Section 92CA(3) of the Income Tax Act

Income-tax Act, 2025: s.166

Section 92CA(3) falls under section 92CA of the Income-tax Act, 1961, which corresponds to section 166 (Reference to Transfer Pricing Officer) of the Income-tax Act, 2025.

Read section 166 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 92CA(3) is Apollo Tyres Ltd. v. CIT (255 ITR 273), cited in 657 of the 702 judgments on BharatTax that turn on this section.

Leading authorities on Section 92CA(3)

Apollo Tyres Ltd. v. CIT
255 ITR 273 · 2002 · Supreme Court
657
citing judgments

For the purpose of computing book profits under Section 115J, arrears of depreciation, including those arising from assets working extra shifts, are a necessary charge on profits if debited to the profit and loss account and are allowable as such.

CIT v. Everest Kento Cylinders Ltd.
378 ITR 57 · 2015 · High Court
304
citing judgments

Corporate guarantee fees are subject to transfer pricing rules, and adjustments may be needed to account for differences between corporate guarantees and more liquid bank guarantees when determining arm's length price.

CIT v. Cotton Naturals (I) (P.) Ltd.
55 Taxmann.com 523 · 2015 · High Court
273
citing judgments

The interest rate for benchmarking foreign currency loans advanced to Associated Enterprises should be the market-determined rate applicable to the currency of the loan, such as LIBOR for US Dollar loans, rather than a domestic lending rate like the Indian PLR.

CIT v. Reliance Industries Ltd.
339 ITR 632 · 2011 · High Court
218
citing judgments

No substantial question of law arises regarding a subsidy granted for setting up a new industrial unit in a backward area for employment generation, as held by the Bombay High Court. This decision was subsequently set aside by the Supreme Court.

DCIT v. Quark Systems (P.) Ltd.
38 SOT 307 · 2010 · ITAT
179
citing judgments

An assessee is not estopped or precluded from seeking the exclusion of a company from its Transfer Pricing study comparables, even if initially selected, if it can demonstrate valid reasons for non-comparability.

Chryscapital Investment Advisors (India) Pvt. Ltd. v. DCIT
376 ITR 183 · 2015 · High Court
170
citing judgments

For transfer pricing comparability analysis, companies should not be excluded solely based on higher turnover if they are otherwise functionally comparable, unless the turnover difference reflects fundamental functional dissimilarities, brand value, or risk profiles that materially impact profitability.

ITO v. Daga Capital Management (P) Ltd.
117 ITD 169 · 2009 · ITAT
151
citing judgments
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.

Whirlpool of India Ltd. v. DCIT
381 ITR 154 · 2016 · High Court
119
citing judgments

Advertisement, Marketing, and Promotion (AMP) expenditure incurred by an Indian entity directly benefits its own business and cannot be automatically treated as an international transaction for global brand building by associated enterprises without specific statutory provisions or proper analysis.

Kolhapur Canesugar Works Ltd. v. Union of India
2 SCC 536 · 2000 · Reported
117
citing judgments

Section 6 of the General Clauses Act, which preserves rights and liabilities under repealed statutes, does not automatically apply to a mere omission of a statutory provision unless the omitting enactment specifically provides for it, thereby affecting the continuation of pending proceedings.

Judgments on Section 92CA(3)

Laqshya Media Limited, Mumbai vs. Deputy Commissioner of Income Tax-10(2)(1), Mumbai

In the result this ground of appeal is allowed for statistical purposes

ITA 7310/MUM/2018[2014-15]Status: DisposedITAT Mumbai17 Jul 2020AY 2014-15

Bench: Shri Pawan Singh & Shri M. Balaganesh(Virtual Hearing In Vc No. –Ii) M/S. Laqshya Media Ltd. D C I T - 10(2)(1) Laqshya House Room No. 509/216A Next To Rameshwar Temple, Vs. Aayakar Bhavan, M.K. Road Saraswti Baug, Society Road, Mumbai 400020 Jogeshwari (E), Mumbai 400060 Pan – Aaacl5004C Appellant Respondent Appellant By: Shri Rajan Vora-Ar Respondent By: Shri Anand Mohancit-Dr Date Of Hearing: 08.07.2020 Date Of Pronouncement: 17.07.2020 O R D E R Per Pawan Singhthis Appeal Filed By The Assessee Is Directed Against The Assessment Order Passed By The Assessing Officer Under Section 143(3) R.W.S. 144C(1) Of The Income Tax Act, 1961 (Hereinafter "The Act") Dated 29Th October, 2018, Passed In Pursuance Of The Directions Of Dispute Resolution Penal (Drp) Dated 28Th August, 2018 For A.Y. 2014-15. 2. The Assessee Has Raised The Following Grounds Of Appeal: - “On The Facts & In The Circumstances Of The Case & In Law, The Learned Ao/ Learned Deputy Commissioner Of Income-Tax, Transfer Pricing - 3(1)(1)(Hereinafter Referred To As Tpo')/ Hon'Ble Drp Has: General Ground 1. Erred In Assessing The Total Income At 5,67,38,117As Against Returned Loss Of Rs.8,55,13,089 Computed By The Appellant; Part B -Transfer Pricing Ground: 2. Adjustment Of Rs.20.58.028/- Pertaining To Providing Of Corporate Guarantee (Cg) To Associated Enterprise (Ae)

For Appellant: Shri Rajan Vora-ARFor Respondent: Shri Anand MohanCIT-DR
Section 143(3)Section 36(1)(iii)Section 92BSection 92C

Comverse Network Systems India Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

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

ITA 1103/DEL/2017[2007-08]Status: HeardITAT Delhi11 May 2020AY 2007-08

Bench: Shri R.K. Panda & Shri Kuldip Singhassessment Year: 2007-08 Comverse Network Systems India Vs Dcit, Pvt. Ltd., Circle-1(1), Dlf Building No.14, Tower-D, Gurgaon. 18Th Floor, Sector 24 & 25A, Dlf Cyber City, Gurgaon. Pan: Aabcc3425B (Appellant) (Respondent) Assessee By : None Revenue By : Shri Surender Pal, Cit, Dr Date Of Hearing : 05.03.2020 Date Of Pronouncement : 11.05.2020 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Passed U/S 143(3)/144C Of The It Act, Relating To The A.Y. 2007-08. 2. None Appeared On Behalf Of The Assessee Despite Service Of Notice. It Was Seen From The Order Sheet Entry That On Earlier Occasions Also No One Was Appearing For The Assessee. Therefore, This Appeal Is Being Decided On The Basis Of The Material Available On Record & After Hearing The Ld. Dr. 3. Facts Of The Case, In Brief, Are That The Assessee Filed Its Return Of Income On 31.10.2007 Declaring The Total Income At Rs.4,04,26,450/- Which Was Subsequently Revised On 31.03.2010 Claiming A Loss Of Rs.3,54,66,920/-. Since The Assessee Had Entered Into Certain International Transactions, The Ao Referred The Matter To The Tpo For Determination Of Alp Of The International Transactions Entered Into By The Assessee. The Tpo, Vide Order Dated 19Th January, 2016, Suggested An Upward Adjustment Of Rs.4,69,71,391/-. Accordingly, The Ao Passed The Order Making The Addition Of Rs.4,69,71,391/-.

For Appellant: NoneFor Respondent: Shri Surender Pal, CIT, DR
Section 143(3)Section 144CSection 92C