{"id":63620,"date":"2026-08-03T23:10:47","date_gmt":"2026-08-03T17:40:47","guid":{"rendered":"https:\/\/itatonline.org\/digest\/yokogawa-india-ltd-v-dy-cit-2025-122-itr-499-bang-trib-3\/"},"modified":"2026-08-03T23:10:47","modified_gmt":"2026-08-03T17:40:47","slug":"yokogawa-india-ltd-v-dy-cit-2025-122-itr-499-bang-trib-3","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/yokogawa-india-ltd-v-dy-cit-2025-122-itr-499-bang-trib-3\/","title":{"rendered":"Yokogawa India Ltd. v. Dy. CIT (2025) 122 ITR 499 (Bang.)(Trib.)"},"content":{"rendered":"<p>The Transfer Pricing Officer computed the arm&#8217;s length price by considering both Associated Enterprise (AE) and non-AE transactions. The Tribunal held that transfer pricing provisions apply only to international transactions with Associated Enterprises and directed that the adjustment be restricted only to AE transactions. The Tribunal held that comparables accepted in the assessee&#8217;s own case for earlier years should ordinarily be followed unless material differences exist. Government ownership by itself is not a ground for exclusion if the company satisfies the functional, asset and risk (FAR) analysis. The matter was restored to the Transfer Pricing Officer for fresh examination of the FAR analysis, with a direction that a company cannot be treated as persistently loss-making unless it incurred losses in all the relevant years. Functionally similar companies were directed to be included. The Associated Enterprises made direct sales to customers in India and paid commission to the assessee. The Tribunal held that such commission income did not arise from the assessee&#8217;s trading segment and could not be treated as part of its trading activity for transfer pricing analysis. The Transfer Pricing Officer treated global sales and marketing expenditure as Advertisement, Marketing and Promotion expenditure for adjustment purposes. The Tribunal held that such expenditure constituted operating cost and was required to be allocated in the ratio of the turnover relating to the relevant international transactions while applying the Transactional Net Margin Method.\u00a0 <strong>\u00a0\u00a0(<\/strong>AY. 2013-14).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 92C: Transfer pricing-Arm\u2019s length price-Avoidance of tax-International transaction-Adjustment to be confined to international transactions with Associated Enterprises&#8211;Comparables-Functional similarity-Government company not to be excluded merely because of Government ownership-Matter remanded-Trading segment-Commission earned on direct sales by Associated Enterprises to third-party customers-Not part of trading activity-Transactional Net Margin Method-Global sales and marketing expenditure-Operating cost.[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-63620","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gy8","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63620","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=63620"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63620\/revisions"}],"predecessor-version":[{"id":63621,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63620\/revisions\/63621"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}