UNITED BREWERIES LTD,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX , CIRCLE-7(1)(1), BENGALURU

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

92A(1) lays down the basic rule that in order to be treated as an "associated enterprise in one enterprise, in relation to another enterprise, means an enterprise which participate, directly or indirectly, or through one or more intermediaries, 'in the management or control or capital of the other enterprise' or when 'one or more persons who participate, directly

M/S. UNITED BREWERIES LIMITED,BANGALORE vs. JOINT COMMISSIONER OF INCOME TAX, SPECIAL RANGE-7, BANGALORE

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

Bench: Shri Chandra Poojari & Smt. Beena Pillai

92A(1) lays down the basic rule that in order to be treated as an "associated enterprise in one IT(TP)A No.2532/Bang/2019 United Brewries Ltd., Bangalore Page 15 of 70 enterprise, in relation to another enterprise, means an enterprise which participate, directly or indirectly, or through one or more intermediaries, 'in the management or control or capital

M/S WEVIN PRIVATE LIMITED ,BANGALORE vs. INCOMETAX OFFICER WARD-7(1)(4), BANGALORE

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

Bench: Shri B.R. Baskaran & Shri Pavan Kumar Gadaleit(Tp)A No.2710/Bang/2017 (Assessment Year: 2013-14) M/S.Wevin Pvt. Ltd. No.143-E, 1St & 2Nd Phase, Bommasandra Industrial Area, Bengaluru-560099. … Appellant Pan: Aaacw1349M Vs. Income-Tax Officer, Ward 7(1)(4), Bengaluru. … Respondent Appellant By : Shri Padamchand Khincha, Ca. Respondent By : Shri C.Sundar Rao, Cit(Dr) Date Of Hearing: 20/03/2019 Date Of Pronouncement: 12/06/2019 O R D E R Per Pavan Kumar Gadale, Jm:

gains worked out based on ALP adjustment of the TPO where sale of shares was worked out by TPO is Rs.53,20,35,000/- instead of Rs.28,95,934,437/- adopted by the assessee and other additions, assessed income of Rs.32,50,67,000/- and passed the order u/s 143(3) r.w.s. 144C(1) dated 15/12/2016. 7. Aggrieved

M/S. UNITED BREWERIES LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 7(1)(1), BANGALORE

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

Bench: Shri Chandra Poojari & Smt. Beena Pillai

92A(1) lays down the basic rule that in order to be treated as an "associated enterprise in one enterprise, in relation to another enterprise, means an enterprise which participate, directly or indirectly, or through one or more intermediaries, 'in the management or control or capital of the other enterprise' or when 'one or more persons who participate, directly

UNITED BREWERIES LIMITED,BANGALORE vs. JOINT COMMISSIONER OF INCOME TAX, SPECIAL RANGE- 7, BANGALORE

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

Bench: Shri Chandra Poojari & Smt. Beena Pillai

92A(1) lays down the basic rule that in order to be treated as an "associated enterprise in one enterprise, in relation to another enterprise, means an enterprise which participate, directly or indirectly, or through one or more intermediaries, 'in the management or control or capital of the other enterprise' or when 'one or more persons who participate, directly

INFOSYS LTD.,,BANGALORE vs. ADDL.C.I.T, BANGALORE

In the result, Revenue’s appeal for A

Bench: Shri Sunil Kumar Yadav & Shri Jason P Boaz

92A of the Act vide order dt.27.6.2008 in which no TP Adjustment to the ALP of the assessee's international transactions was proposed or made. The Assessing Officer completed the assessment under Section 143(3) of the Act vide order dt.31.12.2008, wherein the assessee's income was determined at Rs.351,52,97,339 in view of various addition / disallowances made

M/S PAGE INDUSTRIES LTD.,,BANGALORE vs. DCIT, BANGALORE

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

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

92A(1) of the Act are not existing between the assessee-company and JII. In the absence of relationship of assessee-company between two companies, the transaction does not constitute international transaction within the meaning of sec.92B of the Act. It was further contended that in any event, transaction of payment of royalty is at arm’s length

M/S. ORIGAMI CELLULO PRIVATE LIMITED,BENGALURU vs. PRINCIPAL COMMISSIONER OF INCOME TAX - 5, BENGALURU

In the result, the appeal of the assessee is allowed

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariassessment Year : 2015-16

92A(2) reported in Form 3CEB, the AO should have referred the matter to the TPO so as to ascertain the ALP of specific domestic transactions with related parties. According to him, the AO failed to follow the CBDT Instruction No.3/16 dated 10.3.2016, which expressly provides for determination of ALP of international transactions as well as specific domestic transactions. However

M/S TOYOTA KIRLOSKAR MOTORS (P) LTD ,BANGALORE vs. THE ASSISTANT COMMISSIONER OF INCOME TAX LTU CIRCLE-1 , BANGALORE

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

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahu

Gains of Business or Profession" do not refer to or include the amounts computed under Chapter X and therefore addition made under Chapter X is bad in law; and d. Not appreciating that there being no disallowance under section 40A(2) for royalty payment, adjustment under Chapter X ought not to be made. GROUNDS RELATING TO COMPUTATION

M/S. HEWLETT-PACKARD (INDIA) SOFTWARE OPERATION PRIVATE LIMITED,BANGALORE vs. JOINT COMMISSIONER OF INCOME TAX, SPECIAL RANGE- 3, BANGALORE

In the result the appeal of the assessee is partly allowed

Bench: Shri N.V. Vasudevan & Ms. Padmavathy S.It(Tp)A No. 2575/Bang/2019 (Assessment Year: 2015-16)

92A(2)(a) which provides a limit of 26% of the equity capital carrying voting rights for treating an enterprise as Associated Enterprise. if the limit is reduced further it would only result in eliminating more and more companies, on the other hand if the limit is relaxed then companies with predominantly related party transactions would get included which would

M/S. CITRIX R & D INDIA PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 2(1)(1), BANGALORE

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

Bench: Shri Chandra Poojari & Shri George George K.

Section 92A(2)(a) which provides a limit of 26% of the equity capital carrying voting rights for treating an enterprise as Associated Enterprise. if the limit is reduced further it would only result in eliminating more and more companies, on the other hand if the limit is relaxed then companies with predominantly related party transactions would get included which

M/S YAHOO SOFTWARE DEVELOPMENT INDIA PRIVATE LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-7(1)(2), BANGALORE

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

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

gain (Net) 86765355 Operating revenue 8758506796 TOTAL EXPENSES (as per P&L) 7322770620 Less: Provision for doubtful advances 6751270 Less: Provision for loss on fixed assets held for sale 5244587 Less: Donations 7271536 7303503227 Operating Expenses 1455003569 Operating Profit 19.92% OP/OC IT(TP)A Nos.2657/Bang/18 & 2365/Bang/19 Page 3 of 31 4. The assessee chose 7 comparable companies and the arithmetic

M/S. YAHOO SOFTWARE DEVELOPMENT INDIA PRIVATE LIMITED,BENGALURU vs. THE JOINT COMMISSIONER OF INCOME TAX, SPECIAL RANGE- 7, BANGALORE

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

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

gain (Net) 86765355 Operating revenue 8758506796 TOTAL EXPENSES (as per P&L) 7322770620 Less: Provision for doubtful advances 6751270 Less: Provision for loss on fixed assets held for sale 5244587 Less: Donations 7271536 7303503227 Operating Expenses 1455003569 Operating Profit 19.92% OP/OC IT(TP)A Nos.2657/Bang/18 & 2365/Bang/19 Page 3 of 31 4. The assessee chose 7 comparable companies and the arithmetic

M/S. SAP LABS INDIA PRIVATE LIMITED,BANGALORE vs. JOINT COMMISSIONER OF INCOME TAX, SPECIAL RANGE- 6, BANGALORE

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

Bench: Shri Chandra Poojari & Smt. Beena Pillai

capital of the Appellant and the comparable companies. 4.12. Not providing suitable adjustment to account for differences in the risk profile of the Appellant 4.13 Computing incorrect operating mark-up of certain comparable companies: M/s. SAP Labs India Pvt. Ltd., Bangalore Page 4 of 24 a) Kals Information Systems Ltd.; b) E-Zest Solutions Limited; c) CG-VAK Software & Exports

M/S CONTINENTAL AUTOMOTIVE COMPONENTS INDIA PRIVATE LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-2(1)(1), BANGALORE

In the result, the appeal is partly allowed

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year :2014-15 M/S. Continental Automotive Vs. Dcit, Components India Pvt. Ltd., Circle – 2(1)(1), Plot No.53B, Bommasandra Industrial Bengaluru. Area, Hosur Road, Attibele Hobli, Anekal Taluk, Bengaluru–560 099. Pan : Aakcs 9578 C Appellant Respondent Assessee By : Shri. T. Suryanarayana, Senior Advocate Revenue By : Shri. Mudavathu Harish Chandra Naik, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 21.03.2022 Date Of Pronouncement : 29.03.2022 O R D E R

92A of the Act defines the term "associated enterprise" in relation to another enterprise, in a manner where the enterprise directly or indirectly participates in the Management, control or capital of the other enterprise. • The term "arm's length price" (ALP) has been defined in clause (ii) of section 92F of the Act, to mean a price which is applied

STERLING COMMERCE PRIVATE LIMITED,BANGALORE vs. DCIT, BANGALORE

In the result the appeal by the Assessee is partly allowed

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaran

capital Adjustment(Annexure-F) 1.00% Adj.Arithmetic mean PLI 23.00% Arm’s Length Price: Operating Cost Rs.4,82,74,952 Arms Length Margin 23.00% of the operating Cost Arms Length Price (ALP) Rs.6,51,61,645/- At 123% of operating cost 38.7 Price received vis-à-vis the Arms Length Price: The price charged by the tax payer to its Associated

M/S. GOLDMAN SACHS SERVICES PVT. LTD.,BANGALORE vs. DCIT, BANGALORE

In the result, the assessee's appeal for Assessment Year 2006-07 is partly allowed

Bench: Shri Vijaypal Rao & Shri Jason P. Boazi.T.(T.P.) A. No.1423/Bang/2010 (Assessment Year : 2006-07) M/S.Goldman Sachs Services Pvt. Ltd., Vs. Dy. Commissioner Of Income Tax, Crystal Downs, Embassy Golf Links, Circle 11(3), Bangalore. Business Park, Off Intermediate Ring Road, Bangalore-560 071 Pan Aaacg 2435N Appellant Respondent.

gain or loss in computing the operating margin of the Appellant and the comparable companies. 5 IT (T.P) A No.1423/Bang/2010 Goldman Sachs Services Pvt Ltd 10. The Honourable DRP and the learned AO/TPO erred in law and on facts in upholding the arm’s length margin arrived at by the learned TPO by not considering the lower range

M/S. STEER ENGINEERING PVT. LTD.,,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-6(1)(2), BENGALURU

In the result, appeal of the Assessee is partly allowed

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathyassessment Year : 2012-13 M/S. Steer Engineering Private Limited, Vs. Dcit, No.290, 4Th Main, 4Th Phase, Circle – 6(1)(2), Peenya Industrial Area, Nagawara, Bengaluru. Bengaluru – 560 058. Pan : Aabcs 8840 E Appellant Respondent Assessee By : Shri. Narendra Jain, Advocate Revenue By : Mrs. Susan D. George, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 18.04.2022 Date Of Pronouncement : 27.04.2022

92A, the persons said to be unrelated if they are not associated or deemed to be associated enterprise. Uncontrolled Conditions are that conditions which are not controlled or suppressed or moulded for achievement of a predetermined result. Section 92C( 1) of the Act provides that the arm's length price in Page 3 of 33 relation to an international transaction