1,845,615 was added to the total income pursuant to the direction passed ... borrowing of money. A notice under section 143(2) was served to the assessee on 28 June 2022. 7. The assessee entered an international transaction. Consequently, a reference was made to the Transfer Pricing Officer, the technical unit responsible for evaluating international transactions, on 19/10/2022. This reference was subsequently approved

ACIT Central Circle 8(3), Mumbai vs. Rosy Blue (India) Private Limited, Mumbai

In the result, the appeal of the Revenue is partly allowed in terms indicated above

ITA 4284/MUM/2025[2018-19]Status: DisposedITAT Mumbai29 Aug 2025AY 2018-19

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI ARUN KHODPIA (Accountant Member)

Section 143(3)Section 144Section 144CSection 14ASection 92BSection 92C

assessee for providing this guarantee, its stand being that the same constituted a shareholder activity and did not fall within the scope of international transaction as defined under Section 92B of the Act. The Transfer Pricing Officer rejected this contention, holding that the provision of corporate guarantee is an international ... learned Counsel for the assessee submitted, the provision of corporate guarantee being a shareholder’s activity will not come within the ambit of international transaction as defined under section 92B of the Act. Without prejudice, he submitted, the commission on corporate guarantee should be reduced to 0.2% as against

Future First Info Services Private Ltd., Delhi vs. AO Circle-7(1), Delhi

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

ITA 672/DEL/2022[2017-18]Status: DisposedITAT Delhi29 Aug 2025AY 2017-18

Bench: Shri Yogesh Kumar U.S. & Shri Avdhesh Kumar Mishra

Section 143(3)Section 270ASection 92D

income of the Appellant on account of alleged difference in the arm's length price of the international transaction of 'provision of IT enabled services to its Associated Enterprise ('AE') and: 1.2 an adjustment of INR 5,962,994 to the income of the Appellant by considering the continuing debit ... balance of receivables as an international transaction' during the relevant previous year. II. Provision of Information Technology Enabled Services ('IT enabled services") - adjustment of INR 158,308,574 2. On the facts and in law, the Ld. AO/Ld. TPO and Hon'ble DRP erred in irrationally discarding the economic analysis

The Acti, Circle-3(1)(1), Ahmedabad vs. Nirma Limited, Ahmedabad

ITA 1437/AHD/2019[2016-17]Status: DisposedITAT Ahmedabad28 Aug 2025AY 2016-17

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokarआयकर अपील सं/Ita Nos.1412 & 1413/Ahd/2019 निर्धारण वर्ष / Assessment Years: (2015-2016 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) बनाम / V/S. The Deputy Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./Pan : Aaacn5350K आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. Nirma Limited, बनाम / V/S. Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) स्थायी लेखा सं./ Pan: Aaacn5350K & C.O Nos.11-12/Ahd/2020 In आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) The Deputy Commissioner Of बनाम/ V/S. Income Tax/The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./ Pan: Aaacn5350K अपीलार्थी/ (Appellant) प्रत्यर्थी / (Respondent)

For Appellant: Shri Bandish Soparkar, withFor Respondent: Shri Alpesh Parmar, CIT-DR

Section 115JSection 143(3)Section 14A

Bharti Airtel Ltd. v. CIT (43 taxmann.com 150), that corporate guarantees extended without incurring any cost do not fall within the ambit of “international transaction” under section 92B, and accordingly deleted the additions made. 43. However, in subsequent years i.e., A.Ys.2013-14 and 2014- 15, the Co-ordinate Bench ... several coordinate Bench rulings, came to the conclusion that the act of furnishing corporate guarantees to Associated Enterprises is to be regarded as an “international transaction” within the meaning of section 92B of the Act, and accordingly requires benchmarking. At the same time, the Co-ordinate Bench also held that

The Acti, Circle-3(1)(1), Ahmedabad vs. Nirma Limited, Ahmedabad

ITA 1436/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad28 Aug 2025AY 2015-16

For Appellant: Shri Bandish Soparkar, withFor Respondent: Shri Alpesh Parmar, CIT-DR

Section 115JSection 143(3)Section 14A

Bharti Airtel Ltd. v. CIT (43 taxmann.com 150), that corporate guarantees extended without incurring any cost do not fall within the ambit of “international transaction” under Section 92B, and accordingly deleted the additions made. 43. However, in subsequent years i.e., A.Ys.2013-14 and 2014- 15, the Co-ordinate Bench ... several coordinate Bench rulings, came to the conclusion that the act of furnishing corporate guarantees to Associated Enterprises is to be regarded as an “international transaction” within the meaning of Section 92B of the Act, and accordingly requires benchmarking. At the same time, the Co-ordinate Bench also held that

Nirma Limited, Ahmedabad vs. The Dcti, Circle-3(1)(1), Ahmedabad

ITA 1413/AHD/2019[2016-17]Status: DisposedITAT Ahmedabad28 Aug 2025AY 2016-17

For Appellant: Shri Bandish Soparkar, withFor Respondent: Shri Alpesh Parmar, CIT-DR

Section 115JSection 143(3)Section 14A

Bharti Airtel Ltd. υ. CIT (43 taxmann.com 150), that corporate guarantees extended without incurring any cost do not fall within the ambit of “international transaction” under section 92B, and accordingly deleted the additions made. 43. However, in subsequent years i.e., A.Ys.2013-14 and 2014- 15, the Co-ordinate Bench ... several coordinate Bench rulings, came to the conclusion that the act of furnishing corporate guarantees to Associated Enterprises is to be regarded as an “international transaction” within the meaning of section 92B of the Act, and accordingly requires benchmarking. At the same time, the Co-ordinate Bench also held that

Nirma Limited, Ahmedabad vs. The Dcti, Circle-3(1)(1), Ahmedabad

ITA 1412/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad28 Aug 2025AY 2015-16

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokarआयकर अपील सं/Ita Nos.1412 & 1413/Ahd/2019 निर्धारण वर्ष / Assessment Years: (2015-2016 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) The Deputy Commissioner बनाम / Of Income Tax, V/S. Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./Pan : Aaacn5350K आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. Nirma Limited, बनाम / Nirma House, V/S. Ashram Road, Ahmedabad-380009. (Gujarat) स्थायी लेखा सं./ Pan: Aaacn5350K & C.O Nos.11-12/Ahd/2020 In आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) The Deputy Commissioner Of बनाम/ V/S. Income Tax/The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./ Pan: Aaacn5350K अपीलार्थी/ (Appellant) प्रत्यर्थी / (Respondent)

For Appellant: Shri Bandish Soparkar, withFor Respondent: Shri Alpesh Parmar, CIT-DR

Section 115JSection 143(3)Section 14ASection 80I