Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Gemological Institute International Inc. v. CIT (2021) 214 TTJ 393 / (2022) 192 ITD 83 / 211 DTR 139 (Mum.)(Trib.)

S. 115A : Foreign companies-Tax-Dividends-Royalty-Technical services fees-Rate of tax-Matter remanded-DTAA-India-USA. [S. 115A(b), Art. 12]

Cascade Holdings Pvt. Ltd. v. DCIT (2021) 61 CCH 470 / 213 TTJ 491 (Mum.)(Trib.)

S. 94 : Transaction in securities-Unless interest arising and accruing from security is deemed to be income of owner who transferred the securities loss cannot be disallowed. [S. 45, 94(4)]

Tech Mahindra Business Services Ltd. v. DCIT (2021) 91 ITR 8 (SN) (Mum.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Comparables-Functionally different from assessee to be excluded from list of comparables-Transactional net margin method-Foreign exchange fluctuation gains on re-statement of outstanding debtors as on balance-sheet date-Part of operating revenue-Assessee within ± 5 Per Cent. tolerance range-No transfer pricing adjustment called for. [S. 92C(2)]

Tech Mahindra Business Services Ltd. v. DCIT (2021) 91 ITR 8 (SN) (Mum.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Comparables-Functionally different from assessee to be excluded from list of comparables-Transactional net margin method-Foreign exchange fluctuation gains on re-statement of outstanding debtors as on balance-sheet date-Part of operating revenue-Assessee within ± 5 Per Cent. tolerance range-No transfer pricing adjustment called for. [S.92C(2)]

Eaton Technologies P. Ltd. v. ACIT (2021) 91 ITR 36 (Pune)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Selection of comparables-comparables functionally dissimilar or involved principally in on-site development to be excluded-where average margin or segmental information not available, matter remanded for recomputation.

JCIT v. Reliance Life Sciences Pvt. Ltd. (2021) 91 ITR 468 (Mum.) (Trib.)

S. 92C : Transfer pricing-Arm’s length price-Remittance of funds by assessee to its Associated Enterprises by way of share application money and loan-Assessee neither charging interest on its receivables nor paying any interest on its payables to its Associated Enterprises-Notional interest could not be charged on amounts due from Associated Enterprises-No adjustment warranted.

GL & V India (P) Ltd. v. Dy.CIT (2021) 204 DTR 317 (Pune)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Adjustment of working capital-Advance to suppliers-Matter remanded-Comparable-Manufacturing sales less than 75 percent of total sales-Cannot be considered as comparable for bench marking the international transaction of 100 percent manufacturing activity of the appellant company.

Hyundai Construction Equipment India (P) Ltd. v. ACIT (2021) 208 DTR 449/(2022) 215 TTJ 383 (Pune)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Subsidy received under Incentive Scheme of Government of Maharashtra-Capital receipt-Cannot form part of operating revenue of manufacturing segment for the purpose of determining ALP under the TNMM-Excess custom duty paid cannot be reduced by the difference in the amount of customs duty.

ACIT v. Nalco Water India Ltd (2021) 208 DTR 85/ 133 taxmann.com 531 /(2022) 215 TTJ 551 (Pune)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Payment to intra-group services and not stewardship activity-ALP determination was not adjudicated-No ground was raised by the revenue.

A Raymond Fasteners India (P) Ltd. v. Dy.CIT (2021) 208 DTR 407 (Pune)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Selection of comparables-Not produced relevant information of the Foreign AEs-Assessee itself is to be treated as the tested party-When the capacity utilization figures of the comparable are not available, ALP can be determined with gross profit margins only qua raw material cost to the exclusion of direct expenses-Turnover filter-Adjustment to be made at entry level only to the value of international transactions. [R. 10B(1)(e)]