{"id":62982,"date":"2026-07-30T16:18:13","date_gmt":"2026-07-30T10:48:13","guid":{"rendered":"https:\/\/itatonline.org\/digest\/schaeffler-india-ltd-v-asst-cit-2025-131-itr-237-trib\/"},"modified":"2026-07-30T16:33:45","modified_gmt":"2026-07-30T11:03:45","slug":"schaeffler-india-ltd-v-asst-cit-2025-131-itr-237-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/schaeffler-india-ltd-v-asst-cit-2025-131-itr-237-trib\/","title":{"rendered":"Schaeffler India Ltd. v. Asst. CIT (2025) 131 ITR 237 (Ahd)(Trib)"},"content":{"rendered":"

Claimed deduction for reimbursement of professional service costs to its German associated enterprises which was disallowed without any specific finding of non-business purpose, paid royalty benchmarked by the TPO using the comparable uncontrolled price method as against the transactional net margin method applied by the assessee, and paid management fees to associated enterprises in China and Germany which the Transfer Pricing Officer treated as stewardship activity and benchmarked at nil, though the CIT(A) ruled in the assessee’s favour on the royalty and management fee issues. On appeal, the Tribunal condoned a one-day delay in filing the appeal caused by an intervening holiday; restored the issue of deduction under section 37 for reimbursement of professional service costs to the Assessing Officer to enable the assessee to produce supporting documents; upheld the CIT(A)’s acceptance of the transactional net margin method for benchmarking royalty payments, following the Tribunal’s decision in the assessee’s own case for an earlier year; and upheld the CIT(A)’s finding that the management fees paid to associated enterprises, being similar to fees accepted without adjustment in the case of a group company and not in the nature of stewardship activity, were at arm’s length. (AY. 2010-11 to 2014-15)<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

S. 92C: Transfer pricing-Arm\u2019s length price-Avoidance of tax-International transaction-Most appropriate method-Royalty-Department adopting comparable uncontrolled price method-Tribunal in assessee’s own case for earlier year holding transactional net margin method most appropriate-Assessee’s use of same method justified-Payment of management fees to associated enterprise-Identical payment accepted by Transfer Pricing Officer in earlier years-Facts similar in current year-Payment held to be at arm’s length.[S.92CA] <\/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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62982","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gnQ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62982","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=62982"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62982\/revisions"}],"predecessor-version":[{"id":63013,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62982\/revisions\/63013"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}