{"id":63512,"date":"2026-08-01T16:03:20","date_gmt":"2026-08-01T10:33:20","guid":{"rendered":"https:\/\/itatonline.org\/digest\/toyota-boshoku-automotive-india-p-ltd-v-dy-cit-2025-126-itr-298-174-taxmann-com-933-bang-trib-2\/"},"modified":"2026-08-01T16:03:20","modified_gmt":"2026-08-01T10:33:20","slug":"toyota-boshoku-automotive-india-p-ltd-v-dy-cit-2025-126-itr-298-174-taxmann-com-933-bang-trib-2","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/toyota-boshoku-automotive-india-p-ltd-v-dy-cit-2025-126-itr-298-174-taxmann-com-933-bang-trib-2\/","title":{"rendered":"Toyota Boshoku Automotive India (P.) Ltd. v. Dy. CIT (2025) 126 ITR 298 \/ 174 taxmann.com 933 (Bang.)(Trib.)"},"content":{"rendered":"<p>The Transfer Pricing Officer benchmarked royalty payment by adopting the Profit Split Method and determined the arm&#8217;s length price at nil after recharacterising the assessee as a contract manufacturer. The Tribunal held that in the earlier years the Transactional Net Margin Method had consistently been accepted as the most appropriate method and there was no change in the functions, assets or risks assumed by the assessee. Applying the principle of consistency, the matter was restored to the Transfer Pricing Officer to benchmark the royalty transaction by adopting the Transactional Net Margin Method. The Tribunal held that overdue receivables from Associated Enterprises constituted a separate international transaction. Since the transactions were denominated in foreign currency, interest was directed to be computed by applying LIBOR + 200 basis points after allowing the agreed credit period, instead of the SBI Prime Lending Rate applied by the Transfer Pricing Officer<strong>\u00a0 <\/strong>(AY. 2020-21).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 92C: Transfer pricing-Arm\u2019s length price-Avoidance of tax-International transaction-Royalty-Transactional Net Margin Method-Principle of consistency-Matter remanded-Outstanding receivables-Delay beyond agreed credit period-Interest to be benchmarked at LIBOR + 200 basis points.[S.92B, 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-63512","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gwo","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63512","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=63512"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63512\/revisions"}],"predecessor-version":[{"id":63513,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63512\/revisions\/63513"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}