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. 120 : Jurisdiction of income-tax authorities-Power to transfer cases-Commissioner-Lucknow transferred different cases to Central Circle, Lucknow-Jurisdiction of TDS matters was not transferred-Order passed by Assistant Commissioner, Central Circle, Lucknow in case of assessee under section 201 was without jurisdiction. [S. 127, 201]

DCIT v. Sahara India Financial Corporation Ltd. (2020) 183 ITD 266 / 194 DTR 153 / 297 TTJ 555 (Delhi)(Trib.)

S. 115JB : Book profit-Disallowance made under section 14A cannot be subject matter of disallowances while determining book profit. [S. 14A, R.8D]

Gujarat State Energy Generation Ltd. v. ACIT (2020) 183 ITD 590 (Ahd.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Notional interest on interest free loan-Rate of LIBOR plus 2 per cent is held to be justified.

Sabre Asia Pacific Pte. Ltd. v. DCIT (2020) 183 ITD 832 (Mum.) (Trib.)

S. 92C : Transfer pricing-Arm’s length price-Re sale without any further value addition-Resale Price Method (RPM) is most appropriate method for determining ALP of said international transactions.

Topcon Sokkia India (P.) Ltd. v. DCIT(2020) 183 ITD 876 (Delhi) (Trib.)

S. 92C : Transfer pricing-Arm’s length price-Advance for allotment of shares-Notional interest-No addition could be made.

Voltas Ltd. v. ACIT (2020) 183 ITD 857 (Mum.)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Comparable-Software development-Software education- Computer related activities like maintenance of website for its clients and creation of multimedia presentation-Product companies-Functionally not comparable-High turnover filter-Directed to be excluded.

Xoriant Solutions (P.) Ltd. v. ITO (2020] 183 ITD 180 (Mum.) (Trib.)

S. 92C : Transfer pricing-Arm’s length price-AMP expenses-AE has not carried out any function in India-No international transaction in form of any agreement or arrangement on AMP expenditure incurred by assessee-Addition is held to be not justified. [S.92B]

PepsiCo India Holdings (P.) Ltd. v. DCIT (2020) 183 ITD 196 (Delhi)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Purchase product from AE and reseing to unrelated party-Resale price method (RPM) method was to be applied for benchmarking international transaction undertaken by assessee-Subvention payments by AE to reimburse part of operating expenses, said subvention amount received by assessee was operating in nature and was to be included as operating income-Promotion of Drug-Reimbursement of expenses-No transaction or international transaction could be said to be involved between assessee and its AE. [S.92B]

MSD Pharmaceuticals (P.) Ltd. v. DCIT (2020) 183 ITD 80 (Delhi) (Trib.)

S. 92C : Transfer pricing-Arm’s length price-Notional interest-Interest on loan at LIBOR + 200 bps is held to be appropriate. [S. 92B]

Bombay Rayon Holdings Ltd. v. ITO (2020) 183 ITD 91 (Mum.)(Trib.)

S. 90 : Double taxation relief-Foreign tax credit-FTC paid subsequent to filing of return was to be allowed.-DTAA-India-USA. [S. 9(1)(i), ITR 128, Art. 25]

Pricewaterhouse Coopers (P.) Ltd. v. ACIT (2020) 183 ITD 354 (Kol.)(Trib.)