This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 92C : Transfer pricing-Arm’s length price-Functional similarity-Business of manufacturing and distributing products of consumer electronics and home appliances category-Providing an online marketing platform for sale of electronic products of multiple brands-Designing and manufacturing of only mobile phones-Having brand owning and outsourcing its manufacturing activities to third party contractors could not be accepted as a valid comparable-Would not be accepted as a valid comparable.
Samsung India Electronics (P.) Ltd. v. ACIT (2021) 188 ITD 425 (Delhi)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Export of customers electronic data-Comparable-Functionally different-Not acceptable as comparable-Interest receivable-No separate adjustment for interest on receivable was to be made.
Bechtel India (P.) Ltd. v. ACIT (2021) 188 ITD 460 / 86 ITR 544 (Delhi)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Restricted to international transactions with Associated Enterprises.
Minda Rinder (P.) Ltd. v. ACIT (2021) 188 ITD 513 / 210 TTJ 545 / 200 DTR 58 / 86 ITR 25 (SN) (Pune)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-TNM method-Cost plus method-TNM was directed to be applied-Beneficiary of AMP expenses or promotion of brand, said transfer pricing adjustment was to be deleted-Adjustment of royalty-Directed to be deleted.
Himalaya Drug Company v. ACIT (2021) 188 ITD 547 (Bang.) (Trib.)
S. 92C : Transfer pricing-Arm’s length price-Profit Split Method Royalty and AMP expenses-Required to be shown separately-Matter remanded.
Kontoor Brands India (P.) Ltd. v. DCIT (2021) 188 ITD 503 (Bang.)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Comparable-Functionally similarity-Safe to exclude it from final list of comparables to assessee who had been following fixed price project model-turnover filter of Rs. 1 crore, companies having turnover of more than Rs. 200 crores have to be excluded.
Triology E-Business Software India (P.) Ltd. v. DCIT (2021) 188 ITD 615 (Bang.)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Foreign exchange fluctuation gain/loss be treated as an operating income / expenses-Comparable-Rejection of comparable was held to be not valid-Failure to provide annual report-Rejection of comparable was held to be valid-Customers whose segmental information was not available. could not be accepted as valid comparable-a comparable company engaged in purchase and sale of products could not be accepted as valid comparable-TP adjustment, if any, has to be restricted to international transactions of assessee with its Associated Enterprises only. [S. 92A]
Synechron Technologies (P.) Ltd. v. ACIT (2021) 188 ITD 628 (Pune)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Resale method-Trading in India-Matter remanded.
DCIT v. ADC India Communications Ltd. (2021) 188 ITD 696 (Bang.)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Order passed without giving any finding-Matter remanded. [S. 254(1)]
Mahle Behr India Ltd. v. DCIT (2021) 188 ITD 769 (Pune)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Interest free loan to Associated enterprises-Libor rate is to be applied-Corporate guarantee-Guarantee commission/fee to be charged at 0.5 per cent. [S. 92B]
Rosy Blue (India) (P.) Ltd. v. DCIT (2021) 188 ITD 909 (Mum.) (Trib.)