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-Most Appropriate Method-Net Margin Method-Comparable Uncontrolled Price Method-Processing fees-Local guarantees issued based on counter guarantee received from overseas branches-Adjustment was deleted.
Australia and New Zealand Banking Group Ltd. v. DY. CIT (IT) (2022) 98 ITR 61 (SN) (Mum.)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Most Appropriate Method-Net Margin Method-Comparable Uncontrolled Price Method-Processing fees-Local guarantees issued based on counter guarantee received from overseas branches-Adjustment was deleted.
Australia and New Zealand Banking Group Ltd. v. Dy. CIT (IT) (2022) 98 ITR 61 (SN)(Mum) (Trib)
S. 92C : Transfer pricing-Arm’s length price-Net Margin Method-Comparable Uncontrolled Price Methods-Bad debts-Written off-Write off does not affect the Arm’s length price. [S. 36(1)(vii)]
Aurobindo Pharma Ltd. v. Dy. CIT (2022) 98 ITR 54 (SN)(Hyd) (Trib)
S. 92C : Transfer pricing-Arm’s length price-Profit split method inappropriate-Assessee made no unique intangible contribution-Transactional net margin method appropriate-TPO to recompute arm’s length price. [S.92CA, 144C]
Toyota Boshoku Automotive India Pvt. Ltd. v. ACIT (2022)98 ITR 363 (Bang.)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Working capital adjustment-Information regarding comparable companies not available in public domain-Matter remanded to Assessing Officer/Transfer Pricing Officer to decide issue afresh after affording opportunity of being heard. [S. 92CA]
Aurigo Software Technologies P. Ltd. v. ITO (2022) 98 ITR 294 (Bang.)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Capital Utilization-Functioning at lower capacity than average-Adjustment for underutilization required-Import of raw material-Loss due to foreign exchange rates fluctuation-Foreign exchange rates fluctuation adjustment to be considered-Matter remanded to TPO. [S.92CA]
Denso Kirloskar Industries Pvt. Ltd. v. Dy. CIT (2022) 98 ITR 399 (Bang) (Trib)
S. 92C : Transfer pricing-Arm’s length price-Reconciliation of revenue-Matter remanded.
Vmware Software India P. Ltd. v. Dy. CIT (2022)98 ITR 219 (Bang) (Trib)
S. 92C : Transfer pricing-Arm’s length price-Selection of comparables-Turnover more than 200 crores-Assessee company making less than 200 crores in current year-Margin of current year alone to be taken. [S. 92A]
Aurigo Software Technologies P. Ltd. v. ITO (2022)98 ITR 294 (Bang) (Trib)
S. 91 : Double taxation relief-Countries which no agreement exists-Foreign tax credit-Delay in filing Form 67-Entitle to claim Foreign tax credit. [S. 139(5), R. 128(9) Form, 67]
Nirmala Murli Relwani v. ADIT (2022)100 ITR 64 (SN)/(2023) 198 ITD 603 (Mum) (Trib)
S. 90 : Double taxation relief-Not made arrangements for declaration of dividends out of income earned in India-Income was to be charged at a higher rate of tax in India vis-à-vis domestic company and same could not be treated as discrimination on account of fact that assessee belonged to other Contracting State, i.e. Korea-DTAA-India-Korea. [S. 9(1)(i), Art, 25]
Shinhan Bank v. Dy. DIT (IT) (2022) 218 TTJ 401 / 217 DTR 113 / 139 taxmann.com 563 (Mum)(Trib)