“intra group services”

Transfer PricingSection 92BSection 92B165 judgments

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

Leading authorities on intra group services

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. 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.

CIT v. Lever India Exports Ltd.

78 Taxmann.com 88 · 2017 · High Court

111

citing judgments

A Transfer Pricing Officer (TPO) must adhere to prescribed methods under Section 92C for determining Arm's Length Price (ALP); an ALP determination at Nil or an adjustment using the 'Other Method' is unsustainable without proper comparability analysis. The TPO's jurisdiction is confined to ALP determination, respecting the commercial expediency of the assessee's business strategy, such as shared advertisement expenditure.

Commissioner of Income Tax v. Merck Ltd.

389 ITR 70 · 2016 · High Court

citing judgments

Ad-hoc transfer pricing adjustments are not justified if the Transfer Pricing Officer fails to apply one of the prescribed methods under Section 92C. The arm's length nature of international transactions, including intra-group services and management fees, should be determined through a detailed FAR analysis and benchmarking study.

Dresser-Rand India (P.) Ltd. v. Addl. CIT

13 Taxmann.com 82 · 2011 · High Court

citing judgments

An Assessing Officer cannot disregard an assessee's decision to avail services from associated enterprises, even if the assessee has internal expertise, as the determination of necessity is the assessee's prerogative. The Transfer Pricing Officer's role is to determine the arm's length price, not the need for the service itself.

Magneti Marelli Powertrain India Pvt. Ltd. v. DCIT

389 ITR 469 · 2016 · High Court

citing judgments

The Assessing Officer (AO) or Transfer Pricing Officer (TPO) cannot dispute the application of the TNMM method if they have already accepted it as the most appropriate method for certain international transactions, especially when other transactions are intrinsically linked.

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.

Gemplus India (P) Ltd. v. ACIT

3 Taxmann.com 755 · 2010 · ITAT

citing judgments

The Assessing Officer (AO) may determine the Arm's Length Price (ALP) to be 'Nil' for intra-group services if the services were not actually rendered or if the payment is not commensurate with the benefits derived. This position aligns with the Gemplus India case where management fees were challenged.

Judgments citing intra group services

Deputy Commissioner of Income Tax- 3(1)(1), Mumbai vs. Dsv Solutions Pvt. Ltd. (Formerlyut Worldwide (India) Pvt. Ltd.), Mumbai

In the result, the appeals filed by the revenueand cross

ITA 534/MUM/2025[2014-15]Status: DisposedITAT Mumbai30 Jul 2025AY 2014-15

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

Section 37Section 92F

correct in deleting the ALP adjustment made by TPO on account of Reimbursement of expenses to A.E. relating to intra-group services pertaining to APAC regional cost, freight liability & insurance expenses, RSU Cost, Verizon communication charges and Stock Compensation cost said to have been incurred by the AE and allocated ... correct in deleting the ALP adjustment made by TPO on account of Reimbursement of expenses to A.E. relating to intra group services pertaining to APAC regional cost, freight liability & insurance expenses, RSU Cost, Verizon communication charges and Stock Compensation cost said to have been incurred by the AE and allocated

Deputy Commissioner of Income Tax- 3(1)(1), Mumbai vs. Dsv Solutions Pvt. Ltd. (Formerly Ut Worldwide (India) Pvt. Ltd.), Mumbai

In the result, the appeals filed by the revenueand cross

ITA 533/MUM/2025[2013-14]Status: DisposedITAT Mumbai30 Jul 2025AY 2013-14

Bench: Smt. Beenna Pillai () & Shri Omkareshwar Chidara ()

Section 37Section 92F

Deputy Commissioner of Income Tax- 3(1)(1), Mumbai vs. Dsv Solutions Pvt. Ltd. (Formerly Ut Worldwide (India) Pvt. Ltd.), Mumbai

In the result, the appeals filed by the revenueand cross

ITA 532/MUM/2025[2012-13]Status: DisposedITAT Mumbai30 Jul 2025AY 2012-13

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

Section 37Section 92F

Portescap India Private Limited, Mumbai vs. DCIT Circle 2(3)(1), Mumbai

In the result the appeal filed by the assessee stands partly allowed

ITA 6749/MUM/2024[2021-22]Status: DisposedITAT Mumbai28 Jul 2025AY 2021-22

Bench: Smt. Beena Pillai () & Shri Girish Agrawal ()

Section 143(3)Section 153Section 92C(3)

Ld.TPO however rejected the bench marking of the assessee and held that TNMM is not appropriate method to determine the ALP of Intra Group Services. The Ld.TPO proposed to analysis transaction under “other method” by giving importance to need/evidence/benefit test method. Assessee thus furnished fresh independence search of international transaction ... based on the agreement entered into by assessee. It is submitted that, under the agreements with the two associate enterprises, assessee availed intra group services that was connected with the main activity of manufacturing and therefore were aggregated and bench marked by the assessee by adopting TNMM as most appropriate

O.C Tanner India Private Limited, Mumbai vs. DCIT, Circle -2(3)(1), Mumbai

In the result the appeal is, accordingly, he appeal is, accordingly, allowed for statistical allowed for statistical purposes

ITA 5785/MUM/2024[2021-22]Status: DisposedITAT Mumbai24 Jul 2025AY 2021-22

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2021-22 O.C. Tanner India Pvt. Ltd., Dy. Cit, Circle-2(3)(1), No. 2, Lave 7 Tower 2, Phase Ii, 552, 5Th Floor, Aayakar Bhavan, Raiaskaran Techpark Andheri Vs. Maharishi Karve Road, Kurla Road, Andheri East, Mumbai-400020. Sakinaka S.O. Mumbai, Mumbai-400072. Pan No. Aabco 1031 F Appellant Respondent

For Appellant: Mr. Vijay Mehta, CA

Section 144C(13)Section 144C(5)

agitated with the addition of Transfer Pricing Adjustments, firstly, in relation to O.C. Tanner India Pvt. Ltd O.C. Tanner India Pvt. Ltd Intra Group Services of Rs.6,80,87,902/ Intra Group Services of Rs.6,80,87,902/- and secondly, secondly, interest on outstanding receivable of Rs.2,97,647/ outstanding ... proposed adjustment proposed adjustments to the value of the international to the value of the international transaction of the Intra group services and interest on outstanding transaction of the Intra group services and interest transaction of the Intra group services and interest receivables. . . The The The Ld. Ld. Ld. Assessing

Deputy Commissioner of Income-Tax, Circle - 1(1), Pune vs. M/S. IAC International Automotive India Pvt.Ltd, Pune

In the result, the appeal of the Revenue is dismissed

ITA 749/PUN/2022[2013-14]Status: DisposedITAT Pune08 Jul 2025AY 2013-14

Bench: Ms. Astha Chandra & Shree Dr. Dipak P. Ripote

For Appellant: Shri Darpan KirpalaniFor Respondent: Shri Madhukar Anand

Section 143(2)Section 92Section 92C

scope of the TPO's authority. 5. The Appellant had furnished voluminous and credible evidence in support of the receipt and allocation of intra-group services, including: o Detailed cost allocation workings and process note; o Names and roles of employees of the Associated Enterprise (AE) involved in rendering services ... change from time to time. Before us, the Ld. AR has adequately demonstrated the receipt of services and allocation of intra-group services by furnishing voluminous and credible evidence in support thereof, forming part of the Paper Book, which includes copy of service agreement, detailed cost allocation workings and process

Ntt India Private Limited, Mumbai vs. Asstt Comm. of Income Tax-14(1)(1), Mumbai

In the result, the appeal is accordingly partly allowed for statistical purposes

ITA 2491/MUM/2022[2018-19]Status: DisposedITAT Mumbai24 Jun 2025AY 2018-19

Bench: Ms. Padmavathy S & Shri Raj Kumar Chauhanntt India Private Vs. Assessment Unit/Nfac/Dcit Limited Circle 15(1)(2), 1701-1704, B Wing, One Mumbai Bkc, Level 17, G-Block, Aayakar Bhavan, Plot No. C-65, Bandra Mumbai. Kurla Complex, Bandra East, Mumbai-400 051. Pan/Gir No. Aaacd2145G (Applicant) (Respondent)

Section 142(1)Section 143(2)Section 143(3)Section 144CSection 271ASection 92C

final order of assessment passed by the AO pursuant to the DRP directions. 7. The assessee has agreement with its AE for Intra Group services. The assessee has elaborated the nature of service and also enumerated the benefit of those services. The assessee has submitted various documents before ... assessee on the ground that one to one benefit linkage was not shown as NTT Asia has allegedly rendered certain centralized intra group services to all NTT group companies. Seventhly, the assessee has claimed that because of the management services provided, the assessee was benefitted

Bostik India Private Limited, Bangalore vs. Dc/ACIT Circle(2)(1)(1), Dc/ACIT Circle

In the result, the appeals filed by the assessee are allowed for statistical purposes

ITA 2472/BANG/2024[2021-2022]Status: DisposedITAT Bangalore16 Jun 2025AY 2021-2022

Bench: Shri Waseem Ahmed & Shri Prakash Chand Yadav

For Appellant: Sri Sumeet Khurana, A.RFor Respondent: Dr. K.J. Dhivya, D.R

Section 234A

dismissed as not pressed. 3. In ground Nos.3 to 5, the assessee has challenged the adjustments made by the ld. TPO qua various intra-group services IT(TP)A No.2472/Bang/2024 Bostik India Private Limited, Bangalore Page 2 of 6 received by the assessee. In ground No.6, the assessee has challenged ... consideration. During the course of transfer pricing proceedings, the ld. TPO took a view that the assessee failed to establish the rendition of intra group services as well as the benefits derived by the assessee from these services. Accordingly, the ld. TPO made an adjustment of Rs.28

DCIT 2(3)(1), Mumbai vs. Zensar Technologies Ltd, Mumbai

In the result the appeals filed by the assessee for assessment year 2011-12 and 2012-13 stands partly allowed and the appeal filed by the revenue for the assessment year 2012-13

ITA 2915/MUM/2022[2012-13]Status: DisposedITAT Mumbai23 May 2025AY 2012-13

Bench: Smt. Beena Pillai () & Smt.Renu Jauhri ()

Section 10ASection 234CSection 32

assessee for A.Y. 2012- 13 stands partly allowed. 15. Revenue appeal for assessment year 2012-13 is only on the issue pertaining to intra group services. The Ld.DR submitted that,cost needs to be recovered on such servicesbutLd.CIT(A) allowed the claim of assessee without considering the provisions section

Zensar Technologies Limited, Mumbai vs. DCIT, Circle-2(3)(1), Mumbai

In the result the appeals filed by the assessee for assessment

ITA 2445/MUM/2022[2012-2013]Status: DisposedITAT Mumbai23 May 2025AY 2012-2013

Bench: Smt. Beena Pillai () & Smt. Renu Jauhri ()

Section 10ASection 234CSection 32

assessee for A.Y. 2012- 13 stands partly allowed. 15. Revenue appeal for assessment year 2012-13 is only on the issue pertaining to intra group services. The Ld.DR submitted that, cost needs to be recovered on such services but Ld.CIT(A) allowed the claim of assessee without considering the provisions

Zensar Technologies Limited, Mumbai vs. DCIT Circle - 2(3)(1), Mumbai

In the result the appeals filed by the assessee for assessment

ITA 4307/MUM/2017[2011-12]Status: DisposedITAT Mumbai23 May 2025AY 2011-12

Bench: Smt. Beena Pillai () & Smt.Renu Jauhri ()

Section 10ASection 234CSection 32

Assistant Commissioner of Income Tax, Circle Ltu-1, Chennai, Nungambakkam vs. Orient Green Power Company Limited, Chennai

In the result, appeal filed by the assessee is allowed

ITA 230/CHNY/2025[2014-15]Status: DisposedITAT Chennai15 May 2025AY 2014-15

Bench: Shri Manu Kumar Giri & Shri S.R.Raghunatha

For Appellant: Ms. Anitha, Addl.CITFor Respondent: Mr. Raghav Rajeev Menon

Section 143(3)Section 14ASection 92BSection 92C

SIHL was not a holding company of the appellant for AY 2014-15. It was stated that the benefits received out of intra group services were significant, material and of high value and there was no shifting of profit among the group companies in this case as both the companies

Royal Canin India Private Limited, Mumbai vs. Assistant Commissioner of Income-Tax, Mumbai

Appeal is hereby dismissed

ITA 6816/MUM/2024[2021-22]Status: DisposedITAT Mumbai28 Apr 2025AY 2021-22

Bench: Shrivikram Singh Yadav & Shri Anikesh Banerjeeroyal Canin India Pvt Ltd Vs Assistant Commissioner Of Income- 1401 & 1402, F Wing, 14Th Tax, Circle 3(1)(1), Floor, Lotus Corporate Park, Aayakar Bhavan, M.K. Road, Cts No.185/A, Graham Firth Mumbai-400 020 Compound, Western Express Highway, Goregaon (East), Mumbai-400 063 Pan: Aadcr4417J Appellant Respondent

For Appellant: ShriK.M. Gupta a/w Shri AnmolFor Respondent: Shri Pankaj Kumar (CIT DR)

Section 143(3)Section 144BSection 144CSection 144C(13)

have erred in enhancing the income of the Appellant by INR 16.03.06,842 by arbitrarily disallowing the payment for Intra Group Services ("IGS"). In doing so, the Ld. AO/ TPO have grossly erred in: 5.1. not following the mandatory statutory procedure as laid down under Rule ... India when undertaking the said adjustment 4 ITA 6816/Mum/2024 Royal Canin India Pvt. Ltd 5.4. holding that the Appellant could have availed the intra group service from third-party service providers at a lower cost which were availed from the AEs without providing any cogent basis. and 5.5. not appreciating

Ariston Group India Private Limited, Pune vs. The Assessement Unit, Income Tax Department, NFAC and the DCIT, Circle 1(1), Pune

In the result, appeal of the assessee is partly allowed

ITA 1680/PUN/2024[2020-21]Status: DisposedITAT Pune09 Apr 2025AY 2020-21

Bench: Shri R.K.Panda & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.1680/Pun/2024 िनधा"रण वष" / Assessment Year: 2020-21 Ariston Group India Private The Assessment Unit, Limited, Income Tax Department, 1St Floor, Office No.103, V National Faceless Mayfai Tower, Wakdewadi, S. Assessment Centre, Shivaji Nagar, Pune-411005. Delhi(“Nfac”), The Dcit, Circle-1(1), Pune. Pan: Aaoca7042D Appellant/ Assessee Respondent / Revenue Assessee By Shri Ketan Ved – Ar Revenue By Shri Prakash L Pathade – Cit(Dr) Date Of Hearing 15/01/2025 Date Of Pronouncement 09/04/2025 आदेश/ Order Per Vinay Bhamore, Jm: This Is An Appeal Filed By The Assessee Against The Assessment Order Passed Under Section 143(3) R.W.S 144C(3) Read With Section 144B Of The Income Tax Act, 1961, Dated 18.06.2024 For A.Y.2020- 21. The Assessee Has Raised The Following Grounds Of Appeal : “Based On The Facts & Circumstances Of The Case, Ariston Group India Private Limited (Hereinafter Referred To As "Ariston India' Or 'The Appellant) Prefers An Appeal For The Assessment Year 2020-21 Against

Section 143(3)Section 144Section 144BSection 144C(13)Section 37(1)Section 92C

Rule 10AB of the Income Tax Rules. ITA No.1680/PUN/2024 [A] ………………. 7.16. Clarification regarding the benefit test: (a) For the determination of ALP of Intra Group Services, the assessee has to demonstrate that the services were not only rendered by the AE but also that the assessee had paid charges ... length. Now, the test to decide whether chargeable intra-group services have been provided under the arm's length principle is whether the activity is one for which the independent enterprise would have been willing to pay or perform itself. The independent enterprise would never pay for any service from

Hammond Power Solutions Private Limited, Hyderabad vs. DCIT, Circle 2(1), Hyderabad

In the result, the appeal of the assessee is dismissed

ITA 76/HYD/2022[2017-18]Status: DisposedITAT Hyderabad09 Apr 2025AY 2017-18

Bench: Shri Vijay Pal Rao, Hon’Ble & Shri Madhusudan Sawdia, Hon’Ble

For Appellant: Shri P.V.S.S. Prasad, C.AFor Respondent: Ms. M. Narmada, CIT-DR

Section 143(3)Section 92C

documents and the clarifications provided by the Assessee to evidence the arm's length nature of technical and stewardship services i.e., management services (intra group services) and thereby erred in determining the ALP for the following international transactions as Nil: • Technical Services Rs. 25,12,410 • Stewardship services ... services had been disallowed treating it as Nil. 5. The Ld. DRP/AO erred in considering the ALP of stewardship services i.e., management services (intra group services) and technical services as Nil by questioning the commercial expediency of the transaction and ignoring the fact that, what is paid

DCIT, Cirlce- 1(1) (1), International Taxation, New Delhi vs. American Express Banking Corp. (India Branch), New Delhi

In the result, both appeals are allowed for statistical purposes as above

ITA 165/DEL/2019[2011-12]Status: DisposedITAT Delhi02 Apr 2025AY 2011-12

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishra

facts and circumstances of the case, the Ld. CIT(A) was right in holding that the TPO has re-characterized the Intra Group Services Transaction? 2. Whether on the facts and circumstances of the case, the Ld. CIT(A) was right in not appreciating that TPO has not disallowed ... Intra Group Services merely on the issue of non-substantiation of commercial expediency by the assessee but on several factors? 3. Whether Ld. CIT(A) was right in making lumpsum adjustment to the extent of 50% of Intra Group Services without using any of the transfer pricing method prescribed

Royal Canin India Private Limited, Mumbai vs. Assistant Commissioner of Income-Tax, Circle 3(1)(1), Mumbai

In the result, appeal of the assessee Ground no

ITA 4546/MUM/2024[2020-21]Status: DisposedITAT Mumbai01 Apr 2025AY 2020-21

Bench: Shri Amarjit Singh & Shri Anikesh Banerjee

For Appellant: Shri K.M. Gupta a/w Shri AnmolFor Respondent: Shri Pankaj Kumar (CIT DR)

Section 143(3)Section 144BSection 144CSection 144C(13)

have erred in enhancing the income of the Appellant by INR 9,65,65,885 by arbitrarily disallowing the payment for intra group services. In doing so, the Ld. AO/TPO have grossly erred in: 6. 1. not following the mandatory statutory procedure as laid down under Rule ... pricing principles and relevant judicial pronouncements in India when undertaking the said adjustment. 6. 4. holding that the Appellant could have availed the intra group service from third-party service providers at a lower cost which were availed from the AEs without providing any cogent basis

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)

Faceless Assessment Centre and therefore, the order is void-ab-initio Transfer Pricing (TP) Grounds 2. TP adjustment with respect to receipt of Intra- Group Services On the facts and circumstances of the case, and in law, the Ld. AO / Learned Transfer Pricing Officer (‘Ld. TPO’) [in pursuance ... 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-tax Act, 1961 (‘Act’), and in doing so have grossly erred

Nga Hr (India) Private Limited, Mumbai vs. Assessment Unit, Mumbai

Appeal of the assessee is allowed

ITA 3718/MUM/2024[2020-21]Status: DisposedITAT Mumbai17 Mar 2025AY 2020-21

Bench: Ms Padmavathy S, Am & Shri Raj Kumar Chauhan, Jm

For Respondent: Shri Pankaj Kumar, CIT-DR

Section 115JSection 143(3)Section 144C(13)Section 153(1)Section 153(4)Section 92(3)Section 92C

Ld.TPO accepted the TNMM applied by the assessee to the international transactions under ITeS segment. It is noted that, the ALP of intra group service being management support services from AE was included in the cost base for computing the margin at 15%. 7.1. It is observed that Ld.TPO determined ... from services for which payments has been made, he determined ALP of international transaction at Nil, without carrying out any FAR analysis of intra-group services. This approach of 6 ITA No.3718/Mum/2024 - NGA HR (India) Private Ltd. Ld.TPO is not acceptable, as once a transaction has been categorised as independent

M/S. Philips India Limited, Kolkata vs. D.C.I.T., Circle - 11(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1960/KOL/2024[2020-2021]Status: DisposedITAT Kolkata11 Mar 2025AY 2020-2021

Bench: Duvvuru Rl Reddy, Vp & Shri Rajesh Kumar, Am M/S Philips India Limited Dcit, Circle 11(1) 3Rd Floor, Tower-A, Dlf Park, Aaykar Bhavan, P-7, 08 Block Af, Major Arterial Chowringhee Square, Road, New Town (Rajarhat), Vs. Kolkata-700069, Kolkata-700156, West Bengal West Bengal (Appellant) (Respondent) Pan No. Aabcp9487A Assessee By : Shri Ketan Ved, Ar Revenue By : Shri A. Kundu, Cit Dr Date Of Hearing: 07.03.2025 Date Of Pronouncement : 11.03.2025

For Appellant: Shri Ketan Ved, ARFor Respondent: Shri A. Kundu, CIT DR

Section 92Section 92C

against the margin of 9.94%. The Transfer Pricing Officer computed the adjustment as under:- Particulars Amount (In INR 000) Operating Cost (including Intra-group service charges)(A) 1,26,37,526 Less: Availing of services for this segment (as per Form 93,486 3CEB) disallowed by the TPO (B) Operating ... allowed. 011. The issue raised in ground no.3 is against the transfer pricing adjustment of ₹108,79,48,589/- on account of Intra Group Services (‘IGS’) received by the assessee. M/s Philips India Limited; A.Y. 2020-21 012. We note that this is a recurring issue in the case