← All Phrases

“transfer pricing adjustment”

Transfer PricingSection 92CSection 92C2,153 judgments

The decision most relied on for transfer pricing adjustment is CIT v. EKL Appliances Ltd. (345 ITR 241), cited in 422 judgments on BharatTax.

Leading authorities on transfer pricing adjustment

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.

CIT v. Everest Kento Cylinders Ltd.
378 ITR 57 · 2015 · High Court
304
citing judgments

Corporate guarantee fees are subject to transfer pricing rules, and adjustments may be needed to account for differences between corporate guarantees and more liquid bank guarantees when determining arm's length price.

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.

Sony India (P) Ltd. v. DCIT
114 ITD 448 · 2008 · ITAT
131
citing judgments

For transfer pricing purposes, functionally dissimilar entities that have significant business differences must be excluded from the list of comparables for benchmarking analysis. It also provides guidance on the non-allocation of advertisement, marketing, and promotion (AMP) expenses to other entities when incurred solely for the assessee's business.

CIT v. Cushman & Wakefield (India) (P.) Ltd.
367 ITR 730 · 2014 · High Court
120
citing judgments

This case determines the Arm's Length Price (ALP) for intra-group services and reimbursements, clarifying when charges constitute services warranting a mark-up versus mere pass-through costs. It provides guidance on the circumstances under which an ALP adjustment, including an ALP of 'nil', is appropriate for such transactions.

Whirlpool of India Ltd. v. DCIT
381 ITR 154 · 2016 · High Court
119
citing judgments

Advertisement, Marketing, and Promotion (AMP) expenditure incurred by an Indian entity directly benefits its own business and cannot be automatically treated as an international transaction for global brand building by associated enterprises without specific statutory provisions or proper analysis.

CIT v. Tata Autocomp Systems Ltd.
56 Taxmann.com 206 · 2015 · High Court
119
citing judgments

When determining the arm's length price for interest on a foreign currency loan advanced to an Associated Enterprise, the Indian Prime Lending Rate is not applicable. Instead, the interest rate should be benchmarked based on the prevailing foreign currency rate, such as EURIBOR, or the rate in the country where the loan is received/consumed.

Kolhapur Canesugar Works Ltd. v. Union of India
2 SCC 536 · 2000 · Reported
117
citing judgments

Section 6 of the General Clauses Act, which preserves rights and liabilities under repealed statutes, does not automatically apply to a mere omission of a statutory provision unless the omitting enactment specifically provides for it, thereby affecting the continuation of pending proceedings.

Judgments citing transfer pricing adjustment

Lord India P.Ltd, Mumbai vs. Asst CIT 10(2)(1), Mumbai

In the result we allow the additional ground raised by the assessee and quash the assessment order

ITA 424/MUM/2016[2011-12]Status: DisposedITAT Mumbai24 Apr 2023AY 2011-12

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhaillord India Private Vs. Assistant Commissioner Limited (F Ormer Ly Know N A S L Ord Of Income-Tax, Circle- India C Hem Ica L Pr Od Uct S Pv T. Lt D. ) 10(2)(1), Room No. 509, A/401-404, 215 – Atrium Aayakar Bhavan, Chakala, Andheri – Kurla M.K. Road, Road Andheri (East) Mumbai - 400020 Mumbai - 400093 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacu0785H Appellant .. Respondent Appellant By : M.P. Lohia Respondent By : Dr. Samual Pitta Date Of Hearing 29.03.2023 Date Of Pronouncement 24.04.2023 आदेश / O R D E R Per Amarjit Singh (Am): The Present Appeal Filed By The Assesse Is Directed Against The Order Passed By The Drp-1, Mumbai Dated 26.02.2015 For A.Y. 2011- 12. The Assesse Has Raised The Following Grounds Before Us: “1. Transfer Pricing - Availing Of Intra-Group Services 1.1 On The Facts & Circumstances Of The Case & In Law, The Learned Acit/ Drp Erred In Determining The Arm'S Length Price In Relation To The International Transaction Relating To The Availing Of Group Benefit Services/ Technical Service Management Services (Hereinafter Referred To As "Intra-Group Services") Of Rs.1,14,87,092 To Be Rs. 22,97,418/-, Thus Making An Adjustment Of Rs.91,89,674/- & Thereby Disregarding The Fact That The Appellant Had Received The Services For The Purposes Of Its Business. In Doing So, The Learned Acit/ Drp Grossly Erred By Not Appreciating The Commercial Wisdom/ Expediency Of The Appellant

For Appellant: M.P. LohiaFor Respondent: Dr. Samual Pitta
Section 40

assessment order on 21/12/2016 wherein the total income returned of the assessee of ₹ 72,005,269/– was assessed at ₹ 141,821,938/– and transfer pricing adjustment of ₹ 69,416,669/- was made. 013. Assessee preferred an objection before the Dispute Resolution Panel – I, Mumbai [ the Ld DRP] who passed direction ... determining the arm’s length price (ALP) of the international transactions. The TPO passed the order u/s. 92CA(3) of the Act proposing transfer pricing adjustments. Then, the AO passed the order u/s.143(3) of the Act on 29-12-2011 marking it as “Assessment order

Technimont Spa India Project Office, Mumbai vs. DCIT (It) 4(1)(2), Mumbai

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

ITA 2152/MUM/2017[2012-13]Status: DisposedITAT Mumbai21 Apr 2023AY 2012-13

Bench: Shri Aby T. Varkey, Jm & Shri S Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.2152/Mum/2017 (निर्धारण वर्ा / Assessment Years: 2012-13) M/S. Tecnimont Spa India बिधम/ Deputy Commissioner Of Office Income Tax- 4(1)(2) Vs. Tecnimont Icb House, Room No. 1712 17Th Chincholi Bunder, 504 Link Floor, Air India Building Road, Malad (W), Mumbai- Nariman Point, Mumbai- 400064. 400021 स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaact8224A (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri. M.P. Lohia A/W Pranay Gandhi Revenue By: Shri Manoj Kumar Cit Dr सुनवाई की तारीख / Date Of Hearing: 15/02/2023 घोषणा की तारीख /Date Of Pronouncement: 21/04/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ao Dated Nil Passed U/S 143(3) Read With Section 144C(1) Of The Income Tax Act, 1961 (Hereinafter “The Act”). 2. At The Outset, The Ld. Ar Of The Assessee Brought To Our Notice That The Only Issue Is Regarding The Transfer Pricing Adjustment Made By The Ao Pursuant To The Dispute Resolution Panel (Drp) Direction Dated 23.12.2016. According To The Ld. Ar, The Assessee/Tipo Is A Project Office/Pe Of M/S. Tecnimont Spa (Tcm), A Foreign Company Incorporated At Milan, Italy Which Is Engaged In Engineering & Construction World-Wide In Section Of Chemical, Petro-Chemical Oil & Gas, Energy Etc; According To The Ld. Ar, The Assessee/Tipo Has Been Awarded Inter-Alia Turnkey Project By M/S. Indian Oil Corporation (Hereinafter “M/S. Iocl”) At Panipat Project. & The Assessee/Tipo

For Appellant: Shri. M.P. Lohia a/w PranayFor Respondent: Shri Manoj Kumar CIT DR
Section 143(3)Section 144C(1)

outset, the Ld. AR of the assessee brought to our notice that the only issue is regarding the Transfer Pricing Adjustment made by the AO pursuant to the Dispute Resolution Panel (DRP) direction dated 23.12.2016. According to the Ld. AR, the assessee/TIPO is a project office/PE of M/s. Tecnimont ... been accepted at arm’s length in the hands of the associated enterprises of the appellant and thereby being mirror transaction, no transfer pricing adjustment is warranted in the hands of the appellant.” 5. At the outset, the Ld. AR brought to our notice that the TPO has passed

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

ITA 651/MUM/2007[2002-2003]Status: DisposedITAT Mumbai21 Apr 2023AY 2002-2003

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

For Appellant: Shri Nishant Thakkar with Ms. Jasmin AmasadvalaFor Respondent: Shri Soumendu Kumar Dash
Section 14ASection 36(1)(vii)Section 40Section 44C

debts written off u/s. 36(1)(vii) of the Act . (vi) Addition on account of interest received by Head Office. (vii) Transfer Pricing adjustment on account of services rendered to Foreign AEs. (viii) Disallowance of Salary paid to expatriate employees. 5. Aggrieved by the assessment order dated 14/03/2005, the assessee ... find no infirmity in the findings of CIT(A) on this issue, hence, ground No.6 of the appeal is dismissed. 12. Transfer Pricing Adjustment: The Transfer Pricing Officer(TPO) made transfer pricing adjustment of Rs.47,80,644/- in respect of Correspondent Banking Services rendered by the 14 ITA NO.651/MUM/2007(A.Y.2002-03

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

ITA 6818/MUM/2006[2002-2003]Status: DisposedITAT Mumbai21 Apr 2023AY 2002-2003

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

For Appellant: Shri Nishant Thakkar with Ms. Jasmin AmasadvalaFor Respondent: Shri Soumendu Kumar Dash
Section 14ASection 36(1)(vii)Section 40Section 44C

debts written off u/s. 36(1)(vii) of the Act . (vi) Addition on account of interest received by Head Office. (vii) Transfer Pricing adjustment on account of services rendered to Foreign AEs. (viii) Disallowance of Salary paid to expatriate employees. 5. Aggrieved by the assessment order dated 14/03/2005, the assessee ... find no infirmity in the findings of CIT(A) on this issue, hence, ground No.6 of the appeal is dismissed. 12. Transfer Pricing Adjustment: The Transfer Pricing Officer(TPO) made transfer pricing adjustment of Rs.47,80,644/- in respect of Correspondent Banking Services rendered by the 14 ITA NO.651/MUM/2007(A.Y.2002-03