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

The ACIT, Circle-4(1)(1), Ahmedabad vs. M/S. Shell Energy India Pvt. Ltd. (Formerly Known As M/S. Hazira Lng. Pvt. Ltd.), Ahmedabad

In the result, the appeal of the assessee is allowed for statistical purposes and that of the Revenue is dismissed

ITA 558/AHD/2022[2012-13]Status: DisposedITAT Ahmedabad17 Oct 2024AY 2012-13

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumarassessment Year : 2012-13 Shell Energy India Pvt. Ltd. The Dcit, Cir.2(1)(1) Office No.2008, Westgage Vs Ahmedabad. Block-D, Makarba, Sg Highway Ahmedabad 380051. Pan : Aaach 9143 C Assessment Year : 2012-13 The Dcit, Cir.2(1)(1) Shell Energy India Pvt. Ltd. Ahmedabad. Vs (Formerly Known As M/S.Hqzira Lng P.Ltd.) Ahmedabad. Pan : Aaach 9143 C (Applicant) (Responent) Assessee By : Shri S.N. Soparkar, Sr.Advocate, Shri Vishal Kalra & Ss Tomar, Ars. Revenue By : Shri (Dr.) Darsi Suman Ratnam, Cit-Dr Shri Ashok Kumar Suthar, Sr.Dr सुनवाई क" तारीख/Date Of Hearing : 04/09/2024 घोषणा क" तारीख /Date Of Pronouncement: 17/10/2024 आदेश आदेश/O R D E R आदेश आदेश Per Annapurna Guptathese Are Cross-Appeals By The Assessee & The Revenue Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-13, Ahmedabad Dated 23.09.2022 Passed Under Section 250 Of The Income Tax Act, 1961 (“The Act” For Short) For The Assessment Year 2012-13. Ita No.435 & 558/Ahd/2022

For Appellant: Shri S.N. Soparkar, Sr.AdvocateFor Respondent: Shri (Dr.) Darsi Suman Ratnam, CIT-DR
Section 143(3)Section 144CSection 250Section 92D

Shell Energy India Private Limited, Ahmedabad vs. The Deputy Commissioner of Income-Tax, Circle-2(1)(1), Ahmedabad

In the result, the appeal of the assessee is allowed for statistical purposes and that of the Revenue is dismissed

ITA 435/AHD/2022[2012-13]Status: DisposedITAT Ahmedabad17 Oct 2024AY 2012-13

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumarassessment Year : 2012-13 Shell Energy India Pvt. Ltd. The Dcit, Cir.2(1)(1) Office No.2008, Westgage Vs Ahmedabad. Block-D, Makarba, Sg Highway Ahmedabad 380051. Pan : Aaach 9143 C Assessment Year : 2012-13 The Dcit, Cir.2(1)(1) Shell Energy India Pvt. Ltd. Ahmedabad. Vs (Formerly Known As M/S.Hqzira Lng P.Ltd.) Ahmedabad. Pan : Aaach 9143 C (Applicant) (Responent) Assessee By : Shri S.N. Soparkar, Sr.Advocate, Shri Vishal Kalra & Ss Tomar, Ars. Revenue By : Shri (Dr.) Darsi Suman Ratnam, Cit-Dr Shri Ashok Kumar Suthar, Sr.Dr सुनवाई क" तारीख/Date Of Hearing : 04/09/2024 घोषणा क" तारीख /Date Of Pronouncement: 17/10/2024 आदेश आदेश/O R D E R आदेश आदेश Per Annapurna Guptathese Are Cross-Appeals By The Assessee & The Revenue Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-13, Ahmedabad Dated 23.09.2022 Passed Under Section 250 Of The Income Tax Act, 1961 (“The Act” For Short) For The Assessment Year 2012-13. Ita No.435 & 558/Ahd/2022

For Appellant: Shri S.N. Soparkar, Sr.AdvocateFor Respondent: Shri (Dr.) Darsi Suman Ratnam, CIT-DR
Section 143(3)Section 144CSection 250Section 92D