“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

Rehau Polymers Pvt.Ltd, Pune vs. Assistant Commissioner of Income-Tax, Circle - 8, Pune

ITA 658/PUN/2022[2018-19]Status: DisposedITAT Pune04 Mar 2025AY 2018-19

Bench: Shri R. K. Panda & Shri Vinay Bhamore

For Appellant: Shri Nikhil S PathakFor Respondent: Shri Hitendra B Ninawe

Section 143(2)Section 143(3)

considering the value of transaction as NIL.. In this regard, it is stated that TPO benchmarked the transaction pertaining to intra group services separately by applying CUP. Further. Department is in appeal before the Hon'ble High Court against the decision of Hon'ble ITAT in assessee ... case for AY 2012-13 & 2013-14 on the issue of intra group services. Since the assessee has failed to prove the receipt of above mentioned services and tangible benefit derived from such a services, the ALP of transactions related to said Services treated NIL and adjustment

Ups Express Private Limited, Mumbai vs. Deputy C/Assistant Commissioner of Income Tax 3(1)(1), Mumbai

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

ITA 4888/MUM/2024[2020-21]Status: DisposedITAT Mumbai27 Feb 2025AY 2020-21

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

Section 143(3)Section 144BSection 144C(13)Section 153Section 37Section 92C(1)

million. 20 ITA No.4888/Mum/2024; A.Y. 2020-21 UPS Express Private Limited 17. As it is an intra group services provided by the associated enterprises to the assessee is necessary for the assessee to establish before the transfer pricing officer as well as in its transfer pricing study report that assessee ... parties are crystallized along with the remuneration structure. 26 ITA No.4888/Mum/2024; A.Y. 2020-21 UPS Express Private Limited 31. As the intra-group services availed by the assessee is intertwined in each of the activities of the assessee, apparently, the assessee has received those services. 32. Had these intra group

Caterpillar Financial Servies India Private Limited, Whitefield, Bangalore, Karnataka vs. Assessment Unit, Income Tax Department, Jurisdictional AO - ACIT, Circle 2(2)(1)), Bmtc Building, Koramangala, Bengaluru

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

ITA 1621/BANG/2024[2020-21]Status: FixedITAT Bangalore04 Feb 2025AY 2020-21

Bench: Shri Waseem Ahmed & Shri Soundararajan K

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Shri Sridhar E, CIT (DR)

Section 92C

found that the assessee made a payment of ₹10,78,94,831 towards cost contribution to the AE for intra-group services. The TPO based on the assessee’s submission found that the expenses were incurred at group level and thereafter allocated to different company of the group based ... same at ALP. 5.1 The TPO after considering the materials available, OECD Guidelines, UN Transfer pricing guidelines and considering treatment of the intra group services in countries such as Australia, Canada, France, Germany, USA, Nigeria etc has observed that the application of the ALP is crucial in determining whether

Nga Hr (India) Private Limited, Mumbai vs. Assessment Unit (Jao - DCIT, Circle 7(1)(1), Mumbai)

In the result the appeal filed by the assessee stands partly allowed and the stay petition filed by the assessee stands dismissed infructuous

ITA 5777/MUM/2024[2021-22]Status: DisposedITAT Mumbai31 Jan 2025AY 2021-22

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

Section 143(3)Section 144C(13)Section 153(1)Section 153(4)Section 253(1)(d)Section 92(3)Section 92C

basis of allocation, proof of rendering of services and benefit derived by the asssessee from such services, payments for intra group services cannot be treated as arms length the Ld.TPO thus noted that assessee failed to proof substantially that such services were actually rendered and received by the assessee ... 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

M/S Tdk India Pvt. Ltd.(Formerly Known As M/S Epcos India Pvt. Ltd.), Kolkata vs. DCIT, Cir. 11(1), Kolkata

In the result, both the appeal of the assessee are partly allowed for statistical

ITA 282/KOL/2022[2017-18]Status: DisposedITAT Kolkata22 Jan 2025AY 2017-18

Bench: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]

Section 144C(5)Section 92C

against the confirmation of addition of Rs. 12,54,93,154/- by the Ld. DRP in respect of intra group services rendered by the associated enterprises to the assessee. 5. Facts in brief are that the assessee filed return of income on 31.11.2016 declaring total income of nil after adjusting ... international transactions. The case of the assessee was referred by the AO to TPO for determination of transfer pricing adjustment in respect of intra group service by the AEs. The TPO vide order dated 30.10.2019 passed u/s 92CA(3) determined the adjustment as under: Particulars Adjustment Amount (Rs.) Intra-Group

M/S Tdk India Limited (Formerly Known As Epcos India Pvt. Ltd.), Kolkata vs. DCIT, Cir. -11(1), Kolkata

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

ITA 203/KOL/2021[2016-17]Status: DisposedITAT Kolkata22 Jan 2025AY 2016-17

Bench: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]

Section 144C(5)Section 92C

against the confirmation of addition of Rs. 12,54,93,154/- by the Ld. DRP in respect of intra group services rendered by the associated enterprises to the assessee. 5. Facts in brief are that the assessee filed return of income on 31.11.2016 declaring total income of nil after adjusting ... No.203/Kol/2021 Assessment Year: 2016-17 & 2017-18 M/s TDK India Limited (formerly known as EPCOS India Pvt. Ltd.) pricing adjustment in respect of intra group service by the AEs. The TPO vide order dated 30.10.2019 passed u/s 92CA(3) determined the adjustment as under: Particulars Adjustment Amount (Rs.) Intra-Group

Lanxess India Private Limited, Thane vs. Income-Tax Officer, Wagle Industrial Estate

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

ITA 4632/MUM/2024[2020-21]Status: DisposedITAT Mumbai20 Jan 2025AY 2020-21

Bench: Smt. Beena Pillai () & Shri Prabhash Shankar ()

Section 143(3)Section 144C(13)Section 144C(5)Section 153Section 92CSection 92C(3)Section 92D

moto adjustment of A.Y.2020-21 6 F.Y. 2018-19 Total 11,064,705,675 2.2 The Ld.TPO noted that, the assessee received various intra- group services from its AE’s, against which charges were paid by the assessee as under: Sr. Particulars Value of Most appropriate Tested No. International method party ... Services 7 PTSE charges 7,53,54,211/- 8 HAZOP charges 5,33,228/- 2.3. The Ld.TPO noted that, intra-group services being IT services, IEA services, Atrion services, Centralized services was aggregated by the assessee together under the head cost allocation and A.Y.2020-21 7 benchmarked the transactions under

Zuari Cement Limited, Kadapa vs. DCIT Circle -1, Nellore

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

ITA 502/HYD/2022[2018-19]Status: DisposedITAT Hyderabad30 Dec 2024AY 2018-19

Bench: Shri Vijay Pal Rao & Shri Madhusudan Sawdia

For Appellant: Shri Deepak Chopra, Advocate and Shri Nitin Narang,C.AFor Respondent: : Shri Kumar Pranav, CIT-DR

Section 144C(5)Section 92D

separate analysis for following international transactions namely: a) Payment for Technical service fee and license fee; b) Sub License Fee for Trademark; c) Intra-group service fee; and d) Interest on outstanding receivables. (Hereinafter referred as 'impugned transactions') using CUP Method/ Other Method and holding that the value of these ... Other Method without providing any particulars for the comparability of the independent transactions. Grounds on Incorrect Economic Analysis of Payment of Intra Group Service fee undertaken by the TPO and DRP-INR 5,52,48,148. 19. The DRP/ TPO has erred, on facts and in law, by determining

Decathlon Sports India Private Limited, Bangalore, Karnataka vs. Deputy Commissioner of Income-Tax Circle 2(2)(1), Bengaluru, Karnataka

In the result appeal of the assessee is partly allowed as indicated

ITA 1874/BANG/2024[2020-2021]Status: DisposedITAT Bangalore26 Dec 2024AY 2020-2021

Bench: Shri Prashant Maharishi

For Appellant: Shri Chavali Narayan, CA

Section 143(3)Section 92C

utilization of brought forward losses. Transfer Pricing (“TP”) Grounds: Rejection of transfer pricing documentation maintained with respect to trading segment, payment of intra group services and trade receivables 3. The Ld. AO /TPO /DRP erred in not accepting the transfer pricing analysis undertaken by the Appellant in accordance with ... read with Income-tax Rules, 1962 (“the Rules”) and holding that the Appellant’s impugned international transactions pertaining to trading segment, payment of intra group services and trade receivables are not at arm’s length. SA No.60/Bang/2024 & IT(TP)A No. 1874/Bang/2024 Page 3 of 37 Adjustment on account

Limagrain India Private Limited, Hyderabad vs. DCIT, Circle -5(1), Hyderabad

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

ITA 464/HYD/2022[2018-19]Status: DisposedITAT Hyderabad19 Dec 2024AY 2018-19

Bench: Shri Manjunatha G. (Accountant Member), Shri K. Narasimha Chary (Judicial Member)

For Appellant: Shri R.Srinivasulu, ARFor Respondent: : Shri B.Bala Krishna, CIT-DR

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

functionally different companies while determining the Arm’s Length Price for seed testing charges paid by the AEs to the Appellant. Receipt of intra-group services 5. The Ld.AO/Hon'ble DRP erred in law and on facts in making a transfer pricing adjustment ... treating the ALP as Nil, in relation to the international transaction involving receipt of intra- group services by the Assessee from its Associated Entities (“AEs”) 6. The Ld.AO/Hon'ble DRP erred in law and on facts in going beyond the scope under section 92CA in 3 questioning the commercial rationale

Nefab India Private Limited, Pune vs. DCIT, Circle-3(1), Gurgaon

ITA 509/DEL/2022[2017-18]Status: DisposedITAT Delhi18 Dec 2024AY 2017-18

Bench: Shri M. Balaganesh & Shri Anubhav Sharmaassessment Year: 2017-18 Nefab India Pvt. Ltd., Vs Dcit, Gate No.519 1/4/8, Circle 3(1), 30 Km. Milestone, Gurgaon. Near Kalubai Mandir, Golden Quadrilateral Nh-4, Pune, Maharashtra – 412213. Pan : Aaccn1599G

For Appellant: Shri Ajit Kumar Jain, CAFor Respondent: Shri Zafarul Haque Tanveer, CIT-DR

Section 143(3)

pricing documentation. The case of the assessee is that the ld. tax authorities below have failed to appreciate the commercial expediency for availing intra group services and the contention of the assessee is that the ld. tax authorities could not have questioned the commercial decisions of the company to take ... intra group services requiring the assessee to satisfy net benefit receipt test. The case of the assessee is also that determination of arm’s length price of the transaction as nil by applying CUP method without providing any information on Comparable Uncontrolled transactions wherein service providers have charged nil price

DCIT, Circle- 8(1), New Delhi vs. E.I. Dupont India P. Ltd., Gurgaon

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

ITA 7454/DEL/2017[2008-09]Status: DisposedITAT Delhi18 Dec 2024AY 2008-09

Bench: Shri M. Balaganesh & Shri Sudhir Kumarcorteva Agriscience India Pvt Ltd Vs. Dcit, (Earlier Known As E.I. Dupont P. Circle-11(1), Ltd), 17Th Floor, Tower-C, Dlf New Delhi Cyber Greens, Sector-25A, Phase-3, Gurgaon (Appellant) (Respondent) Pan: Aaace2462M Dcit, Vs. Corteva Agriscience India Circle-11(1), Pvt Ltd (Earlier Known As E.I. Dupont P. Ltd), 17Th New Delhi Floor, Tower-C, Dlf Cyber Greens, Sector-25A, Phase-3, Gurgaon (Appellant) (Respondent) Pan: Aaace2462M Assessee By : Shri Deepak Chopra, Adv Shri Harpreet Singh Ajmani, Adv Shri Pulkit Pandey, Adv Revenue By: Shri Chetan Rao, Cit Dr Date Of Hearing 25/09/2024 Date Of Pronouncement 19/12/2024

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri Chetan Rao, CIT DR

Section 144C

raised by the revenue are challenging the transfer pricing adjustment ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd made towards administrative support services (intra group services ) availed by the assessee from its Associated Enterprises (AEs). 8. We have heard the rival submissions and perused the materials available on record ... Transfer Pricing Study Report (TPSR) (enclosed in Page 166 of Paper Book) had margins of 4.44% and accordingly the assessee claimed that the Intra Group Services (IGS) paid by the assessee to its AE to be at Arm‘s Length Price (ALP). 10. The breakup of the amounts paid

E.I. Dupont India P. Ltd., Gurgaon vs. DCIT, Circle- 11(1), New Delhi

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

ITA 6879/DEL/2017[2008-09]Status: DisposedITAT Delhi18 Dec 2024AY 2008-09

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri Chetan Rao, CIT DR

Section 144C

DCIT 1 (1)(2), Mumbai vs. M/S Hindustan Unilever Ltd., Mumbai

In the result, the appeal filed by the assessee and Revenue are partly

ITA 6913/MUM/2019[2005-06]Status: DisposedITAT Mumbai14 Nov 2024AY 2005-06

Bench: Justice (Retd.) Shri C.V. Bhadang & Shri B.R. Baskaran

For Appellant: Shri Nishant Thakkar a/wFor Respondent: Shri Azhar Zain Vayal Parambath

Section 80HSection 80I

circumstances of the case the Ld. CIT(A) has erred in deleting the adjustment of Rs. 8,66,48,000/- on account of intra group services on the ground that this adjustment stood subsumed once the entity level benchmarking is found to be at arm's length, even though ... international transactions.The TPO held that certain royalty paid to Unilever Plc. under the Technical Collaboration Agreement dated 12 August 1999 and the intra group services should be benchmarked separately. 26 ITA Nos. 6783/Mum/2019 6913/Mum/2019 C.O.No. 96/Mum/2021 d. The TPO thereafter held that no royalty was payable by the assessee

Hindusthan Unilever Ltd, Mumbai vs. Dy CIT Range 1(1)(2), Mumbai

In the result, the appeal filed by the assessee and Revenue are partly

ITA 6783/MUM/2019[2005-06]Status: DisposedITAT Mumbai14 Nov 2024AY 2005-06

Bench: Justice (Retd.) Shri C.V. Bhadang & Shri B.R. Baskaran

For Appellant: Shri Nishant Thakkar a/wFor Respondent: Shri Azhar Zain Vayal Parambath

Section 80HSection 80I

Axalta Coating Systems India Private Limted, Gurgaon vs. DCIT, Circle-3(2), New Delhi

In the result the grounds of appeal of the assessee in ITA

ITA 9344/DEL/2019[2015-16]Status: DisposedITAT Delhi14 Nov 2024AY 2015-16

Bench: Shri Challa Nagendra Prasad & Shri Naveen Chandra

For Appellant: Shri Ajit Jain, ARFor Respondent: Shri Rajesh Kumar, CIT-DR

grounds taken by the assessee relate to the following two issues: a) Transfer pricing adjustment made in respect of intra-group service charges amounting to Rs. 92,238,025/-; and b) Transfer pricing adjustment made in respect of Interest on compulsory convertible debentures ('CCD') amounting ... refinish paints and coatings. It has entered into several international transactions with its Associated Enterprises (AEs). 4. With respect to payment of intra-group service charges, the TPO held that the assessee has failed to prove rendition of the services, the arm's length nature of the said transaction

Comparex India P.Ltd, New Delhi vs. ITO, Circle-4(2), New Delhi

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

ITA 2151/DEL/2022[2018-19]Status: DisposedITAT Delhi09 Sept 2024AY 2018-19

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI YOGESH KUMAR U.S. (Accountant Member)

For Appellant: Shri Ajit Jain, ARFor Respondent: Shri Rajesh Kumar, CIT DR

Section 143(2)Section 143(3)Section 144C(10)Section 144C(13)Section 144C(8)Section 92CSection 92C(3)

dated 28.06.2022 DRP directions : (i) The DRP has upheld the TPO’s proposed adjustment on the issue of Rs.1,85,52,925/- Intra Group Services. 7 (ii) The DRP directed to re-verify the Rs.Nil/- filters and allow the working capital (*Detailed adjustment on the issue of Back office ... Revenue brought to our notice page 909 of the paper book which is the original TPO proposed adjustment which consists of (a) intra group services for Rs.1,85,52,925/-, (b) back office support services Rs.18,87,166/-; and (c) payment of sourcing fee/purchase of sale of software Rs.19

Gates India Pvt Ltd, Delhi vs. ACIT, Circle-10(1), Delhi

In the result, the appeal of the assessee is allowed

ITA 2379/DEL/2022[2018-19]Status: DisposedITAT Delhi22 Aug 2024AY 2018-19

Bench: Shri Saktijit Dey & Shri Pradip Kumar Kedia

For Appellant: Shri M.P. Rastogi, AdvFor Respondent: Shri Rajesh Kumar, CIT-(DR)

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

passed final assessment order dated 31.08.2022 by making the adjustments on account of management charges to its AE, i.e., Intra Group Services and outstanding receivables. The income was accordingly assessed at Rs.84,09,03,040/-. 4. Aggrieved by the final assessment order passed in pursuance of the directions ... No.2379/Del/2022 3 6. The first issue concerns adjustment on account of management charges amounting to Rs.8,73,00969/- paid to its AE towards intra group services. The ld. counsel for the assessee submits that; (a) the assessee-company (Gates India Pvt. Ltd.) is a 100% subsidiary of Gates Corporation

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

In the result, the Appeal filed by the Assessee in ITA No

ITA 6455/DEL/2017[2009-10]Status: DisposedITAT Delhi07 Aug 2024AY 2009-10

Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

Section 92C(3)Section 92F

international transactions to be 50 percent of the amount paid by the Appellant to its associated enterprises ("AEs") for receipt of intra group services from its AEs. 6. The Learned CIT(A)/ Learned AO/ Learned TPO have erred in not conducting the analysis of selecting the Most Appropriate Method ... upholding the adoption of CUP method as the most appropriate method for determining the arm's length price in respect of the intra group services without identifying any comparable uncontrolled transaction(s) for the computation of the ALP as prescribed in Section 92F(ii) of the Act 9. The Learned

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

In the result, the Appeal filed by the Assessee in ITA No

ITA 6253/DEL/2017[2009-10]Status: DisposedITAT Delhi07 Aug 2024AY 2009-10

Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

Section 92C(3)Section 92F