“specified domestic transaction”

Transfer PricingSection 92BASection 92BA588 judgments

The decision most relied on for specified domestic transaction is CIT v. ITC Ltd. (236 Taxmann 612), cited in 108 judgments on BharatTax.

Leading authorities on specified domestic transaction

CIT v. ITC Ltd.

236 Taxmann 612 · 2016 · High Court

108

citing judgments

When computing deduction under Section 80IA, specifically for inter-unit transfer of power, the benefit cannot be claimed based on rates chargeable by distribution licensees to consumers. The deduction must be computed based on the rate fixed by the Tariff Regulation Commission for sale by electricity generating companies.

CIT v. Godawari Power & Ispat Ltd.

42 Taxmann.com 551 · 2014 · High Court

104

citing judgments

Inter-unit transfer of power by an industrial undertaking eligible for Section 80IA deduction constitutes a specified domestic transaction under Section 92BA, requiring valuation at arm's length. This decision clarifies the application of Section 80IA(8) and transfer pricing regulations for such transactions.

CIT v. Jindal Steel & Power Ltd.

157 Taxmann.com 207 · 2023 · Supreme Court

citing judgments

For Section 80IA deductions, the market value of electricity supplied by a captive power plant (eligible unit) to its industrial unit (non-eligible unit) must be computed by comparing prices in the open market and those charged by State Electricity Boards to industrial consumers.

CIT v. Shatrunjay Diamonds

261 ITR 258 · 2003 · High Court

citing judgments

The assessee bears the initial burden to maintain and produce authentic documentation under Section 92D and Rule 10D to justify transactions with related parties, especially concerning the arm's length price for such transactions under Section 40A(2)(b). The discharge of this statutory obligation to maintain accurate data is a mandatory requirement of law.

Commissioner of Income Tax v. Gujarat Alkalies Chemicals Limited

395 ITR 247 · 2017 · High Court

citing judgments

Deduction under Section 80IA is allowable for captive power generation. The price for calculating this deduction is the rate at which the electricity board supplies power to its consumers, rather than the rate at which power generating companies supply to the electricity board.

Skoda Auto India (P) Ltd. v. ACIT, Aurangabad

30 SOT 319 · 2009 · ITAT

citing judgments

The Tribunal may allow adjustments for differences between the tested party and comparable companies to eliminate material differences, provided accurate and credible evidence is furnished.

M/s. Shree Bhagwati Steel Rolling Mills v. C.I.T. Excise & Others

62 Taxmann.com 135 · 2015 · Supreme Court

citing judgments

Judgments in M/s. Shree Bhagwati Steel Rolling Mills and M/s. Fibre Boards have overruled earlier decisions, preventing assessees from relying on those overruled precedents.

CIT v. Star Paper Mills Ltd.

172 Taxmann.com 391 · 2025 · High Court

citing judgments

The transfer price for intra-group services, specifically the sale of power from a captive power plant to a manufacturing unit, can be benchmarked based on the price at which the manufacturing unit procures power from the State Electricity Board, especially when it reflects a reasonable and arm's length price.

Judgments citing specified domestic transaction

DCIT-3(4), Mumbai vs. M/S Reliance Industries Limited, Mumbai

In the result, both the appeals of the assessee and both the appeals of the revenue are treated as partly allowed

ITA 2587/MUM/2022[2017-18]Status: DisposedITAT Mumbai18 Oct 2023AY 2017-18

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

Section 14ASection 250(6)Section 32Section 35

Guarantee commission given to the Associated Enterprise (AE). e) Transfer pricing adjustment in respect of Business support services availed from AE - RCITPL (Specified Domestic Transaction). f) Transfer Pricing adjustment for Inter-unit of transfer of power (Excess income shown by the eligible units). 26. The first individual issue urged

Reliance Industries Limited, Mumbai vs. Dy Commissioner of Income Tax Circle-3(4), Mumbai

In the result, both the appeals of the assessee and both the appeals of the revenue are treated as partly allowed

ITA 2318/MUM/2022[2017-18]Status: DisposedITAT Mumbai18 Oct 2023AY 2017-18

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

Section 14ASection 250(6)Section 32Section 35

Reliance Industries Ltd., Mumbai vs. ACIT Circle 3(4), Mumbai

In the result, both the appeals of the assessee and both the appeals of the revenue are treated as partly allowed

ITA 2317/MUM/2022[2018-19]Status: DisposedITAT Mumbai18 Oct 2023AY 2018-19

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

Section 14ASection 250(6)Section 32Section 35

Tapi Jwil Jv, New Delhi vs. ITO, Ward-62(4), New Delhi

In the result, the appeals of the assessee are allowed

ITA 4873/DEL/2019[2014-15]Status: DisposedITAT Delhi16 Oct 2023AY 2014-15

Bench: Sh. C. M. Gargdr. B. R. R. Kumarita No. 6722/Del/2018 : Asstt. Year : 2014-15 Ita No. 4873/Del/2019 : Asstt. Year : 2014-15 Tapi Jwil Jv, Vs Income Tax Officer, C/O C. S. Anand, Adv., Ward-62(4), 104, Pankaj Tower, 10, L.S.C. New Delhi Savita Vihar, Delhi-110092 (Appellant) (Respondent) Pan No. Aadat3744J Assessee By : Sh. C. S. Anand, Adv. Revenue By : Sh. Amitabh K. Sinha, Cit-Dr Date Of Hearing: 18.07.2023 Date Of Pronouncement: 16.10.2023 Order Per Dr. B. R. R. Kumar:

For Appellant: Sh. C. S. Anand, AdvFor Respondent: Sh. Amitabh K. Sinha, CIT-DR

Section 271GSection 40A(2)(b)Section 928BSection 92D

Crores to Rs. 20 Crores, and also because the provision of section 40A(2)(b) stands omitted from section 928BA (meaning of specified domestic transaction.” Estimation of Profit/Section 40A(2)(b): 4. Brief background of the case is as under: The assessee M/s TAPI Prestressed Products Ltd. ('TPPL ... Penalty for failure to furnish information or document under section 92D. 271G. If any person who has entered into an international transaction or specified domestic transaction fails to furnish any such information or document as required by sub-section (3) of section 92D, the Assessing Officer or the Transfer Pricing

Tapi Jwil Jv, New Delhi vs. ITO, Ward-62(4), New Delhi

In the result, the appeals of the assessee are allowed

ITA 6722/DEL/2018[2014-15]Status: DisposedITAT Delhi16 Oct 2023AY 2014-15

For Appellant: Sh. C. S. Anand, AdvFor Respondent: Sh. Amitabh K. Sinha, CIT-DR

Section 271GSection 40A(2)(b)Section 928BSection 92D

M/S. Tata Chemicals Ltd, Mumbai vs. DCIT2(3) (1) -, Mumbai

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

ITA 468/MUM/2022[2017-18]Status: DisposedITAT Mumbai10 Oct 2023AY 2017-18

Section 143Section 234Section 234BSection 80

order dated 28/12/2021. 2. In ground Nos. 1-4 assessee has challenged transfer pricing adjustment of Rs.15,23,15,220/- in respect of specified domestic transaction of inter-unit transfer of power from the eligible 2 M/s. Tata Chemicals Ltd. undertaking u/s.80-IA of the Act to other manufacturing undertaking ... erred in levying interest u/s 2348 amounting to Rs. 0.52 Cr. 3. The brief facts qua the issue of adjustment on account of specified domestic transactions are that, the assessee company is engaged in the business of manufacturing and sale of inorganic chemicals, fertilizers and bio fuels. It operates inorganic

The Supreme Industrial Ltd, Mumbai vs. Asst CIT Ltu Circle, Mumbai

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

ITA 7598/MUM/2019[2015-16]Status: DisposedITAT Mumbai03 Oct 2023AY 2015-16

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No. 7598/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2015-16) The Supreme Industries Ltd. Acit Ltu, Circle, बिधम/ 612, Raheja Chambers, Free Mumbai Vs. Press Journal Marg, Room No. X, 29Th Floor, Nariman Point, Mumbai- World Trade Centre-1, 400021. Cuffee Parade, Mumbai- 400005. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaact1344F (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Nitesh Joshi & Shri Harsh Shah Revenue By: Shri Manoj Kumar (Cit- Dr) सुनवाई की तारीख / Date Of Hearing: 07/07/2023 घोषणा की तारीख /Date Of Pronouncement: 03/10/2023 आदेश / O R D E R

For Appellant: Shri Nitesh Joshi & Shri Harsh ShahFor Respondent: Shri Manoj Kumar (CIT- DR)

Section 143(3)Section 17(1)Section 197Section 40ASection 40A(2)Section 40A(2)(b)Section 92BSection 92C

that the assessee has inter alia challenged the validity of the Ld. TPO’s action for making transfer pricing adjustment in relation to specified domestic transaction covered u/s 40A(2)(b) of the Act. The assessee has alternatively also opposed the impugned transfer pricing adjustment on merits ... noted that the TPO had proposed transfer pricing adjustment in relation to (i) international transaction with AEs of Rs.4,19,928/- (ii) specified domestic transaction involving payment of commission to directors u/s 40A(2)(b) of the Act of Rs.7,50,81,060/-. The assessee has challenged the legal validity

Gillette India Limited, Spa-65A, Industrial Area, Bhiwadi, District- Alwar vs. PCIT, Jaipur-1, Jaipur

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

ITA 313/JPR/2023[2016-17]Status: DisposedITAT Jaipur27 Sept 2023AY 2016-17

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. P. C. ParwalFor Respondent: Sh. Ajay Malik (CIT) a

Section 143(3)Section 192Section 194Section 195Section 263Section 36(1)(va)Section 40

with regards to payment made to non-residents whereas in Form No.3CEB the accountant is required to report the international transaction or specified domestic transaction which may not be liable for taxation u/s 195 of the Act being in the nature of business income or reimbursement of the expenses. Hence ... correctly shown in Form 3CEB and return of income. ii. Whether sales turnover/receipts has been correctly offered for tax. iii. Whether value of specified domestic transactions have been correctly shown in Form 3CEB and return of income. iv. Whether claim of deduction against business income is admissible. v. Whether deduction

Religare Enterprises Ltd., New Delhi vs. ACIT, Circle- 19(1), New Delhi

In the result, the appeal of the assessee on this ground is

ITA 491/DEL/2021[2016-17]Status: DisposedITAT Delhi19 Sept 2023AY 2016-17

Bench: Dr. B. R. R. Kumar

For Appellant: Sh. Ajay Vohra, Sr. Adv. &For Respondent: Sh. Bhaskar Goswami, CIT DR

Section 142Section 143(3)Section 144CSection 153(1)

Department. 7.5 That the assessing officer erred in treating the interest paid to RSL as excessive without appreciating that the same being specified domestic transaction was duly reported in Form 3CEB and was duly accepted to be at arm’s length by the transfer pricing officer. 7.6 That the assessing

M/S. Kandla Energy and Chemicals Ltd., Village Devaliya, Tal. Anjar(Kutch) vs. Add. CIT, Gandhidham Range, Gandhidham(Kutch)

In the result, the appeal filed by the Assessee is hereby dismissed

ITA 399/RJT/2018[2014-15]Status: DisposedITAT Rajkot15 Sept 2023AY 2014-15

Bench: Shri Waseem Ahmed (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 143(3)Section 144C(1)Section 144C(2)Section 144C(2)(b)Section 144C(3)Section 40A(2)(b)Section 92CSection 92E

total income of Rs. 5,43,24,000/-. During the assessment proceedings, it was noticed that the assessee company had entered into certain specified domestic transactions whose value exceeded Rs. 5 Crores with related party u/s. 40A(2)(b) of the Act and also Chartered Accountant’s report ... determination of Arm’s Length Pricing u/s. 92CA of the Act. The Ld. TPO determined the Arm’s Length Price of the specified domestic transactions and recommended an upward adjustment of Rs. 1,89,74,894/- vide order dated 31-10-2017. After receipt of the TPO’s order

Malco Energy Ltd., Mumbai vs. Asst CIT Circle-10(2)(2), Mumbai

ITA 7314/MUM/2019[2015-16]Status: DisposedITAT Mumbai13 Sept 2023AY 2015-16

Bench: Shri Prashant Maharishi, Am & Shri Kuldip Singh, Jm Asst. Commissioner Of Income-Tax Malco Energy Limited Circle 10(2)(2), Vedanta House, Room No.209, 75, Nehru Road, Ville- 2Nd Floor, Parle, Vs. Mumbai-400 099 Aaykar Bhavan Maharashtra, India Maharishi Karve Road, Mumbai-400 020 (Appellant) (Respondent) Pan No. Aahcs6896A Assessee By : Ms. Fereshte Sethna, Shri Mrunal Parekh, Ars Revenue By : Shri Manoj Kumar, Cit Dr

For Appellant: Ms. Fereshte SethnaFor Respondent: Shri Manoj Kumar, CIT DR

Section 115J

notice under section 143 (2) of the act on 12/4/2016. 6. Assessee has reported in Form No. 3CEB with its associated enterprises following Specified Domestic transactions [ SDT] with its associated enterprise along with its benchmarking methodologies as under:- Seria Name of Descri Total Arm‟s- Method l the ption amount ... More precisely the transactions were explained in the Transfer Pricing Study Report [ TPSR] in paragraph number 1.3 being the summary of the specified domestic transactions analyzed showing that :- i. First transactions, Assessee has sale of fuel stock of ₹ 101,245,720/– to the associated enterprisesi.e., M/s Vedanta Limited whichis transacted

Jaypee Cement Corporation Limited, Noida vs. ACIT Circle 5(1)(1), Noida

In the result, the appeal of the assessee is allowed and stay application of the assessee is dismissed

ITA 1070/DEL/2023[2017-18]Status: DisposedITAT Delhi11 Sept 2023AY 2017-18

Bench: Shri Saktijit Dey & Shri M. Balaganeshm/S. Jaypee Cement Vs. Acit, Corporation Ltd, Circle-5(1)(1), Sector-128, Gautam Noida Budh Nagar, Noida (Appellant) (Respondent) Pan: Aaacz2168D

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Mr. Waseem Arshad, CIT DR

Section 143(1)Section 270ASection 32A

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.‖ 10. It was pointed out that the assessee‘s case does not fall under

M/S Eternal Heart Care Centre & Research Institute Pvt. Ltd., 3A, Jagatpura Road, Near Jawahar Circle, Jaipur vs. PCIT, Jaipur-2, Jaipur

In the result, appeal filed by the assessee is allowed

ITA 263/JPR/2023[2018-19]Status: DisposedITAT Jaipur06 Sept 2023AY 2018-19

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Yogesh Parwal, CA &For Respondent: Shri James Kurian, CIT-DR

Section 142(1)Section 143(2)Section 143(3)Section 14ASection 263Section 271A

various case laws. The Ld. PCIT, however, held that filing/reporting of Form 3CEB is mandatory if company is engaged in international and specified domestic transactions with any associated enterprise. In the present case the assessee has not reported the complete parties in the Form 3CEB and hence the provisions ... submission. ‘’1. It is submitted that section 271AA of the Act specifically provides that if any person in respect of international transaction or specified domestic transaction fails to keep and maintain the required information or fails to report such transaction, the AO or CIT(A) may direct that such person

Imperial Mark Trade (I) P.Ltd, Thane vs. DCIT CC 7(2), Mumbai

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

ITA 1453/MUM/2017[2013-14]Status: DisposedITAT Mumbai31 Aug 2023AY 2013-14

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Ajay R. SinghFor Respondent: Shri Manoj Kumar

Section 143(3)Section 144C(13)Section 144C(5)Section 254(1)Section 92C

Length Price ('ALP') at NIL by the learned Transfer Pricing Officer ('TPO') in his order under section 92CA by treating the specified domestic transactions ('SDT') as bogus and sham transactions. The reference made to the learned TPO by the leamed Assessing Officer under section 92CA is merely for the purpose ... issue arising in grounds no. 2-4, raised in assessee’s appeal, is pertaining to transfer pricing adjustment in respect of specified domestic transactions entered into by the assessee with its associated enterprises. 6. We have considered the submissions of both sides and perused the material available on the record

M/S Andritz Hydro Private Limited, Bhopal vs. The DCIT Circle 1(1), Bhopal

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

ITA 75/IND/2022[2017-18]Status: DisposedITAT Indore28 Aug 2023AY 2017-18

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanim/S. Andritz Hydro Private Dcit Circe 1(1) Ltd. Bhopal Vs. D-17, Mpakvn Industrial Area, Mandideep Raisen (Appellant / Assessee) (Respondent/ Revenue) Pan: Aabcv 2466 R Assessee By Shri Rahul, Kaul Ar Revenue By Shri P.K. Mishra, Cit-Dr Date Of Hearing 13.06.2023 Date Of Pronouncement 28.08.2023

Section 143(3)Section 144C(13)Section 144C(5)Section 92C(3)

Page 21 of 27 grouped together for determination of ALP. Section 92C(1) provides for determination of ALP of an international transactions or specified domestic transactions. For ready reference section 92C(1) is quoted as under: “ (1) For the purposes of sub-section (2) of section ... length price in relation to an international transaction [or a specified domestic transaction] shall be determined by any of the following methods, being the most appropriate method, in the following manner, namely :— (a) comparable uncontrolled price method, by which,— (i) the price charged or paid for property transferred or services

Aaacorp Exim India Private Limited, Mumbai vs. D.C.I.T.-Circle-14(1)(1), Mumbai

In the result the appeal of the assessee is allowed

ITA 966/MUM/2023[2015-16]Status: DisposedITAT Mumbai25 Aug 2023AY 2015-16

Bench: Shri Amit Shukla & Shri Gagan Goyal & Aaa Corp Exim India Pvt. Ltd. C-206, Ghatkopar Industrial Estate, Off Lbs Marg, Ghatkopar (W), Mumbai-400 086 Pan: Aacca8815C ...... Appellant Vs. Dcit-14(1)(1) Income Tax Offices, Aayakar Bhavan, M. K. Road, Mumbai-400 020 ..... Respondent

For Appellant: Shri M. Subramanian, Ld. ARFor Respondent: Shri Rajesh Yadav, Ld. DR

Section 10ASection 143(3)Section 234BSection 234CSection 250Section 40ASection 40A(2)(b)Section 80Section 80ASection 92B

Assessee Company is engaged in the business of manufacturing recycled agglomerates, granules and garbage bags of virgin HDPE/LLDPE/PP. As assessee has entered into specified domestic transactions with its AE amounting to Rs. 31.04 Crores, case was referred to Transfer Pricing Officer to compute the Arm’s Length Price u/s. 92CA ... account of any expenditure being excessive or unreasonable having regard to the fair market value, shall be made in respect of a specified domestic transaction referred to in section 92BA, if such transaction is at arm's length price as defined in clause (ii) of section 92F.]” [Meaning of specified

Gemological Institute of America Inc., Mumbai vs. ACIT(It) Cir. 2(3)(2), Mumbai

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

ITA 647/MUM/2023[2020-21]Status: DisposedITAT Mumbai25 Aug 2023AY 2020-21

Bench: Shri Amit Shukla, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blegemological Institute Of America, Inc. V. Acit (International Taxation) C/O Gia India Laboratory Pvt. Ltd Circle-2(3)(2) 10Th Floor, Trade Centre 17Th Floor, Air India Building Nariman Point, Mumbai- 400021 Bandra Kurla Complex Bandra (E) Mumbai- 400098 Pan: Aadcg7962K (Appellant) (Respondent) Assessee Represented By : Shri. J.D. Mistry, Shri Niraj Sheth & Shri Ketan Ved Department Represented By Shri Hement Kumar C. Leuva :

Section 143(2)Section 143(3)Section 144C(5)

adjustment has the effect of reducing the income chargeable to tax or increasing the loss with respect to any international transaction or specified domestic transactions, the provisions of section 92 shall not apply. The DRP further observed that the APA in the case of GIA India Laboratory does not have

Asb International P. Ltd., Ambernath vs. Addl/Jt/Dy/Asstt/CIT/ITO, National E-Assessment Centre, Delhi

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

ITA 921/MUM/2021[2016-17]Status: DisposedITAT Mumbai25 Aug 2023AY 2016-17

Section 143(3)Section 144(5)Section 271(1)(c)Section 92C(1)(f)

section 92C, the other method for determination of the arm's length price in relation to an international transaction [or a specified domestic transaction]shall be any method which takes into account the price which has been charged or paid, or would have been charged or paid, for the same

M/S Isoft Health Management (India) Pvt. Ltd., Chennai vs. DCIT, Bangalore

In the result, appeal of assessee is allowed

ITA 1210/BANG/2011[2007-08]Status: DisposedITAT Indore21 Aug 2023AY 2007-08

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanicomputer Sciences Dcit, Circle 11(4) Corporation India Private No. 14/3, 5Th Floor, R.P. Limited Bhawan Nrupathunga (Formerly Isoft Health Road Vs. Management (India) Pvt. Bangalore Ltd.) Unit-13, Block-2, Sdf Building Mpez Bhopal (Appellant / Assessee) (Respondent/ Revenue) Pan: Aaaco 2465N Assessee By Shri Vishal Kalra, Ar Revenue By Shri P.K. Mishra, Cit-Dr Date Of Hearing 03.08.2023 Date Of Pronouncement 21.08.2023

Section 143(3)Section 144C(13)Section 144C(15)(b)Section 144C(5)Section 153(1)Section 92C

effect that section 92C(3) of the Act authorizes the AO to suo motu determine the ALP of an international transaction / specified domestic transaction. He stated that 2016 Instruction cannot override the statutory provision contained in section 92C(3) of the Act. Advancing his argument further, he stated that ... efficient manner, it is clarified that though the AO has the power u/s. 92C to determine the ALP of an international transaction or specified domestic transaction, determination of ALP should not be carried out at all by the AO in a case where reference is not made

Shree Cement Limited, Beawar vs. Deputy Commissioner of Income Tax, Ajmer

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

ITA 152/JPR/2023[2014-15]Status: DisposedITAT Jaipur07 Aug 2023AY 2014-15

Bench: HON’BLE SHRI SANDEEP GOSAIN, JM & HON’BLE SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Vijay Shah, CAFor Respondent: Shri Arvind Kumar, CIT

Section 115JSection 250Section 32(1)(ii)Section 80Section 80I

under provisions of section 115JB of the Act. The case was taken up for scrutiny. In view of specified domestic transactions, a Shree Cement Limited, Beawar. reference under section 92CA was made to the Transfer Pricing Officer (TPO). The TPO passed an order under section 92CA(3) dated