Section 92D of the Income Tax Act

Income-tax Act, 2025: s.171

Section 92D of the Income-tax Act, 1961 corresponds to section 171 (Maintenance, keeping and furnishing of information and document by certain persons) of the Income-tax Act, 2025.

Read section 171 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 92D is CIT v. Shatrunjay Diamonds (261 ITR 258), cited in 50 of the 485 judgments on BharatTax that turn on this section.

Leading authorities on Section 92D

CIT v. Shatrunjay Diamonds
261 ITR 258 · 2003 · High Court
50
citing judgments

The assessee bears the initial burden to maintain and produce authentic documentation under Section 92D and Rule 10D to justify transactions with related parties, especially concerning the arm's length price for such transactions under Section 40A(2)(b). The discharge of this statutory obligation to maintain accurate data is a mandatory requirement of law.

Instrumentation Corpn. Ltd. v. Asstt. DIT (IT)
71 Taxmann.com 193 · 2016 · ITAT
37
citing judgments

Outstanding invoices with a foreign associated enterprise are considered international transactions under Explanation to section 92B, and transfer pricing provisions apply as anti-abuse measures, overriding general provisions. Notional interest income can be brought to tax based on the arm's length principle, even if it involves assumptions.

CIT v. M/s. Leroy Somer & Controls (India) Pvt. Ltd.
360 ITR 532 · 2013 · High Court
33
citing judgments

Penalty under Section 271G cannot be imposed for mere technical lapses or non-compliance with transfer pricing documentation requirements if substantial compliance is demonstrated and the Assessing Officer (AO) or Transfer Pricing Officer (TPO) did not issue a specific requisition for particulars under Section 92D(3).

Orange Business Services India Solutions (P.) Ltd. v. Dy. CIT
91 Taxmann.com 286 · 2018 · High Court
26
citing judgments

A company is considered a comparable in transfer pricing analysis unless it is shown to be functionally incomparable.

16. In Nokia India (P) Ltd. v. Dy. CIT
153 ITD 508 · 2015 · High Court
21
citing judgments

Incurring high advertisement and marketing expenses does not preclude the use of the Resale Price Method (RPM) for determining the Arm's Length Price (ALP) under transfer pricing provisions. The ratio of related party transactions (RPTs) calculation requires careful consideration of the numerator and denominator to accurately reflect transactions with associated enterprises.

Cisco Systems (India) (P) Ltd. v. Dy. CIT
50 Taxmann.com 280 · 2014 · ITAT
20
citing judgments

Companies engaged in different activities, such as skill development, tourism research, and environment, are considered functionally different and not comparable to the assessee. Headcount is an appropriate allocation key for common indirect expenses within various business segments.

DCIT v. Bebo Technologies Pvt. Ltd.
40 Taxmann.com 168 · 2014 · Reported
16
citing judgments

A penalty under section 271AA of the Income Tax Act is not leviable if the international transaction entered into by the assessee with its associate concern has been held to be at arm's length, especially when transfer pricing documentation was accepted for prior assessment years.

ACIT v. Smith & Newphew Healthcare P. Ltd.
16 Taxmann.com 5 · 2011 · Reported
15
citing judgments
ACIT v. Global One India P. Ltd.
19 Taxmann.com 249 · 2012 · High Court
15
citing judgments

The requirement to furnish prescribed information under Section 92D(3) of the Income-tax Act arises only when the assessee fails to support its Arm's Length Price (ALP) with necessary evidence. There is no justification in demanding information first and then offering an opportunity to the assessee.

Agricultural Produce Market Committee v. CIT
301 ITR 1 · 2008 · ITAT
15
citing judgments

The definition of 'charitable purpose' under Section 2(15) includes advancement of any object of general public utility, and the scope of 'public utility' depends on the context of each situation.

Judgments on Section 92D

Caterpillar India Private Limited, Chennai vs. Commissioner of Income-Tax (Appeals) - 18, Chennai

Appeal is dismissed

ITTPA 42/CHNY/2023[2014-15]Status: DisposedITAT Chennai06 Jun 2025AY 2014-15

Bench: Shri George George K & Shri S.R. Raghunathaआयकर अपीलसं./It(Tp)A No.: 42/Chny/2023 िनधा"रण वष" / Assessment Year: 2014-15 M/S.Caterpillar India Private Limited, The Deputy Commissioner Of 7Th Floor, International Tech Park, Income Tax, Taramani Road, Vs. Central Circle- 3(3), Chennai – 600 113. Chennai – 600 034. [Pan:Aabcc-4615-K] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपीलसं./Ita No.: 717/Chny/2023 िनधा"रण वष" / Assessment Year: 2014-15 The Deputy Commissioner Of Income M/S.Caterpillar India Private Tax, Limited, 7Th Floor, International Tech Park, Central Circle- 3(3), V. Chennai – 600 034. Taramani Road, Chennai – 600 113. [Pan:Aabcc-4615-K] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से/Assessee By : Shri Harish Ramanathan, C.A. By Virtual ""थ" की ओर से/Department By : Shri A. Sasikumar, C.I.T. सुनवाई की तारीख/Date Of Hearing : 12.03.2025 घोषणा की तारीख/Date Of Pronouncement : 06.06.2025 आदेश /O R D E R Per S. R. Raghunatha, Am: These Cross Appeals Filed By The Assessee & The Revenue Are Arising Out Of Order Of Commissioner Of Income Tax (Appeals)-18, Chennai U/S. 143(3) R.W.S. 92Ca (3) Of The Income Tax Act, 1961 (Hereinafter The ‘Act’) For The Assessment Year 2014-15 Dated 07.03.2023. Since, Facts Are Identical & Issues Are Common, For :-2-: It(Tp) A. No:42 /Chny/2023 & The Sake Of Convenience, The Appeal Filed By The Revenue & Assessee Are Being Heard Together & Disposed Off, By This Consolidated Order.

For Appellant: Shri Harish Ramanathan, C.A. by VirtualFor Respondent: Shri A. Sasikumar, C.I.T
Section 143(3)Section 153Section 92CSection 92C(3)Section 92D

Deputy Commissioner of Income Tax, Central Circle- 3(3), Chennai. vs. M/S. Caterpillar India Pvt. Ltd, Chennai

Appeal is dismissed

ITA 717/CHNY/2023[2014-15]Status: DisposedITAT Chennai06 Jun 2025AY 2014-15

Bench: Shri George George K & Shri S.R. Raghunathaआयकर अपीलसं./It(Tp)A No.: 42/Chny/2023 िनधा"रण वष" / Assessment Year: 2014-15 M/S.Caterpillar India Private Limited, The Deputy Commissioner Of 7Th Floor, International Tech Park, Income Tax, Taramani Road, Vs. Central Circle- 3(3), Chennai – 600 113. Chennai – 600 034. [Pan:Aabcc-4615-K] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपीलसं./Ita No.: 717/Chny/2023 िनधा"रण वष" / Assessment Year: 2014-15 The Deputy Commissioner Of Income M/S.Caterpillar India Private Tax, Limited, 7Th Floor, International Tech Park, Central Circle- 3(3), V. Chennai – 600 034. Taramani Road, Chennai – 600 113. [Pan:Aabcc-4615-K] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से/Assessee By : Shri Harish Ramanathan, C.A. By Virtual ""थ" की ओर से/Department By : Shri A. Sasikumar, C.I.T. सुनवाई की तारीख/Date Of Hearing : 12.03.2025 घोषणा की तारीख/Date Of Pronouncement : 06.06.2025 आदेश /O R D E R Per S. R. Raghunatha, Am: These Cross Appeals Filed By The Assessee & The Revenue Are Arising Out Of Order Of Commissioner Of Income Tax (Appeals)-18, Chennai U/S. 143(3) R.W.S. 92Ca (3) Of The Income Tax Act, 1961 (Hereinafter The ‘Act’) For The Assessment Year 2014-15 Dated 07.03.2023. Since, Facts Are Identical & Issues Are Common, For :-2-: It(Tp) A. No:42 /Chny/2023 & The Sake Of Convenience, The Appeal Filed By The Revenue & Assessee Are Being Heard Together & Disposed Off, By This Consolidated Order.

For Appellant: Shri Harish Ramanathan, C.A. by VirtualFor Respondent: Shri A. Sasikumar, C.I.T
Section 143(3)Section 153Section 92CSection 92C(3)Section 92D

DCIT Circle 5(1)(1), Mumbai vs. Arjav Diamonds (India) Pvt. Ltd, Mumbai

In the result, the appeal filed by the revenue is hereby dismissed

ITA 5610/MUM/2024[2013-14]Status: DisposedITAT Mumbai29 May 2025AY 2013-14

Bench: Shri Om Prakash Kant, Am & Ms. Kavitha Rajagopal, Jm Deputy Commissioner Of Income Tax Arjav Diamonds (India) Pvt. Ltd. - 5(1)(1) Cc, 9010A Bharat Diamond Bourse, Deputy Commissioner Of Income-Tax, Bandra Kurla Complex, Bandra East, Vs. Circle 5(1)(1), R.No.568, Aaykar Mumbai-400051. Bhavan, M.K. Road, Mumbai - 400020. Pan/Gir No. Aagca2472D (Appellant) : (Respondent) Assessee By : Shri. Fenil Bhat Respondent By : Dr. K. R. Subhash, (Cit-Dr) Date Of Hearing : 10.03.2025 Date Of Pronouncement : 29.05.2025 O R D E R Per Kavitha Rajagopal, J M: This Appeal Has Been Filed By The Revenue, Challenging The Order Of The Learned Commissioner Of Income Tax (Appeals), Mumbai (‘Ld.Cit(A)’ For Short), Passed U/S.250 Of The Income Tax Act, 1961 (‘The Act'), Pertaining To The Assessment Year (‘A.Y.’ For Short) 2013-14. 2. The Assessee Has Raised The Following Grounds Of Appeal: “(I) "Whether, On The Facts & Circumstances Of The Case & As Per Law, The Ld. Cit (A) Is Justified In Deleting The Penalty Of Rs. 16,13,66,235/-Levied U/S 271G Of The It Act, 1961 When The Statutory Requirement Of Rule 10B(1)(E), Stating The Methodology For Benchmarking Transactions Using Tnmm, States That The Net Profit Margin From The Controlled International Transaction & The Uncontrolled International Transactions Should Be Separately Provided By The Assessee & Their Statutory Requirement Has Not Been Fulfilled By The Assessee?" Arjav Diamonds (India) Pvt. Ltd.

For Appellant: Shri. Fenil BhatFor Respondent: DR. K. R. Subhash, (CIT-DR)
Section 250Section 271GSection 92C