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-Avoidance of tax-International transaction-Application of turnover filter-Higher threshold limit of INR 200 crores-Excluded. [S.92CA]

Dover India Private Limited v. DCIT [(2023) 102 ITR 159 (Bang) (Trib)

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Interest on delayed receivables, credit period on invoices-interest on overdue export proceeds not charged from associated and non-associated enterprise-independent third parties on the similar transaction with a similar credit period of similar goods no interest charged-transfer pricing officer deleted adjustment. [S.92CA]

S. Vinodkumar Diamonds P. Ltd. v. Dy. CIT (2023) 102 ITR 35 (Mum)(Trib.)

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-Adjustment on account of interest paid on fully convertible debentures. [S.92CA]

Altico Capital India Pvt. Ltd v. ACIT (2023) 221 TTJ 365 (Mum) (Trib)

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-ALP on combined transaction basis. ALP on combined transaction basis. [R.10A(d)]

IPCA Laboratories Ltd. v. ACIT[2023] 221 TTJ 319/226 DTR 225 (Mum)(Trib)

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Comparable-Companies with higher turnover to be excluded-Organisation for Economic Co-Operation and Development guidelines to be followed-Working capital adjustment to be allowed.[S.92CA]

IG Infotech (India) P. Ltd v ACIT (2023) 102 ITR 411 (Bang)(Trib)

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-Outstanding receivables-Directed to frame fresh computation.[S.92CA]

Emerson Climate Technologies (India) Pvt. Ltd. v. ACIT (2023) 147 taxmann.com 359/ 102 ITR 43 (SN)(Pune) (Trib)

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-Selection of Comparable-Transactional net margin method-Functionally dissimilar-Software Services-Company engaged in diversified activities but segmental details relating to various segments not available in public domain and providing technical services-Cannot be taken as comparable.

Qualcomm India Pvt. Ltd. v. Add. CIT (2023)102 ITR 556 (Delhi)(Trib)

S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-Selection of comparables-Turnover filter-Companies whose Turnover not within range of Rs. 200 Crores to Rs. 2,000 Crores-Company having abnormally high margin-Not functionally Comparable to be excluded.

Etisalat Software Solutions Pvt. Ltd. v.Dy. CIT (2023)102 ITR 647 (Bang) (Trib)

S.90: Double taxation relief-Non discrimination clause-Income to be taxed at the rate 30 % instead of 40% (Plus surcharge and education cess)-DTAA-India-Korea [S.9(1)(i), Art. 7(2), 24]

Shinhan Bank v. DCIT (2023) 221 TTJ 148 (Mum)(Trib)

S.90: Double taxation relief-Since, in terms of the permission of RBI, liaison office’s activities are confined to the liaison and representative activities and is not permitted to carry out any business/commercial activities in India, the said liaison office cannot be regarded as permanent establishment. [S.133A]

Nagase and Company Ltd. v. ADIT (2023) 221 TTJ 877 (Mum) (Trib)