“domestic company”

Chapter I - PreliminarySection 2 - DefinitionsSection 2(22A) / ITR-6540 judgments

The decision most relied on for domestic company is CIT v. ITC Ltd. (236 Taxmann 612), cited in 108 judgments on BharatTax.

Leading authorities on domestic company

CIT v. ITC Ltd.

236 Taxmann 612 · 2016 · High Court

108

citing judgments

When computing deduction under Section 80IA, specifically for inter-unit transfer of power, the benefit cannot be claimed based on rates chargeable by distribution licensees to consumers. The deduction must be computed based on the rate fixed by the Tariff Regulation Commission for sale by electricity generating companies.

Sky High Appeal XLIII Leasing Company Ltd. v. ACIT

177 Taxmann.com 579 · ITAT

citing judgments

The Multilateral Instrument (MLI) does not become legally enforceable under domestic law without a specific notification under section 90(1) of the Income Tax Act, 1961, for each affected Double Taxation Avoidance Agreement (DTAA).

Commissioner of Income Tax v. Gujarat Alkalies Chemicals Limited

395 ITR 247 · 2017 · High Court

citing judgments

Deduction under Section 80IA is allowable for captive power generation. The price for calculating this deduction is the rate at which the electricity board supplies power to its consumers, rather than the rate at which power generating companies supply to the electricity board.

Union of India v. Tata Tea Co Ltd.

398 ITR 260 · 2017 · Supreme Court

citing judgments

Dividend Distribution Tax (DDT) is a tax on the profits of the domestic company, not on the shareholder. The Supreme Court's decision in Tata Tea Co. Ltd. did not address the precise nature of DDT as a tax on the company versus the shareholder.

Skoda Auto India (P) Ltd. v. ACIT, Aurangabad

30 SOT 319 · 2009 · ITAT

citing judgments

The Tribunal may allow adjustments for differences between the tested party and comparable companies to eliminate material differences, provided accurate and credible evidence is furnished.

SwissRe Global Business Solutions India (P.) Ltd. v. Dy. CIT

116 Taxmann.com 716 · 2020 · Reported

citing judgments

Working capital adjustment is an accepted adjustment provided for better comparability in transfer pricing. The Tribunal has held that working capital adjustment is necessary for better comparability.

ITO v. Strides Arcolab Ltd.

24 Taxmann.com 89 · 2012 · ITAT

citing judgments

Disallowance under section 14A is applicable to investments made in shares of domestic companies but not foreign companies.

Bank of Tokyo Mitsubishi Bank Ltd. v. CIT

108 Taxmann.com 242 · 2019 · High Court

citing judgments

A non-domestic company's Permanent Establishment (PE) in India cannot be taxed at a rate higher than that applicable to a domestic company carrying out the same activities, even considering retrospective amendments to tax treaties.

Judgments citing domestic company

Jabalpur Entertainment Complexes Private Limited, Jabalpur vs. DCIT, CPC, Bengaluru & DCIT, Circle 2(1), Jabalpur

In the result, the appeal is allowed for statistical purposes

ITA 184/JAB/2024[2023-24]Status: DisposedITAT Jabalpur28 Aug 2025AY 2023-24

Bench: SH. KUL BHARAT, VICE PRESIDENT AND SH. NIKHIL CHOUDHARY (Accountant Member)

For Appellant: Sh. Apoorva Rajesh Mehta, C.AFor Respondent: Sh. Alok Bhura, Sr. DR

Section 115BSection 143(1)Section 250

been provided in the case of the assessee, which was against the principles of natural justice. Furthermore, as per the provisions of section 115BAA, domestic companies can opt to pay tax at the concessional rate of 22% plus applicable surcharge and cess, provided certain conditions are met, one of which ... error in applying the normal rate of tax at 30% instead of 25%, even though the assessee satisfied the conditions of being a domestic company having a turnover of less than 400 Crores and we observe that this ground of appeal has not been decided

Attak Machinery Private Limited, Kanpur vs. Deputy Commissioner of Incometax, Circle-1, Kanpur

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

ITA 134/LKW/2024[2022-23]Status: DisposedITAT Lucknow28 Aug 2025AY 2022-23

Bench: SH. KUL BHARAT, VICE PRESIDENT AND SH. NIKHIL CHOUDHARY (Accountant Member)

For Appellant: Sh. B.P. Yadav, AdvocateFor Respondent: Sh. Deepak Yadav, DR

Section 115Section 115BSection 143(1)Section 154Section 250

appeal and or to add any fresh grounds when it is required.” 2. The facts of the case are, that the assessee is a Domestic company that was established on 19.02.2021. The assessee filed its first return of income on 7.11.2022 for the assessment year 2022-23, declaring total income ... Tribunal in AR Overseas Tradecom (P.) Ltd. vs. DCIT (ITA No.651/KOL/2022), that where the total turnover of the gross receipt of a domestic company did not exceed Rs. 400 Crores, then for such domestic company, the income tax rate of 25% was applicable. The ld. AR argued that since

Rajasthan Industries Ltd, Kolkata vs. DCIT, Cir. -5(1), Kolkata

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

ITA 267/KOL/2024[2017-18]Status: DisposedITAT Kolkata28 Aug 2025AY 2017-18

Bench: Shri Duvvuru Rl Reddy, Vice-(Kz) I.T.A. No. 267/Kol/2024 Assessment Year: 2017-2018 Rajasthan Industries Limited,…….…...……Appellant Birla Building, 11Th Floor, 9/1, R.N. Mukherjee Road, B.B.D. Bagh, Kolkata-700001 [Pan:Aabcr3997B] -Vs.- Deputy Commissioner Of Income Tax,…....Respondent Circle-5(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069

Section 142(1)Section 143(2)Section 14A

Industries Limited (Appeals)-12, Mumbai dated 15.12.2023 passed for Assessment Year 2017-2018. 2. Facts in brief are that the assessee is a limited domestic company which furnished its return of income for the assessment year 2017-18 electronically on 28.10.2017 declaring total income of Rs.18,25,380/-. The assessee

Getinge India Private Limited, Mumbai vs. Deputy Commissioner of Income Tax - Circle 5(1)(1), Mumbai

The appeal of the assessee is allowed for statistical purposes

ITA 4341/MUM/2025[2018-19]Status: DisposedITAT Mumbai28 Aug 2025AY 2018-19

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

For Respondent: Shri Swapnil Choudhary, Sr. DR

Section 115JSection 234Section 234CSection 250Section 270ASection 40A(7)Section 43A

penalty proceedings under section 270A of the Act. All the above grounds are without prejudice to each other.” 2. The assessee is a domestic company engaged in the business of medical systems, extended care and infection control and involved in import and supply of 4 ITA 4341/Mum/2025 Getinge India Private

Assistant Commissioner of Income Tax, Circle-2, Kota vs. Chambal Fertilizers and Chemicals Ltd., Kota

56. As a result, as regards the issue of allowance/disallowance of

ITA 1099/JPR/2024[2016-17]Status: DisposedITAT Jaipur27 Aug 2025AY 2016-17

For Appellant: Shri P.J. Pardiwala, AdvFor Respondent: Shri Rajesh Ojha, CIT &

Section 14ASection 36(1)Section 36(1)(iii)

Fertilizers and Chemicals Ltd. is a listed company in India and primarily engaged in the business of fertilizer production. • CFCL Technologies Limited, a Non Domestic Company, is a Joint Venture company of which shareholding around 72% is held by Chambal Fertilisers and 28% is held by others. • CFCL Technologies holds ... shares in CFCL Ventures Ltd. (a Non Domestic Company), which further hold shares in other companies like ISG Nova soft Technology Ltd., Indian Company, which are engaged in the software business. • Shares of CFCL Technologies are not deemed to be a capital asset situated in India for Indian tax purposes

Assistant Commissioner of Income Tax, Circle-2, Kota vs. Chambal Fertilizers and Chemicals Ltd, Kota

56. As a result, as regards the issue of allowance/disallowance of

ITA 1098/JPR/2024[2015-16]Status: DisposedITAT Jaipur27 Aug 2025AY 2015-16

Section 14ASection 36(1)Section 36(1)(iii)

Fertilizers and Chemicals Ltd. is a listed company in India and primarily engaged in the business of fertilizer production. CFCL Technologies Limited, a Non Domestic Company, is a Joint Venture company of which shareholding around 72% is held by Chambal Fertilisers and 28% is held by others. CFCL Technologies holds ... shares in CFCL Ventures Ltd. (a Non Domestic Company), which further hold shares in other companies like ISG Nova soft Technology Ltd., Indian Company, which are engaged in the software business. Shares of CFCL Technologies are not deemed to be a capital asset situated in India for Indian tax purposes

Assistant Commissioner of Income Tax, Circle-2, Kota vs. Chambal Fertilizers and Chemicals Ltd., Kota

ITA 1097/JPR/2024[2011-12]Status: DisposedITAT Jaipur27 Aug 2025AY 2011-12

Bench: SHRI GAGAN GOYAL (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Shri P.J. Pardiwala, AdvFor Respondent: Shri Rajesh Ojha, CIT &

Section 14ASection 36(1)Section 36(1)(iii)

Fertilizers and Chemicals Ltd. is a listed company in India and primarily engaged in the business of fertilizer production.  CFCL Technologies Limited, a Non Domestic Company, is a Joint Venture company of which shareholding around 72% is held by Chambal Fertilisers and 28% is held by others.  CFCL Technologies holds ... shares in CFCL Ventures Ltd. (a Non Domestic Company), which further hold shares in other companies like ISG Nova soft Technology Ltd., Indian Company, which are engaged in the software business.  Shares of CFCL Technologies are not deemed to be a capital asset situated in India for Indian tax purposes

Assistant Commissioner of Income Tax, Circle-2, Kota vs. Chambal Fertilizers and Chemicals Ltd, Kota

ITA 1091/JPR/2024[2017-18]Status: DisposedITAT Jaipur27 Aug 2025AY 2017-18

Bench: SHRI GAGAN GOYAL (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Shri P.J. Pardiwala, AdvFor Respondent: Shri Rajesh Ojha, CIT &

Section 14ASection 36(1)Section 36(1)(iii)

Assistant Commissioner of Income Tax, Circle-2, Kota vs. Chambal Fertilizers and Chemicals Ltd, Kota

ITA 1090/JPR/2024[2010-11]Status: DisposedITAT Jaipur27 Aug 2025AY 2010-11

Bench: SHRI GAGAN GOYAL (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Shri P.J. Pardiwala, AdvFor Respondent: Shri Rajesh Ojha, CIT &

Section 14ASection 36(1)Section 36(1)(iii)

Brahmos Realty Private Limited, Mumbai vs. Income Tax Officer Ward 9(2)(1), Mumbai

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

ITA 4119/MUM/2025[2024-25]Status: DisposedITAT Mumbai19 Aug 2025AY 2024-25

Bench: Shri Amit Shukla & Shri Arun Khodpiaआयकर अपील सं. / Ita No.4119/Mum/2025 निर्धारण वर्ष / Assessment Year :2024-25 Brahmos Realty Private Limited A-10002, Aristo Sappyhire, 2Nd Floor, Hasnabad Lane, Santakruz (W), Mumbai-400 054 (M.H) Pan: Aadcr5685C ...........अपीलार्थी / Appellant बनाम / V/S. The Income Tax Officer, Ward-9(2)(1),Mumbai (M.H.) .......प्रत्यर्थी / Respondent Assessee By Revenue By : Shri B.N Rao : Shri Aditya Rai, Sr. Dr सुनवाई की तारीख / Date Of Hearing :13.08.2025 घोषणा की तारीख / Date Of Pronouncement : 19.08.2025 2 Brahmos Realty Private Limited Vs. Ito, Ward-9(2)(1)

For Respondent: Shri B.N Rao

Section 115BSection 115JSection 143(1)Section 250

from sec 115BAA to normal rate of taxation. 5.3 The attention is invited to the provision of Section 115BAA: Tax on income of certain domestic companies. 115BAA. (1) Notwithstanding anything contained in this Act but subject to the provisions of this Chapter, other than those mentioned under section 115BA ... section 115BA8, the income- tax payable in respect of the total income of a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of 2020, shall, at the option of such person, be computed at the rate

JCIT(OSD) I/C. of DCIT -1(3)(1), Mumbai vs. Zt Systems India Private Limited, Mumbai

In the result, appeal of the revenue is dismissed as per our aforesaid observations

ITA 1729/MUM/2025[2016-17]Status: DisposedITAT Mumbai19 Aug 2025AY 2016-17

Bench: Shri Amit Shukla & Shri Arun Khodpiaआयकर अपील सं. / Ita No.1729/Mum/2025 "नधा"रण वष" / Assessment Year :2016-17 The Jt. Commissioner Of Income Tax (Osd), I/C. Dcit-1(3)(1), Mumbai (M.H.)

For Appellant: Shri Ajit JainFor Respondent: Shri Aditya Rai, Sr. DR

Section 115Section 115ASection 143(3)Section 2(22)(a)Section 201Section 206C(7)Section 92C

supra). Such instructions of CBDT (supra) are binding on the revenue authorities, accordingly the transactions qua the share premium on issue of shares by domestic company to its nonresident holding company does notgive rise to any transfer pricing adjustment. The relevant portion of the CBDT Instruction No.2/2015 is culled

Harmander Singh Sran, New Delhi vs. ACIT, CC- 29, New Delhi

ITA 4018/DEL/2017[2012-13]Status: DisposedITAT Delhi14 Aug 2025AY 2012-13

Bench: Shri Mahavir Singh & Shri Manish Agarwal

Section 10(34)Section 115Section 139(1)Section 147Section 148Section 2(22)(e)Section 250

ITA No.4018/Del/2017 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “C” BENCH: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT & SHRI

Universal Trading Company Limited, Kolkata vs. DCIT, Circle 5(1), Kolkata

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

ITA 223/KOL/2025[2012-13]Status: DisposedITAT Kolkata12 Aug 2025AY 2012-13

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 115Section 115JSection 154Section 237Section 244ASection 250

subject to the provisions of this section, in addition to the income-tax chargeable in respect of the total income of a domestic company for any assessment year, any amount declared, distributed or paid by such company by way of dividends (whether interim or otherwise) on or after ... cent. (1A) The amount referred to in sub-section (1) shall be reduced by,— (i) the amount of dividend, if any, received by the domestic company during the financial year, if— (a) such dividend is received from its subsidiary; and (b) the subsidiary has paid the tax which is payable

Guala Closures (India) Pvt. Ltd., Panaji vs. The Income Tax Officer, Ward-1(1), Panaji.

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

ITA 62/PAN/2017[2012-13]Status: DisposedITAT Panaji29 Jul 2025AY 2012-13

Bench: Shri Pavan Kumar Gadale & Shri G D Padmahshalii T A.No.62/Pan/2017 (A.Y.2012-13 ) Guala Closures(India) Vs. I T O Ward1(1), Private Limited, Aaykar Bhavan, D-1, Seasa Ghor, Edc, Patto, 20,Edc Complex, Panjim-403001. Patto, Goa. Panaji-403001, Goa Pan/Gir No.:Aaacg4447J Appellant .. Respondent

For Appellant: Shri.Nirajsheth. ARFor Respondent: Shri.Satish M .CIT DR

Section 115Section 143(3)Section 144C(5)

above exposition of law is correct and we agree with the same. Therefore, the DTAA does not get triggered at all when a domestic company pays DDT u/s 115-O of the Act. 83. For the reasons give above, we hold that where dividend is declared, distributed or paid ... domestic company a non-resident shareholder(s), which attracts Additional Income Tax (Tax on Distributed Profits) referred to in Sec.115-0 of the Act, such additional income tax payable by the company shall be at the rate mentioned in Section 115 0 of the Act and not at the rate

Kreate Konnect E Solutions Private Limited, Vadodara vs. The Dy.CIT, Circle-1(1)(1), Vadodara

In the result the appeal is allowed for statistical purposes

ITA 1950/AHD/2024[2020-21]Status: DisposedITAT Ahmedabad29 Jul 2025AY 2020-21

Bench: Ms.Suchitra R. Kamble & Shri Makarand V.Mahadeokarasstt.Year : 2020-21 Kcreate Konnect E Solutions Dy. Cit, Cir.1(1)(1) Private Limited Vs. Vadodara. 291M 2Bd Floor, Green Villa-11 B/H. Abs Tower Old Padra Road Vadodara Pan : Aagck 1493 C (Applicant) (Responent) : Shri Jigar Adhyaru, Ar Assessee By : Shri Hargovind Singh, Sr.Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 24/07/2025 घोषणा क" तारीख /Date Of Pronouncement: 29/07/2025 आदेश आदेश/O R D E R आदेश आदेश Per Makarand V.Mahadeokar, Am: This Appeal By The Assessee Is Directed Against The Order Passed By The Commissioner Of Income Tax (Appeals) – 5, Chennai [Hereinafter Referred To As “Cit(A)”] Dated 18.09.2024, Pertaining To The Assessment Year 2020– 21, Whereby The Appeal Filed By The Assessee Against The Intimation Issued Under Section 143(1) Of The Income-Tax Act, 1961 [Hereinafter Referred To As “The Act”] Dated 18.12.2021 Was Dismissed.

For Appellant: Shri Hargovind Singh, Sr.DR

Section 115BSection 139(1)Section 143(1)

less than Rs.400 crore. He submitted that the assessee fulfilled all conditions prescribed for the 25% rate under the general provisions applicable to domestic companies, and that such alternate plea was expressly raised before the CIT(A), but no finding was recorded in the appellate order. The AR submitted that ... reasons discussed in subsequent paras. 6.4 Section 115BAA of the Act offers a concessional tax regime of 22% (plus surcharge and cess) to any domestic company, subject to the condition that it opts for the regime “in the prescribed manner” on or before the due date under section

Indian Oil Petronas Pvt. Ltd., Kolkata vs. DCIT, Cir-11(1), Kolkata.

In the result, both the appeals of the assessee are dismissed

ITA 590/KOL/2024[2018-19]Status: DisposedITAT Kolkata29 Jul 2025AY 2018-19

Bench: Shri Rajesh Kumar, Am & Shripradip Kumar Choubey, Jm

For Appellant: S/Shri N.S. Saini, &For Respondent: Shri Manoj Kumar Pati, DR

Section 115Section 115O

both these appeals same as under: - “Whether, on a true and harmonious construction of the provisions of the Act, the tax liability of a domestic company, like the appellant, on the dividend distributed to its. non-resident shareholders shall be at the rate as applicable in the respective DTAA ... shareholder and therefore, there is no double taxation of the same. It was also held by the Special Bench that the domestic company u/s 115O does not enter the domain of Double Taxation Avoidance Agreement (DTAA)at all and the DTAA does not get attracted at all when a domestic

Indian Oil Petronas Pvt Ltd., Kolkata vs. DCIT, Cir-11(1), Kolkata.

In the result, both the appeals of the assessee are dismissed

ITA 589/KOL/2024[2017-18]Status: DisposedITAT Kolkata29 Jul 2025AY 2017-18

Bench: Shri Rajesh Kumar, Am & Shripradip Kumar Choubey, Jm

For Appellant: S/Shri N.S. Saini, &For Respondent: Shri Manoj Kumar Pati, DR

Section 115Section 115O

Deputy Commissioner of Income Tax, Central Circle 2(2), Chennai vs. Aathmika Holdings Pvt Ltd, Chennai

In the result, the appeal of the Revenue stand dismissed and the

ITA 836/CHNY/2025[2021-22]Status: DisposedITAT Chennai29 Jul 2025AY 2021-22

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr.Vikram VijayaraghavanFor Respondent: Mr.Shiva Srinivas, CIT

Section 132Section 139(1)Section 142(1)Section 143(2)Section 56(2)(x)Section 92C

Rule 11UA(2) is noted to be applicable only for transactions covered by Section 56(2)(viib) viz., issuance of shares by a domestic company, which is not the issue involved in the present case, and therefore the said Rule 11UA(2) is not relevant to the case before

Neon Properties Private Limited, Mumbai vs. Income Tax Officer 13(1)(1), Mumbai

ITA 2329/MUM/2025[2024-25]Status: DisposedITAT Mumbai25 Jul 2025AY 2024-25

Bench: Shri Narender Kumar Choudhry (Jm) & Shri Omkareshwar Chidara (Am) Neon Properties Pvt. Ltd. Ito 13(1)(1) 501, Krystal, 206, Waterfield Aayakar Bhavan Road Bandra West Vs. M.K. Road Mumbai-400 050. Mumbai-400 020. Pan : Aaacn4266E Appellant Respondent

For Appellant: Shri Leyaqat Ali AafaquiFor Respondent: Shri A.N. Shah

Section 115BSection 115ISection 115JSection 139(1)Section 143(1)

rate of tax. The Ld. CIT(A) dismissed appellant’s appeal and held as follows:- “It is pertinent to mention here that if a domestic company chooses to pay tax at concessional rate of 22% under Section 115BAA, it is required to file From 10-IC on or before

Convergys India Services Private Limited, Gurgoan vs. DCIT Circle-4(2), New Delhi

In the result, the appeal of the assessee is dismissed as discussed above

ITA 1412/DEL/2023[2014-15]Status: HeardITAT Delhi25 Jul 2025AY 2014-15

Bench: Prakash Chand Yadav & Shri Manish Agarwal[Assessment Year : 2014-15] Convergys India Services Private Vs Dcit, Limited, Industrial Plot N-243, Circle-4(2), Tower-A, 1St, 3Rd, 4Th, 5Th & New Delhi. Tower-B, Ground, 2Nd 5Th Floor, S.P. Infocity, Udyog Vihar, Dundahera, Gurgaon, Haryana, 122016 Pan-Aabcc5056G Appellant Respondent Appellant By Shri K.M.Gupta & Ms. Shruti Kimta, Ar Respondent By Shri S.K.Jadhav, Cit Dr Date Of Hearing 22.07.2025 Date Of Pronouncement 25.07.2025 Order

Section 115Section 115OSection 250Section 9

accrue or arise in India (Dividend-General) -Assessment years 2011-12 to 2018-19 Whether where dividend is declared, distributed or paid by a domestic company to a non-resident shareholder(s), which attracts additional income-tax (tax on distributed profits) referred to in section 115-0, such additional income ... payable by domestic company would be at rate mentioned in section 115-0 and not at rate of tax applicable to non- resident shareholder(s) as specified in relevant DTAA with reference to such dividend income - Held, yes - Whether DDT is a charge to tax on profits of company