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
Click here to download the pdf versions of the Digest of case laws

S. 92C : Transfer pricing-Arm’s length price-Working capital adjustment-No expenses incurred for Meeting working capital requirement-Question of adjustment on negative working capital does not arise–Selection of comparables-Assessee engaged in provision of software development and related services-Rejection of rental expenses held to be proper. [S. 92CA]

Harman Connected Services Corporation India P. Ltd. v. Dy. CIT (2022)95 ITR 1 (Bang)(Trib)

S. 92C : Transfer pricing-Arm’s length price-Royalty-Transactions Valued at Nil ignoring evidence brought on record-Transfer Pricing Adjustment is not sustainable.[S.92CA]

Expeditors International (India) Pvt. Ltd. v. Dy. CIT (2022) 95 ITR 393 (Delhi)(Trib)

S. 92C : Transfer pricing-Arm’s length price-Technical Know-how fees-Not adopting one of mandatorily prescribed methods-Deletion of addition is valid.

Dy. CIT v. India Kawasaki Motors Pvt. Ltd. (2022) 96 ITR 37 (SN) (Pune) (Trib)

S. 92C : Transfer pricing-Arm’s length price-Technical Know-how fees-Not adopting one of mandatorily prescribed methods-Deletion of addition is valid.

Dy. CIT v. India Kawasaki Motors Pvt. Ltd. (2022) 96 ITR 37 (SN) (Pune) (Trib)

S. 92C : Transfer pricing-Arm’s length price-Custom duty-Recovering part from customers-Adjustments required to be made. [R. 10B(1)(b)(iv)]

Dy. CIT v. India Kawasaki Motors Pvt. Ltd. (2022) 96 ITR 37 (SN) (Pune) (Trib)

S. 92C : Transfer Pricing-Arm’s Length Price-Manufacturing and marketing-Transactional Net Margin Method most appropriate-Transfer Pricing Officer’s Reasoning of constructing a hypothetical comparable uncontrolled price based on study of third party scenario is not envisaged [S.92CA]

Bostik India P. Ltd. v. Dy. CIT (2022)96 ITR 25 (SN) (Bang) (Trib)

S. 92C : Transfer Pricing-Arm’s Length Price-Comparables-Government of India Company not Comparable with Assessee-Excluded from List of Comparables. [S.92CA]

Dy. CIT v. Bmc Software (India) Pvt. Ltd. (2022)96 ITR 18 (SN) (Pune) (Trib)

S. 92C: Transfer pricing-Arm’s length price-Software development services-Working capital adjustment on account of outstanding receivables-Matter remanded. [S.92CA]

Xchanging Solutions Ltd. v. Dy. CIT (2022)96 ITR 544 (Bang) (Trib)

S. 92C: Transfer pricing-Arm’s length price-Comparables-Companies with turnover in excess of Rs. 200 Crores-Not comparable.

Xchanging Solutions Ltd. v.Dy. CIT (2022)96 ITR 544 (Bang) (Trib)

S. 92C : Transfer pricing-Arm’s length price-Net margin method-Support services to its associated enterprises-Transfer Pricing Officer discarding transactional net margin method adopted by assessee and accepted by Department for several years without assigning any specific reason-Held to be not proper. [S.92CA]

Sabic India Pvt. Ltd. v Dy. CIT (2022)96 ITR 368 (Trib)(Delhi) (Trib)