{"id":54638,"date":"2025-06-02T16:14:04","date_gmt":"2025-06-02T10:44:04","guid":{"rendered":"https:\/\/itatonline.org\/digest\/cit-v-birlasoft-ltd-2025472-itr-170-302-taxman-324-delhihc\/"},"modified":"2026-02-11T15:01:38","modified_gmt":"2026-02-11T09:31:38","slug":"cit-v-birlasoft-ltd-2025472-itr-170-302-taxman-324-delhihc","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/cit-v-birlasoft-ltd-2025472-itr-170-302-taxman-324-delhihc\/","title":{"rendered":"CIT v. Birlasoft Ltd. (2025)472 ITR 170\/ 302 Taxman 324 \/344 CTR  464 \/ 249 DTR  34 (Delhi)(HC)"},"content":{"rendered":"<p>Dismissing the appeal of the Revenue the Court held that\u00a0 that profit margins required to be compared with profit margins of enterprise and not that of any sub-unit or division of enterprise. \u00a0Splitting transactions unit wise for determining Arm\u2019s Length Price would not be apposite. Order of Tribunal holding payroll taxes as allowable expenditure is\u00a0 not erroneous. Res Judicata applicable where fundamental aspects found as fact earlier and accepted. Eligibility of new undertaking for deduction under section 10A most relevant in initial year of operation. Once it is accepted that new undertaking is not formed by splitting\u00a0 up or reconstruction of extant business or transfer to new business of machinery or plant previously used for any purpose of department cannot relegate on same set of facts in later assessment years.\u00a0\u00a0 Expression an international transaction is\u00a0 to be construed in plural.<em>(<\/em>AY.2004-05)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 92CA : Transfer pricing  Reference to Transfer Pricing Officer- Arm\u2019s Length price- Avoidance of tax- Net profit margin-That Profit margins required to be compared with profit margins of enterprise and not that of any sub-unit or division of enterprise-Res Judicata- Once accepted in earlier year as initial year- Thee same has to be accepted- Company- Splitting transactions unit wise for determining Arm\u2019s Length Price would not be apposite \u2014Order of Tribunal holding payroll taxes as allowable expenditure is  not erroneous-  Expression an international transaction is  to be construed in plural. [S. 2(31),10A, 92CA(3), 92F(iii)  R.10A] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-54638","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-edg","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/54638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=54638"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/54638\/revisions"}],"predecessor-version":[{"id":58451,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/54638\/revisions\/58451"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=54638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=54638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=54638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}