“comparable companies”

Deutsche Investor Services P.Ltd, Mumbai vs. DCIT 6(2), Mumbai

learned TPO erred and the Hon'ble DRP further erred in upholding / confirming the action of the TPO of disregarding the benchmarking analysis and comparable companies selected by the Appellant (which were engaged in providing system integration, software testing and IT Infrastructure Management etc.) based on the contemporaneous data ... erred in upholding / confirming the action of the learned TPO of benchmarking /comparing the Support Services of the Appellant with: a) Functionally non-comparable companies; b) Companies engaged in rendering high-end services such as knowledge processing services, engineering design services, etc; c) Companies having different business model, d) Companies

ACIT Cir 2(3)(1), Mumbai vs. Canvas M Technologies Ltd, Mumbai

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm Canvas M Technologies Ltd. Acit Cir 2(3)(1) (Now Known As M/S. Tech Room No. 552, 5Th Floor, Aayakar Mahindra Ltd.) Bhavan, M.K. Road, Vs. Gateway Building, Apollo Mumbai-400 020 Bunder, Mumbai – 400 001 (Appellant) (Respondent) Pan No. Aaccc8665N Assessee By : Mr. Viral Shah, Ar Revenue By : Ms. Samruddhi Hande, Dr Date Of Hearing: 15.02.2023 Date Of Pronouncement : 10.05.2023

assessee has considered Transactional Net Margin Method as the most appropriate method selecting operating margin to operating revenue as PLI. It selected the comparable companies from software development industry computed their margin selecting 10 comparables whose average weighted margin of 13.57% against the margin of assessee at 24.97%, hence, stated

Dy Commissioner of Income Tax -6(1)(2), Mumbai-400020 vs. M/S. Bristol Myers Squibb India P Ltd., Mumbai-400018

In the result, appeal of the Revenue is partly allowed and the assessee’s cross objections are dismissed

Bench: Amit Shukla () & Ms. Padmavathy S. ()

case for A.Y. 2009-10 the TPO has rejected RPM for the reason that there is no proper information available with regard to the comparable companies and the Tribunal held the appeal in favour of the 15 ITA 175/Mum/2022 M/s Bristol Myers Squibb India Pvt Ltd assessee based ... gross margin done by the assessee, but has rejected the method adopted for the reason that the AMP expenses vs sales ratio of comparable companies are low. Therefore, the Ld.AR submitted that the reason given by the TPO for rejecting the method adopted by the assessee is not tenable

L'Oreal India Private Limited, Mumbai vs. Assistant Commissioner of Income Tax Income Tax, Circle-7(1)(1), Mumbai

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

Bench: Shri Om Prakash Kant, Am & Ms. Kavitha Rajagopal, Jm L’Oreal India Private Limited Asst. Cit, Circle-7(1)(1) A-Wing, 8Th Floor, Marathon Futurex, Mumbai-400 020 N.M.Joshi Marg, Lower Parel, Vs. Mumbai-400 013

entrepreneurial business activities into manufacturing and distribution segment without any cogent reasons for the same and arbitrarily and in an adhoc manner selecting comparable companies for manufacturing and distribution segment without adopting a scientific search process for applying bright line test ('BLT') using 'Other Method to determine ... above, erred in not appreciating that BLT does not take into account the functional and the accounting differences between the Appellant and the comparable companies; 17. Without prejudice to the above, erred in adhoc and arbitrary cherry picking of comparable companies to apply BLT without following any systematic search process

M/S. Viraj Profiles Pvt. Ltd (Formerly Known As Viraj Profiles Ltd, Mumbai vs. DCIT Central Cir 3(2), Mumbai

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

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

Transfer pricing officer under Transactional Net Margin Method, since the said profit rate is at par with the rate of profit declared by the comparable companies. He submitted that, in the following cases, the Tribunal has restricted the addition to 2% of the value of purchases:- (a) Suman Gupta ... receipt of material can be judged on comparing the manufacturing loss. The gross profit rate declared by the assessee vis-à-vis other comparable companies is another measure to judge the genuineness of purchases. If an assessee has introduced bogus bills without actually receiving the materials, then the natural tendency

Kongsberg Maritime Cm India Pvt. Ltd., Navi Mumbai vs. Addll/Jt/Dy/ACIT/ITO-NFAC, Delhi

Bench: Shri Prashant Maharishi & Shri Kuldip Singhassessment Year: 2017-18

years (ie. current year plus previous 2 years) with respect to international transaction pertaining to application engineering services 5. erred in rejecting functionally comparable company ie Deisin Private Limited as comparable to the Appellant for determining ALP for international transaction pertaining to provision of application engineering services 6. erred ... mean margin of 11.67% and thereby proposed an adjustment of Rs.1,67,59,155/-. 10. Before the Ld. DRP the taxpayer chosen 4 additional comparable companies, whose data was not available at the time of TP analysis but the Ld. DRP upheld the order passed

Ingredion India Private Limited, Navi Mumbai vs. ACIT, Circle-15(1)(2), Mumbai

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

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

margin method as the most appropriate method. The claim of the assessee is that net operating margin of the assessee is higher than the comparable companies and therefore it is at arm’s length. The learned TPO has determined ALP of royalty at ₹ Nil. The assessee claims that

DCIT C.C. 3(2), Mumbai vs. M/S. Viraj Profiles Ltd, Mumbai

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

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

Transfer pricing officer under Transactional Net Margin Method, since the said profit rate is at par with the rate of profit declared by the comparable companies. He submitted that, in the following cases, the Tribunal has restricted the addition to 2% of the value of purchases:- (a) Suman Gupta ... receipt of material can be judged on comparing the manufacturing loss. The gross profit rate declared by the assessee vis-à-vis other comparable companies is another measure to judge the genuineness of purchases. If an assessee has introduced bogus bills without actually receiving the materials, then the natural tendency

Clsa India P. Ltd, Mumbai vs. DCIT RG 4(1), Mumbai

In the result, appeal of the assessee is allowed

applied TNMM as Most Appropriate Method, whereby assessee had shown its operating profit margin of 66.21% as against average of 6.43% of the comparable companies. In so far as the payment of royalty / branding fees are concerned, this issue has been raised vide ground Nos.3-9 and at the outset ... held that payment of royalty by the assessee was not justified. 8.4 CIT(A) has also examined the business development system followed by other comparable companies in India and has given a finding that these companies on average were incurring business development expenditure which was 6.4% of brokerage turnover whereas

ADIT (I.T)-3(2), Mumbai vs. M/S. the Bank of Nova Scotia, Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri Vikas Awasthy& Shri Amarjit Singh आअसं.6818/मुं/2006 ("न.व. 2002-03) The Bank Of Nova Scotia, Mittal Towers, B-Wing, Nariman Point, Mumbai 400 020. Pan: Aaacb-1536-H ...... अपीलाथ"/Appellant बनाम Vs. Deputy Director Of Income Tax (International Taxation)-3(2), Scindia House, Ballard Pier, Mumbai 400 038. ..... ""तवाद"/Respondent आअसं.651/मुं/2007 ("न.व. 2002-03) Adit(It)-3(2),Mumbai R. No.132, 1St Floor, N.M.Road, Mumbai – 400 038. ...... अपीलाथ"/Appellant बनाम Vs. The Bank Of Nova Scotia, Mittal Towers, B-Wing, Nariman Point, Mumbai 400 020. Pan: Aaacb-1536-H ..... ""तवाद"/Respondent

head office/overseas branches on the basis that the same amounts to payment to self. 2. In stating that the business of the comparable companies considered by the Appellant are not similar to the correspondent banking services provided by the Appellant and accordingly not accepting the Appellant's basis of computing

M/S. the Bank of Nova Scotia, Mumbai vs. DDIT (I.T) - 3(20, Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri Vikas Awasthy& Shri Amarjit Singh आअसं.6818/मुं/2006 ("न.व. 2002-03) The Bank Of Nova Scotia, Mittal Towers, B-Wing, Nariman Point, Mumbai 400 020. Pan: Aaacb-1536-H ...... अपीलाथ"/Appellant बनाम Vs. Deputy Director Of Income Tax (International Taxation)-3(2), Scindia House, Ballard Pier, Mumbai 400 038. ..... ""तवाद"/Respondent आअसं.651/मुं/2007 ("न.व. 2002-03) Adit(It)-3(2),Mumbai R. No.132, 1St Floor, N.M.Road, Mumbai – 400 038. ...... अपीलाथ"/Appellant बनाम Vs. The Bank Of Nova Scotia, Mittal Towers, B-Wing, Nariman Point, Mumbai 400 020. Pan: Aaacb-1536-H ..... ""तवाद"/Respondent

head office/overseas branches on the basis that the same amounts to payment to self. 2. In stating that the business of the comparable companies considered by the Appellant are not similar to the correspondent banking services provided by the Appellant and accordingly not accepting the Appellant's basis of computing

Omni Active Health Technologies Limited, Mumbai vs. Addl/Jt/Dy/Asst/CIT/ITO/NFAC, Delhi

From the computation of updated margin also, the PLI of the assessee come to 15.21% which was higher than the PLI of the two comparable companies. Hence, from this analysis of updated comparables also, the transaction was found to be at arm's length. At this juncture, the Transfer Pricing

Asb International P.Ltd, Thane vs. DCIT Cir 1, Kalyan

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

functions performed by the Non-AE segment are manufacturing and sales. As a benchmark of the manufacturing function, the Assessee proposes that the four comparable companies, identified in the contract manufacturing set for benchmarking the AE segment submitted before the ITAT as additional evidence, ought to be used ... benchmark of the sales function, the Assessee seeks to rely on the trading set of comparable companies, which the Assessee has filed as additional evidence before this Tribunal. Particulars OP/OR Royalty Rate as per the Technical 12.00% License Agreement Royalty as a percentage of Non-AE A 10.85% segment sales

Tcs E- Serve Ltd ( Earlier Known As E- Serve International Ltd), Mumbai vs. DCIT RG 9(1), Mumbai

Accordingly, ITA number 7448/M/2010 for assessment year 2005 – 06 filed by the learned assessing officer is dismissed

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm Co No.151/Mm/2012 (Arising In Ita No. 2380/Mum/2011 For A.Y. 2005-06) Tata Consultancy Services The Additional Commissioner Limited Of Income-Tax (Upon Merger Of Tcs E-Serve 9(1) Limited With Tata Consultancy Aaykar Bhavan, Services Limited) Vs. 9Th Floor, Nirmal Building, M. Karve Road, Nariman Point, Mumbai-400 020 Mumbai-400 020 (Appellant/Cross Objector) (Respondent) Pan No. Aaacc4480F

retained. ITA Nos. 4583/Mum/13, 7448/Mum/2010, 2540 & 2380/Mum/2011 CO No.151/Mum/2012 E Serve International Ltd..; A.Y. 04-05 & 05-06 Thus in the final analysis 10 comparable companies were selected whose PLI for financial year 2004 – 05 was determined and average PLI was found at 29.43%. Thereafter on the total cost ... also permitted the working capital adjustment. He also dealt with the several comparables. Accordingly, he found that the original Arithmetic mean of the comparable companies comes to 19.43% after working capital adjustment, after considering 5% variation, the international transaction of the assessee is at arm's-length and therefore

ACIT 9(3), Mumbai vs. Tcs E-Serve Ltd, Mumbai

Accordingly, ITA number 7448/M/2010 for assessment year 2005 – 06 filed by the learned assessing officer is dismissed

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm Co No.151/Mm/2012 (Arising In Ita No. 2380/Mum/2011 For A.Y. 2005-06) Tata Consultancy Services The Additional Commissioner Limited Of Income-Tax (Upon Merger Of Tcs E-Serve 9(1) Limited With Tata Consultancy Aaykar Bhavan, Services Limited) Vs. 9Th Floor, Nirmal Building, M. Karve Road, Nariman Point, Mumbai-400 020 Mumbai-400 020 (Appellant/Cross Objector) (Respondent) Pan No. Aaacc4480F

retained. ITA Nos. 4583/Mum/13, 7448/Mum/2010, 2540 & 2380/Mum/2011 CO No.151/Mum/2012 E Serve International Ltd..; A.Y. 04-05 & 05-06 Thus in the final analysis 10 comparable companies were selected whose PLI for financial year 2004 – 05 was determined and average PLI was found at 29.43%. Thereafter on the total cost ... also permitted the working capital adjustment. He also dealt with the several comparables. Accordingly, he found that the original Arithmetic mean of the comparable companies comes to 19.43% after working capital adjustment, after considering 5% variation, the international transaction of the assessee is at arm's-length and therefore

ACIT 9(3), Mumbai vs. Tcs E-Serve Ltd, Mumbai

Accordingly, ITA number 7448/M/2010 for assessment year 2005 – 06 filed by the learned assessing officer is dismissed

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm Co No.151/Mm/2012 (Arising In Ita No. 2380/Mum/2011 For A.Y. 2005-06) Tata Consultancy Services The Additional Commissioner Limited Of Income-Tax (Upon Merger Of Tcs E-Serve 9(1) Limited With Tata Consultancy Aaykar Bhavan, Services Limited) Vs. 9Th Floor, Nirmal Building, M. Karve Road, Nariman Point, Mumbai-400 020 Mumbai-400 020 (Appellant/Cross Objector) (Respondent) Pan No. Aaacc4480F

retained. ITA Nos. 4583/Mum/13, 7448/Mum/2010, 2540 & 2380/Mum/2011 CO No.151/Mum/2012 E Serve International Ltd..; A.Y. 04-05 & 05-06 Thus in the final analysis 10 comparable companies were selected whose PLI for financial year 2004 – 05 was determined and average PLI was found at 29.43%. Thereafter on the total cost ... also permitted the working capital adjustment. He also dealt with the several comparables. Accordingly, he found that the original Arithmetic mean of the comparable companies comes to 19.43% after working capital adjustment, after considering 5% variation, the international transaction of the assessee is at arm's-length and therefore