“tested party”

DCIT, Circle- 1(1)(1), International Taxation, New Delhi vs. At Kearney Ltd.- India Branch Office, Gurgaon

In the result, ITA.No.7888/Del

Bench: Shri R.K. Panda & Shri Kul Bharat

under: “1.3. In this respect, the Appellant respectfully submits before your Honour that the Ld. TPO, while ascertaining the NCP margin of the tested party (i.e. the Appellant) has incorrectly included the third party pass through costs (which were actually out of pocket expenses incurred on behalf of customers

Nectar Lifesciences Ltd., Chandigarh vs. ACIT, Circle- 18(1), New Delhi

In the result, the additions, made by the Assessing

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

taken as comparable price for calculating ALP under CUP. 7.23 With this remark, external CLP is applied in this case taking assessee as the tested party and arm’s Length Rate is applied at Rs.4.609545 per Kwh. Adjustment as per ALP:- Name of Captive consumption by assessee Value Difference power

Dhr Holding India Pvt. Ltd., New Delhi vs. JCIT, New Delhi

In the result, the appeal filed by the assessee in ITA No

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2012-13]

acquisition, the assessee recognized a part of the purchase price as goodwill and non- compete fees in its balance sheet and for computation of tested party margins, the assessee considered amortization of goodwill and non- compete fees as non-operating expenses as these did not pertain to the provision

Kehin Automotive Systems India Pvt. Ltd., Gurgaon vs. Addl. CIT, Special Range-5, New Delhi

In the result, the appeal filed by the assessee in ITA No

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2014-15]

followed Aggregated Transactions Approach to arrive at the Arm’s Length Price (‘ALP’) of its majority of the controlled transactions, considering itself as the tested party. 5. The assessee arrived at its PLI by claiming the following adjustments in the TP Study:- i) Capacity utilization adjustment in respect of Personnel

Clix Finance India Pvt. Ltd. (Earlier Known Clix Finance India Unlimited), New Delhi vs. DCIT, Circle- 10(1), New Delhi

In the result, the appeal filed by the assessee in ITA No

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2012-13]

would like to proceed on merits of the case. 16. Facts on record show that the assessee has taken his foreign Associated Enterprise as tested party, which bench marking was rejected by the TPO. Observations of the TPO are as under: “12. The assessee has also stated that ... vital information, this benchmarking analysis by the assessee does not help the case. There is also no logic of taking the AEs as the tested party when the assessee is receiving theses services for use in India. What we need to judge is whether the assessee is making a payment

Expeditors International (India) Private Limited, New Delhi vs. ACIT Circle-7(1), New Delhi

Bench: Shri N.K. Billaiya & Shri Kuldip Singh(Through Video Conference)

statutory principles to determine the arm’s length price. The order does not CO No.260/Del/2012 ITA No.1854/Del/2014 contain any analysis on the FAR, tested party selection or methods selected. In view of the foregoing, I uphold the arm’s length nature of the royalty payment made by Expeditors India

DCIT, New Delhi vs. M/S. Expeditors International India Pvt. Ltd., New Delhi

Bench: Shri N.K. Billaiya & Shri Kuldip Singh(Through Video Conference)

statutory principles to determine the arm’s length price. The order does not CO No.260/Del/2012 ITA No.1854/Del/2014 contain any analysis on the FAR, tested party selection or methods selected. In view of the foregoing, I uphold the arm’s length nature of the royalty payment made by Expeditors India

M/S. Expeditors International (India) Pvt. Ltd, New Delhi vs. CIT(A), New Delhi

Bench: Shri N.K. Billaiya & Shri Kuldip Singh(Through Video Conference)

statutory principles to determine the arm’s length price. The order does not CO No.260/Del/2012 ITA No.1854/Del/2014 contain any analysis on the FAR, tested party selection or methods selected. In view of the foregoing, I uphold the arm’s length nature of the royalty payment made by Expeditors India

Globe Ground India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

The appeal is allowed with

Bench: The Lower Authorities, It Is Apparent That The Assessee Had Benchmarked Its International Transactions By Adopting The Transactional Net Margin Method (Tnmm) As The Most

DCIT Indicator (PLI) of Operating Profit / Operating Cost (OP/OC) of 10.05%. As per the Transfer Pricing Study, the assessee’s PLI as the Tested Party is 13.84%. It was hence claimed before the lower authorities that the value of international transactions executed were at ALP. The TPO, however, was unsatisfied ... functional profile. In this regard, the TPO noted that the website of assessee depicted various activities. The TPO doubted the functional profile of the Tested Party by observing as under: “The first ground that the assessee has taken is that this office has not appreciated that the activities

DCIT, New Delhi vs. M/S. Expeditors International India Pvt. Ltd., New Delhi

Bench: Shri N.K. Billaiya & Shri Kuldip Singh(Through Video Conference)

statutory principles to determine the arm’s length price. The order does not CO No.260/Del/2012 ITA No.1854/Del/2014 contain any analysis on the FAR, tested party selection or methods selected. In view of the foregoing, I uphold the arm’s length nature of the royalty payment made by Expeditors India

Keihin Automotive Systems India Pvt. Ltd., Gurgaon vs. DCIT, Circle- 2(1), Gurgaon

In the result, appeal of the assessee is partly allowed with about directions

Bench: Shri Amit Shukla & Shri Prashant Maharishi(Through Video Conferencing) Keihin Automotive Systems Pvt. Dcit, Ltd.[Now Amalgamated & Known As Vs. Keihin India Manufacturing Pvt. Ltd.,] Circle: 2 (1), Plot No. 663, Phase–5, Udyog Vihar, Gurgaon, Gurgaon. Haryana – 122 016. Pan: Aaeck4216F (Appellant) (Respondent)

adopting Transactional Net Margin Method (TNMM) as Most Approprriate Method, adopting profit level indicator of operating profit /net sales, taking assessee itself as the ‘tested party’, wherein the margin of the comparable was 4.59%, compared with margin of the assessee at 13.13% and thus it was stated ... rejected the claim of the assessee and computed the margin of the assessee at (-) 39.65%. He further observed that the assessee company being the tested party has made capacity utilization adjustment in its own account to make it as comparable to the comparable companies. He otherwise held that adjustment

M/S. Saic India Private Limited, Noida vs. DCIT, New Delhi

In the result, appeal of the assessee is partly allowed

Bench: Shri Amit Shukla & Shri Prashant Maharishi(Through Video Conferencing) Saic India Private Limited, Vs. Dcit, C/O. Wipro Energy It Services India Circle-7(1), Pvt. Ltd, New Delhi A-67, Sector-57, Noida Pan: Aaaci6192A (Appellant) (Respondent)

That on the facts and circumstances of the case the Ld. TPO/AO/DRP erred in re- computing of the margins of Appellant i.e. tested party by considering retention bonus as an operating expense 8. That on the facts and circumstances of the case the Ld. TPO/AO/DRP erred in facts

Sankei Giken India Pvt. Ltd., Rewari vs. JCIT, Rewari

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

Bench: Shri Amit Shukla & Shri Prashant Maharishi(Through Video Conferencing) Sankei Giken India Pvt. Ltd, Vs. Jcit, Plot No. 84-93, Sector-, Industrial Rewari Estate, Bawal, Rewari Pan: Aaics3604B (Appellant) (Respondent)

which is a capital asset amounting to Rs. 24,13,74,960/-. Both these transactions were benchmarked by taking Japanese associated enterprises as a ‘tested party’, adopting most appropriate method as cost plus method. There are certain other international transactions but they are accepted by both the parties and therefore ... those do not require any further narration. The ld AO accepted that Japanese AE as the tested party examined its profit and loss account. He noted that the gross margin of the Japanese AE is only 3.05% whereas it is stated that it charges mark up from the assessee

Smr Automotive Systems India Ltd., New Delhi vs. Addl. CIT, Special Range- 8, New Delhi

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

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastavaआ.अ.सं/.I.T.A No.6614/Del/2017 िनधा"रणवष"/Assessment Year:2013-14 बनाम M/S Smr Automotive Systems Addl. Cit India Ltd., Vs. Special Range-8, F-7, Block-B-I, Mohan Delhi. Cooperative Industrial Estate, Mathura Road, New Delhi.

Bench to allow appellant to submit additional analysis with respect to benchmarking of impugned transactions with the most appropriate method and selection of tested party along with necessary comparability adjustment, if any. 8. Ld. AO has erred in initiating penalty proceedings

Dentsply India Pvt Ltd vs. DCIT, New Delhi

The appeals of the assessee are allowed

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 752/Del/2009 : Asstt. Year: 2002-03 Ita No. 1682/Del/2009 : Asstt. Year: 2003-04 Ita No. 4195/Del/2009 : Asstt. Year: 2004-05 Dentsply India Pvt. Ltd., Vs Dcit, Plot No. 263, Fies, Patparganj Circle-10(1), Industrial Area, Delhi-110092 New Delhi (Appellantt (Respondent) Pan No. Aaacd3171E Assessee By : Sh. Himanshu Sinha, Adv. Revenue By : Ms. Meera Srivastava, Cit Dr Date Of Hearing: 25.03.2021 Date Of Pronouncement: 04.05.2021

TNMM, the ALP is determined by comparing the operating profit related to an appropriate base i.e., cost or sale or assets of the “tested party” with the operating profit of an uncontrolled party engaged in comparable transactions. Under the TNMM, net margin or ITA Nos. 752, 1682 & 4195/Del/2009 24 Dentsply ... TNMM, the major thrust is to derive at the operating profit at the transactional level and to identify the operating expenses of both the tested party as well as the independent parties. This requires a lot of adjustments to derive at the actual operating profit

Dentsply India Pvt. Ltd, New Delhi vs. DCIT, New Delhi

The appeals of the assessee are allowed

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 752/Del/2009 : Asstt. Year: 2002-03 Ita No. 1682/Del/2009 : Asstt. Year: 2003-04 Ita No. 4195/Del/2009 : Asstt. Year: 2004-05 Dentsply India Pvt. Ltd., Vs Dcit, Plot No. 263, Fies, Patparganj Circle-10(1), Industrial Area, Delhi-110092 New Delhi (Appellantt (Respondent) Pan No. Aaacd3171E Assessee By : Sh. Himanshu Sinha, Adv. Revenue By : Ms. Meera Srivastava, Cit Dr Date Of Hearing: 25.03.2021 Date Of Pronouncement: 04.05.2021

TNMM, the ALP is determined by comparing the operating profit related to an appropriate base i.e., cost or sale or assets of the “tested party” with the operating profit of an uncontrolled party engaged in comparable transactions. Under the TNMM, net margin or ITA Nos. 752, 1682 & 4195/Del/2009 24 Dentsply ... TNMM, the major thrust is to derive at the operating profit at the transactional level and to identify the operating expenses of both the tested party as well as the independent parties. This requires a lot of adjustments to derive at the actual operating profit

Dentsply India Pvt. Ltd, New Delhi vs. DCIT, New Delhi

The appeals of the assessee are allowed

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 752/Del/2009 : Asstt. Year: 2002-03 Ita No. 1682/Del/2009 : Asstt. Year: 2003-04 Ita No. 4195/Del/2009 : Asstt. Year: 2004-05 Dentsply India Pvt. Ltd., Vs Dcit, Plot No. 263, Fies, Patparganj Circle-10(1), Industrial Area, Delhi-110092 New Delhi (Appellantt (Respondent) Pan No. Aaacd3171E Assessee By : Sh. Himanshu Sinha, Adv. Revenue By : Ms. Meera Srivastava, Cit Dr Date Of Hearing: 25.03.2021 Date Of Pronouncement: 04.05.2021

TNMM, the ALP is determined by comparing the operating profit related to an appropriate base i.e., cost or sale or assets of the “tested party” with the operating profit of an uncontrolled party engaged in comparable transactions. Under the TNMM, net margin or ITA Nos. 752, 1682 & 4195/Del/2009 24 Dentsply ... TNMM, the major thrust is to derive at the operating profit at the transactional level and to identify the operating expenses of both the tested party as well as the independent parties. This requires a lot of adjustments to derive at the actual operating profit

Luxottica India Eyewear Pvt. Ltd., Gurgaon vs. ACIT, Circle- 15(2), New Delhi

The appeal of the assessee is allowed

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 126/Del/2018: Asstt. Year: 2013-14 M/S Luxottica India Eyewear Pvt. Ltd. Vs Acit, 7Th Floor, Dlf Building No. 9, Tower- Circle-15(2), B, Phase-Iii, Dlf Cyber City, New Delhi Gurgaon (Appellantt (Respondent) Pan No. Aabcl3871C

judgment in the case of Sony Ericsson (supra), in which it has been held in para 165 that: 'Comparable analysis of the tested party and the comparable would include reference to AMP expenses. 11 Luxottica India Eyewear Pvt. Ltd. In case of a mismatch, adjustment could be made when

JCIT, New Delhi vs. M/S Dunnhumby It Services India Pvt. Ltd., New Delhi

Appeal is partly allowed for statistical purpose

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

upheld the exclusion of foreign exchange gain/loss both in the case of the comparable companies and in the case of the tested party. Accordingly, the Ld. DR prayed that the order of the TPO and the CIT(A) may be sustained. On the issue of allowing risk adjustment

Dunnhumby It Services India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

Appeal is partly allowed for statistical purpose

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

upheld the exclusion of foreign exchange gain/loss both in the case of the comparable companies and in the case of the tested party. Accordingly, the Ld. DR prayed that the order of the TPO and the CIT(A) may be sustained. On the issue of allowing risk adjustment