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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

Cornerstone Ondemand Limited, Mumbai vs. Assistant Commissioner of Income Tax (International Taxation )-2(1)(1), Mumbai

ITA 3752/MUM/2024[2018-19]Status: DisposedITAT Mumbai28 Mar 2025AY 2018-19

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

For Appellant: Shri Hiten Thakkar, AR
Section 270ASection 271(1)(c)

length price determined by the Transfer Pricing Officer, where the assessee had maintained information and documents as prescribed under section 92D, declared the international transaction under Chapter X, and, disclosed all the material facts relating to the transaction; and (e) the amount of undisclosed income referred to in section 271AAB

Cornerstone Ondemand Limited, Mumbai vs. Assistant Commissioner of Income Tax (International Taxation )-2(1)(1), Mumbai

ITA 3751/MUM/2024[2016-17]Status: DisposedITAT Mumbai28 Mar 2025AY 2016-17

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

For Appellant: Shri Hiten Thakkar, AR
Section 270ASection 271(1)(c)

length price determined by the Transfer Pricing Officer, where the assessee had maintained information and documents as prescribed under section 92D, declared the international transaction under Chapter X, and, disclosed all the material facts relating to the transaction; and (e) the amount of undisclosed income referred to in section 271AAB

Cornerstone Ondemand Limited, Mumbai vs. Assistant Commissioner of Income Tax (International Taxation )-291)(1), Mumbai

ITA 3747/MUM/2024[2015-16]Status: DisposedITAT Mumbai28 Mar 2025AY 2015-16

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

For Appellant: Shri Hiten Thakkar, AR
Section 270ASection 271(1)(c)

length price determined by the Transfer Pricing Officer, where the assessee had maintained information and documents as prescribed under section 92D, declared the international transaction under Chapter X, and, disclosed all the material facts relating to the transaction; and (e) the amount of undisclosed income referred to in section 271AAB

Fincantieri Spa, Noida vs. ACIT It Circle 2(3) (1), Mumbai

In the result, appeal of the assessee is allowed

ITA 3313/MUM/2023[2020-21]Status: DisposedITAT Mumbai28 Mar 2025AY 2020-21

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI VIKRAM SINGH YADAV (Accountant Member)

Section 115ASection 143(3)Section 44D

Fincantieri SPA, Mumbai secondly, even ld. DRP have erred in not appreciating the concept of profit attribution to PE is in the nature of international transaction requiring arm’s length analysis and thereby exceeding their power in attributing additional impugned amount to India project office without appreciating the matter ... operating margin by the PO was 19.36% which was higher than the arm’s length range of the margins of the comparable companies, the international transaction pertaining to provision of technical consultancy services between PO and HO has been stated to be at arm’s length on the basis

Purpletalk India Private Limited, Hyderabad vs. Deputy Commissioner of Income Tax, Circle-9(1), Hyderabad

In the result, appeal of the assessee is partly

ITA 193/HYD/2021[2016-17]Status: DisposedITAT Hyderabad27 Mar 2025AY 2016-17

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA PVSS PrasadFor Respondent: Shri B Bala Krishna, CIT-DR
Section 143(3)Section 2(24)(x)Section 234ASection 37(1)Section 92C

facts of the case. 2. The Ld. DRP/AO ought to have accepted the internal TNMM for the purpose of benchmarking the international transactions. 3. The Ld. DRP/ AO erred in rejecting internal TNMM by failing to appreciate the fact that assessee has submitted independent Auditor's certificate for adopting internal ... assessment proceedings a reference under section 92CA of the Act has been made to the TPO [in short “TPO”] for determination ALP of international transaction of the assessee-company entered with its Associated Enterprises [in short “AE”]. 4. During the course of Transfer Pricing [in short “TP”| proceedings, the learned

Rajasthan Prime Steel Processing Center Pvt. Ltd., Alwar vs. DCIT, Circle- 15(1), New Delhi

Accordingly, the grounds relevant to this issue raised by the Revenue stand dismissed in both years

ITA 3293/DEL/2018[2010-11]Status: DisposedITAT Delhi27 Mar 2025AY 2010-11

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishra

Section 271(1)(c)

respectively. These cases were picked up for scrutiny. Keeping in view the quantum of international transactions; the AO referred the matter of these years to the Transfer Pricing Officer (hereinafter, the ‘TPO’) for determining Arm’s Length Price of international transactions. The assessee commenced its business ... processing, there is no substantial value addition as it is not a full-fledged manufacturing activities. 4.2 There are three types of international transactions as under: i. Purchase of raw material, stores, spares, and consumables, ii. Payment of royalty for technical support services and iv. Purchase of capital goods

M/S. Sp Imperial Star Private Limited, Mumbai vs. ITO, Ward, 3(3)(3), Mumbai

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

ITA 5862/MUM/2024[2021-22]Status: DisposedITAT Mumbai26 Mar 2025AY 2021-22

Bench: SHRI. AMARJIT SINGH (Accountant Member), MS. KAVITHA RAJAGOPAL (Judicial Member)

For Appellant: Shri. Dharan GandhiFor Respondent: Shri. Ajay Chandra, CIT DR
Section 143(3)Section 144C(5)Section 92Section 948Section 94B

allowed to be carried forward. 8. Without prejudice to the above, the transaction with Credit Opportunities II PTE Limited should not be treated as international transaction and that the adjustment made u/s 92 should be deleted. 9. Without prejudice to the above, M/s Credit Opportunities II PTE Limited should ... ratio in specific business code and turnover range where deficiency is reported in audit report. 3 M/s. S. P. Imperial Star Private Limited b. International Transaction(s) in respect of lending or borrowing of money (T.P. Risk Parameter). 5. Notices u/s. 143(2) and 142(1) were duly issued

Jsw Energy Limited, Mumbai vs. The Assistant Commissioner of Income Tax, Central Circle 8(3), Mumbai

In the result, both the appeals are allowed partly for statistical

ITA 3714/MUM/2024[2020-21]Status: DisposedITAT Mumbai26 Mar 2025AY 2020-21

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal ()

For Appellant: Mr. Gaurav KabraFor Respondent: Ms. Neena Jeph, CIT-DR/
Section 115JSection 14ASection 37Section 80I

selected for scrutiny and statutory notices under the Act were issued and complied with. In the course of scrutiny proceedings, the Assessing Officer noticed international transactions carried out by the assessee with its associated enterprises (AEs), therefore, he referred the matter for determination of arm's length price of those ... international transactions to the ld. Transfer Pricing Officer (TPO). On receipt of order dated 20/07/2023 of ld TPO, the Assessing Officer issued a draft assessment order to the assessee on 31.08.2023 incorporating the adjustments made by the Ld. TPO. Against the draft assessment order, the assessee preferred objections before

Jsw Energy (Barmer) Limited, Mumbai vs. The Assistant Commissioner of Income Tax, Central Circle 8(3), Mumbai

In the result, both the appeals are allowed partly for statistical

ITA 3713/MUM/2024[2020-21]Status: DisposedITAT Mumbai26 Mar 2025AY 2020-21

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal ()

For Appellant: Ms. Neena Jeph, CIT-DR/For Respondent: Mr. Gaurav Kabra
Section 14A

course of scrutiny proceedings, the Assessing Officer noticed international of scrutiny proceedings, the Assessing Officer noticed international of scrutiny proceedings, the Assessing Officer noticed international transactions carried out by the assessee with its associated transactions carried out by the assessee with its associated transactions carried out by the assessee with ... length price of those international determination of arm’s length price of those international determination of arm’s length price of those international transactions to the ld. ld. Transfer Pricing Officer (TPO) Transfer Pricing Officer (TPO). On receipt of order dated 20/07/2023 dated 20/07/2023 of ld TPO, the Assessing Officer

Cvent India Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

In the result, the appeals of the assessee in both the A

ITA 187/DEL/2016[2011-12]Status: DisposedITAT Delhi26 Mar 2025AY 2011-12

Bench: Shri Mahavir Singh & Shri Naveen Chandra

For Appellant: Shri Himanshu Sinha, AdvFor Respondent: ShriDheeraj Kumar Jaiswal, Sr. DR
Section 92CSection 92D

erred on facts and circumstances of the case in determining the arm's length adjustment to the Assessee's international transactions from Associated Enterprises ("AES") and thereby resulting in the enhancement of returned income of the Assessee ... erred on facts and in law in the assessment of the arm's length price of the Assessee's international transactions from associated enterprises in the following manner. 4.1 The Ld. AO/ Ld. TPO/ Ld. CIT(A) erred on facts and in law to modify, based on his subjective grounds

Liquidhub Analytics Pvt. Ltd. (Now Merged With Capgemini Technology Services India Ltd), Pune vs. NFAC, Pune

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

ITA 1952/PUN/2024[2020-21]Status: DisposedITAT Pune25 Mar 2025AY 2020-21

Bench: Shri R. K. Panda & Shri Vinay Bhamoreassessment Year : 2020-21

For Appellant: Shri Nikhil PathakFor Respondent: Smt Nilu Jaggi, CIT
Section 143Section 143(3)Section 144C(1)

filed its return 2 of income on 12.02.2021 declaring total income of Rs.25,34,90,210/-. Since the assessee had entered into certain international transactions, the Assessing Officer referred the matter to the Transfer Pricing Officer (TPO) who proposed an upward adjustment of Rs.3,07,80,000/-. The Assessing Officer ... AO/TPO's action of making an adjustment of Rs. 2,10,10,000 to the income of the appellant by holding that its international transactions do not satisfy the arm's length principle envisaged under the Income-tax Act 1901 (Act). In doing so the Ld. DRP has grossly erred

Gallagher Service Center LLP (Formerly Known As Gallagher Operations Support Services P Ltd), Pune vs. Assistant Commissioner of Income-Tax, NFAC, Delhi

In the result, the Ground Number 6 is Partly Allowed for Statistical purpose

ITA 679/PUN/2022[2018-19]Status: DisposedITAT Pune24 Mar 2025AY 2018-19

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.679/Pun/2022 िनधा"रण वष" / Assessment Year : 2018-19 Gallagher Services Center V Additional/Joint Llp, S Commissioner Of Income 401, Delta 2, Gigaspace It Tax. Park, Vimannagar, Pune – 411014. Pan: Aaqfg7417F Appellant/ Assessee Respondent /Revenue Assessee By Shri M.P.Lohia – Ar Revenue By Shri Prakash L Pathade – Cit(Dr) Date Of Hearing 23/01/2025 Date Of Pronouncement 24/03/2025 आदेश/ Order Per Dr.Dipak P.Ripote, Am : This Is An Appeal Filed By The Assessee Against The Assessment Order Of Passed Under Section 143(3) R.W.S 144C(3) Read With Section 144B Of The Income Tax Act, 1961; Dated 15.07.2022 For A.Y.2018-19. The Assessee Has Raised The Following Grounds Of Appeal : “Based On The Facts & Circumstances Of The Case, The Appellant Respectfully Craves Leave To Prefer An Appeal Under Section 253(1)(D)

Section 143(3)Section 144Section 144BSection 253(1)(d)

case and in law, NFAC based on the directions of Hon'ble DRP, has Ground challenging the non-applicability of APA to international transactions of the Appellant with its AE in UK. 1. erred on the facts, in circumstances of the case and in law by not applying ... length rate as agreed in the APA with Arthur J. Gallagher & Co. USA to similar international transactions not covered in the APA and proposing an upward adjustment amounting to INR 2,06,94,009 to the value of international transaction pertaining to provision of business support services to Arthur

Ab Sciex Pte. Ltd, Singapore vs. Deputy Commissioner of Income Tax, Circle International Tax 1(1)(1), Delhi, New Delhi

Appeal is allowed in above terms

ITA 804/DEL/2025[2022-23]Status: DisposedITAT Delhi21 Mar 2025AY 2022-23

Bench: Sh. Satbeer Singh Godara & Sh. S. Rifaur Rahman

For Appellant: Sh. S. K. Agarwal, CAFor Respondent: Sh. Vijay B. Basanta, CIT-DR
Section 143(3)Section 144C(13)Section 44B

erred in disregarding the rule of consistency considering that the Ld. TPO has drawn no adverse inference for the international transactions undertaken by the Appellant and DHR India in AY 2015-16 and AY 2018-19 and all facts remain the same in AY 2022- 23. 5 AB Sciex

Standard and Poors South Asia Services Private Limited, New Delhi vs. ACIT, New Delhi

In the result, appeal filed by the assessee is allowed

ITA 3792/DEL/2024[2020-21]Status: DisposedITAT Delhi21 Mar 2025AY 2020-21

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

For Appellant: Ms. Ananya Kapoor, AdvocateFor Respondent: Shri S.K. Jhadav, CIT DR
Section 143(3)Section 144Section 144C(13)Section 234BSection 928Section 92C

addition of INR 5,593,455 to the total income of the appellant in respect of interest on outstanding receivables arising from the main international transactions i.e., provision of support services and rating support services by the appellant to its associated enterprise ("AE"). The said addition is illegal ... liable to be deleted as Assessing Officer/TPO/DRP, have erred in- 1.1. Not appreciating that interest on receivables is not covered in the definition of international transaction as defined under section 928 of the Act and as such is not an independent international transaction. 1.2. Delinking the inter-company receivables arising

Knauf India Pvt Ltd (Earlier Know As Usg Boral Building Products (India) Pvt Ltd), Gurgaon vs. ITO, Ward-14(3), New Delhi

In the result, the appeal filed by the assessee being ITA

ITA 2061/DEL/2022[2018-19]Status: DisposedITAT Delhi21 Mar 2025AY 2018-19

Bench: Shri S.Rifaur Rahman & Shri Vimal Kumar

For Appellant: Shri Ajit Kumar Jain, CAFor Respondent: Shri S.K. Jhadav, CIT DR
Section 144Section 37Section 92CSection 92C(3)Section 92D

Transfer Pricing Grounds: A. Erroneous adjustment of INR 73,389,756 relating to transfer pricing with respect to international transaction pertaining to Purchase of Finished Goods 3. On the facts and in the circumstances of the case and in law, the Revenue has erred in disregarding the provisions of Rule ... selected for complete scrutiny. Accordingly, notices u/s 143(2) and 142(1) were issued and served on the assessee. The assessee has declared international transactions in its annual report in Form 3CEB. Accordingly, the case was referred to TPO. The TPO observed that assessee has declared purchase of finished goods

Knauf India Pvt Ltd (Earlier Know As Usg Boral Building Products (India) Pvt Ltd), Haryana vs. ITO, Ward 14 (3), New Delhi

In the result, the appeal filed by the assessee being ITA

ITA 2060/DEL/2022[2017-18]Status: DisposedITAT Delhi21 Mar 2025AY 2017-18

Bench: Shri S.Rifaur Rahman & Shri Vimal Kumar

For Appellant: Shri Ajit Kumar Jain, CAFor Respondent: Shri S.K. Jhadav, CIT DR
Section 144Section 37Section 92CSection 92C(3)Section 92D

Transfer Pricing Grounds: A. Erroneous adjustment of INR 73,389,756 relating to transfer pricing with respect to international transaction pertaining to Purchase of Finished Goods 3. On the facts and in the circumstances of the case and in law, the Revenue has erred in disregarding the provisions of Rule ... selected for complete scrutiny. Accordingly, notices u/s 143(2) and 142(1) were issued and served on the assessee. The assessee has declared international transactions in its annual report in Form 3CEB. Accordingly, the case was referred to TPO. The TPO observed that assessee has declared purchase of finished goods

At & T Global Network Services India Private Ltd., Gurgaon vs. ACIT Circle-1(1), New Delhi

ITA 1576/DEL/2022[2018-19]Status: DisposedITAT Delhi21 Mar 2025AY 2018-19

Bench: Sh. Satbeer Singh Godara & Sh. Avdhesh Kumar Mishra

For Appellant: Sh. K. M. Gupta, Adv. &For Respondent: Sh. Dharm Veer Singh, CIT-DR
Section 143(3)

directions of the Dispute Resolution Panel (‘DRP’)], erred in enhancing the income of the Appellant by INR 21,61,52,391 holding that the international transaction pertaining to receipt of intra-group services do not satisfy the arm’s length principle envisaged under the Income ... documentation (i.e., aggregating availing of intra-group services with provision of network support services) and proceeding to determine the arm’s length price of international transaction pertaining to availing of intra-group services from its AEs on a standalone basis; 2.4. disregarding the elaborate documentary evidence submitted as part

Wanbury Limited, Mumbai vs. Income Tax Department, Mumbai

The appeal of the assessee is partly allowed

ITA 6664/MUM/2024[2021-22]Status: DisposedITAT Mumbai20 Mar 2025AY 2021-22

Bench: Shri Anikesh Banerjee, Jm & Ms Padmavathy S, Am

For Appellant: Shri Madhur Agarwal, AR
Section 143(3)Section 144CSection 153(1)

guarantee existed at the beginning of the year in respect of the said banks. Once the guarantee itself ceased to exist, there was no international transaction. 8. On the facts and circumstances of the case, the learned TPO erred in benchmarking the corporate guarantee transaction undertaken in the past years ... case, the learned TPO has erred in making adjustment of deemed interest on debt repayment amounting to Rs 19,56,209 to international transaction on account of deemed loan. 14. On the facts and circumstances of the case, the learned TPO erred in adopting 400 basis point as benchmark

Credit Agricole Corporate and Investment Bank, Mumbai vs. The Dy-CIT (Int. Taxation)-2(1)(1), Mumbai

Accordingly these grounds are dismissed as not pressed

ITA 749/MUM/2022[2017-18]Status: DisposedITAT Mumbai20 Mar 2025AY 2017-18

Bench: Smt Beena Pillai, Jm & Ms Padmavathy S, Am I.T. (Tp) A. No. 1479/Mum/2015 (Assessment Year: 2010-11) Credit Agricole Corporate & Dcit (International Taxation)- Investment Bank (Formerly 2(1)(1), 1St Floor, Room No. 136, Known As ‘Calyon Bank’) Vs. 11Th Floor, Hoechst House, Scindia House, N.M. Marg, Nariman Point, Mumbai-400021. Ballard Pier, Mumbai-400038. Pan: Aaccc3872B Appellant) : Respondent)

Section 143(3)

served on the assessee. A reference was made to the Transfer Pricing Officer (TPO) who determined the Arm's Length Price (ALP) of certain international transactions of Indian Branch such as back to back guarantee, marketing of ECB loans & derivative transactions to make a Transfer Pricing (TP) adjustment of Rs.51 ... 12.1.Aggrieved by the order of the AO the assessee preferred an appeal. The FAA after considering the available material, held that ALP of the international transactions of the PE in India was determined by the TPO, that the AO had made addition of the adjustments arrived

Credit Agricole Corporate & Investment Bank, Mumbai vs. The Dy.CIT of Income Tax (Internationsl Taxation) -2(1) (1), Mumbai

Accordingly these grounds are dismissed as not pressed

ITA 1234/MUM/2022[2018-19]Status: DisposedITAT Mumbai20 Mar 2025AY 2018-19

Bench: Smt Beena Pillai, Jm & Ms Padmavathy S, Am I.T. (Tp) A. No. 1479/Mum/2015 (Assessment Year: 2010-11) Credit Agricole Corporate & Dcit (International Taxation)- Investment Bank (Formerly 2(1)(1), 1St Floor, Room No. 136, Known As ‘Calyon Bank’) Vs. 11Th Floor, Hoechst House, Scindia House, N.M. Marg, Nariman Point, Mumbai-400021. Ballard Pier, Mumbai-400038. Pan: Aaccc3872B Appellant) : Respondent)

Section 143(3)

served on the assessee. A reference was made to the Transfer Pricing Officer (TPO) who determined the Arm's Length Price (ALP) of certain international transactions of Indian Branch such as back to back guarantee, marketing of ECB loans & derivative transactions to make a Transfer Pricing (TP) adjustment of Rs.51 ... 12.1.Aggrieved by the order of the AO the assessee preferred an appeal. The FAA after considering the available material, held that ALP of the international transactions of the PE in India was determined by the TPO, that the AO had made addition of the adjustments arrived