“ intra group services ”

CIT v. Cushman & Wakefield (India) (P.) Ltd.

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.

367 ITR 730 · 2014 · High Court

120

CIT v. Lever India Exports Ltd.

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.

78 Taxmann.com 88 · 2017 · High Court

111

Commissioner of Income Tax v. Merck Ltd.

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.

389 ITR 70 · 2016 · High Court

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

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.

13 Taxmann.com 82 · 2011 · High Court

Magneti Marelli Powertrain India Pvt. Ltd. v. DCIT

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.

389 ITR 469 · 2016 · High Court

CIT v. Star Paper Mills Ltd.

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.

172 Taxmann.com 391 · 2025 · High Court

Gemplus India (P) Ltd. v. ACIT

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.

3 Taxmann.com 755 · 2010 · ITAT

ITA 346/DEL/2022[2017-18]Status: DisposedITAT Delhi26 Jul 2024AY 2017-18

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

Goodyear India Ltd., Faridabad vs. DCIT, Circle-10(1), New Delhi

In the result, the appeal of the assessee in ITA No

Bench: Shri G. S. Pannu & Shri Yogesh Kumar U.S.

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vivek Verma CIT (DR ) and Sh. Kanv Bali, Sr. DR

Section 143(3)Section 144BSection 144CSection 92B

considered at Nil/-' The Panel however, finds that the TPO has not proposed the determination of arm’s length price of the intra group services at NIL and has proceeded on the basis of the/ quantum of expenditure on such services paid/approved by the independent parties. Thus, there

Goodyear India Ltd, Faridabad vs. ACIT, Circle-10(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 1451/DEL/2022[2018-19]Status: DisposedITAT Delhi26 Jul 2024AY 2018-19

Bench: Shri G. S. Pannu & Shri Yogesh Kumar U.S.

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vivek Verma CIT (DR ) and Sh. Kanv Bali, Sr. DR

Section 143(3)Section 144BSection 144CSection 92B

Intertek India Private Limited, New Delhi vs. DCIT, Circle-10(1), Delhi

In the result, appeal is partly allowed

ITA 2014/DEL/2022[2018-19]Status: DisposedITAT Delhi20 Mar 2024AY 2018-19

Bench: Shri Saktijit Dey, Vice- & Shri Pradip Kumar Kediaassessment Year: 2018-19

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

benefits stated to have been received by the assessee are tangible or real. He observed that the payment made for availing intra-group services is only an arrangement to change the tax base without any economic substance in the transactions. Thus, he concluded that the overlapping intra group services payout ... followed any specific method. He submitted, while determining the ALP of an international transaction relating to intra-group services, the TPO cannot apply need and benefit test. He submitted, in the year under consideration, the assessee has huge turnover of about 432 crores. He submitted, the TPO has not found

ACIT (It)-4(2)(2), Mumbai vs. Standard Chartered Bank Ltd., Mumbai

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

ITA 2936/MUM/2019[2003-04]Status: DisposedITAT Mumbai15 Mar 2024AY 2003-04

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Rahul Chaudhary, Hon'Ble

Section 28Section 9(1)(v)

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “I”, MUMBAI BEFORE SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER AND

Standard Chartered Bank, Mumbai vs. DDIT(It) 2 (1), Mumbai

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

ITA 2839/MUM/2019[2003-04]Status: DisposedITAT Mumbai15 Mar 2024AY 2003-04

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Rahul Chaudhary, Hon'Ble

Section 28Section 9(1)(v)

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “I”, MUMBAI BEFORE SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER AND

Standard Chartered Bank, Mumbai vs. DDIT(It) 2 (1), Mumbai

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

ITA 1683/MUM/2019[2002-03]Status: DisposedITAT Mumbai15 Mar 2024AY 2002-03

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Rahul Chaudhary, Hon'Bleorder Per S. Rifaur Rahman (Am) 1. These Cross Appeals Are Filled By The Assessee & Revenue Against Different Orders Of Learned Commissioner Of Income Tax (Appeals)-57, Mumbai (Hereinafter In Short "Ld.Cit(A)"] Dated 28.12.2018 For The A.Ys.2002-03 & 2003-04. 2. Since The Issues Raised In All The Appeals Are Identical, Therefore, For The Sake Of Convenience, These Appeals Are Clubbed, Heard & Disposed Off By This Consolidated Order. Revenue Appeals

Section 195Section 28Section 9(1)(v)

ITA NO.1407 & 2936/MUM/2019 (A.Ys: 2002-03 & 2003-04) Asst. CIT (I.T)- 4(2)(2) Room No. 1624, 16th Floor Air

ACIT (It)-4(2)(2), Mumbai vs. Standard Chartered Bank Ltd., Mumbai

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

ITA 1407/MUM/2019[2002-03]Status: DisposedITAT Mumbai15 Mar 2024AY 2002-03

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Rahul Chaudhary, Hon'Ble

Section 28Section 9(1)(v)

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “I”, MUMBAI BEFORE SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER AND

A.T. Kearney Limited, Gurgaon vs. ACIT, Circle Int. Tax 1(1)(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 498/DEL/2022[2017-18]Status: DisposedITAT Delhi11 Mar 2024AY 2017-18

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Rajesh Kumar, CIT-DR

ITA 2257/DEL/2022[2018-19]Status: DisposedITAT Delhi11 Mar 2024AY 2018-19

transactions in Bilateral Advance Pricing Agreement ('APA') between the India and the USA for the relevant assessment year 1.2. proposing adjustment on alleged intra group services purely based on surmises and conjectures, without understanding the business model of the Assessee, thereby rejecting the arm's length nature of the international

A.T Kearney Ltd -India, Gurugram vs. ACIT, Circle International Taxation 1(1)(1), New Delhi

In the result, the appeal of the assessee in ITA No

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Rajesh Kumar, CIT-DR

ITA 538/DEL/2022[2013-14]Status: DisposedITAT Delhi04 Mar 2024AY 2013-14

Avery Dennison (India) Private Limited, New Delhi vs. ACIT, Circle-1(1), New Delhi

In the result, the appeal of the assessee is allowed

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. Ankit Sahani, Adv. &For Respondent: Sh. Rajesh Kumar, CIT-DR

ITA 7344/MUM/2018[2014-15]Status: DisposedITAT Mumbai01 Mar 2024AY 2014-15

case and in law, the AO / DRP / TPO erred in making an adjustment to the Appellant's international transaction of receipt of intra-group services with its Associated Enterprises ("AEs") alleging that it does not satisfy the arm's length principle envisaged under the Act and thereby making an adjustment ... Tribunal ("Tribunal") in its order; 3.2. Ignoring the specific directions of the Hon'ble Tribunal wherein the need and benefit test for the intra-group services had been accepted and the matter was referred to the AO / TPO only for verifying the rendition of the services and therefore

Lanxess India Pvt. Ltd., Mumbai vs. DCIT, Circle-1, Thane

In the result, ground No.3 of appeal is allowed for statistical purpose

Bench: Shri Vikas Awasthy& Shri S.Rifaur Rahmanआअसं.7344/मुं/2018 (िन.व. 2014-15) Lanxess India Private Limited, Lanxess House, Plot No.A/162-164, Road No.27, Wagle Estate, Opp.Iti College, Midc, Thane (West) – 400 604 Pan: Aaccb-3880-A ...... अपीलाथ"/Appellant बनाम Vs. Dy.Commissioner Of Income Tax, Circle -1,Thane, Room No.22, 6Th Floor, B Wing, Ashar It Park, Ambika Nagar, Road No.16-Z, Wagle Estate, Thane (West)- 400 064 ....."ितवादी/Respondent अपीलाथ" "ारा/ Appellant By : Shri Dhanesh Bafna With Ms.Hirali Desai & Ms.Riddhi Maru "ितवादी "ारा/Respondent By : Ms. A. Alankrutha, Sr.A.R सुनवाई की ितिथ/ Date Of Hearing : 06/12/2023 घोषणा की ितिथ/ Date Of Pronouncement : 01/03/2024 आदेश/Order Per Vikas Awasthy, Jm: This Appeal By The Assessee Is Directed Against The Assessment Order Dated 31/10/2018 Passed U/S. 143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961 [In Short ‘The Act’], For The Assessment Year 2014-15. 2. The Assessee In Appeal Has Raised Following Grounds Assailing The Assessment Order:

For Appellant: Shri Dhanesh Bafna with Ms.Hirali Desai & Ms.Riddhi MaruFor Respondent: Ms. A. Alankrutha, Sr.A.R

Section 115JSection 143(3)Section 156Section 244A

Associated Enterprises(AEs): (i) Sale (export) of manufactured finished goods - Rs.376,90,83,404/- (ii) Royalty expenses - Rs. 1,34,68,967/- (iii) Intra group services (IT support services) - Rs. 7,88,84,983/- For manufacture and export of chemicals the assessee has three manufacturing sites i.e. Nagda, Chennai ... export transactions of the assessee with AEs and made adjustment of Rs.2,38,66,092/-. 3.1 In respect of international transaction under intra group services i.e. IT Services, the assessee bench marked its trasactions applying TNMM as the most appropriate method. The TPO rejected the same and applied “Other Method

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

In the result, appeals of the Assessee’s in ITA Nos

ITA 960/DEL/2018[2013-14]Status: DisposedITAT Delhi28 Feb 2024AY 2013-14

Bench: SHRI SHAMIM YAHYA (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

ITA 959/DEL/2018[2012-13]Status: DisposedITAT Delhi28 Feb 2024AY 2012-13

application of CUP method as no uncontrolled enterprise would have paid any amount for services which do not tantamount to intra group services with demonstrable benefits. Based on this, the Ld. TPO proposed the TP addition of INR 15,55,04,398/- to the Ld. AO. Transaction wise break ... order are reproduced below:- “1. Please furnish all the agreements entered in to by the assessee company, related to the Intra Group Service obtained by the assessee company from the AEs during the year. 2. Please identify each of the services actually received by the assessee company. 3. Please specify

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

In the result, appeals of the Assessee’s in ITA Nos

Bench: SHRI SHAMIM YAHYA (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

ITA 1306/DEL/2018[2013-14]Status: DisposedITAT Delhi28 Feb 2024AY 2013-14

DCIT, Circle- 1(1)(1), International Taxation, New Delhi vs. A.T. Kearney Ltd., Gurgaon

In the result, appeals of the Assessee’s in ITA Nos

Bench: SHRI SHAMIM YAHYA (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

ITA 1305/DEL/2018[2012-13]Status: DisposedITAT Delhi28 Feb 2024AY 2012-13

DCIT, Circle- 1(1)(1), International Taxation, New Delhi vs. A.T. Kearney Ltd., Gurgaon

In the result, appeals of the Assessee’s in ITA Nos

Bench: SHRI SHAMIM YAHYA (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

ITA 3729/MUM/2016[2011-12]Status: DisposedITAT Mumbai20 Feb 2024AY 2011-12

Pacific Internet India P. Ltd, Bangalore vs. DCIT Cir 7(3)(1), Mumbai

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

Bench: Shri Prashant Maharishi & Shri Narender Kumar Choudhry

For Appellant: NoneFor Respondent: Shri Heera Ram Choudhary

Section 144Section 144CSection 144C(5)Section 92C

made adjustment of Rs.1,47,38,676/- and Rs.6,42,747/- being determination of ALP on account of reimbursement / intra group services and purchase of router respectively. Accordingly, the TPO computed the total adjustment to the tune of Rs.1,53,81,423/- . IT (TP) A No.3729/Mum/2016 :: 3 :: 5. In pursuance

Atos India Private Ltd, Mumbai vs. ACIT 14 (1) (1), Mumbai

In the result, the appeal filed by the assessee stands allowed on the additional grounds

ITA 1576/MUM/2021[2016-17]Status: DisposedITAT Mumbai05 Jan 2024AY 2016-17

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bleatos India Private Limited V. Acit – 14(1)(1) Unit No. 1401, 14Th Floor Rom No. 481, 4Th Floor Supremus “E" Wing Aayakar Bhavan M.K. Road, Mumbai - 400020 I Think Techno Campus Kanjurmarg (E), Mumbai - 400042 Pan: Aaaco2461J (Appellant) (Respondent) Assessee Represented By : Ms. Chandni Shah & Ms. Riddi Maru Department Represented By : Shri Vachaspati Tripathi

Section 144C(5)

upward adjustment of INR 12,69,78,147 to the income of the Appellant in relation to the international transaction of payment for intra-group services pertaining to Appellant's Non-Associated Enterprise ('AE') segment. The Ld. AO/TPO erred in determining the arm's length price ('ALP') of the aforesaid ... from the AEs;  ignoring that the Appellant is not required to establish the benefit arising out of the said services;  ignoring that the intra-group services received are closely interlinked to the Appellant's business operations, and  determining the ALP of the aforesaid international transaction in an arbitrary manner

Michael Page International Recruitment Private Limited, Mumbai vs. Deputy Commissioner of Income Tax 14(2)(2), Mumbai

The appeal of the assessee is allowed

ITA 1190/MUM/2019[2013-14]Status: DisposedITAT Mumbai26 Dec 2023AY 2013-14

Bench: Shri Vikas Awasthy, Jm & Ms Padmavathy S, Am

For Respondent: Ms. A. Alankrutha, Sr. DR