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“aggregation of transactions”

Transfer PricingSection 92CSection 92C46 judgments

The decision most relied on for aggregation of transactions is UCB India (P) Limited v. ACIT (121 ITD 131), cited in 70 judgments on BharatTax.

Leading authorities on aggregation of transactions

UCB India (P) Limited v. ACIT
121 ITD 131 · 2009 · ITAT
70
citing judgments

For transfer pricing purposes, distinct international transactions, such as royalty payments and manufacturing, should be benchmarked separately rather than aggregated. The selection of comparables must be based on a thorough Functions, Assets, and Risks (FAR) analysis, and loss-making entities are not automatically excluded if they satisfy other comparability criteria.

Knorr-Bremse India (P) Ltd. v. ACIT
380 ITR 307 · 2016 · High Court
63
citing judgments

When transactions are part of a package deal with a composite price or are interdependent such that an assessee must accept all of them together, they must be aggregated and treated as a single international transaction for transfer pricing purposes.

CIT v. Concord Commercial Pvt. Ltd.
95 ITD 117 · 2005 · ITAT
34
citing judgments

The aggregate of business profits and losses from derivative transactions must be worked out before applying the Explanation to Section 73 of the Income-tax Act, 1961. This means that trading of shares and derivative transactions are not considered speculative transactions under Section 43(5) for the purposes of Sections 28 to 41.

Star India P. Ltd. v. ACIT
317 ITR 292 · 2009 · ITAT
16
citing judgments

When analyzing international transactions, separate classes of transactions, such as fees for technical know-how, use of trademarks, and procurement, must be analyzed individually, as each impacts profits. Aggregation of such transactions is not permissible.

Cummins India Ltd. v. Addl CIT
53 Taxmann.com 53 · 2015 · ITAT
12
citing judgments

Closely linked transactions between associated enterprises can be aggregated and treated as a single transaction for the purpose of determining the arm's length price, with the appropriate method then applied to this composite transaction.

LG Electronics Pvt Ltd. v. ACIT
22 ITR (Trib) 1 · 2013 · ITAT
11
citing judgments

The Assessing Officer may determine the arm's length price (ALP) of an international transaction, including aggregated advertising and marketing promotion (AMP) expenses, in light of the Special Bench decision in LG Electronics India Pvt. Ltd. v. ACIT.

Judgments citing aggregation of transactions

M/S. Linde India Limited (Formerly Boc India Limited), Kolkata vs. DCIT, Circle 12(1), Kolkata

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

ITA 381/KOL/2017[2012-13]Status: DisposedITAT Kolkata19 Feb 2024AY 2012-13

Bench: Dr. Manish Borad & Shri Anikesh Banerjee

Section 143(3)Section 144CSection 154Section 92CSection 92C(3)

disregarding the economic analysis for purchase of fixed assets 3.1. For that the authorities below arbitrarily, erroneously and wrongly disregarded the principle of "Aggregation of Transactions" and also failed to consider and appreciate that 2 M/s. Linde India Limited the computation of the arm's length price should have been ... existing 8 comparable companies) of the asessee on mere surmises and without any rational basis; 5.3. The TPO disregarded the principle of “Aggregation of Transactions” as enunciated in the TP Documentation Report and arbitrarily bench-marked the transactions of Export of Capital Assets with-out appreciating the fact that

Ups Express Private Limited (Formerly Known As Ups Jetair Express Private Limited), Mumbai vs. Dy.CIT 3(1) (1) Addl/Jt/Dy/CIT/ITO/NFAC-Delhi, Mumbai

In the result, appeal of the assessee is partly allowed

ITA 2439/MUM/2022[2018-19]Status: DisposedITAT Mumbai16 Oct 2023AY 2018-19

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm Ups Express Pvt. Ltd. (Formerly Known As Ups Jetair Dcit-3(1)(1) Express Pvt. Ltd. Aaykar Bhavan, M.K. Road, 6-A, Shyam Off Jvlr, Majas Vs. Mumbai-400020 Village, Jogeshwari(E) Mumbai-400060 (Appellant) (Respondent) Pan No. Aaacu4322N Assessee By : Shri Nitesh Joshi Revenue By : Shri Dhiraj Kumar Date Of Hearing: 18.07.2023 Date Of Pronouncement : 16.10.2023

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Dhiraj Kumar
Section 131

reimbursement of expenses (received) of ₹ 2,32,47,077/- to the operating revenues as well as the operating costs for the purpose of aggregation of transactions and determining arm's length price under TNMM. Further, the TPO observed that the reimbursement of expenses pertaining to each segment is not available

M/S Andritz Hydro Private Limited, Bhopal vs. The DCIT Circle 1(1), Bhopal

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

ITA 75/IND/2022[2017-18]Status: DisposedITAT Indore28 Aug 2023AY 2017-18

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanim/S. Andritz Hydro Private Dcit Circe 1(1) Ltd. Bhopal Vs. D-17, Mpakvn Industrial Area, Mandideep Raisen (Appellant / Assessee) (Respondent/ Revenue) Pan: Aabcv 2466 R Assessee By Shri Rahul, Kaul Ar Revenue By Shri P.K. Mishra, Cit-Dr Date Of Hearing 13.06.2023 Date Of Pronouncement 28.08.2023

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

consider the functional and risk differences between individual controlled Page 4 of 27 Andritz Hydro Private Ltd. Page 5 of 27 transactions and aggregate uncontrolled transactions. If the TPO decided to analysis and benchmarked each and every project as separate international transaction then the surplus revenue/profit exceeding ALP margin earned ... held that closely linked transactions emanating from a same source shall be aggregated for the purpose of determining arm’s length price. The aggregation of transaction eliminates impact of accounting differences in various transactions. Further the assessee has also given Page 5 of 27 Andritz Hydro Private Ltd. Page

Asus India Pvt Ltd., Mumbai vs. The Ld. Addl/Joint/Deputy/ACIT/ ITO, Delhi

In the result, appeal of the assessee is partly allowed

ITA 2427/MUM/2022[2018-19]Status: DisposedITAT Mumbai16 Aug 2023AY 2018-19

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm Asus India Private Limited The Learned. 402, Supreme Chambers, Addl/Joint/Deputy/Acit/Ito 17-18 Shah Industrial Estate, Room No.305, Ara Centre 2-E Veera Desai Road, Vs. Jhandewalan Extn, New Delhi, Andheri (West), Delhi-110055 Mumbai-400 053 (Appellant) (Respondent) Pan No. Aajca6450C Assessee By : Mr. Vijay Mehta, Adv. Revenue By : Mr. Nihar Ranjan Samal, Sr. Ar Date Of Hearing: 19.05.2023 Date Of Pronouncement : 16.08.2023

For Appellant: Mr. Vijay Mehta, AdvFor Respondent: Mr. Nihar Ranjan Samal, Sr. AR
Section 115JSection 143Section 144BSection 144CSection 194Section 194CSection 194HSection 40

pricing adjustment as the assessee's margin in respect of distribution services is within the permissible range. 5.8 The ld. DR argued that aggregation of transactions for benchmarking is resorted to when the prices and functions are so inextricably linked that one cannot survive without the other. He argued that

Emerson Electric Company (India) Private Limited, Mumbai vs. Addl/Jt/Dy/Asstt/CIT/ITO, Delhi

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

ITA 555/MUM/2022[2017-18]Status: DisposedITAT Mumbai14 Aug 2023AY 2017-18

Bench: Shri S. Rifaur Rahman & Shri Sandeep Singh Karhail

For Appellant: Shri Dinesh Bafna a/wFor Respondent: Shri R.S. Srivastav
Section 142(1)Section 143(2)Section 143(3)Section 144C(1)Section 144C(13)Section 144C(5)Section 92C

Note on Report under section 92E of the Income Tax Act, 1961, issued by ICAI (August 2013 version), also supports the view on aggregation of transactions, wherein it has been mentioned as follows: "Para 3.8 It may be noted that in Order to be closely linked transactions ... most appropriate method covering all the above transactions as the same are closely linked." c) US TP Regulations In respect of the aggregation of transactions, reference is also invited to the US TP Regulations. The relevant extract from the US TP regulation is provided below: "(i) Aggregation of transactions

Deputy Commissioner of Income Tax 14(2)(1), Mumbai vs. India Debt Management Private Limited, Mumbai

ITA 5532/MUM/2017[2012-13]Status: DisposedITAT Mumbai30 May 2023AY 2012-13
For Appellant: Shri Vijay MehtaFor Respondent: Shri Purnesh Gururani
Section 143(3)Section 144C(3)

CUPS can be obtained from a variety of sources, including database searches when they satisfy the comparability requirements and the rules on the aggregation of transactions. As sources of data on third party financing transactions have been identified (each of which are commonly utilised by banks and sophisticated investors

ACIT, New Delhi vs. M/S. Schlumberger Measurement & Systems India Ltd., New Delhi

In the result, the order of the Ld

ITA 5225/DEL/2011[2002-03]Status: DisposedITAT Delhi11 May 2023AY 2002-03
Section 92C

evidence of any negotiation with US- AE is provided before the authorities, in spite of the much higher rates. On the issue of aggregation of transactions, Ld. DR relied Page 14 of 24 ACIT vs. M/s Thales DIS India Pvt. Ltd. on various judgments of ITAT and High Courts ... Analysis wherein the Assessee Company itself chose Resale Price Method (‘RPM’) as the Most Appropriate Method. 20. On the issue of aggregation of transactions, we find that the ld. CIT(A) has clubbed the non-8k SIM purchase transactions and benchmarked them at an entity level. It is a settled

Ingredion India Private Limited, Navi Mumbai vs. ACIT, Circle-15(1)(2), Mumbai

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

ITA 2532/MUM/2022[2018-19]Status: DisposedITAT Mumbai28 Apr 2023AY 2018-19

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Shri Ketan K. Ved a/wFor Respondent: Dr. Samuel Pitta
Section 143(1)Section 143(3)Section 144C(13)Section 144C(5)Section 92CSection 92C(1)Section 92D

appreciating that the international transaction of payment of regional service fees is interlinked to other international transactions and thereby disregarding the aggregation of transactions for the purpose of benchmarking the international transaction of payment of regional service fees; f. rejecting Transactional Net Margin Method ('TNMM') as the Most Appropriate Method

Csav Group (India) Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

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

ITA 1941/DEL/2015[2010-11]Status: DisposedITAT Mumbai10 Oct 2022AY 2010-11

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Rajan R. VoraFor Respondent: Ms. Samruddhi D. Hande
Section 143(3)Section 144CSection 234BSection 271(1)(c)Section 92CSection 92D

been determined/ computed by the assessee having regard to the arm's length price on application of Transactional Net Margin Method (TNMM), on aggregation of transactions, as prescribed under section 92C of the Income Tax Act, 1961". In this backdrop, we can usefully refer to the decision

DCIT Cent. Cir. 5(2), Mumbai vs. Ipca Laboratories Ltd., Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 5227/MUM/2016[2010-11]Status: DisposedITAT Mumbai29 Aug 2022AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD Guidelines which advocates aggregation of transactions under certain circumstances. 1.2 The CIT (A) erred in confirming addition made by the AO by way of adjustment on account of interest in respect ... failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD guidelines which advocates aggregation of transactions under certain circumstances. (ii) The appellant submits that the AO ought to have considered the fact that the appellant is driven by commercial consideration of penetrative

Ipca Laboratories Ltd, Mumbai vs. DCIT Ltu, Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 3811/MUM/2016[2010-11]Status: DisposedITAT Mumbai29 Aug 2022AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD Guidelines which advocates aggregation of transactions under certain circumstances. 1.2 The CIT (A) erred in confirming addition made by the AO by way of adjustment on account of interest in respect ... failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD guidelines which advocates aggregation of transactions under certain circumstances. (ii) The appellant submits that the AO ought to have considered the fact that the appellant is driven by commercial consideration of penetrative

Asst CIT (Ltu) 1, Mumbai vs. Ipca Laboratories Ltd, Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 3691/MUM/2016[2009-10]Status: DisposedITAT Mumbai29 Aug 2022AY 2009-10

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD Guidelines which advocates aggregation of transactions under certain circumstances. 1.2 The CIT (A) erred in confirming addition made by the AO by way of adjustment on account of interest in respect ... failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD guidelines which advocates aggregation of transactions under certain circumstances. (ii) The appellant submits that the AO ought to have considered the fact that the appellant is driven by commercial consideration of penetrative

Ipca Laboratories Ltd, Mumbai vs. Asst CIT (Ltu), Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 3597/MUM/2016[2009-10]Status: DisposedITAT Mumbai29 Aug 2022AY 2009-10

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD Guidelines which advocates aggregation of transactions under certain circumstances. 1.2 The CIT (A) erred in confirming addition made by the AO by way of adjustment on account of interest in respect ... failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD guidelines which advocates aggregation of transactions under certain circumstances. (ii) The appellant submits that the AO ought to have considered the fact that the appellant is driven by commercial consideration of penetrative

DCIT (Ltu) 1, Mumbai vs. Ipca Laboratories Ltd, Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 2815/MUM/2015[2010-11]Status: DisposedITAT Mumbai29 Aug 2022AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD Guidelines which advocates aggregation of transactions under certain circumstances. 1.2 The CIT (A) erred in confirming addition made by the AO by way of adjustment on account of interest in respect ... failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD guidelines which advocates aggregation of transactions under certain circumstances. (ii) The appellant submits that the AO ought to have considered the fact that the appellant is driven by commercial consideration of penetrative

Ipca Laboratories Ltd, Mumbai vs. Asst CIT (Ltu), Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 2493/MUM/2015[2008-09]Status: DisposedITAT Mumbai29 Aug 2022AY 2008-09

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD Guidelines which advocates aggregation of transactions under certain circumstances. 1.2 The CIT (A) erred in confirming addition made by the AO by way of adjustment on account of interest in respect ... failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD guidelines which advocates aggregation of transactions under certain circumstances. (ii) The appellant submits that the AO ought to have considered the fact that the appellant is driven by commercial consideration of penetrative

Ipca Laboratories Ltd, Mumbai vs. DCIT (Ltu), Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 3267/MUM/2012[2007-08]Status: DisposedITAT Mumbai29 Aug 2022AY 2007-08

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD Guidelines which advocates aggregation of transactions under certain circumstances. 1.2 The CIT (A) erred in confirming addition made by the AO by way of adjustment on account of interest in respect ... failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD guidelines which advocates aggregation of transactions under certain circumstances. (ii) The appellant submits that the AO ought to have considered the fact that the appellant is driven by commercial consideration of penetrative

Ipca Laboratories Ltd, Mumbai vs. ACIT (Ltu), Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 8120/MUM/2010[2005-06]Status: DisposedITAT Mumbai29 Aug 2022AY 2005-06

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD Guidelines which advocates aggregation of transactions under certain circumstances. 1.2 The CIT (A) erred in confirming addition made by the AO by way of adjustment on account of interest in respect ... failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD guidelines which advocates aggregation of transactions under certain circumstances. (ii) The appellant submits that the AO ought to have considered the fact that the appellant is driven by commercial consideration of penetrative

Ipca Laboratories Ltd, Mumbai vs. DCIT (Ltu), Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 8084/MUM/2010[2006-07]Status: DisposedITAT Mumbai29 Aug 2022AY 2006-07

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD Guidelines which advocates aggregation of transactions under certain circumstances. 1.2 The CIT (A) erred in confirming addition made by the AO by way of adjustment on account of interest in respect ... failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD guidelines which advocates aggregation of transactions under certain circumstances. (ii) The appellant submits that the AO ought to have considered the fact that the appellant is driven by commercial consideration of penetrative

ACIT Cen Cir 13, Mumbai vs. Ipca Laboratories Ltd, Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 7511/MUM/2010[2005-06]Status: DisposedITAT Mumbai29 Aug 2022AY 2005-06

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri F.V. Irani, ARFor Respondent: Shri Sumit Kumar, DR
Section 801BSection 801CSection 80ISection 92C

failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD Guidelines which advocates aggregation of transactions under certain circumstances. 1.2 The CIT (A) erred in confirming addition made by the AO by way of adjustment on account of interest in respect ... failed to follow principles of aggregation which is well established rule in transfer pricing analysis and the OECD guidelines which advocates aggregation of transactions under certain circumstances. (ii) The appellant submits that the AO ought to have considered the fact that the appellant is driven by commercial consideration of penetrative

M/S Te Connectivity India Pvt Ltd, Bengaluru vs. Deputy Commissioner of Income Tax, Ltu, Circle-1, Bengaluru

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

ITA 2680/BANG/2017[2013-14]Status: DisposedITAT Bangalore18 Jul 2022AY 2013-14

Bench: Shri N.V. Vasudevan, Vice Preseident & Shri Padmavathy S

For Appellant: Shri Sumeet Khurana, CAFor Respondent: Shri V.S. Chakrapani, CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 143(3)Section 40Section 92

primary international transactions under the three segments of the Assessee. The learned counsel in this regard drew support from the OECD Guidelines on aggregation of transactions which states as follows: “Ideally, in order to arrive at the most precise approximation of arm’s length conditions, the arm's length principle