TII CASES
TP
LUPIN LTD Vs ADDL CIT
In Favour Of : Partly Allowed 
2017-TII-137-ITAT-MUM-TP
Whether claim raised by an assessee in relation to prior period expenditure incurred has to be backed by convincing evidence in order to claim such amount in current year - YES: ITAT
Whether it is the substance and not nomenclature of an expense incurred that is determinative of the actual nature of the amount incurred with relation to a business transaction - YES: ITAT
Whether in case it is known that know-how is found to be defective and is of no use, it has resulted in a capital loss to assessee, can such loss be adjusted in P&L account in the garb of depreciation - NO: ITAT
Whether in case the higher stamp duty rate obtained by revenue does not pertain to assessees transaction, the same cannot be applied to his case suo moto without any basis - YES: ITAT Mumbai ITAT
AVERY DENNISON INDIA PVT LTD Vs DCIT
In Favour Of : Remanded 
2017-TII-138-ITAT-DEL-TP
Whether the need & benefit test for determination of ALP of certain intra group services shall be deemed to be satisfied when such test already stood satisfied in the previous AY respect of the same services - YES: HC
Whether case deserves to be remanded when the assessee fails to submit proper evidences with regard to services actually rendered by the AE and fails to do proper benchmarking for the same - YES: HC New Delhi ITAT
BLACKSTONE ADVISORS INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-139-ITAT-MUM-TP
Whether a company engaged in merchant banking functions can be selected as a comparable to a company engaged in investment advisory services – NO: ITAT
Whether a company providing management, consultancy services in diverse fields can be selected as a comparable to investment advisory company – YES: ITAT Mumbai ITAT
DCIT Vs MICROSOFT CORPORATION INDIA PVT LTD
In Favour Of : Revenue 
2017-TII-07-SC-TP
delay condoned. Issue notice. Four weeks' time is granted to assessee for filing counter affidavit Supreme Court of India
MICROSOFT CORPORATION INDIA PVT LTD Vs DCIT
In Favour Of : Assessee 
2016-TII-634-ITAT-DEL-TP
Whether the belief that income of an assessee has escaped assessment must be made on some tangible materials which could reasonably lead to such belief - YES: HC
Whether AO's belief that assessee was entitled to 15% mark up on service tax would be valid when in terms of an agreement entered into by the assessee, the reimbursement and additional compensation received thereunder would be exclusive of service tax which would be the responsibility of other party to the agreement - NO: HC
Whether a notice issued u/s 148 for reopening the assessment would be valid when AO has merely reproduced the reasons recorded for reopening assessment and has failed to apply its mind to the submissions made by the assessee - NO: HC Delhi High Court
WARBURG PINCUS INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-140-ITAT-MUM-TP
Whether for the purpose of benchmarking, a company registered with SEBI as a merchant banker can be compared with another company engaged in investment advisory services - NO: ITAT
Whether in case a company operating in single segment like that of assessee, is also operating in various other industries, the same cannot be held as a valid comparable for determination of ALP - YES: ITAT Mumbai ITAT
ITO Vs SYMPHONY MARKETING SOLUTIONS INDIA PVT LTD
In Favour Of : Assessee
2017-TII-141-ITAT-BANG-TP
Whether a Company which is a giant in the area of software development and has high tangibles & goodwill, can be taken as a comparable to any average entity belonging to the business field - NO: ITAT Bangalore ITAT
DCIT Vs GE INTELLIGENT PLATFORM PVT LTD
In Favour Of : 
2017-TII-142-ITAT-BANG-TP
Whether adjustment on account of underutillization of margins should be made while computing the ALP, when the underutilization is more than the average underutilization of the industry – YES: ITAT Bangalore ITAT
DCIT Vs AGRAWAL COAL CORPORATION PVT LTD
In Favour Of :
2017-TII-143-ITAT-INDORE-TP
Whether the commercial transactions undertaken by assessee can be disregarded, when the TPO himself did not dispute the validity of contract undertaken by assessee with its AE – NO: ITAT
Whether transaction relating to 'guarantee commission' would fall within the definition of 'international transaction' u/s 92B, when assessee has assumed risk while giving guarantee for AE and there is direct benefit accruing to the AE's in form of lesser interest in case of credit taken against this guarantee – YES: ITAT Indore ITAT
ACIT Vs KOBELCO CONSTRUCTION EQUIPMENT INDIA LTD
In Favour Of : Assessee
2017-TII-144-ITAT-DEL-TP
Whether rejection of RPM method by merely relying on general proposition of OECD guidelines is justified when the TPO failed to analyze actual facts of the case as well as FAR analysis with comparables - NO: ITAT
Whether RPM is most suitable in case of a distributor where reseller purchases tangible property & obtains services from AE and without making any value addition, resells the same to third parties - YES: ITAT New Delhi ITAT
ACIT Vs CASIO INDIA COMPANY PVT LTD
In Favour Of : Remanded
2017-TII-145-ITAT-DEL-TP
Whether addition towards AMP expenses deserves to be deleted on the plain logic that assessee's profit margin matches with those of comparables and that AMP is a function which has subsumed in the profit of the assessee - NO: ITAT
Whether distribution activity and AMP expenses are two separate but related international transactions and it is only for the purposes of determining their ALP that these two should be aggregated - YES: ITAT
Whether matter deserves to be remanded to the TPO when there is no reference in the order of the TPO to any AMP functions performed by comparables and the precise nature of expenses has not been discussed - YES: ITAT New Delhi ITAT
SOMA TEXTILES AND INDUSTRIES LTD Vs ADDL CIT
In Favour Of : Partly Allowed
2017-TII-147-ITAT-AHM-TP
Whether an ALP adjustment based on an assumption about lower credit rating of the subsidiary would be warranted - NO: ITAT
Whether profits or losses of speculative transactions can be treated separately, making them eligible for set off against normal business profits & lossess if such speculative transactions are incidental to the main business of assessee - YES: ITAT Ahmedabad ITAT
DCIT Vs XCHANGING TECHNOLOGY SERVICES INDIA PVT LTD
In Favour Of : Assessee
2017-TII-146-ITAT-DEL-TP
Whether it can be said that DRP has erred in reducing an adjustment when it is evident that TPO himself on being satisfied has carried out such reduction - NO: ITAT New Delhi ITAT
PR CIT Vs TOSHIBA INDIA PVT LTD
In Favour Of : Revenue
2017-TII-08-SC-TP
The assessee company had employed TNMM as the most appropriate mode for reflecting its international transactions and determining its arms length price vis-à-vis business/transactions with the AE. The TPO and subsequently the AO accepted the other parts of the exercise but observed that AMP expenses to the tune of Rs.45,27,63,518/- including discounts were incurred. The AO added Rs.40.14 Crores on this aspect. Upon appeal, the Tribunal noticed the subsequent discussion of the relevant principles applicable to deal with AMP expenses in ALP determination by a Bench of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. v. Commissioner of Income Tax - III and held that the bright line test espoused by the Revenue was inapplicable. As a result, the Tribunal set aside the additions made by the lower authorities. High Court upheld Tribunal's order. Supreme Court of India
ACIT Vs BROADCOM COMMUNICATIONS TECHNOLOGIES PVT LTD
In Favour Of : Remanded
2017-TII-148-ITAT-BANG-TP
Whether a company can be taken as comparable if no segmental information is available for the purpose of comparing it - NO: ITAT Bangalore ITAT
HALCROW CONSULTING INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-149-ITAT-DEL-TP
Whether penalty u/s 271(1)(c) for concealment of income or furnishing inaccurate particulars is warranted, merely because the assessing authority did not agree with the claim of the assessee - NO: ITAT New Delhi ITAT
PR CIT Vs IQOR INDIA SERVICES PVT LTD
In Favour Of : Revenue
2017-TII-25-HC-DEL-TP
Whether extraordinary delay of 505 days in re- filing the appeal can be condoned on the ground that there was a drastic increase in the court fee - NO : HC
Whether extraordinary delay in re-filing the appeal can be condoned on the ground that assessee was not familiar with the new e-filing facility when it is evident that e-filing came into force much before the filing of the said appeal - NO: HC Delhi High Court
NOVO NORDISK INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-150-ITAT-BANG-TP
Whether period of stay can be extended beyond 365 days if delay in disposal of appeal is not attributable to the assessee - YES: ITAT Bangalore ITAT
VOLEX INTERCONNECT INDIA PVT LTD Vs DCIT
In Favour Of : Revenue
2017-TII-26-HC-MAD-TP
Whether availing of statutory appellate remedy has to be first exhausted in cases involving fiscal nature, before approaching writ jurisdiction under Article 226 of the Constitution of India - YES: HC Madras High Court
DCIT Vs VOLEX INTERCONNECT INDIA PVT LTD
In Favour Of : Remanded
2016-TII-635-ITAT-MAD-TP
Whether case deserves to be remanded so as to determine use of separate benchmarking of transactions or use of TNMM, in a case where the transactions are so intricately interconnected that it is not possible to disaggregate - Yes: ITAT Chennai ITAT
APTEAN SOFTWARE INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-153-ITAT-BANG-TP
Whether a company needs to be excluded from list of comparables when such company does not fall within turnover parameters fixed by the Tribunal for selection of comparables - YES: ITAT Bangalore ITAT
SAIPEM INDIA PROJECTS LTD Vs DCIT
In Favour Of : Remanded
2017-TII-152-ITAT-MAD-TP
Whether a company can claim idle capacity adjustment for working out its PLI, when the adjustment was worked out at its own capacity level without showing any scientific basis for such computation - NO: ITAT
Whether a company has to demonstrate either existence or nonexistence of idle capacity for various comparables selected by it
Whether foreign exchange loss incurred upon cancellation of forward contracts, can be considered as non-operative, while working out the operating margin of assessee as well as that of comparables - NO: ITAT
Whether when forward contracts are entered into by an Indian subsidiary with an expectation to earn in quantum of US dollars from its AEs abroad, then such contracts cannot be claimed as an independent activity unrelated to assessee's business - YES: ITAT Chennai ITAT
BG EXPLORATION AND PRODUCTION INDIA LTD Vs JCIT
In Favour Of : Partly Allowed
2017-TII-154-ITAT-DEL-TP
Whether the AO has partly allowed the expenditure at the time of determining the ALP, any disallowance is called for when the nature of other expenditure has not been pointed out - NO: ITAT
Whether DRP has inherent powers to admit additional evidence - YES: ITAT New Delhi ITAT
BEHR INDIA LTD Vs ACIT
In Favour Of : Partly Allowed
2017-TII-155-ITAT-PUNE-TP
Whether an expenditure on testing of the product which is required to be incurred on a regular basis and which does not result into creation or acquisition of any assets is to be allowed as revenue expenditure - YES: ITAT
Whether in the absence of segmental accounts, TP adjustments have to be restricted only to transactions with AE on proportionate basis - YES: ITAT Pune ITAT
NORTEL NETWORKS INDIA PVT LTD Vs ACT
In Favour Of : Remanded
2017-TII-156-ITAT-DEL-TP
Whether decision for selection of comparables taken after due application of mind, is required to be followed consistently, unless there were valid and good reasons for deviating from earlier decision - YES: ITAT
Whether the TPO should assign reasons as to what are the differences in the FAR analysis of the comparables as compared to the earlier years, which led to rejection of those in the current year - YES: ITAT New Delhi ITAT
DR REDDYS LABORATORIES LTD Vs ADDL CIT
In Favour Of : Partly Allowed
2017-TII-157-ITAT-HYD-TP
Whether an ALP adjustment on account of provision for coporate guarantee is warranted if the costs incurred by the assessee in providing such guarantee does not fall within the meaning of 'international transaction' u/s 92B - NO: ITAT
Whether benchmarking of ALP of inter-corporate loans made to the AE should be determined on the basis of LIBOR + 200 basis points and the market rate prevailing in the respective countries should not be taken into account for the same - YES: ITAT
Whether with regard to allocation of corporate overhead expenses to tax holiday units, net expenditure of the corporate entity should be allocated amongst all units on the basis of turnover - YES: ITAT
Whether equal division of profits by an Indian entity with its AE can be doubted when there is an agreement between the two providing for sharing of profits in such an equal ratio - NO: ITAT Hyderabad ITAT
DCIT Vs EXTREME NETWORKS INDIA PVT LTD
In Favour Of : Remanded
2017-TII-158-ITAT-MAD-TP
Whether a change in profit level margins of the comparables, would have considerable effect on the TP study of assessee's margin - YES: ITAT Chennai ITAT
DOVER INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-159-ITAT-PUNE-TP
Whether TP adjustment could be made on account of nonreceipt of support payments from the associate enterprises i.e. adjustment made on account of an arrangement which does not exist - NO: ITAT
Whether an entity is entitled to the adjustment on account of capacity under-utilization, while benchmarking its international transaction vis-à-vis the margins earned by the comparables - YES: ITAT
Whether when the assessee had fulfilled the first condition of exporting the goods to a concern outside India and had also received money from the said concern from outside India, merely because the amount was received in Indian currency, it cannot be inferred that the amount has not been received in foreign exchange - YES: ITAT
Whether the word 'foreign exchange' can be restricted to only foreign currency but covers larger meaning of foreign exchange, wherein the money is received from foreign sources but in Indian rupees - NO: ITAT Pune ITAT
PR CIT Vs GAP INTERNATIONAL SOURCING INDIA LTD
In Favour Of : Assessee
2017-TII-27-HC-DEL-TP
Whether penalty with respect to a sustained addition made by TPO can be warranted if the assessee has neither concealed income nor underpaid tax - NO: HC Delhi High Court
PR CIT Vs KUSUM HEALTHCARE PVT LTD
In Favour Of : Assessee
2017-TII-28-HC-DEL-TP
Whether a TP adjustment is warranted for delay in collection of monies for supplies, made beyond the agreed limit, particularly when the assessee has already factored in the impact of receivables on the working capital - NO: HC Delhi High Court
HUAWEI TECHNOLOGIES INDIA PVT LTD Vs ITO
In Favour Of : Assessee
2017-TII-160-ITAT-BANG-TP
Whether a company needs to be removed from the list of comparables if it is functionally different and is having abnormally high profits - YES: ITAT
Whether TPO can place an upper cap limit for working capital adjustment without providing any legal basis or rational reasons for the same - NO: ITAT Bangalore ITAT
CIT Vs MITSUBISHI MOTORS CORPORATION
In Favour Of : Revenue
2017-TII-09-SC-TP
Having heard the parties, the Supreme Court grants leave to the Revenue to defend their case against Mitsubishi Motors Corporation on the issue of allowability of benefits u/s 112(1) in case of already derived benefit from foreign exchange fluctuations. Supreme Court of India
PR CIT Vs CPA GLOBAL SERVICES PVT LTD
In Favour Of : Assessee
2017-TII-29-HC-DEL-TP
Whether a general plea that the impugned order is bad in law can be sustained when the party fails to plead with specificity in the memorandum of appeal as to the manner in which such perversity is caused and no relevant document is submitted for the same - NO: HC Delhi High Court
CGI INFORMATION SYSTEMS AND MANAGEMENT CONSULTANTS PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-161-ITAT-BANG-TP
Whether when maximum international transactions undertaken by the assessee with its AEs have been determined in terms of MAP resolution then the same ALP shall also be applicable to the remaining transactions - YES: ITAT
Whether when the profits & gains u/s 10A were not to be included in the income of the assessee, then setting off of loss of the assessee from any business against such profits could be done - NO: ITAT Bangalore ITAT
DCIT Vs BG EXPLORATION AND PRODUCTION INDIA LTD
In Favour Of : Remanded
2017-TII-162-ITAT-DEL-TP
Whether non-sharing of cost by the joint-venture partners, can be a reason to determine the ALP of services received by assessee from its AE, at NIL - NO: ITAT
Whether the action of assessee in lending money to its AE by liquidating its asset of 'refund due' for repayment of the tax dues of AE, is sufficient for satisfying the basic condition laid down u/s 92B(1) regarding presence of 'international transaction' - YES: ITAT
Whether 'interest on income tax refund' given by the Revenue to the AE being a statutory interest, cannot be used for benchmarking of loan between two business concerns - YES: ITAT New Delhi ITAT
CHRISTIAN DIOR TRADING INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-197-ITAT-MUM-TP
Whether in case a claim has been disallowed by the lower authorities holding that no evidence has been filed to substantiate the same, even in that situation, remand is possible - YES: ITAT Mumbai ITAT
PR CIT Vs GILLETTE DRIVERSIFIED OPERATION PVT LTD
In Favour Of : Assessee
2017-TII-30-HC-DEL-TP
Whether a substantial question of law arises when, a case remanded to determine the ALP leads to revision of PLI - NO: HC Delhi High Court
SUZLON ENERGY LTD Vs ACIT
In Favour Of : Partly Allowed
2017-TII-163-ITAT-AHM-TP
Whether when the legislature itself does not group 'guarantees' in the 'provision for services' and includes it in the 'capital financing', then issuance of corporate guarantees cannot be treated as within the scope of normal connotations of 'provision for services' - YES: ITAT
Whether when an assessee extends an assistance to AEs, which does not cost anything to assessee and particularly for which the assessee could not have realized money by giving it to someone else during the course of its normal business, such an assistance does not have any bearing on its profits and, therefore, it is outside the ambit of international transaction u/s 92B(1) - YES: ITAT
Whether transfer pricing legislation can go through retrospective amendment, thereby directing the manner in which an assessee ought to have benchmarked its international transactions with the AEs - NO: ITAT
Whether the Tribunal can, while adjudicating on the appeals in transfer pricing cases, tinker with the date, as set out in the statute, from which an amendment is effective - YES: ITAT Ahmedabad ITAT
SABIC RESEARCH AND TECHNOLOGY PVT LTD Vs ITO
In Favour Of : Partly Allowed
2017-TII-164-ITAT-AHM-TP
Whether the deferred revenue expenditure which were written off and which were disallowed while computing the taxable income, are excludable from computation of operating margin - YES: ITAT
Whether there is any bar for the assessee to withdraw its acceptance of a particular comparable if it is realized that the same is not functionally comparable - NO: ITAT
Whether companies engaged in rendering R&D services can be compared to companies engaged in seismic data interpretation and reservoir data acquisition - NO: ITAT
Whether depreciation adjustment has to be provided to calculate operating profit margin, in case there is substantial under utilization of the assets vis-à-vis comparable companies resulting in high depreciation cost to assessee as compared to its revenues - YES: ITAT
Whether depreciation cost has to be excluded from the operating cost for calculating PLI - YES: ITAT Ahmedabad ITAT
INDUSIND BANK LTD Vs ITO
In Favour Of : Assessee
2017-TII-165-ITAT-MUM-TP
Whether tax needs to be deducted u/s 195 if the income is not in the nature of fee for technical services & arises wholly outside India - NO: ITAT Mumbai ITAT
CIT Vs HERO MOTOCORP LTD
In Favour Of : Assessee
2017-TII-31-HC-DEL-TP
Whether payment of export commission by assessee to its AE in pursuance of an export agreement can be treated as Royalty when such agreement does not entail use of any patent, invention, model, design or secret formula - NO: HC
Whether payment of export commission by assessee to its AE in pursuance of an export agreement can be treated as fees for technical services when the AE, by way of such agreement, has not rendered any managerial, technical or consultancy services - NO: HC Delhi High Court
ALCATEL LUCENT INDIA LTD Vs DCIT
In Favour Of : Disposed of
2017-TII-32-HC-DEL-TP
Whether remanding the matter by the Tribunal is warranted when all the relevant facts are already before it and the parties have no new material to provide - NO: HC Delhi High Court
CIT Vs HONDA SIEL POWER PRODUCTS LTD
In Favour Of : Assessee
2017-TII-33-HC-DEL-TP
Whether addition made u/s 40(a)(i) deserves to be deleted when it is held that export commission is neither royalty nor fee for technical services - YES: HC Delhi High Court
ZEE ENTERTAINMENT ENTERPRISES LTD Vs ADDL CIT
In Favour Of : Partly Allowed
2017-TII-166-ITAT-MUM-TP
Whether adopting RPM by the TPO would be warranted if in the past as well as in subsequent years TNMM has been used for benchmarking similar transactions and such position has also been accepted by the assessing authority in the respective years - NO: ITAT
Whether a situation wherein a commercial bank issues bank guarantee can be compared to a situation where a corporate entity issues guarantee to the bank for repayment of a loan - NO: ITAT
Whether writing off a loss can be termed as premature when assessee made all efforts for recovery of the same and it is factually evident that such amount has not been recovered - NO : ITAT
Whether remanding the matter for reconsideration is warranted if it is done to examine if the transaction in interest rate swap entered by the assessee with the Bank constitutes a transaction for the purchase or sale of any commodity within the meaning of section 43(5) - YES: ITAT Mumbai ITAT
STRIDES SHASUN LTD Vs ACIT
In Favour Of : Partly Allowed
2017-TII-167-ITAT-MUM-TP
Whether the plea of commercial expediency can be entertained in respect of advances given by assessee to its subsidiaries when it is evident that a benefit has accrued to the subsidiaries as a result of not charging of interest on outstanding receivables by the assessee - NO: ITAT
Whether disallowance of interest on notional basis on investments made by assessee in overseas companies deserves to be deleted when such investments have been made out of assessee's own funds for commercial expediency and wholly for business purposes - YES: ITAT
Mumbai ITAT
RAIN CEMENTS LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-168-ITAT-HYD-TP
Whether 'corporate guarentee' provided to AEs can be brought within the ambit of 'international transaction' warranting ALP adjustment, on account of restrospective amendment of provision of Section 92B, when the provision itself is anti-abuse legislation and not primarily a source of revenue - NO: ITAT Hyderabad ITAT
HOMEWARD RESIDENTIAL CORPORATION INDIA PVT LTD Vs DCIT
In Favour Of : Revenue
2017-TII-169-ITAT-PUNE-TP
Whether assessee's appeal concerning a TP adjustment deserves to be dismissed as withdrawn if the adjustment itself stands deleted - YES: ITAT Pune ITAT
IL AND FS MARITIME INFRASTRUCTURE COMPANY LTD Vs ACIT
In Favour Of : Assessee
2013-TII-272-ITAT-MUM-TP
Whether in terms of the wording used in Section 273B, it is mandatory not to impose penalty if assessee gives a reasonable cause for his failure in furnishing the particulars as required by the provisions of Section 271BA - YES: HC
Whether penalty is imposable if delay in furnishing report u/s 92B was caused due to the mistaken bonafide belief of the assessee that the transaction was not covered within the scope of international transactions - NO: ITAT Mumbai ITAT
RMSI PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-170-ITAT-DEL-TP
Whether a case deserves to be remanded for deciding issues in the light of assessee's own case for a previous assessment year if similar issues have already been decided in such previous year - YES : ITAT New Delhi ITAT
DCIT Vs LANCO INFRATECH LTD
In Favour Of : Remanded
2017-TII-171-ITAT-HYD-TP
Whether the interest rate prevailing in Indian rupees for Indian loans can be adopted to compare it for the loans advanced to AEs in foreign currency - NO: ITAT
Whether corporate guarantee provided by a company to its foreign AE, will fall within the scope of the term 'international transaction' after the insertion of Explanation to Section 92B by Finance Act - YES: ITAT
Whether corporate guarantee fee is to be considered proportionately with the period it availed, when the guarantee fee is upfront and one time fee was paid at the beginning - YES: ITAT
Whether interest paid by assessee on the mobilization advances received from its foreign AE, warrants any TP adjustment - NO: ITAT Hyderabad ITAT
ACIT Vs ITT CORPORATION INDIA PVT LTD
In Favour Of : Assessee
2017-TII-172-ITAT-AHM-TP
Whether foreign exchange gain or loss is to be included in the operating revenue of assessee and for comparables when such gain/loss is in relation to the revenue earned by the assessee from its A.Es for rendering certain services - YES: ITAT Ahmedabad ITAT
PERNOD RICARD INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-173-ITAT-DEL-TP
Whether when the product manufactured and sold by an Indian company is India specific, then it cannot be said that any benefit could have accrued to its foreign AE on account of AMP expenses spend in India in respect of AE's brands - YES: ITAT
Whether any TP adjustment in respect of AMP expenditure is warranted, when no benefit has arisen to the foreign AE on account of such expenditure - NO: ITAT New Delhi ITAT
SUN PHARMACEUTICAL INDUSTRIES LTD Vs DCIT
In Favour Of : Remanded
2017-TII-174-ITAT-AHM-TP
Whether interest on advances made to foreign AEs, is required to be charged at LIBOR rate - YES: ITAT
Whether the assessee can bench mark a transaction retrospectively which has been done during the present year, in the light of amendment brought by Finance Act of 2012 - NO: ITAT
Whether when a superior court is seized with a substantial question of law on the very impugned issue, it would be improper for an inferior court to constitute a special bench to decide the same issue - YES: ITAT Ahmedabad ITAT
PHOENIX COMTRADE PVT LTD Vs ACIT
In Favour Of : Assessee
2017-TII-175-ITAT-MUM-TP
Whether attachment of bank accounts by the AO for recovery of demand is justified if the time period for making such payment has not yet expired - NO: ITAT
Whether TP adjustment made will be valid if the amount of addition is more than the overall profit earned by the assessee and its foreign AE combined together - NO: ITAT Mumbai ITAT
BNT GLOBAL PVT LTD Vs ITO
In Favour Of : Revenue
2017-TII-176-ITAT-MUM-TP
Whether imposition of penalty is valid if the assessee failed to submit Audit Report in Form 3CEB for the international transactions entered into by it in terms of Section 92B - YES: ITAT Mumbai ITAT
VISTEON TECHNICAL AND SERVICE CENTRE PVT LTD Vs ACIT
In Favour Of : Revenue
2017-TII-177-ITAT-PUNE-TP
Whether an appeal can be withdrawn if assessee has entered into an Advance Pricing Agreement with CBDT and issues raised in the appeal are covered by the said agreement - YES : ITAT Pune ITAT
SCANCAFE DIGITAL SOLUTIONS PVT LTD Vs ITO
In Favour Of : Partly Allowed
2017-TII-178-ITAT-BANG-TP
Whether an extra ordinary event of merger or amalgamation is relevant, if such event affects the result and operating margin of the very segment of the company to be compared with assessee - YES: ITAT
Whether the turnover can be a relevant criteria in a service sector, where fixed overheads are nominal and the cost of service is in direct proportion to the services rendered - NO: ITAT
Whether companies having controlled transactions need to be eliminated while selecting comparables, as far as RPT filter is concerned - YES: ITAT Bangalore ITAT
KAYPEE ELECTRONICS AND ASSOCIATES PVT LTD Vs DCIT
In Favour Of : Revenue
2017-TII-179-ITAT-BANG-TP
Whether misleading statement as to TP report by assessee entails dismissal of appeal - YES : ITAT
Whether for the purpose of clubbing the transaction of royalty payment with other transactions the onus lies on the assessee company to establish the justification for such clubbing - YES: ITAT Bangalore ITAT
GE INDIA EXPORTS PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-180-ITAT-BANG-TP
Whether 'working capital' constitute an item of difference so as to require adjustment as per the parameters laid down by Rule 10B(1)(e)(iii), for purpose of analyzing the comparability of uncontrolled transaction with the international transaction of assessee - YES: ITAT
Whether companies whose data relating to concerned F.Y is available from the audited accounts, can be disregarded for purpose of their selection as comparables, in absence of any contrary - NO: ITAT Bangalore ITAT
GE MEDICAL SYSTEMS INDIA PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-181-ITAT-BANG-TP
Whether case deserves to be remanded if assessee has failed to point out defect in DRP's order with respect to PAN number and the same defect was carried forward by in AO's order - YES: ITAT
Whether in such a situation both AO and the assessee are at fault - YES : ITAT Bangalore ITAT
YOUNGSHIN AUTOMOTIVE INDIA PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-182-ITAT-MAD-TP
Whether case deserves to be remanded by Tribunal for making suitable Custom duty adjustment if TPO had denied such adjustment merely due to higher import content of raw material of assessee company - YES: ITAT Chennai ITAT
SWISS RE SHARED SERVICES INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-183-ITAT-BANG-TP
Whether comparables having related party transactions of more than 15% of the total turnover, are required to be excluded for the purposes of benchmarking - YES: ITAT
Whether bad debts are required to be excluded from the operating cost, unless it is proved that they are connected to the business of the relevant year - YES: ITAT Bangalore ITAT
SHIPNET SOFTWARE SOLUTIONS INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-184-ITAT-MAD-TP
Whether high turnover cannot be the sole reason for excusion of a comparable, unless the assessee demonstrates that such turnover has materially impacted the margins in relevant A.Y - YES: ITAT
Whether comparables can be excluded on ground of revenue recognition, when there is no evidence of functional dissimilarity, assets deployed and the impact of margins in relation to note on Revenue recongnition - NO: ITAT
Whether engagement in government projects can be a ground for exclusion of subject company from the list of comparables - NO: ITAT
Whether working capital adjustment is warranted, when there is no negative working capital and the assessee could not demonstrate the material impact on the margins for adjustment of working capital - NO: ITAT
Whether unutilized capacity adjustment is allowable to only start up companies - YES: ITAT Chennai ITAT
EXL SERVICES.COM INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2016-TII-636-ITAT-DEL-TP
Whether assessee can be denied working capital adjustment if the same has been allowed in earlier as well as subsequent years - NO: ITAT
Whether a company is to be excluded from the list of comparables if business model of such company is unique and incomparable with that of the assessee company - YES: ITAT New Delhi ITAT
ACTIS GLOBAL SERVICES PVT LTD Vs ITO
In Favour Of : Partly Allowed
2016-TII-637-ITAT-DEL-TP
Whether case, with regard to rejection of comparable on account of non-availability of financial data, deserves to be remanded if annual report of such company has been made available - YES: ITAT
Whether a company can be included as comparable even if it is following a different financial year provided assessee has derived three months data of January to March, 2011 and thereafter worked out comparable data for financial year from April to March, 2011 - YES: ITAT
Whether assessee being a low risk provider should be allowed risk adjustment if assessee has submitted risk adjustment computation with respect to set of comparables - YES: ITAT New Delhi ITAT
PR CIT Vs ACTIS GLOBAL SERVICES PVT LTD
In Favour Of : Assessee
2017-TII-35-HC-DEL-TP
Whether a company is to be excluded from list of comparable if it is functionally different from the assessee and the size & scale of its operation makes it inappropriate to the assessee company - YES: HC Delhi High Court
DCIT Vs EXL SERVICES.COM INDIA PVT LTD
In Favour Of : Assessee
2017-TII-34-HC-DEL-TP
Whether appeal is liable to be dismissed if it does not give rise to any substantial question of law concerning the matter in question - YES: HC Delhi High Court
BECHTEL INDIA PVT LTD Vs ACIT
In Favour Of : Revenue
2017-TII-186-ITAT-DEL-TP
Whether interest receivable from AEs for late realization of invoices beyond stipulated period, is a separate international transaction - YES: ITAT
Whether allowance of working capital adjustment in international transaction of rendering of services, can have no impact on the determination of ALP of international transaction of interest on receivables from AEs beyond the stipulated period allowed as per agreement - YES: ITAT
Whether the interest on delayed payment of receivables, get subsumed in the working capital adjustment - NO: ITAT
Whether interest free advances would save the assessee from the rigours of ALP adjustment in case of delayed realization of receivables from AEs - NO: ITAT
Whether LIBOR is the only rate to be considered for purpose of determining interest in case of international transaction of advances made to AEs - YES: ITAT New Delhi ITAT
FCG SOFTWARE SERVICES INDIA PVT LTD Vs ITO
In Favour Of : Remanded
2017-TII-185-ITAT-BANG-TP
Whether company engaged in rendering product development services and high end KPO services, can be compared to a software developer - NO: ITAT
Whether 'reimbursement of expenditure' can be treated as part of operating cost, when no profit element is involved in the reimbursement - NO: ITAT
Whether any adjustment for a perceived or hypothetical risk can be factored while working out the PLI - NO: ITAT Bangalore ITAT
CIT Vs RAY BAN SUN OPTICS INDIA LTD
In Favour Of : Assessee
2017-TII-36-HC-DEL-TP
Whether an earlier decision of Tribunal is required to be reconsidered if such decision is no longer valid in view of a subsequent decision pronounced in a similar case - YES: HC Delhi High Court
DCIT Vs SYKES ENTERPRISES INDIA PVT LTD
In Favour Of : Remanded
2017-TII-187-ITAT-BANG-TP
Whether the TPO is required to apply RPT filter of 15% as well as simultaneously consider the turnover filter, while determining suitability of a comparable - YES: ITAT
Whether telecommunication expenses should be excluded from both export turnover as well as total turnover, for purpose of computing deduction u/s 10A - YES: ITAT Bangalore ITAT
AFFINITY EXPRESS INDIA PVT LTD Vs DCIT
In Favour Of : Revenue
2017-TII-188-ITAT-PUNE-TP
Whether assessee's appeal deserves to be dismissed as withdrawn when assessee had invoked Mutual Agreement Procedure under the Article 27(1) of Indo-US DTAA - YES : ITAT Pune ITAT
DCIT Vs MK SHAH EXPORTS LTD
In Favour Of : Assessee
2017-TII-189-ITAT-KOL-TP
Whether LIBOR method would be applicable in a transaction of loan between the assessee and AE if such loan is in foreign currency - YES: ITAT
Whether amount paid as cess on green leaves can be allowed as deduction in computing the composite income of assessee from tea business under rule 8 of the Income Tax Rules - YES: ITAT Kolkata ITAT
TURNER INTERNATIONAL INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-37-HC-DEL-TP
Whether passing of final assessment order without first passing a draft assessment order u/s 144C(1) would render the final assessment order as invalid and unsustainable - YES: HC Delhi High Court
DCIT Vs JJ EXPORTERS LTD
In Favour Of : Assessee
2017-TII-190-ITAT-KOL-TP
Whether only international transaction has to be compared with uncontrolled transaction and not the transaction undertaken by the entity as a whole - YES: ITAT Kolkata ITAT
BROADCOM COMMUNICATIONS TECHNOLOGIES PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-191-ITAT-BANG-TP
Whether a captive service provider can be compared to a giant company which assumes all risks leading to super normal profit - NO: ITAT
Whether a software developer can be selected as a comparable to a product designing company - NO: ITAT Bangalore ITAT
AEGIS LTD Vs ITO
In Favour Of : Partly Allowed
2017-TII-192-ITAT-MUM-TP
Whether when Tribunal has formed a view for adjustment on account of corporate guarantee extended by assessee to its AE then as a matter of consistency the same view is to be followed for subsequent years in similar circumstances - YES: ITAT
Whether AO can disregard any apparent transaction and substitute it, without any material of exceptional circumstance highlighting that assessee has tried to conceal the real transaction or some sham transaction has been unearthed - NO: ITAT Mumbai ITAT
KOMATSU INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-193-ITAT-MAD-TP
Whether custom duty adjustment can be made when high import component is part of the business model of the assessee and the company has been in operation for only 4 months - YES : ITAT
Whether adjustment on account of foreign exchange fluctuations has to be allowed if import content in assessee's business is 91% as compared to 5% in comparable companies and any such fluctuation results in unexpected increase in input cost of the assessee - YES: ITAT
Whether AO has to consider that assessee company being in the first year of operation has higher overhead expenditure and the same needs to be taken into account while calculating capacity utilization - YES: ITAT Chennai ITAT
ACIT Vs CURAM SOFTWARE INTERNATIONAL PVT LTD
In Favour Of : Partly Allowed
2017-TII-196-ITAT-BANG-TP
Whether while computing deduction u/s 10A, if export turnover is calculated after excluding certain expenses, such expenses should also be excluded from total turnover- YES: ITAT
Donation is to be considered as non-operating in nature
Whether in case donation is not closely linked to the business operations of assessee, same should be considered as nonoperating in nature - YES: ITAT
Risk adjustment
Whether in case there are two divergent views possible by the Tribunals of two different jurisdictions, assessee can always plea for the beneficial one in its favour - YES: ITAT
Whether for the purpose of claiming any risk adjustment by the assessee, there is a pre-condition that a considerable level of risk has to be established by the assessee - YES: ITAT Bangalore ITAT
DAIKIN AIR CONDITIONING INDIA PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-207-ITAT-DEL-TP
Whether when High Court has directed the Tribunal to decide the matter can such matter be remanded to the TPO if assessee & Revenue both make a request for the same and the matter involves determination of AMP expenses through analysis of a large number of documents & records - YES: ITAT New Delhi ITAT
SOCOMEC INNOVATIVE POWER SOLUTIONS PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-206-ITAT-MAD-TP
Whether berry ratio is the most appropriate method to compute ALP when assessee in not just a trader and materials have been purchased partly from its AE & partly from independent enterprises - YES: ITAT
Whether the provisions of warranty are to be allowed if it is based on scientific basis and the excess provisions are reversed in the subsequent assessment years - YES: ITAT
Whether deduction of payment towards PF & ESI is allowed if the same was made after the due date prescribed under the PF & ESI Act but before filing of return of income under the Income Tax Act - YES : ITAT Chennai ITAT
CARRARO INDIA PVT LTD Vs ACIT
In Favour Of : Partly Allowed
2017-TII-198-ITAT-PUNE-TP
Whether DEPB benefit received during the year should be considered as part of turnover of assessee for working out profit margins to make the comparison of like to like and similar to similar - YES: ITAT
Whether in case the provision on account of rate difference is made in the books of account against the goods supplied by the respective parties, invoices have been received, liability arising on that account is an ascertained one - YES: ITAT Pune ITAT
PR CIT Vs AMADEUS INDIA PVT LTD
In Favour Of : Assessee
2017-TII-38-HC-DEL-TP
Whether Tribunal can deny deduction u/s 10A by holding that assessee's receipts are not on account of export of software when the Tribunal had in assessee's own case in a previous year held such activities to be export of software and the registration granted to assessee is also exclusively for such export - NO: HC
Whether assessee is eligible for deduction u/s 10AA when it is engaged in the activity of data processing which requires collection of data throughout and processing at assessee's unit for export to a non-resident entity - YES: HC Delhi High Court
DCIT Vs DANFOSS INDUSTRIES PVT LTD
In Favour Of : Assessee
2017-TII-195-ITAT-MAD-TP
Whether in case the assessee's arm length margin after adjustment for idle capacity comes within the limits specified u/s 92C(2), such price can be assumed as an ALP - YES: ITAT
Disallowance towards software expenses
Whether if an expense has been incurred for the purpose of utilising the application service to integrate individual systems into EDI, can the same be allowed as normal business expenditure - YES: ITAT
Payment to AE for training
Whether payment made to AEs for imparting training and marketing skills to its employees having enduring benefit over a number of years can be allowed as revenue expense - NO: ITAT Chennai ITAT
TRIANZ HOLDINGS PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-208-ITAT-BANG-TP
Whether functionally different companies can be selected as comparables – NO: ITAT
Whether selection of comparables can be made in absence of the segmental break-up - NO: ITAT
Whether a software developer can be compared to an entity engaged in product designing services - NO: ITAT
Whether idle resources and cost of the vacant spaces, are required to be excluded for the purpose of arriving at PLI of transactions with AE - YES: ITAT Bangalore ITAT
EVALUESERVE.COM PVT LTD Vs ITO
In Favour Of : Partly Allowed
2017-TII-209-ITAT-DEL-TP
Whether merely making a reference about functional dissimilarity without specifically pointing out the same in assessee's own function vis a vis comparable prima facie, would not allow the assessee to resile from comparables selected by it - YES: ITAT
Whether deduction u/s 10A can be claimed before setting of brought forward losses of the previous year - YES: ITAT New Delhi ITAT
DCIT Vs DEVELOPMENT CONSULTANTS LTD
In Favour Of : Assessee
2017-TII-194-ITAT-KOL-TP
Whether in case the accounting period of two companies is different, can the two be compared by hypothetically adjusting sales figures by way of contemporary resale price method - NO: ITAT Kolkata ITAT
ARROW ELECTRONICS INDIA LTD Vs ADDL DIT
In Favour Of : Revenue
2017-TII-199-ITAT-BANG-TP
Whether in case the AO has independently determined the profit attributable to the LO, corresponding to which the working capital adjustment could be given, can the Tribunal intervene without any basis - NO: ITAT Bangalore ITAT
AEGIS LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-201-ITAT-MUM-TP
Whether a company which had undergone extraordinary event which had an effect on its financial resultcan be selected as a comparable – No: ITAT
Whether a company having a significantly large scale of operations and a high brand value can be selected as a comparable – No: ITAT
Whether a company can be held as not passing the test of sub-rule (4) of Rule 10B where the data relating to the financial year in which the international transaction has been entered into is directly available from the annual accounts of that comparable – No: ITAT
Whether TPO can expand the scope of transfer pricing adjustments by re-characterizing investment in shares as interest free loan – No: ITAT
Whether guarantee commission should be benchmarked by taking the rate of 1% of the outstanding guaranteed – Yes: ITAT Mumbai ITAT
DCIT Vs AIRCOM INTERNATIONAL INDIA PVT LTD
In Favour Of : Remanded
2017-TII-200-ITAT-DEL-TP
Whether in case merits of an issue are not required to be formally adjudicated upon, as the issue has been verified by the lower authorities properly, remand option can still be exercised - YES: ITAT
Whether in such a situation, cross objection filed by assessee seeking working capital and risk adjustment is maintainable in view of the provisions contained u/s 253 (4) - NO: ITAT New Delhi ITAT
HOSPIRA HEALTHCARE INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-205-ITAT-MAD-TP
Whether in case the payment of non compete fee has been made to support to the transfer of the injectable drugs division, same is eligible for depreciation as an intangible asset - YES: ITAT
Whether in case an expenditure has been incurred as revenue outgo to increase assessee's profit earning capacity, its treatment in its books of accounts does have substantial bearing on profits - NO: ITAT
Whether while making an adjustment for benchmarking purpose for goods supplied to AE, equal consideration has to be given towards both positive as well as negative price difference - YES: ITAT
Whether a person who has purchased more than 1/5th of the total sales of assessee, would have a distinctly dominant influence on the pricing and can exercise a defacto control - YES: ITAT
Whether in order to decide an issue regarding profit split ratio of assessee with its AE, due consideration has to be given to the functions being performed by each of the participant - YES: ITAT Chennai ITAT
GLOBAL E BUSINESS OPERATIONS PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-204-ITAT-BANG-TP
Whether in case the Annual Report and other essential documents of a company are not available in public domain, such company can still be included in the list of comparables - NO: ITAT
Whether for computing deduction u/s 10A, when an expense incurred in foreign currency on travel has been excluded from the export turnover, the same has to be reduced from total turnover as well - YES: ITAT Bangalore ITAT
GLOBAL PAYMENTS ASIA PACIFIC INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-203-ITAT-MUM-TP
Whether in case consideration paid for acquisition of Goodwill and Customer lists has not been considered while computing the taxable income, the same cannot be subject to application of arm's length principle contained in Chapter X of the Act - YES: ITAT
Whether in case there is no justification to approve the approach adopted by TPO to compute ALP of Trademark acquisition, as it is neither scientific and nor in the manner prescribed in the statute, can the same be validated - NO: ITAT Mumbai ITAT
HIC ABF SPECIAL FOODS PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-202-ITAT-COCHIN-TP
Whether for the purpose of making ALP adjustment, transaction between two associated enterprises can be considered as comparable uncontrolled transaction in terms of Rule 10B of the IT Rules - NO: ITAT
Kochi ITAT
BACARDI INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-39-HC-DEL-TP
Whether merely because TPO did not have the benefit of considering some decided cases relating to the matter, can the Tribunal remand such matter to TPO particularly when the case has been argued at length and views of the TPO & DRP were already available to the Tribunal - NO: HC Delhi High Court
INFAC INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-212-ITAT-MAD-TP
Whether only because operating cost incurred by assessee is less than operating cost of its comparables, claim of expenses incurred towards payment made to its parent company on an adhoc basis can be justified - NO: ITAT
Whether in case fluctuation in foreign exchange rate is solely relatable to export business of assessee, higher rupee value is earned by virtue of such exports carried out by assessee, deduction section 10A can be denied on that basis - NO: ITAT Chennai ITAT
GREENLAND EXPORTS PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-211-ITAT-MAD-TP
Whether in case the main issue with regard to selection of comparables is remitted back to the file of AO, the issue with regard to quantum addition also deserves to be clubbed with the same - YES: ITAT Chennai ITAT
HUNTSMAN INTERNATIONAL INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-210-ITAT-MUM-TP
Whether distribution network rights acquired by assessee found to be in the nature of ‘business or commercial rights' is entailed for depreciation for the purposes of section 32(1)(ii) - YES: ITAT
Depreciation on goodwill
Whether the claim raised in respect of statutory dues of the Textile effects business taken over has to be allowed after applying provisions of section 43B - YES: ITAT
TP adjustment for corporate service charges
Whether in case issue relating to computation of ALP of international transactions of payment of corporate service charges to AE are akin to that of earlier decision of Tribunal given in a previous year, same would apply to current year also - YES: ITAT
Depreciation on intangible assets u/s. 32(1)(ii)
Whether an additional ground of appeal raised by an assessee can be subsumed in the original ground raised in case it does not raise any fresh issue for adjudication - YES: ITAT
Disallowance u/s 14A
Whether in the event of assessee not having earned or received any exempt income during the year under consideration, disallowance u/s. 14A can still be warranted - NO: ITAT Mumbai ITAT
MOLEX INDIA TOOLING PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-213-ITAT-BANG-TP
Whether in case Tribunal has given detailed guidelines as to how to make or grant capacity utilization adjustment, can a valid order of assessment be passed on similar issue, without analyzing such jurisdictional Judgment of Tribunal - NO: ITAT Bangalore ITAT
DCIT Vs SHARP SOFTWARE DEVELOPMENT INDIA PVT LTD
In Favour Of : Remanded
2017-TII-215-ITAT-BANG-TP
Whether companies which are functionally different can be selected as comparables - No: ITAT
Whether a company whose turnover is more than 10 times the turnover of Bangalore ITAT
APOTEX RESEARCH PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-214-ITAT-BANG-TP
Whether after rejection of all comparables chosen by assessee during TP study, a TPO can determine ALP on the basis of comparables chosen by him on estimation basis - NO: ITAT Bangalore ITAT
SAFRAN ENGINEERING SERVICES INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-218-ITAT-BANG-TP
Whether in case certain evidence filed by assessee have not been considered by AO before passing any order, such case deserves to be remanded for re examination - YES: ITAT Bangalore ITAT
DCIT Vs NOVELL SOFTWARE DEVELOPMENT INDIA PVT LTD
In Favour Of : Assessee
2017-TII-217-ITAT-BANG-TP
Whether the disallowance u/s 14A can still be applicable even if no exempt income is received or receivable during the relevant previous year - NO: ITAT
Whether depreciation being in the nature of an allowance as a statutory deduction u/s 32, does not represent an outgo/ expenditure to attract the provisions of Section 40(a)(ia) - YES: ITAT Bangalore ITAT
OUTSOURCE PARTNERS INTERNATIONAL PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-216-ITAT-BANG-TP
Adjustment for bad and Doubtful debts
Whether provision for bad debts as well as doubtful advances, both are in the realm of the operations of the business, ought to be considered as part of operating expenses - YES: ITAT
Addition with regard to appropriate Risk adjustment
Whether in case a captive service provider unit is to be compared with a risk bearing entity, an appropriate adjustments need to be carried out to finalise comparables - YES: ITAT
Addition with regard to Depreciation Rate adjustment
Whether in case an assessee depreciates its assets at a higher rate than prescribed under Schedule XIV, an adjustment has to be made in order to find out genuine comparables - YES: ITAT Bangalore ITAT
TPG CAPITAL INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-220-ITAT-MUM-TP
Selection of comparables - Crisil Ltd.
Whether in case a company is functionally different and it also has a RPT filter of more than 25%, can the same be compared with a less complex entity for benchmarking purpose - NO: ITAT
SBI Fund Management Ltd.
Whether a company engaged in providing Sub-investment advisory services & Market research to its holding company, can be compared with a company engaged in asset management functions- NO: ITAT
Sundaram Asset Management Ltd.
Whether for benchmarking purposes, business of an Investment advisory can be compared with a company which is into asset management functions - NO: ITAT
Future Capital Holding
Whether a company which is persistently loss making can be compared with a company which has only suffered operating losses during the year under consideration - NO: ITAT
IDC India Ltd.
Whether in case there has been a shift in the nature of business of assessee during the year under consideration, as against that of immediately preceding year, such company can still be considered as a valid comparable - NO: ITAT
Mumbai ITAT
PHILIP MORRIS SERVICES INDIA SA Vs ADDL DIT
In Favour Of : Assessee
2017-TII-219-ITAT-DEL-TP
Whether in case certain companies have been selected as comparables in earlier year, there is no significant change in the function performed in current year, the same is to be included in list of comparables for this year also - YES: ITAT New Delhi ITAT
SIS LIVE Vs ACIT
In Favour Of : Partly Allowed
2017-TII-222-ITAT-DEL-TP
Whether in case an Indian entity advances a loan to its AE, does not charge any interest on such advances, maintains its books of account on cash basis, can it be said that these transactions cannot be benchmarked as international transaction - NO: ITAT
Whether a TPO is empowered to question the commercial expediency of any alleged transaction, such authority is competent to take the value of any international transaction at Nil on its own- NO: ITAT
New Delhi ITAT
WOOSU AUTOMOTIVE INDIA PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-223-ITAT-MAD-TP
Whether in case sufficient opportunity was not given with regard to search filters applied by TPO for inclusion of new comparables, such case deserves to be remanded to AO/ TPO - YES: ITAT
Whether as per the provisions of Sec 32(i)(a), additional depreciation is not allowable if the machinery is used before its installation or it is a second hand machinery - YES: ITAT
Chennai ITAT
SYMANTEC SOFTWARE AND SERVICES INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-221-ITAT-MAD-TP
Whether in case a company is engaged in product engineering services in the nature of High end KPO, also in product engineering software Development Company having expertise in emerging technologies, can it be compared with a software developer & ITES service provider - NO: ITAT
Whether a company is to be considered functionally non-comparable in case it is into multimedia product, its breakup of revenue is not available for the purpose of making comparison with a captive unit - YES: ITAT
Whether for the purpose of claiming deduction u/s 10A, expenditure incurred in foreign exchange are to be excluded from both export turnover and total turnover - YES: ITAT Chennai ITAT
VENTURE POWER SYSTEMS INDIA PVT LTD Vs DCIT
In Favour Of : Revenue
2017-TII-225-ITAT-MAD-TP
Whether a company can be rejected from the list of comparables, merely on the basis of generalization of huge turnover - NO: ITAT Chennai ITAT
VISUAL GRAPHICS COMPUTING SERVICES INDIA PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-224-ITAT-MAD-TP
Whether loss incurred by assessee in its STPI unit could be set off against the profit of its non STPI unit while calculating deduction available to the assessee u/s. 10A - YES: ITAT
Selection of comparables
Whether for the purpose of making comparability analysis, a company can be considered as a good comparable even if it operates under a different business model which impacts operating margins - NO: ITAT
Adjustment regarding working capital adjustment
Whether in order to make working capital adjustment, AO has to consider value of advance and deposits recoverable in cash or kind or for deriving the value to be receivable - YES: ITAT
Chennai ITAT
SUNGARD SOLUTIONS INDIA PVT LTD Vs ACIT
In Favour Of : Partly Allowed
2017-TII-226-ITAT-BANG-TP
Whether 15% tolerance range in related party transaction is reasonable, while selecting comparables for benchmarking - YES: ITAT
Whether high profit/loss margin can be the sole criteria for inclusion or exclusion of companies in the set of comparables - NO: ITAT
Whether a gaint company engaged in the area of software development can be equated with a captive service provider which assumes only a limited risk - NO: ITAT
Whether company engaged in development of niche product can be selected as a comparable to a pure software developer - NO: ITAT Bangalore ITAT
AKZO NOBEL INDIA LTD Vs DCIT
In Favour Of : Assessee
2017-TII-227-ITAT-KOL-TP
Whether services provided in order to meet specific need of company and enhancing the commercial position can be classified as services in the nature of stewardship/shareholder activity, when such services are received on a continuous basis across company's operational areas - NO: ITAT
Whether any ALP adjustment is warranted on ground that no charges were paid by assessee to AEs for receiving services, when there is no evidence to prove that assessee was benefitted from such services - NO: ITAT
Whether payment towards SAP deployment services can be considered as in accordance with TP regulations of India, when the basis of determination of cost has not been disputed by the TPO - YES: ITAT Kolkata ITAT
POWERTEL INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-228-ITAT-MUM-TP
Whether ALP in an international transaction can be determined, ignoring the differences in risk perception & profit element vis-a-vis comparable cases - NO: ITAT Mumbai ITAT
ITO Vs SOLIDCORE TECHSOFT SYSTEMS INDIA PVT LTD
In Favour Of : Remanded
2017-TII-229-ITAT-BANG-TP
Whether Tribunal can interfere in an issue concerning exclusion of comparables when the DRP has rightly applied the filter of 10 times of assesee's turnover on both sides for excluding such companies - NO: ITAT
Whether the onus to prove the risk adjustments is on the assessee - YES : ITAT
Whether expenditure incurred towards telecommunications, insurance & travel in foreign currency is to be reduced from both export turnover and total turnover for the purpose of computing the deduction u/s 10A - YES: ITAT
Whether for the purpose of computing deduction u/s 10A forex loss is to be reduced from export turnover as well as from the total turnover - YES : ITAT Bangalore ITAT
MICROCHIP TECHNOLOGY INDIA PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-230-ITAT-BANG-TP
Whether a case can be remanded when the RPT filter has been levied at 25% whereas in normal circumstances it should not go beyond the 15% limit - YES : ITAT
Whether in order to compute deduction u/s 10A the turnover of EOU should be taken into account instead of total turn over of the assessee at entity level - YES : ITAT
Whether a case warrants remand when assessee has raised an additional ground which was not raised before the AO or DRP and such ground involving a mixed question of law & facts requires examination by the AO - YES: ITAT Bangalore ITAT
ACIT Vs SAKATA INX INDIA LTD
In Favour Of : Assessee
2017-TII-231-ITAT-JAIPUR-TP
Whether AO's rejection of TNMM in favour of CUP method can be sustained if in assessee's own case in previous year it has been held that rejection of TNMM and adoption of CUP mehtod by Revenue was not justified - NO: ITAT Jaipur ITAT
ELECTRONIC ARTS GAMES INDIA PVT LTD Vs ACIT
In Favour Of : Partly Allowed
2017-TII-232-ITAT-HYD-TP
Whether a company primarily engaged in rendering different type of support services to its AEs, can be compared to those entities whose details were not available in the public domain - NO: ITAT Hyderabad ITAT
PR CIT Vs INTERNATIONAL SOS SERVICES INDIA PVT LTD
In Favour Of : Assessee
2017-TII-40-HC-DEL-TP
Whether government companies or PSUs can be taken as a comparables for a private company considering that such govt companies or PSUs are not driven by profit motive alone - NO: HC Delhi High Court
HERBALIFE INTERNATIONAL INDIA PVT LTD Vs ACIT
In Favour Of : Revenue
2017-TII-233-ITAT-BANG-TP
Whether it is beyond the scope and powers of TPO/AO to question the necessity of incurring the expenditure or the benefits of the expenditure incurred by assessee - YES: ITAT
Whether question of bench marking would arise only if assessee proves that there was transfer of technical knowhow and the same was actually used by assessee in its manufacturing activity - YES: ITAT Bangalore ITAT
3D NETWORKS PTE LTD Vs ACIT
In Favour Of : Partly Allowed
2017-TII-234-ITAT-BANG-TP
Whether the onus to prove payment pertaining to sales commission is on the assessee and failure to do the same would lead to addition - YES : ITAT
Whether cost which is directly related to a particular segment of assessee' business can be reallocated as total operating cost, in the ratio of turnover of different segments - NO: ITAT Bangalore ITAT
AIRCOM INTERNATIONAL INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-235-ITAT-DEL-TP
Whether a comparable is to be excluded from the list of comparables if such comparable is engaged in the development of software as well as software products whereas assessee company assessee is only engaged in development & maintenaince of the software - YES : ITAT New Delhi ITAT
ACIT Vs INGERSOLL RAND INDIA LTD
In Favour Of : Assessee
2017-TII-236-ITAT-BANG-TP
Whether as per the statutory mandate Section 10A provides certain additional benefits to eligible units in addition to the benefits provided by Section 80HHC & 80HHE - YES : ITAT Bangalore ITAT
DCIT Vs AMPHENOL INTERCONNECT INDIA PVT LTD
In Favour Of : Assessee
2017-TII-237-ITAT-PUNE-TP
Whether order of DRP calls of for any interference when the DRP had rightly relied on Assessee's own case for another AY with regard to the most appropriate method for TP study - NO : ITAT Pune ITAT
TECHBOOKS ELECTRONICS SERVICES PVT LTD Vs PR CIT
In Favour Of : Assessee
2017-TII-41-HC-DEL-TP
Whether for checking the veracity of operating profit or total cost of a company as comparable, the AO has to consider relevant data consistent with Rule 10B(4) - YES: HC Delhi High Court
AMADEUS INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-42-HC-DEL-TP
Whether reopening of assessment can be set aside if the ground on the basis of which reopening was done was decided in favour of the assessee in a subsequent AY - YES: HC Delhi High Court
SCHNEIDER ELECTRIC INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-238-ITAT-AHM-TP
Whether ALP of services provided by assessee can be taken to be Nil merely because Revenue authorities consider these services to be worthless - NO : ITAT
Whether TPO is concerned only with the ALP of concerned services and it is not for him to decide about the business expediency of these services - YES: ITAT
Whether ALP adjustment of Managerial Services availed by assessee can be deleted in the current AY if the same had been allowed for past AY's and accepted to be at Arms' Length - YES : ITAT Ahmedabad ITAT
NOKIA SOLUTIONS AND NETWORKS INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-239-ITAT-DEL-TP
Whether notice u/s 143 issued in the name of an non existent assessee which had amalgamated with another company stands good in the eyes of law when such amalgamation has already been informed to the department - NO : ITAT New Delhi ITAT
VIVIMED LABS LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-240-ITAT-HYD-TP
Whether capital advances given for administrative convenience to AE can be considered as an International Transaction - YES : ITAT
Whether ALP addition is warranted in case of corporate gurantee provided by assessee prior to AY 2013-14 - NO : ITAT
Whether there can be disallowance u/s 14A when no exempt has been earned during the concerned AY - NO : ITAT Hyderabad ITAT
FORD INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-241-ITAT-MAD-TP
Whether DRP can set aside or remit the matter to the file of the TPO/AO when as per Section 144C, DRP itself is supposed to decide the matter and issue directions to the AO - NO: ITAT
Whether assessee's claim in respect of a liability which is contingent in nature can be allowed if no supporting evidence has been provided by the assessee - NO : ITAT
Whether an expenditure can be claimed as deduction u/s 35D for the present AY when assessee has been claiming such expenditure for eight previous years and neither AO has disallowed the above expenditure during any of the previous years nor has Revenue controverted such claim - YES : ITAT
Whether depreciation on UPS at the rate of 60% can be allowed as UPS is an integral part of the computers - YES : ITAT Chennai ITAT
UEI ELECTRONICS PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-242-ITAT-BANG-TP
Whether precedence value of a pre decided case is not binding on another case and merely because a comparable has been excluded by the Tribunal in one case the same cannot be followed blindly in another case - YES: ITAT
Whether a company can be taken to be a good comparable if such company is into providing GIS Services whereas the assessee is engaged in database content acquisition, software maintenance and supply & technical support - NO : ITAT
Whether risk adjustment can be allowed on an arbitrary basis if computation of such risk adjustment cannot be done with reasonable certainty and accuracy - NO : ITAT Bangalore ITAT
GATES UNITTA INDIA COMPANY PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-243-ITAT-MAD-TP
Whether product of a comparable selected by TPO, can be taken as a good comparable, if such product is different from assessee's product - NO : ITAT
Whether case deserves to be remanded if the customs duty was to be eliminated from the comparable price to arrive at correct PLI - YES : ITAT
Whether forex fluctuations loss in the operating cost of the assessee and forex gains in the operating income of assessee, both are to be excluded from the operating expenses as well as operating income - YES : ITAT Chennai ITAT
PERFETTI VAN MELLE INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-244-ITAT-DEL-TP
Whether when a situation for determining the ALP of AMP expenses arises, then no TP adjustment should be made by applying the bright line test - YES: ITAT
Whether selling expenses are liable to be excluded from the AMP expenses - YES: ITAT
Whether the binding nature of judgments can be mitigated in any manner, simply because the Department has not accepted the those judgments of the jurisdictional High Court and SLPs have been admitted by the Apex Court - NO: ITAT
Whether assessee's own gross profit to sales, can be adopted under Cost plus method for computing TP adjustment - NO: ITAT New Delhi ITAT
NESS TECHNOLOGIES INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-245-ITAT-MUM-TP
Whether TP adjustment is liable to be deleted when same is simply a reimbursement of expenses - YES : ITAT Mumbai ITAT
JRK AUTO PARTS PVT LTD Vs ACIT
In Favour Of : Assessee
2017-TII-246-ITAT-DEL-TP
Whether penalty can be levied on an addition which has not been made in the assessment or in quantum proceedings by any appellate authority - NO: ITAT
Whether TPO can make foreign AE as a 'tested party' and compare it with the Indian comparables who are operating under different geographical, economical and market environment - NO: ITAT
Whether treatment of expenditure as revenue or capital being a debatable issue, no penalty u/s 271(1)(c) for furnishing of inaccurate particulars can be levied in respect of such claim made by the assessee - YES : ITAT
New Delhi ITAT
CIT Vs PHOENIX MECANO INDIA PVT LTD
In Favour Of : Assessee
2017-TII-43-HC-MUM-TP
Whether a substantial question of law would arise if Tribunal has held that determination of ALP should be restricted only to international transactions with AE as separate figures of such transactions are available - No: HC Bombay High Court
JACOBS ENGINEERING INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-247-ITAT-MUM-TP
Whether a case deserves to be remanded when TPO had adopted the turnover filter in an arbitrary manner - YES : ITAT
Whether "Infrastructure and overhead recoveries" should be considered as a commercial transaction involving profit element when it is a mere reimbursement of expenses incurred by a group concern on behalf of assessee - NO: ITAT Mumbai ITAT
SB AND T DESIGNS LTD Vs ACIT
In Favour Of : Remanded
2017-TII-248-ITAT-MUM-TP
Whether when the assessee had specifically categorized and earmarked Non-AE segment pertaining to local sales in India as 'Uncomparable', it cannot be inferred that assessee had embarked on an infeasible comparison between Non-AE segment pertaining to local sales in India, as against its international transactions with its AE's - YES: ITAT
Whether a claim of an assessee can be dislodged merely on the basis of allegations and surmises - NO: ITAT Mumbai ITAT
INNO ESTATES PVT LTD Vs DRP
In Favour Of : Revenue
2017-TII-45-HC-MAD-TP
Whether once the objection is filed before the DRP within the period of limitation, consideration of the same is vested only with the DRP and AO cannot decide such objection - YES: HC
Whether dismissal or rejection of the objection filed by the assessee before DRP and communication of the same has to be treated and construed as a direction given to the AO to complete the assessment as per draft order - YES: HC
Whether assessee can file an appeal before the Appellate Authority in terms of Section 246(1)(a) when the final order is passed by the AO u/s 144C(13) & the same is passed well with the period of limitation - YES: HC Madras High Court
CIT Vs METTLER TOLEDO INDIA PVT LTD
In Favour Of : Assessee
2017-TII-44-HC-MUM-TP
Whether the grounds not agitated before lower authorities and being questions of fact, can be raised as substantial questions of law before the High Court - NO: HC Bombay High Court
CIT Vs AURIONPRO SOLUTIONS LTD
In Favour Of : Assessee
2017-TII-47-HC-MUM-TP
Whether when advances are made to a company situated abroad then arms length interest will be determined by applying LIBOR rate - YES: HC High Court
DELOITTE CONSULTING INDIA PVT LTD Vs ACIT
In Favour Of : Assessee
2017-TII-46-HC-MUM-TP
The assessee preferred appeal relating to penalty imposed u/s 271(1)(c) of the Act. Assessee's quantum appeal was admitted by the Court. Bombay High Court
CREDIT POINTE SERVICES PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-249-ITAT-PUNE-TP
Whether matter deserves to be remanded to the CIT(A) if it did not have the benefit of perusing a decision which was rendered subsequent to the order passed by it - YES: ITAT
Whether deduction u/s 10B is available only to those EOU's which have been approved by the Board appointed by Central Government - YES : ITAT
Whether matter concerning claim of deduction u/s 10A deserves to be remanded for reconsideration if CIT(A) had previously rejected assessee's claim in a summary manner & without examining his eligibility thereunder - YES: ITAT Pune ITAT
JCIT Vs PROGRESSIVE TOOLS AND COMPONENTS PVT LTD
In Favour Of : Remanded
2017-TII-250-ITAT-DEL-TP
Whether a case deserves to be remanded when both the parties agree to it and also the ITAT in another AY had adjudicated the matter on similiar issues - YES : ITAT
Whether interference by ITAT is called for in the matters concerning royalty & suppressed sale of scrap if the same have been dealt with in detail by the CIT(A) - NO : ITAT New Delhi ITAT
OBOPAY MOBILE TECHNOLOGY INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-251-ITAT-BANG-TP
Whether once the assessee has raised the objection with respect to functional data, employee cost and application of RPT filters, it is the duty of the DRP to examine the objections of the assessee - YES: ITAT Bangalore ITAT
JOHNSON CONTROLS INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-252-ITAT-MUM-TP
Whether arm’s length commission rate of 3.63% is appropriate rate of ALP for benchmarking 'Direct Sales Compensation' in the hands of assessee - YES: ITAT
Whether characterizing of 'the writing off of debt' by assessee as an operating expense, can adversely affect the operating margin of assessee, if the PLI of assessee continues to remain within the parameters of +/-5% variation - NO: ITAT Mumbai ITAT
TAEGUTEC INDIA PVT LTD Vs DCIT
In Favour Of : Revenue
2017-TII-253-ITAT-BANG-TP
Whether the ALP of 'management services fee' can be determined at Nil by questioning the necessity or benefits out of the expenditure incurred by assessee - NO: ITAT
Whether the onus lies on the assessee to furnish the proof of actual receipt of the services from the AE - YES: ITAT
Whether the additional evidence filed by either party to the appeal, can be admitted by the Tribunal at its discretion only in the event that the party leading the additional evidence satisfies the Tribunal that it was prevented by sufficient cause from leading such evidence - YES: ITAT
Whether a sham transaction can be bundled with other transactions for purposes of benchmarking - NO: ITAT Bangalore ITAT
YOUNG BUHMWOO INDIA COMPANY PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-254-ITAT-MAD-TP
Whether DRP is empowered to remit the issue back to the file of AO/TPO u/s 144C(5) - NO : ITAT
Whether a case deserves to be remanded for verification when the Assessee as well as Revenue failed to provide evidence relating to claim of set off of earlier year's brought forward losses - YES : ITAT Chennai ITAT
LUXOTTICA INDIA EYEWEAR PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-255-ITAT-DEL-TP
Whether when instant appeals are mutatis mutandis similar to the immediately preceding year, the case deserves readjudication for deciding this issue afresh in light of the directions given by the Tribunal for the immediately preceding year - YES: ITAT
Whether AMP intensity adjustment made to the profit rates of comparables for bringing the intensity of AMP functions of assessee at par with others in computing the ALP of international transaction of Import of goods, is sustainable - YES: ITAT
Whether when the numerator in the PLI is the purchase cost of Material from the AE, then as a natural corollary the denominator cannot be any figure other than the purchase cost of Material consumed purchased from AEs and non-AEs - YES: ITAT
Whether comparable analysis of the tested party and the comparable would include reference to AMP expenses - YES: ITAT
Whether RPM can be applied as the most appropriate method for determining ALP of 'purchase of finished goods from AE', only after carrying out the AMP intensity adjustment in the profit rate of comparables - YES: ITAT New Delhi ITAT
PR CIT Vs VEER GEMS
In Favour Of : Assessee
2017-TII-48-HC-AHM-TP
Whether transfer pricing adjustment is warranted if it is held that assessee firm and another firm which supplies material to the assessee are not AEs -NO: HC Gujarat High Court
DCIT Vs CALANCE SOFTWARE PVT LTD
In Favour Of : Remanded
2017-TII-256-ITAT-DEL-TP
Whether back to back transactions at the same price between the AEs or by the AE to the end customer independent enterprise are inherently arm’s length transactions - YES: ITAT New Delhi ITAT
BC MANAGEMENT SERVICES PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-257-ITAT-DEL-TP
Whether a company which is outsourcing a substantial portion of its work can be taken as a good comparable for the assessee company which is providing the said services on its own - NO: ITAT
Whether there can be said to functional similarity between a company which is providing pure back office services and a company which is also engaged in software development & consultancy, engineering services, web development and providing business analytic and BPO services - NO: ITAT
Whether a company having huge intangibles in the form of brand value can be compared with the assessee company which is a captive service provider without much intangibles and risks - No: ITAT
Whether foreign exchange gains or losses should be reckoned as part of operating income or loss particularly when TNMM is applied to a transaction in which the foreign exchange risk is borne by the tested party - YES: ITAT
Whether ALP of fixed assets imported by assessee cannot be determined as 'Nil' unless it is brought on record by the TPO that in the third party situation the cost to such an asset would also be nil - YES: ITAT
Whether it can be reckoned that assessee has given any benefit to the AE by blocking its interest bearing funds to the AE by extending the credit period when the assessee does not have any interest bearing borrowed funds for extending any kind of loan to its AE - NO: ITAT
New Delhi ITAT
BOBST INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-259-ITAT-PUNE-TP
Whether a company can be taken as a good comparable if unlike the assessee company it has high RPT, different financial year and negative net worth for three consecutive assessment years - NO: ITAT
Whether in computation of ALP, comparability should be based on same financial year and the mandate under rule 10B should be followed - YES : ITAT
Whether in determination of RPT filter the Denominator and nominator should be of the same nature - YES : ITAT Pune ITAT
DCIT Vs ECI TECHNOLOGY PVT LTD
In Favour Of : Assessee
2017-TII-258-ITAT-AHM-TP
Whether written off advance given by the assessee to a supplier in ordinary course of business is to be treated as a business loss - YES : ITAT
Whether an upward adjustment is uncalled for when the same has been in regard to transaction with unrelated parties - YES : ITAT Ahmedabad ITAT
DCIT Vs CORNELL OVERSEAS PVT LTD
In Favour Of : Assessee
2017-TII-260-ITAT-DEL-TP
Whether percentage of net sales of the product, by the assessee to its AE as licensee, for making use of the technical knowhow without having any right to retain the same, cannot be capitalized and hence should be treated as 'revenue expenditure' - YES: ITAT
Whether payment of royalty by assessee to its AE can be doubted, when the benefit derived under licensing agreement was not doubted by TPO and the assessee by using technical know-how received under such agreement was manufacturing finished products which were sold to AEs as well as third parties - NO: ITAT New Delhi ITAT
ADIDAS TECHNICAL SERVICES PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-261-ITAT-DEL-TP
Whether working capital adjustment can be computed, without taking into consideration the trade receivables during the concerned year - NO: ITAT
Whether 'provision for doubtful debts' are to be treated as 'operating expenses' in the case of comparables as well - YES: ITAT New Delhi ITAT
CORNING SAS INDIA Vs DDIT
In Favour Of : Remanded
2017-TII-262-ITAT-DEL-TP
Whether TPO is justified in holding the ALP at nil by applying benefit test, where the services were taken by assessee as per policy of the group company to avail the benefit of low cost, specialization and confidentiality and rendering - NO: ITAT
Whether allocation of common expenses has to be made in proportion to gross margin/income from distribution function and the commission income - YES: ITAT New Delhi ITAT
BECHTEL INDIA PVT LTD Vs ACIT
In Favour Of : Revenue
2017-TII-263-ITAT-DEL-TP
Whether hedging forward contracts of foreign currency can be 'marked to market' on balance sheet date, when there is an underlying asset and no extra outgo for settlement of forward contract other than already determined in the contract – NO: ITAT
Whether mark to market losses on account of fluctuation in foreign currency in respect of hedging forward contract, can be allowed, when all forward contracts were settled by way of actual delivery through dollars received on export receivables - YES: ITAT New Delhi ITAT
CIT Vs GREAT EASTERN SHIPPING COMPANY LTD
In Favour Of : Assessee
2017-TII-49-HC-MUM-TP
Whether ALP in case of loans advanced to AEs, would be determined on basis of rate of interest being charged in the country where loan was received - YES: HC Bombay High Court
ORACLE OFSS BPO SERVICE Vs DCIT
In Favour Of : Assessee
2017-TII-266-ITAT-KOL-TP
Whether while calculating arithmetic mean only the data for the relevant AY is to be considered and multiple year data is to be ignored - YES: ITAT
Whether comparables having related party transactions of more than 25% of total revenue had to be excluded by applying RPT filter - YES: ITAT
Whether companies engaged in share transfer activities can be compared with companies rendering ITES services - NO: ITAT
Whether voice based and non-voice based BPO units are to be taken as differentiated between and cannot be taken as comparable for each other - YES: ITAT
Whether a company being a global IT giant and having a huge brand value can be taken as comparable for the assessee company - NO: ITAT Kolkata ITAT
JOHN DEERE INDIA PVT LTD Vs ITO
In Favour Of : Partly Allowed
2017-TII-267-ITAT-PUNE-TP
Whether sales tax/ purchase tax subsidy received by assessee company under a subsidy scheme of the government is to be treated as capital receipt - YES: ITAT
Whether when assessee is paying royalty to its AEs then TPO cannot, on adhoc basis, determine whether the payment of royalty is justified or not and he is only supposed to determine ALP by following the procedures laid down in the Income Tax Act - YES: ITAT
Whether when payment of royalty by assessee to its AE is at a rate less than 3%, as approved by RBI, then the same is liable to be considered at arm's length rate and no addition on this account is warranted - YES: ITAT Pune ITAT
GE INDIA EXPORTS PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-264-ITAT-BANG-TP
Whether a functionally dissimilar company can be adopted as comparable – NO: ITAT
Whether a company which gets its work done through outsourcing can be selected as a comparable, to a company which is not engaged in outsourcing – NO: ITAT Bangalore ITAT
DABUR INDIA LTD Vs ACIT
In Favour Of : Remanded
2017-TII-265-ITAT-DEL-TP
Whether royalty can be said to be accrued to assessee, when there was no agreement in force to charge royalty from AEs and there was nothing on record to substantiate that products were manufactured by AE with the help of technical know-how and R&D support of assessee in India – NO: ITAT
Whether addition on account of ALP of the sale of shareholdngs by assessee is sustainable, when the value determined in original valuation report was more closed to the reality than the value determined by the TPO – NO: ITAT New Delhi ITAT
ACIT Vs YOKOGAWA INDIA LTD
In Favour Of : Remanded
2017-TII-268-ITAT-BANG-TP
Whether payment in respect of management fees as well as Global Sale and Marketing Activity Fees shall be considered as operating cost and has to allocated in the ratio of turnover of other international transactions, if the assessee is having diversified international transactions - YES: ITAT Bangalore ITAT
DCIT Vs ABB GLOBAL SERVICES PVT LTD
In Favour Of : Remanded
2017-TII-269-ITAT-BANG-TP
Whether companies with different functional profile, can be selected as comparables to each other - NO: ITAT
Whether working capital adjustment is required to be computed, by taking the actual data without putting any upper limit - YES: ITAT
Whether foreign exchange gain can considered for computing ALP of current year, if the gain was in respect of the turnover of previous year - NO: ITAT Bangalore ITAT
CIT Vs PTC SOFTWARE INDIA PVT LTD
In Favour Of : Revenue
2017-TII-10-SC-TP
Having heard the parties, the Supreme Court condones the delay and granted leave to the Department to defend their case on the issue of comparability analysis. Supreme Court of India
SIGULER GUFF INDIA ADVISERS PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-271-ITAT-MUM-TP
Whether companies functioning in investment & merchant banking activities, can be compared to a pure insurance advisory entity - NO: ITAT
Whether company engaged in providing consultancy services in the field of reconstruction of business, can be compared to a company engaged in the business of nonbinding investment advisory services - NO: ITAT Mumbai ITAT
ZYME SOLUTIONS PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-270-ITAT-BANG-TP
Whether comparables can be selected without examining the service agreements which the assessee is having with its AE - NO: ITAT
Whether companies having dissimilar function and turnover as well as low employee cost filter, can be selected as comparables to each other - NO: ITAT Bangalore ITAT
CIT Vs DLH DANZAS LEMUIR PVT LTD
In Favour Of : Assessee
2017-TII-50-HC-MUM-TP
Whether any substantial question of law would arise when the Tribunal has not decided on the issue in contention but merely directed the AO to recalculate the adjustment - NO: HC Bombay High Court
PR CIT Vs VEER GEMS
In Favour Of : Assessee
2017-TII-51-HC-AHM-TP
Whether Revenue's appeal deserves to be dismissed if the same issue arising out of the same judgement has already been considered and dismissed: YES: HC
Gujarat High Court
SOFTEK INDIA PVT LTD Vs DCIT
In Favour Of : Revenue
2017-TII-272-ITAT-BANG-TP
Whether ACIT(TP) as well as the DCIT(TP) have concurrent jurisdiction to decide issues after receiving the reference issued by the AO – YES: ITAT
Whether the rejection of TP study is sustainable, where the information and data used for computation of ALP was not reliable and correct – YES: ITAT Bangalore ITAT
MISYS SOFTWARE SOLUTIONS INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-273-ITAT-BANG-TP
Whether a company having more than 10 times the turnover of assessee, can be considered as a good comparable – NO: ITAT
Whether in the absence of segmental data, a company engaged in diversified activities and earning revenue from various activities can be considered as functionally comparable to a software developer – NO: ITAT
Whether a company having more than 15% RPT, can be considered as a good comparable – NO: ITAT Bangalore ITAT
NEW HOLLAND FIAT INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-274-ITAT-MUM-TP
Whether TP adjustments have to be made only in respect of international transactions entered in to by an assessee with its AE and not at an entity level – YES: ITAT Mumbai ITAT
PR CIT Vs BOSE CORPORATION INDIA PVT LTD
In Favour Of : Assessee
2017-TII-11-SC-TP
Having heard the parties, the Supreme Court condoned the delay and granted leave. Supreme Court of India
DCIT Vs CORIANT COMMUNICATION INDIA PVT LTD
In Favour Of : Assessee
2017-TII-275-ITAT-BANG-TP
Whether the directions of DRP are binding on TPO/AO and hence, the cause of action to file appeal arises only after passing the final order framing the assessment in pursuance to the directions of DRP - YES: ITAT
Whether when the directions of DRP are not acceptable to the Department and may be contrary to precedents, the only remedy available to Department is to challenge the same in appeal and not by refusing to or not giving effect to the same - YES: ITAT Bangalore ITAT
CARGILL FOODS INDIA LTD Vs ACIT
In Favour Of : Revenue
2017-TII-276-ITAT-PUNE-TP
Whether once having accepted CUP as the most appropriate method, assessee cannot switch to TNMM subsequently for explaining its transaction with AEs - YES: ITAT
Whether cash discounts offered under normal circumstances can be equated with trade discounts offered to AEs only - NO: ITAT Pune ITAT
NIRVANA BUSINESS SOLUTIONS PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-277-ITAT-BANG-TP
Whether the reference made by AO u/s 92CA to the TPO in case where international transaction as per Form 3CEB is less than Rs. 15 crores, is bad in law - NO: ITAT Bangalore ITAT
CIT Vs JP MORGAN INDIA PVT LTD
In Favour Of : Assessee
2017-TII-52-HC-MUM-TP
Whether findings of the first appellate authority and the same being concurred by the Tribunal, based on matrix of facts and records, do not give rise to any substantial question of law - YES: HC
Whether rate charged by a merchant banker or stock broker to related and unrelated parties may differ on account of difference in research efforts and sales efforts involved in both cases - YES: HC
Whether CUP method is the most appropriate method when rate charged to related and unrelated parties cannot be the same owing to difference in functions performed & risk undertaken in respect of both cases - YES: HC Bombay High Court
TEVAPHARM INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-278-ITAT-MUM-TP
Whether the accounting period of comparable company should be same with that of the assessee company, for purposes of benchmarking - YES: ITAT
Whether company engaged in rendering host of I-T services and some trading activity, cannot be compared to a software developer - YES: ITAT Mumbai ITAT
i2 TECHNOLOGIES SOFTWARE PVT LTD Vs CIT
In Favour Of : Remanded
2017-TII-279-ITAT-BANG-TP
Whether in absence of any ground regarding exclusion of company 'A' from the list of final comparables and in absence of any written submissions in that regard, the finding of Tribunal that said company's statement of affairs were falsified, cannot be sustained - YES: ITAT Bangalore ITAT
DCIT Vs FIAT INDIA AUTOMOBILES LTD
In Favour Of : Assessee
2017-TII-280-ITAT-PUNE-TP
Whether the AO can proceed with the final assessment order u/s 143(3) r/w/s 144C(1), only after the objections of assesse are decided by DRP - YES: ITAT. Pune ITAT
ERICSSON INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-281-ITAT-DEL-TP
Whether TPO is only required to examine the quantum of expenditure as per law and the issue of allowability of such expenditure as business expense is to be examined by the AO - YES: ITAT
Whether expenditure incurred on advertisement and sales promotion is to be treated as Revenue in nature as no enduring benefit is derived by the assessee therefrom - YES: ITAT
Whether addition made on account of provision for leave encashment and gratuity is to be deleted if same has been allowed in assessee's own case in a previous AY and revenue has not brought any evidence on record to show that the said decision has been overturned by a higher forum - YES: ITAT Delhi High Court
ENFINITY SOLAR SOLUTIONS PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-283-ITAT-MAD-TP
Whether CUP method can be applied only when the assessee files full details of financial statements to show that AE has not derived any benefit on the price charged for supply of material by assessee to such AE - YES: ITAT Chennai ITAT
NDTV LTD Vs ACIT
In Favour Of : Partly Allowed
2017-TII-282-ITAT-DEL-TP
Whether an addition u/s 69A is warranted when the Revenue's investigation has established that the assessee is a beneficiary of a cobweb of international transactions underaken by the assessee's sham subsidiaries abroad - YES: ITAT New Delhi ITAT
CAN PACK INDIA PVT LTD Vs DCIT
In Favour Of : Disposed of
2017-TII-284-ITAT-PUNE-TP
Whether when draft assessment order is issued together with demand notice then the same would be treated as final assessment order as the demand stood crystallized vide the demand notice - YES: ITAT Pune ITAT
CIT Vs VFS GLOBAL SERVICES PVT LTD
In Favour Of : Assessee
2017-TII-53-HC-MUM-TP
Whether assessee is barred from deviating its stand regarding selection of comparable, once it has accepted such comparable as functionally similar - NO: HC Bombay High Court
PR CIT Vs MITSUI PRIME ADVANCED COMPOSITES INDIA PVT LTD
In Favour Of : Assessee
2017-TII-12-SC-TP
Having heard the parties, the Supreme Court condoned the delay and dismisses the SLP, thus concurrng with the opinion of High Court regarding automatic presumptive application of 7th Explanation of Section 271(1)(c). Supreme Court of India
DCIT Vs CASHEDGE INDIA PVT LTD
In Favour Of : Assessee
2017-TII-13-SC-TP
Income tax - determination of ALP - opportunity to cross examine & utilization of segmental data.
The Revenue preferred the present SLP challenging the judgment, whereby the High Court had held that an assessee deserves opportunity to cross-examine the authorized personnel of the companies who submitted the segmental data, which has been utilized by the TPO for arriving at the ALP.
Having heard the parties, the Supreme Court dismisses the SLP on grounds of delay. Supreme Court of India
PR CIT Vs BECHTEL INDIA PVT LTD
In Favour Of : Assessee
2017-TII-14-SC-TP
Whether any adjustment on account of 'interest on receivables' is warranted, when ITAT being a fact finding authority had clearly recorded that assessee was a debt free company - NO: SC Supreme Court of India
DELL INTERNATIONAL SERVICES INDIA PVT LTD Vs JCIT
In Favour Of : Revenue
2017-TII-285-ITAT-BANG-TP
Whether huge profit/ turnover, ipso facto leads to exclusion of comparable - NO: ITAT
Whether TPO has to be satisfied that FAR differences of selected comparable is materially affecting assessee's costs, before deciding its exclusion - YES: ITAT Bangalore ITAT
RAYBAN SUN OPTICS INDIA LTD Vs CIT
In Favour Of : Assessee
2017-TII-54-HC-DEL-TP
Whether when there is no change in the functional profile of the assessee nor the nature of international transactions and the fact that TPO has accepted the method applied in the TP study in the past, there is any valid reason for the court to assume that the functional profile of the assessee has now changed - NO: HC Delhi High Court
FMC INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-286-ITAT-BANG-TP
Whether a company primarily engaged into rendering research support services, can be compared to those which did not undertake any R&D activity during relevant year - NO: ITAT Bangalore ITAT
MCKINSEY KNOWLEDGE CENTRE INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-287-ITAT-DEL-TP
Whether a company engaged in advising functions of raising of funds and deploying same, can be compared to a company engaged in research and information services – NO: ITAT
Whether a company caving functions similar to that of a fund manager can be selected as a comparable to a company engaged in research and information services – NO: ITAT
Whether a credit rating company can be compared to a company engaged in research and information services – NO: ITAT
Whether intercompany receivables arising from provision of services, do constitute a separate international transaction u/s 92B – YES: ITAT New Delhi ITAT
TOYOTA KIRLOSKAR AUTO PARTS PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-288-ITAT-BANG-TP
Whether when transfer pricing issue was resolved between Indian Competent Authority and Japan Competent Authority under MAP Resolution, no appeal on such issues remains for adjudication - YES: ITAT Bangalore ITAT
CASIO INDIA COMPANY PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-289-ITAT-DEL-TP
Whether TP adjustment can be made on account of AMP expenses, without proving existence of any international transaction as to proper compensation by AE for the AMP functions performed by Assessee - NO: ITAT New Delhi ITAT
MPHASIS LTD Vs ACIT
In Favour Of : Remanded
2017-TII-290-ITAT-BANG-TP
Whether the PLI of only international transactions of the assessee has to be compared with the uncontrolled comparable price, for purposes of benchmarking - YES: ITAT
Whether use of entity level margin for purpose of benchmarking international transactions, is permitted under TP provisions - NO: ITAT Bangalore ITAT
FOSROC CHEMICALS INDIA PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-291-ITAT-BANG-TP
Whether transactions in respect of royalty and management fees, requires to be aggregated by adopting TNMM at entity level, if there exist close nexus between them - YES: ITAT Bangalore ITAT
BMC SOFTWARE INDIA PVT LTD Vs DCIT
In Favour Of : Partly Allowed
2016-TII-638-ITAT-PUNE-TP
Whether a company year which had earned foreign exchange to the tune of 100% of its total sales can be selected as a comparable – No: ITAT
Whether a company whose financial year comprises of 15 months can be selected as a comparable for a company whose financial period comprises of 12 months – No: ITAT
Whether a company whose segmental details relating to software development services were not available though it had reported its income under the head software development, training and product, can be selected as a comparable to a company engaged in providing software development services to its associate enterprises – No: ITAT
Whether a company whose R&D expenditure is more than 3% as against the assessee who had not incurred any R&D expenditure can be selected as a comparable – No: ITAT
Whether a company engaged in on-site development can be selected as comparable to a company providing software development services to its associate enterprises – No: ITAT
Whether transfer pricing adjustment can be made in the case of concerns which are claiming deduction under sections 10A and 10B of the Act – Yes: ITAT Pune ITAT
CURAM SOFTWARE INTERNATIONAL PVT LTD Vs ITO
In Favour Of : Partly Allowed
2013-TII-273-ITAT-BANG-TP
Whether non-furnishing the information obtained under section 133(6) of the Act to the assesseevitiates the selection of a company as a comparable - Yes: ITAT
Whether a functionally different company can be selected as a comparable - No: ITAT
Whether a company engaged in developing software products can be comparable to a software development service provider - No: ITAT
Whether a company owning significant intangible and having huge revenues from software products can be selected as a comparable - No: ITAT
Whether in the absence of segmental information a company engaged both in software development and product development services can be selected as a comparable to a company engaged in software development - No: ITAT
Whether a company which owns intellectual property can be a comparable to a company which does not own any intangibles - No: ITAT
Whether a company predominantly engaged in product designing services can be selected as a comparable to a company engagedin software development services - No: ITAT Bangalore ITAT
WOCO MOTHERSON ADVANCED RUBBER TECHNOLOGIES LTD Vs DCIT
In Favour Of : Assessee
2016-TII-639-ITAT-RAJKOT-TP
Whether TPO can disregard the technical services obtained by assessee and conclude that the services need not have been compensated for where there was sufficient evidence proving rendition of services - No: ITAT Rajkot ITAT
DELOITTE SUPPORT SERVICES INDIA PVT LTD Vs DCIT
In Favour Of : Revenue
2016-TII-643-ITAT-HYD-TP
Whether Tribunal can adjudicate issues which are the subject matter of Mutual Agreement Procedure – NO: ITAT Hyderabad ITAT
JOHN DEERE INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2016-TII-641-ITAT-PUNE-TP
Whether companies having huge disparity in turnover can be selected as comparables – No: ITAT
Whether a company engaged in the development of software products and services can be a comparable to a company providing software development services – No: ITAT
Whether in the absence of segmental data, a company not exclusively engaged in software development services can be selected as a comparable to a company engaged in providing software development services – No: ITAT
Whether companies having different operating models/different business spheres and distinct mode of operation can be selected as comparables – No: ITAT
Whether a company engaged in the business of geospatial servicescan be selected as a comparable to a company engaged in providing software development services – No: ITAT
Whether a company primarily engaged in providing BPO Servicescan be selected as a comparable to a company engaged in providing software development services – No: ITAT Pune ITAT
DCIT Vs SAS RESEARCH AND DEVELOPMENT INDIA PVT LTD
In Favour Of : Partly Allowed
2016-TII-640-ITAT-PUNE-TP
Whether while applying the FAR analysis, recourse should be made to comparing the margins declared by the tested party with such comparables who are falling within turnover criteria – Yes: ITAT
Whether international transactions of off-site services have to be benchmarked independently from on-site services where the mark-up earned by the assessee is different from two activities – Yes: ITAT
Whether Assessing Officer can make a reference to the TPO under section 92CA(1) of the Act for the purposes of computing the arm's length price in relation to the international transaction where no assessment proceedings were pending in relation to the relevant assessment year – No:ITAT
Whether an order passed by the TPO under section 92CA(3) proposing an adjustment to the arm's length price of the international transaction which was void ab initio can be a valid material for the Assessing Officer to entertain a belief that certain income chargeable to tax had escaped assessment within the meaning of section 147 of the Act – No: ITAT Pune ITAT
CAPCO IT SERVICES INDIA PVT LTD Vs ITO
In Favour Of : Remanded
2016-TII-642-ITAT-BANG-TP
Whether appropriate risk adjustments should be carried out in situations where there are differences between the tested parties and comparables- Yes: ITAT
Whether negative working capital adjustment can be made whereassessee does not carry any working capital risk - No: ITAT Bangalore ITAT
BECHTEL INDIA PVT LTD Vs DCIT
In Favour Of : Disposed of
2017-TII-55-HC-DEL-TP
Whether it is more appropriate for the ITAT itself to re-determine the ALP upon fresh benchmarking of new comparables, rather than remanding the matter to TPO - YES: HC Delhi High Court
PR CIT Vs MITSUI AND COMPANY INDIA PVT LTD
In Favour Of : Revenue
2017-TII-15-SC-TP
Having heard the parties, the Supreme Court condoned the delay and granted leave to the Revenue Department to defend their case on the issue of TP Adjustment. Supreme Court of India
HUAWEI TECHNOLOGIES INDIA PVT LTD Vs ITO
In Favour Of : Remanded
2017-TII-292-ITAT-BANG-TP
Whether only an extraordinary event resulting in abnormal high profit, can be a criteria for exclusion of a particular company from the set of comparables - YES: ITAT
Whether mere high profit /loss is no sole criteria for selection of any entity as a comparable - YES: ITAT Bangalore ITAT
CURAM SOFTWARE INTERNATIONAL PVT LTD Vs ITO
In Favour Of : Revenue
2017-TII-293-ITAT-BANG-TP
Whether rejection of TP study on the ground of adoption of weightage of 3 years profit margin and not adopting filter like employee-cost and export earnings is justified, if these filters were relevant for the purpose of TP study – YES: ITAT
Whether assessee can raise a fresh ground before the ITAT on appeal, without establishing that the same could not have been raised earlier for good and sufficient reasons – NO: ITAT Bangalore ITAT
CONTROL RISKS INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-56-HC-DEL-TP
Whether it is incumbent upon the AO to pass a draft assessment order u/s 144C, before passing a final assessment u/s 143(3) - YES: HC
Delhi High Court
HIMALAYAN DRUG COMPANY Vs DCIT
In Favour Of : Revenue
2017-TII-294-ITAT-BANG-TP
Whether proceedings initiated u/s 144C can be declared as null & void, simply because the AO passed the assessment order beyond the period prescribed there under - NO: ITAT Bangalore ITAT
ACIT Vs SWISS RE SHARED SERVICES INDIA PVT LTD
In Favour Of : Partly Allowed
2017-TII-295-ITAT-BANG-TP
Whether when turnover of previous year was already considered for benchmarking profit margin of earlier year, then turnover of previous year on which forex gain has arisen, cannot be considered for calculating operating margin of current A.Y - YES: ITAT
Whether claim of risk adjustment deserves to be allowed, in absence of any evidence showing probability of losses that could be incurred by assessee in its business - NO: ITAT Bangalore ITAT
DCIT Vs LSI INDIA RESEARCH PVT LTD
In Favour Of : Remanded
2017-TII-296-ITAT-BANG-TP
Whether companies having differences on account of related party transactions and employee cost filter, deserves exclusion from list of comparables - YES: ITAT Bangalore ITAT
ITO Vs CENDUIT INDIA SERVICES PVT LTD
In Favour Of : Remanded
2017-TII-297-ITAT-BANG-TP
Whether reasonable adjustment is warranted, for eliminating the material effect of differences incurred on account of turnover, function & employee cost filter - YES: ITAT
Whether filters should be applied to all the comparables and not only a single comparable - YES: ITAT Bangalore ITAT
VALVOLINE CUMMINS PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-57-HC-DEL-TP
Whether the mere fact that Assessee was permitted to use the brand name of its AE, would automatically lead to an inference that expenses that the Assessee incurred towards AMP was only to enhance the AE's brand value - NO: HC Delhi High Court
CONERGY ENERGY SYSTEMS PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-298-ITAT-BANG-TP
Whether TP study can be rejected and new comparables can be adopted for purposes of benchmarking, without providing any show cause notice to assessee - NO: ITAT Bangalore ITAT
OLYMPUS MEDICAL SYSTEMS INDIA PVT LTD Vs DCIT
In Favour Of : Remanded
2017-TII-299-ITAT-DEL-TP
Whether 'selling expenses' deserves to be excluded from the ambit of AMP expenses for working out the TP adjustment - YES: ITAT
Whether non-charging or under-charging of interest on the excess period of credit allowed to the AE, in the realization of invoices, amounts to an international transaction - YES: ITAT
Whether allowing of working capital adjustment in the international transaction of purchase/sale business, can have any impact on the determination of ALP of the international transaction of interest on receivables from AEs beyond the normal period allowed for realization of invoices - NO: ITAT New Delhi ITAT
NDTV LTD Vs DCIT
In Favour Of : Deferred
2017-TII-58-HC-DEL-TP
Whether coercive steps can be initiated against Assessee for his failure to pay the demand raised by Department through an 'appeal effect order', if the 'SCN covering demand' and 'appeal effect order' were dispatched same day - NO: HC Delhi High Court
INTL TAXATION
DIT Vs NORTEL NETWORKS INDIA INTERNATIONAL INC
In Favour Of : Revenue
2017-TII-19-SC-INTL
Having heard the parties, the Supreme Court condoned the delay and granted leave to the Revenue to defend their case. Supreme Court of India
CBDT Vs AFT TRUST SUB 1
In Favour Of : Assessee
2017-TII-15-SC-INTL
it is a case of gross negligence in taking steps, thus, there is no ground to condone the delay and consequently, the Special Leave Petitions are dismissed on the ground of delay and non-prosecution.
Supreme Court of India
CREDIT LYONNAIS Vs ADIT
In Favour Of : Partly Allowed
2013-TII-243-ITAT-MUM-INTL
Whether in case assessee has accepted taxability of interest received on Nostro account, its natural consequential effect would be that the claim of assessee regarding interest paid to HO/overseas branches would also be allowed as deduction - YES: ITAT
Whether in case loss on valuation of securities was held to be allowable in earlier years, the subsequent write back of amount cannot be allowed as a deduction - YES: ITAT
Whether in case the role of Indian branch of a foreign company, which is its PE also, is only to facilitate the conclusion of foreign trade or loan agreement or mere signing thereof, in that case no profit shall be attributed to PE in terms of Article 7(2) of the Indo France DTAA - YES: ITAT
Whether in the above case, in order to make Transfer Pricing adjustments for service charges or fees received, interest can be taken into account for attribution of income - NO: ITAT
Mumbai ITAT
DIT Vs CREDIT LYONNAIS
In Favour Of : Assessee
2017-TII-17-HC-MUM-INTL
Whether when an issue raised by the Revenue before Writ Court, has already been settled in favour of assessee by other writ ruling, the same will be treated as settled and no further interference is warranted - YES: HC Bombay High Court
PR CIT Vs SURESH NANDA
In Favour Of : Revenue
2017-TII-16-SC-INTL
The assessee is a non-resident individual. The first question pertains to the interest from security deposit given to the assessee by the company in which he is a 61% shareholder – M/s. Crown Corporation Pvt. Ltd. The AO assessed the security deposit as a “deemed dividend” u/s 2(22)(e). The CIT(A) and the ITAT however directed its cancellation. Revenue preferred appeal to the High Court which dismissed the same. Supreme Court of India
PR CIT Vs SURESH NANDA
In Favour Of : Assessee
2016-TII-74-HC-DEL-INTL
Whether any sum received by the assessee from a company in which he has controlling stake, qualifies as 'deemed dividend' - NO: HC Delhi High Court
POLARIS FINANCIAL TECHNOLOGY LTD Vs ACIT
In Favour Of : Partly Allowed
2017-TII-70-ITAT-MAD-INTL
Whether in case services rendered are in excess of that billed, revenue has to be recognized irrespective of it being not billed as at the year-end - YES: ITAT
Whether expenditure being incurred in respect of acquisition of a company, is to be construed as capital in nature, accordingly, it has to be disallowed in computing the assessable income - YES: ITAT Chennai ITAT
ACIT Vs STERLITE INDUSTRIES INDIA LTD
In Favour Of : Remanded
2017-TII-71-ITAT-MAD-INTL
Whether assessee is liable to deduct TDS u/s 195 on consultancy fee paid to a foreign company, if the foreign company had deputed their skilled employees to India to render services to the assessee – YES: ITAT
Whether assessee is liable to deduct TDS u/s 195 on payments made to a foreign company, if the assessee had availed services of that company to expand its business operation and interact with its consultant abroad, when however that company did not make available any technical knowledge to the assessee-company – NO: ITAT
Whether assessee is entitled to deduction u/s 80GGB on contribution made to Public & Political Awareness Trust – NO: ITAT
Whether assessee is entitled to deduction on donation made to Rajiv Gandhi Relief and National Welfare Trust with an intention to give relief to the people who were affected by Tsunami – YES: ITAT Chennai ITAT
DCIT Vs KPMG
In Favour Of : Assessee
2017-TII-72-ITAT-MUM-INTL
Whether contribution made by a member to the mutual association in the form of foreign remittances, would constitute income chargeable to tax - NO: ITAT
Whether interest liability u/s 201(1A) can be attached to such member, upon its failure to withhold tax before remitting such foreign payment as part of the mutual arrangement - NO: ITAT Mumbai ITAT
PR CIT Vs KRISHAK BHARATI COOPERATIVE LTD
In Favour Of : Assessee
2017-TII-18-HC-DEL-INTL
Whether it would meet the mandate of Section 263 if opportunity of being heard is granted to assessee after setting aside the assessment order - NO: HC
Whether order passed by the AO can be termed as erroneous when AO had considered the impact of relevant articles of DTAA, issued pointed queries in that behalf and otherwise dealt with the issue in detail - NO: HC
Whether in case of doubts relating to implementation of provisions of a DTAA, Revenue should address them to the concerned authorities of the other country rather than recording a finding on the same - YES: HC
Whether as per the amended Article 8 of India-Oman DTAA, dividend distributed by all companies, including the tax exempt companies would be exempt from payment of income tax in the hands of the recipients and Indian Investors can obtain relief in India under Article 25 (4) DTAA - YES: HC Delhi High Court
FORMULA ONE WORLD CHAMPIONSHIP LTD Vs CIT
In Favour Of : Revenue
2017-TII-17-SC-INTL
Whether it can be said that a foreign company conducting Formula One Races has PE in India when it has complete control over the physical and commercial aspects of the event taking place in India and it made their earning in India through the conduct of such event - YES: SC
Whether merely by purchasing some of the rights for conducting the event from a foreign company, an Indian company can claim that it had complete control over the event in question - NO: SC
Whether a person making payment to a non-resident is under obligation to deduct tax u/s 195 but only for that part of the income which is attributable to its PE - YES: SC Supreme Court of India
DIT Vs WNS GLOBAL SERVICES UK LTD
In Favour Of : Assessee
2017-TII-19-HC-MUM-INTL
Whether an appeal concerning certain questions of law deserves to be dismissed if similar questions raised previously were held to be not 'substantial questions of law' by lower authorities and the reasons for such disposal still hold good - YES: HC Bombay High Court
CIT Vs ASPECT SOFTWARE INC
In Favour Of : Assessee
2017-TII-20-HC-DEL-INTL
Whether the payment for supply of customized software would be treated as "royalty" under Article 12(3) of the Indo-US DTAA r/w/s 9(1)(vi) of the I-T Act, merely because there was separate invoicing for purchase & other transactions - NO: HC Delhi High Court
ASPECT SOFTWARE INC Vs DCIT
In Favour Of : Disposed of
2016-TII-250-ITAT-DEL-INTL
Whether supply of software can be taxed as 'royalty', when the services provided by assessee did not made available to the End User/ Channel Partners any technical knowledge or know-how so as to enable them to apply the technology - NO: ITAT
Whether when the customers located outside India has never used the rights of assessee company in the IPs/ services for carrying on business in India or for purpose of earning income from any source in India, then the FTS income earned from such customers cannot be taxed in the hands of Assessee - YES: ITAT New Delhi ITAT
CIT Vs ASPECT SOFTWARE INC
In Favour Of : Assessee
2017-TII-21-HC-DEL-INTL
Whether the payment for supply of customized software would be treated as "royalty" under Article 12(3) of the Indo-US DTAA r/w/s 9(1)(vi) of the I-T Act, merely because there was separate invoicing for purchase & other transactions - NO: HC Delhi High Court
DIT Vs AP MOLLER MAERSK AS
In Favour Of : Assessee
2017-TII-18-SC-INTL
On appeal, the Supreme Court condones the delay and dismisses the SLP following the the judgment delivered in Civil Appeal No.8040 of 2015 in Director of Income Tax (IT)- I v. A.P. Moller Maersk A/S. Supreme Court of India
APL COMPANY PTE LTD Vs DCIT
In Favour Of : Remanded
2017-TII-74-ITAT-MUM-INTL
Whether case deserves to be remanded for reconsideration of additional evidence when assessee was prevented by a reasonable cause for not submitting the same before AO and such evidence is crucial in nature - YES: ITAT Mumbai ITAT
ADIT Vs HAMPSON RUSSEL LTD
In Favour Of : Assessee
2017-TII-75-ITAT-DEL-INTL
Whether transfer of a limited right to use the copyrighted material, would give rise to any royalty income either under the income tax Act or under the DTAA - NO: ITAT
Whether receipt from sale of software can be taxed as royalty in terms of the articles of the DTAA between the India and the Canada, in case the transaction has taken place outside India - NO: ITAT
Whether where the substance of the contract/agreement is connected with the prospecting, extraction or production of mineral oil, the income has to be assessed under the provisions of section 44BB - YES: ITAT
Whether the amendment brought by the Finance Act, 2011 can be made effect from the retrospective effect - NO: ITAT New Delhi ITAT
HYUNDAI MOTOR INDIA LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-76-ITAT-MAD-INTL
Whether the benefit accrued to Foreign principal company, as a result of increased brand value due to sale of its items in India by the subsidiary, constitutes an independent international transaction - NO: ITAT
Whether accretion of brand value, as a result of use of the brand name of foreign AE under the technology use agreement, which has been accepted to be an arrangement at an ALP, does not result in a separate international transaction to be benchmarked - YES: ITAT
Whether presence of a 'clause' in the 'technology use agreement' essentially with a view to protect the intellectual property owned by the foreign AE, is commercially justified in an arm's length transaction - YES: ITAT
Whether incidental benefit occured to the foreign AE in case of sale of its product in India by the subsidiary using AEs brand name, can be treated as an international transaction under the Indian TP legislation - NO: ITAT
Whether accretion in brand value due to use of foreign AEs brand name in the name of its Indian subsidiary's products can be treated as 'provision of service' - NO: ITAT
Whether mere fact that the local affiliates of Mauritius entities based in India stood as guarantors to the borrowings by an Indian entity, is sufficient to conclude that the interest income should be deemed to have accrued to the Indian PEs of such Mauritius based lenders - NO: ITAT
Whether mere presence of PE of a foreign enterprise in India, would construe that all the profits accruing to the foreign enterprise are attributable to its PE in India - NO: ITAT
Whether a mere peripheral role played by a MNE affiliate situated in India, would bind him to withhold tax at source u/s 195 on the 'interest payments' made to its Foreign MNE Group - NO: ITAT Chennai ITAT
PR CIT Vs HCL COMNET LTD
In Favour Of : Assessee
2017-TII-23-HC-DEL-INTL
Whether when the Revenue fails to debunk the findings relating to interest expenditure even then disallowance can be sustained - NO: HC
Delhi High Court
FATHIMA HARRIS Vs ITO
In Favour Of : Revenue
2017-TII-22-HC-MAD-INTL
Whether disallowance is warranted if no TDS is deducted on payments made to non-resident agent for canvassing export order u/s 40(a)(i) - YES : HC Madras High Court
ADIT Vs MAERSK COMPANY LTD
In Favour Of : Assessee
2017-TII-77-ITAT-DEL-INTL
Whether mere enagement of expatriates of foreign firm and payment of salary to them, would render an Indian entity liable to deduct tax on those payments, when the remuneration was actually borne by the foreign firm - NO: ITAT New Delhi ITAT
DIT Vs MARKS AND SPENCER RELIANCE INDIA PVT LTD
In Favour Of : Assessee
2017-TII-24-HC-MUM-INTL
Whether sum paid by assessee to its foreign JV partner towards salary expenses of employees deputed for promotion & management of business can be treated as Fee for Technical Services (FTS) when such payment has been made in terms of a service agreement entered into by JV parties - NO: HC
Whether tax at source is liable to be deducted on such payment when such payment does not amount to income arising or accruing in India - NO: HC Bombay High Court
Pr.CIT Vs MENTOR GRAPHICS INDIA PVT LTD
In Favour Of : Assessee
2017-TII-25-HC-DEL-INTL
Whether a substantial question of law arises when the ITAT had rightly took into account the factors that weighed comparables for it's exclusion - NO : HC
Whether for the purpose of deduction u/s 10A, communication charges are to be excluded both from export turnover and total turnover of assessee - YES : HC Delhi High Court
SUMITOMO CORPORATION Vs CIT
In Favour Of : Assessee
2017-TII-26-HC-DEL-INTL
Whether remand by the Tribunal, of a matter concerning tax payment made by a party, is warranted if CIT(A) had already undertaken a verification of such tax payments - NO: HC Delhi High Court
ONGC LTD Vs ADIT
In Favour Of : Revenue
2017-TII-78-ITAT-DEL-INTL
Whether Article 12(4) of India Canada DTAA would be applicable if a resident company enters into a agreement for participation and collaborative research with a non-resident entity - YES: ITAT
Whether a company would fall under the provisions of Section 9(1)(vii) if it was not receiving any consideration for mining, assembly or other like projects undertaken by it - YES: ITAT
Whether fees paid by a resident company to a non-resident entity for collaborative research would be treated as 'fee for technical services' and would not be covered u/s 44BB which covers services relating to exploration activity and which are not in the nature of technical services - YES: ITAT New Delhi ITAT
NATIONAL STOCK EXCHANGE OF INDIA LTD Vs DDIT
In Favour Of : Assessee
2017-TII-79-ITAT-MUM-INTL
Whether transfer/sale of copyrighted software by a non-resident entity to an Indian entity, can be taxed as royalty - NO: ITAT
Whether such Indian entity is liable to deduct tax at source u/s 195 of I-T Act, before remitting payment to the foreign supplier - NO: ITAT Mumbai ITAT
PIONEER OVERSEAS CORPORATION Vs CIT
In Favour Of : Revenue
2017-TII-27-HC-DEL-INTL
Whether interest u/s 220(2) can be waived if no genuine hardship is caused to the assessee from payment of the said amount - NO: HC Delhi High Court
DIMENSION DATA ASIA PACIFIC PTE LTD Vs DCIT
In Favour Of : Assessee
2017-TII-73-ITAT-MUM-INTL
Whether a case is fit for remand when assessee had not produce sufficient evidence with regard to profit attributable to the India PE before the AO & DRP - YES: ITAT
Mumbai ITAT
DIT Vs ROLLS ROYCE INDUSTRIAL POWER INDIA LTD
In Favour Of : Assessee
2017-TII-28-HC-DEL-INTL
Whether reopening of assessment is liable to be set aside if it is not based on any fresh material and the nature of transactions have previously been dealt with in detail by the AO - YES: HC Delhi High Court
DDIT Vs ALMANSOORI SPERIALIZED ENGINEERING COMPANY
In Favour Of : Remanded
2017-TII-80-ITAT-DEL-INTL
Whether of the assessee's income should be taxed u/s 44BB if identical issue was already decided in an appeal filed by the assessee for a previous AY - YES: ITAT
Whether a case deserves to be remanded to determine the liability of interest u/s 234B if the assessee has failed to deduct tax at source - YES : ITAT New Delhi ITAT
BG EXPLORATION AND PRODUCTION INDIA LTD Vs JCIT
In Favour Of : Deferred
2017-TII-82-ITAT-DEL-INTL
Whether previous order of Tribunal to the assessee to pre-deposit a certain sum deserves to be vacated if AO has adjusted a refund after processing the returns of the assessee for the AYs in question - YES: ITAT New Delhi ITAT
ACIT Vs TIMEX WATCHES LTD
In Favour Of : Remanded
2017-TII-81-ITAT-DEL-INTL
Whether case deserves to be remanded when the same is covered in assessee's own case of previous in which loss due to fluctuations in forex was allowed as revenue loss - YES : ITAT
Whether disallowance for warranty is valid if the warranty expenses relate to unexpired period of watches sold during the year - NO : ITAT New Delhi ITAT
DDIT Vs SIEMENS LTD
In Favour Of : Assessee
2017-TII-92-ITAT-MUM-INTL
Whether testing laboratory which carries out 'type testing services' can be rearded as 'standard facility', when the 'type tests' on power transformers have not been carried out on some 'standard facility' by machines automatically without human intervention - NO: ITAT
Whether the fact that the 'provision of service' may require technical input by the person providing the service, would per se mean that technical knowledge or skills are made available to the person purchasing the service - NO: ITAT
Whether standard facility provided by a foreign testing laboratory by using highly sophisticated equipment for carrying out the test, can be taxed in India in the form of FTS, when no human intervention was involved in carrying out the services - NO: ITAT
Whether remittances made for receipt of such testing services warrants TDS obligation, when the provider of service has no permanent establishment in India - NO: ITAT Mumbai ITAT
ITO Vs CADILA HEALTHCARE LTD
In Favour Of : Assessee
2017-TII-83-ITAT-AHM-INTL
Whether in case there is a 'make available' clause in the DTAA, the mere fact that certain technical services were provided with the help of which assessee is benefited, is sufficient to treat such services as FTS - NO: ITAT
Whether the payment made by an assessee only in respect of copyrighted material and not for use of copyright, can be termed as 'Royalty' - NO: ITAT Ahmedabad ITAT
ITO Vs ASHOK BASTIMAL SIROYA
In Favour Of : Assessee
2017-TII-84-ITAT-MUM-INTL
Whether in absence of any other corroborative evidence to establish a direct nexus, can it be said that notings in loose paper are genuine, an addition could be made u/s 69 by virtue of said document - NO: ITAT Mumbai ITAT
DDIT Vs ASIA TV UK LTD
In Favour Of : Assessee
2017-TII-85-ITAT-MUM-INTL
Whether in case tax effect involved in an appeal filed by Revenue is less then the minimum tax effect mentioned as per the CBDT circular, any appeal can still be filed - NO:ITAT Mumbai ITAT
DCIT Vs INDO AMINES LTD
In Favour Of : Assessee
2017-TII-86-ITAT-MUM-INTL
Whether TDS is required to be deducted on the commission being paid to foreign agents for procurement of export orders from overseas buyers, wherein no technicality is involved - NO: ITAT
Mumbai ITAT
RECKITT BENCKISER INDIA LTD Vs JCIT
In Favour Of : Partly Allowed
2017-TII-87-ITAT-KOL-INTL
Whether an assessee can claim benefit of TDS u/s 195 in the year in which he has actually made payment of such taxes to the account of exchequer - YES: ITAT
Whether provision created in respect of marketing expenses on a scientific basis as per the provisions of Accounting Standard 29, is allowable as revenue expense - YES: ITAT
Whether if the units eligible for deduction u/s.80- IB and u/s.80-IC, were not in existence when bad debts were arisen, these can be allowed as revenue expense without any verification - NO: ITAT
Whether if valuation report prepared by registered valuer once have been approved by the AO, can such be denied by the AO subsequently on no basis - NO: ITAT
Whether an expenditure incurred on production of Ad-films having a close nexus with the business activity, has to be allowed as revenue in nature without verifying its enduring benefits on assessee's business - NO: ITAT
Kolkata ITAT
COCA COLA INDIA INC Vs DCIT
In Favour Of : Assessee
2017-TII-88-ITAT-DEL-INTL
Whether in case even after the issue of reassessment notice, AO realised non applicability of certain provisions on assessee, reassesment proceedings can still be continued against such assessee -NO: ITAT
Whether in case after issuing a notice u/s 148, AO accepted the contention of assessee that a certain income which has initially formed a reason to believe, has not actually escaped assessment, is it open for the AO to independently assess some other income -NO: ITAT
New Delhi ITAT
SHELL INTERNATIONAL BV Vs DCIT
In Favour Of : Remanded
2017-TII-89-ITAT-AHM-INTL
Whether in case it is in the interest of justice to consider the additional evidences to arrive at the final conclusion of the matter, an issue deserves a remand by the Tribunal - YES: ITAT Ahmedabad ITAT
STRYKER GLOBAL TECHNOLOGY CENTER PVT LTD Vs ACIT
In Favour Of : Revenue
2017-TII-90-ITAT-DEL-INTL
Whether while computing book profit for the purposes of section 115JB, adding back of rent equalization reserve created in respect of land is correct as per law - YES: ITAT
New Delhi ITAT
ADIT Vs SAMSUNG HEAVY INDUSTRIES COMPANYLTD
In Favour Of : Assessee
2017-TII-91-ITAT-DEL-INTL
Whether in case an issue agitated by the Revenue has already been settled by the Jurisdictional High Court, same has precedence value over the order of any lower authority - YES: ITAT
New Delhi ITAT
ACIT Vs VALENTINE MARITIME GULF LLC
In Favour Of : Partly Allowed
2017-TII-93-ITAT-MUM-INTL
Whether the actual duration of two different shipping & charter hire contracts can be combined, for purpose of determining their taxability u/s 44BB - NO: ITAT
Mumbai ITAT
GO AIRLINES INDIA LTD Vs DCIT
In Favour Of : Assessee
2017-TII-94-ITAT-MUM-INTL
Whether payment made for use of software can be treated as Royalty - NO : ITAT
Whether assessee is required to deduct tax at source for such payment - NO : ITAT Mumbai ITAT
ORACLE SYSTEMS CORPORATION Vs DDIT
In Favour Of : Assessee
2017-TII-29-HC-DEL-INTL
Whether notice issued to assessee for reopening of assessment u/s 148 deserves to be set aside if such reopening is being done on the basis of a draft assessment order passed by AO of assessee's subsidiary company and such assessment order was subsequently reversed by the DRP - YES: HC Delhi High Court
ACIT Vs LEHMAN BROTHERS AND ADVISORS PVT LTD
In Favour Of : Assessee
2017-TII-95-ITAT-MUM-INTL
Whether assessee can be made liable to deduct tax at source retrospectively on certain payments if no such liability on the part of the assessee did not exist at the time of making such payments - NO: ITAT Mumbai ITAT
DCIT Vs AUROBINDO PHARMA LTD
In Favour Of : Assessee
2017-TII-96-ITAT-HYD-INTL
Whether I-T Department can apply 20% TDS on the payments made to non residents, merely because assessee had failed to furnish PAN of all the deductees - NO: ITAT
Hyderabad ITAT
GEMOLOGICAL INSTITUTE INTERNATIONAL INC Vs DCIT
In Favour Of : Assessee
2017-TII-97-ITAT-MUM-INTL
Whether amount received over and above the FTS is not taxable and cannot be included as a part of FTS - YES : ITAT Mumbai ITAT
VESTA WIND TECHNOLOGY INDIA PVT LTD Vs ACIT
In Favour Of : Remanded
2017-TII-98-ITAT-MAD-INTL
Whether case relating to corporate guarantee performance fees deserves to be remanded for reconsideration if in assessee's earlier case it was treated as interest by AO whereas in the present case it is being treated as fee for technical services - YES: ITAT
Chennai ITAT
KTV OIL MILLS Vs ACIT
In Favour Of :
2017-TII-99-ITAT-MAD-INTL
Whether interest paid by the assessee on purchase from foreign country would be considered as purchase price of supplies and cannot be treated as interest u/s 2(28A) - YES: ITAT
Whether TDS is liable to be deducted on interest paid on purchase from foreign country - NO : ITAT Chennai ITAT
ADIT Vs TAJ TV LTD
In Favour Of : Assessee
2017-TII-100-ITAT-MUM-INTL
Whether set off of expenses against assessee's income is warranted when the assessee has nil income and AO has himself accepted that assessee does not have any PE in India - NO : ITAT
Whether to initiate reopening of assessment Revenue must produce cogent material on record - YES : ITAT
ITAT
HONDA SIEL CARS INDIA LTD Vs CIT
In Favour Of : Revenue
2017-TII-20-SC-INTL
Whether fees paid to foreign collaborator for acquiring technical knowhow for setting up of new plant is to be treated as capital expenditure, even if the knowhow was for limited period, in case there is no further continuation of manufacture of product after the termination of agreement - YES: SC Supreme Court of India
TARUN KUMAR SARKAR Vs DDIT
In Favour Of : Assessee
2017-TII-101-ITAT-KOL-INTL
Whether the receipt in India of salary for services rendered on board a ship outside the territorial waters of any country, would be sufficient to give the country where it is received the right to tax the said income on receipt basis - NO: ITAT
Whether salary accrued to a non-resident seafarer for services rendered outside India on a foreign going ship, can be added to total income, if the said salary was directly credited in the NRE account maintained with an Indian bank by the seafarer - NO: ITAT Kolkata ITAT
ADIT Vs LLOYDS REGISTER QUALITY ASSURANCE LTD
In Favour Of : Partly Allowed
2017-TII-102-ITAT-MUM-INTL
Whether royalty/licence fee would be covered as 'head office expenditure' of the assessee and would fall within the ambit of Section 44C - NO: ITAT
Whether IT recharge would fall under the head administrative expenses and would be covered u/s 44C - NO : ITAT
Whether management fee which is considered as Fee for Technical Services would be limited by the provisions of Section 44C - YES : ITAT
Whether the obligation to deduct tax at source would arise only when an amount was chargeable to tax and it was not necessary to obtain nil withholding tax certificate - YES : ITAT
Whether FAA's order requires to be set aside when FAA had ignored the Provisions of Rules 115 & 26 of the Income Tax Rules, 1962 - YES : ITAT Mumbai ITAT
DIT Vs TOYO ENGINEERING CORPORATION
In Favour Of : Revenue
2017-TII-30-HC-MUM-INTL
The appeal is filed by Revenue raising certain substantial questions of law. The question relates to whether the Tribunal was right in holding that deduction of expenses should be allowed to the assessee from the receipts earned by it from Project Management Contracts ignoring the fact that the same has been taxed u/s 44D in the absence of any adverse comments in the India-Japan DTAA.
Having heard the parties, the High Court admitted the aforesaid question of law. Bombay High Court
CIT Vs PUBMATIC INDIA PVT LTD
In Favour Of : Assessee
2017-TII-31-HC-MUM-INTL
Whether a company can be said to have a PE in India merely because some of the Directors are common in the assessee company and its parent company but the transaction between them are on principal to principal basis & at arm's length - NO: HC Bombay High Court
SMIT SINGAPORE PTE LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-103-ITAT-MUM-INTL
Whether for calculating 'presumptive income' u/s 44BB, service tax collected by the assessee on the amount received by it for rendering services is to be included in gross receipts - NO: ITAT Mumbai ITAT
KOTAK MAHINDRA OLD MUTUAL INSURANCE LTD Vs JCIT
In Favour Of : Assessee
2017-TII-104-ITAT-MUM-INTL
Whether payment made for purchasing a copyrighted software can be taxed as royalty u/s 9(1)(vi) of I-T Act, when the same is not taxable under respective DTAA - NO: ITAT
Whether assessee can be held liable u/s 201(1A) for not deducting TDS on such abovementioned payment - NO: ITAT Mumbai ITAT
ALCATEL LUCENT USA INC Vs DDIT
In Favour Of : Assessee
2017-TII-105-ITAT-MUM-INTL
Whether revenue receipts by a non-resident from Indian company against supply of software, can be taxed as 'royalty', when such payment was not for 'copyright along with secret code for creating multiple software copies' - NO: ITAT Mumbai ITAT
CIT Vs CREATIVE INFOCITY LTD
In Favour Of : Assessee
2017-TII-106-ITAT-AHM-INTL
Whether payment made for supply of design & drawings by assessee to a non resident entity would be taxable as Royalty or FTS if the said designs were procured by the non resident entity from some other firm and sold to the assessee as outright sale - NO: HC
Whether payment made by assessee to a non resident entity, pursuant to an agreement for reimbursement of expenses incurred by such entity for marketing a project, can be termed as Royalty or fees for technical services - NO: HC Gujarat High Court
DCIT Vs MSC MEDITERRANEAN SHIPPING COMPANY SA
In Favour Of : Assessee
2017-TII-107-ITAT-MUM-INTL
Whether mere exclusion of international shipping profits from Article 7 of India Switzerland DTAA, can be regarded as vesting India with a right to tax international shipping profits - NO: ITAT
Whether when the property in respect of which shipping income was paid to Switzerland being not effectively connected with the PE, its case will fall in paragraph I of Article 22 of Indo Swiss DTAA, and hence will be taxable in the country of residence i.e. Switzerland and not in India - YES: ITAT Mumbai ITAT
SHYAMAL GOPAL CHATTOPADHYAY Vs DDIT
In Favour Of : Assessee
2017-TII-108-ITAT-KOL-INTL
Whether the receipt in India of salary for services rendered on board a ship outside the territorial waters of any country, would be sufficient to give the country where it is received the right to tax the said income on receipt basis - NO: ITAT
Whether salary accrued to a non-resident seafarer for services rendered outside India on a foreign going ship, can be added to total income, if the said salary was directly credited in the NRE account maintained with an Indian bank by the seafarer - NO: ITAT Kolkata ITAT
DIT Vs NOMURA INDIA INVESTMENT FUND MOTHER FUND
In Favour Of : Assessee
2017-TII-32-HC-MUM-INTL
Whether penalty u/s 271(1)(c) is warranted if assessee did not set off long term capital loss on a bonafide belief that in terms of Section 10(38) loss is not required to be considered and only income is required to be considered while computing total income - NO: HC Bombay High Court
DIT Vs VANENBURG FACILITIES BV
In Favour Of : Assessee
2017-TII-33-HC-AP-INTL
Whether the issue of applicability of Article 13(4) of the DTAA to the subject transaction so as to make it taxable in India, can be raised before the High court where the AO arrived at the considered conclusion that Article 13(4) would not apply and that it would be taxable in India only under Article 13(1) and this finding was finally confirmed in appeal – NO: HC
Whether the interest received by non-resident assessee on delayed payment of sale consideration is taxable in India, when there is no evidence of debt being incurred or monies being borrowed for any business purposes by the company paying the interest – NO: HC Andhra Pradesh High Court
DIT Vs AP MOLLER MAERSK AS
In Favour Of : Revenue
2017-TII-21-SC-INTL
Having heard the parties, the Supreme Court condones the delay and grants leave to the Revenue Department to defend their case on the issue of "attribution of receipts from operation of ships in international traffic". Supreme Court of India
DIT Vs NORTEL NETWORKS INDIA INTERNATIONAL INC
In Favour Of : Revenue
2017-TII-22-SC-INTL
Having heard the parties, the Supreme Court condoned the delay and granted leave. Supreme Court of India
DIT Vs VALENTINE MARITIME GULF LLC
In Favour Of : Assessee
2017-TII-34-HC-MUM-INTL
Whether an appeal would give rise to any substantial question of law if the issue raised therein was subject matter in another appeal in a previous AY and the same has already been decided - NO: HC
Bombay High Court
ERSHISANYE CONSTRUCTION GROUP INDIA PVT LTD Vs DCIT
In Favour Of : Assessee
2017-TII-109-ITAT-KOL-INTL
Whether the fact that foreign holding company had made payment one behalf of its subsidiary which was subsequently repaid, would render the payment as reimbursement which did not involve any element of income in the hands of recipient - NO: ITAT
Whether remission of amount to foreign holding company for finally making payment to third person, cannot be termed as reimbursement of expenses to the holding company - YES: ITAT
Whether expenses incurred on training of Chinese technicians who were to visit India for carrying out onshore services and construction of integrated steel plant in India, would come within the domain of ‘FTS' – NO: ITAT
Whether such training expenses requires deduction of tax at source u/s 195 – NO: ITAT Kolkata ITAT
SUMANA BANDYOPADHYAY Vs DCIT
In Favour Of : Assessee
2017-TII-35-HC-KOL-INTL
Whether salary accrued to a non resident seafarer for rendering services outside India on a foreign ship can be included in his total income merely because the said salary has been credited in his NRE account - NO: HC Calcutta High Court
NETAPP BV Vs DCIT
In Favour Of : Remanded
2017-TII-110-ITAT-MUM-INTL
Whether case deserves to be remanded for reconsideration if similar issues have already been dealt with by the tribunal in assessee's own case in other AY's - YES : ITAT Mumbai ITAT
CLOUGH ENGINEERING LTD Vs ADIT
In Favour Of : Remanded
2017-TII-111-ITAT-DEL-INTL
Whether when attribution of profit to offshore revenue has been taken @10% in earlier AYs then same rate is to be applied in the current AY if the facts remain the same - YES: ITAT
Whether matter should be restored to the AO for verification of its claim if assessee states that its claim for deduction of expenses were disallowed u/s 40(a)(i) and section 40(a)(ia) in the earlier year and are being claimed in the current AY - YES: ITAT New Delhi ITAT
MASS AWASH PVT LTD Vs CIT
In Favour Of : Revenue
2017-TII-36-HC-ALL-INTL
Whether proceedings initiated u/s 201(1) & 201(1A) can be treated as barred by limitation, if the authorities had made all possible efforts of recovery of tax from payee and hence exercised the power u/s 201(1) as lender of last resort – NO: HC
Whether when a power is not exercised within a reasonable time, unreasonable delay which is not capable of explanation may affect validity of such power - YES: HC Allahabad High Court
DCIT Vs INCENT TOURS PVT LTD
In Favour Of : Assessee
2017-TII-112-ITAT-DEL-INTL
Whether payments made to non-resident requires tax deduction at source, when the services were rendered outside India and cannot be deemed to have arisen or accrued in India in terms of Section 9(1)(i) - NO: ITAT
Whether payment made to non-residents is taxable u/s 9(1)(i), when such assessee is under no obligation to make any deduction at source on such payments - NO: ITAT
Whether when the role of non residents are only to provide incremental business to assessee from outside India being independent representatives, their services are neither technical nor included services - YES: ITAT
New Delhi ITAT
CIT Vs INDO GULF CORPORATION LTD
In Favour Of : Remanded
2017-TII-37-HC-ALL-INTL
Whether levy of interest u/s 201(1) & 201(1A) can be dismissed on the ground of limitation, when there is no prescribed time limit for invoking provisions of Section 200 and Section 201 upon failure to deduct TDS - NO: HC Allahabad High Court
DIT Vs CREDIT AGRICOLE INDOSUEZ
In Favour Of : Revenue
2017-TII-23-SC-INTL
Having heard the parties, the Supreme Court condoned the delay and granted leave to the Revenue Department to defend their case on the issue of treatment of 'interest paid to overseas branches'. Supreme Court of India
DIT Vs ATOMSTROY EXPORT
In Favour Of : Revenue
2017-TII-25-SC-INTL
Having heard the parties, the Supreme Court condoned the delay and issued notices to respective parties to appear for further hearing on the issue of reopening. Supreme Court of India
DIT Vs SUMITOMO MITSUI BANKING CORPORATION
In Favour Of : Assessee
2017-TII-24-SC-INTL
Whether High Court has power to frame substantial question of law at the time of hearing of appeal other than those on which the appeal was admitted, subject to provisional conditions - YES: SC
Supreme Court of India
SUDHANSHU MOHAPATRA Vs DCIT
In Favour Of : Remanded
2017-TII-113-ITAT-KOL-INTL
Whether residency status of a person for the purpose of taxation can be decided, without examining his period of rendering of services within / outside India - NO: ITAT Kolkata ITAT
GOOGLE INDIA PVT LTD Vs ACIT
In Favour Of : Assessee
2017-TII-38-HC-KAR-INTL
Whether when there are common issues in all the appeals pending before the Tribunal, any relief in terms of lower pre-deposit can be granted to the assessee - YES: HC Karnataka High Court
CIT Vs STERIA INDIA LTD
In Favour Of : Revenue
2017-TII-26-SC-INTL
Having heard the parties, the Supreme Court condoned the delay and issued notices to respective parties directing their appearence for further hearing on the issue of taxability of 'managerial services' under Article 13(4) of DTAA between India & UK.
Supreme Court of India
McKINSEY KNOWLEDGE CENTRE INDIA PVT LTD Vs ITO
In Favour Of : Assessee
2017-TII-114-ITAT-DEL-INTL
Whether payment made by Indian company merely for accessing certain database of Singapore based entity, can be taxed as 'royalty', if such access does not provide any license for commercial expolitation of copyright, with regard to the database owned exclusively by the owner entity - NO: ITAT
Whether TDS deduction is warranted on above mentioned payments made for accessing copyrighted material of a company which is tax resident of Singapore – NO: ITAT
New Delhi ITAT
UNITED HOME ENTERTAINMENT PVT LTD Vs ADIT
In Favour Of : Assessee
2016-TII-251-ITAT-MUM-INTL
Whether assessee is liable to deduct TDS on payments where the amount received by the payee is not taxable in India under the provisions of Indo-US DTAA– No: ITAT
Whether payment made for transponder charges is taxable fee for technical services in India– No: ITAT Mumbai ITAT
CIT Vs LS CABLE AND SYSTEMS LTD KOREA
In Favour Of : Assessee
2017-TII-39-HC-DEL-INTL
Whether income from offshore supply contract could be brought to tax in India - NO: HC Delhi High Court
IDS INFOTECH LTD Vs DCIT
In Favour Of : Partly Allowed
2017-TII-115-ITAT-CHD-INTL
Whether rejection of ' foreign entity' as tested party, is justified, if information relating to comparable companies were available in public domain and the sources were also made known to the TPO – NO: ITAT
Whether TDS liability u/s 195 is warranted on overseas payments made on account of commission, legal and professional charges, outsourcing expenses & market support fees, if payee had no existing business connection or any PE in India – NO: ITAT
Whether TDS obligation is required upon salaries paid outside India, if no services in relation thereo are rendered in India – NO: ITAT Chandigarh ITAT
DIT Vs MITSUI AND COMPANY LTD
In Favour Of : Assessee
2017-TII-40-HC-DEL-INTL
Whether use of facility solely for the purpose of maintenance of place for business merely for purchasing goods or collecting information which is auxiliary in character, would take it outside the ambit of a PE - YES: HC
Whether when project offices are treated as separate taxable units and profits therefrom were offered to tax u/s 44BBB, the said POs cannot be treated as PEs for purpose of DTAA - YES: HC Delhi High Court
CIT Vs JSH MAURITIUS LTD
In Favour Of : Assessee
2017-TII-41-HC-MUM-INTL
Whether when the AAR on considering the application & facts on record had conclusively held that the transaction is not designed for avoidance of income-tax, it would not be open for the Revenue to fall back on Section 245(R)(2)(iii) - YES: HC
Whether capital gains from alienation of shares situated in India, could only be taxed in Mauritius and not in India, as per Indo Mauritius DTAA - YES: HC
Bombay High Court
ABB FZ LLC Vs DCIT
In Favour Of :
2017-TII-116-ITAT-BANG-INTL
Whether an entity can claim entitlement to benefits under Indo-UAE DTAA if it was neither a resident of UAE at the time of filing of returns within the meaning of Article 4 of the DTAA nor it was wholly managed and controlled by another entity in UAE – NO: ITAT Bangalore ITAT
COOPER STANDARD AUTOMOTIVE INDIA PVT LTD Vs ACIT
In Favour Of : Assessee
2017-TII-117-ITAT-MAD-INTL
Whether an assessee is entitled for claiming expenditure in the year of payment, in case the tax was deducted by it in the same year but was remitted to the Government account in the subsequent year – NO: ITAT
Whether similar payments in residents would attract disallowances, in the event of non-deduction of tax at source – NO: ITAT
Whether assessee is liable to deduct TDS on reimbursement of expenses paid for using the technology provided by the parent company, if no managerial, consultancy or technical services are provided by the parent company – NO: ITAT
Whether payment made by the assessee for FTS, for the services rendered outside India, are taxable u/s 9(1)(vii) of I-T Act – NO: ITAT Chennai ITAT
MK JAILANI Vs ITO
In Favour Of : Remanded
2017-TII-118-ITAT-MAD-INTL
Whether sourcing of orders abroad, for which commission payments were made directly to overseas agents abroad, does not involve any technical assistance, and hence such payments could not be treated as 'FTS' warranting TDS deduction u/s 195 - YES: ITAT
Sections 9(1)(vii), 40(a)(i), 195 Chennai ITAT
PR CIT Vs MODI APOLLO INTERNATIONAL GROUP PVT LTD
In Favour Of : Assessee
2017-TII-42-HC-DEL-INTL
Whether oversea payment made for evaluation of reports and course content, can be treated as 'FTS' warranting TDS u/s 195, if there is no element of profit embedded in reimbursement for the evaluation undertaken and no technical expertise was required to render assistance for identification of candidates for admission - NO: HC
Delhi High Court
ITO Vs MODI APOLLO INTERNATIONAL GROUP PVT LTD
In Favour Of : Assessee
2016-TII-252-ITAT-DEL-INTL
Whether assessee is liable to deduct TDS u/s 195, if there was no element of income embedded in the reimbursement of evaluation charges and no technical expertise/services were required for rendering assistance in identification of the suitable candidates for admission – NO: ITAT
Whether disallowance of royalty payment can be made, where the payment of royalty was with reference to the gross fee collected by it and the same was to be paid for seeking access to the curriculum and course material and there was no capital element involved in it – NO: ITAT New Delhi ITAT
BALLARPUR INDUSTRIES LTD Vs CIT
In Favour Of : Revenue
2017-TII-43-HC-MUM-INTL
Whether if income earned abroad is not brought to India immediately and may result in gain or loss due to foreign exchange fluctuation at the time of receipt, such gain or loss is to be treated as taxable income under a separate head - YES: HC
Whether for the lack of specific provisions in the Act, any gain or loss arising out of fluctuation in the foreign exchange earned as exports proceeds is not to be included in the export turnover - YES: HC Bombay High Court
INTL MISC
CATERPILLAR INDIA PVT LTD Vs ACIT
In Favour Of : Revenue
2017-TII-151-ITAT-MAD-TP
Whether external TNMM is to be considered over internal TNMM as the most appropriate method, when the difference between the two comparables are subtle but was of substantial import - YES: ITAT
Whether comparability is a sine quo non for any method of benchmarking international transaction - YES: ITAT
Whether the nature of activity can change from "services" to "manufacturing", merely because the services were rendered by the personnel of manufacturing segment - NO: ITAT
Whether the income derived from such manufacturing segment, can be considered as a part of the operating income of manufacturing segment, for computation of PLI - NO: ITAT
Whether the interest on customer overdue is to be considered as part of the operating activities of the assessee, if it is relating to trade debtors - YES: ITAT
Whether the "424 Model" can be excluded from the manufacturing segment for calculation of PLI, merely because the model was in its start-up phase - NO: ITAT
Whether the TP adjustment should be restricted only to international transaction and not to the entire turnover - YES: ITAT Chennai ITAT
FDI
MADHAV MAGANLAL AND COMPANY Vs UoI
In Favour Of : Revenue
2017-TII-03-HC-DEL-FEMA
Whether a SCN issued u/s 51 of FERA would be valid if it has been issued within the time period prescribed under the sunset clause of FEMA but was served on the party after the expiry of such period - YES: HC
Whether both the company and the person in charge of conduct of its business can be held guilty for contraventions made under FERA and separate penalties can be imposed on both for such contraventions - YES: HC
Whether statement made u/s 108 of Customs Act can be used as material evidence in adjudication proceeding under FEMA - YES: HC
Whether acquittal of the appellant under Customs Act would not lead to his automatic acquittal under FERA as the provisions of both the Acts are distinct from each other - YES: HC Delhi High Court
LIBRARY
ANAND CHAUHAN Vs DIRECTORATE OF ENFORCEMENT
In Favour Of : Revenue
2017-TII-04-HC-DEL-PMLA
Prevention of Money Laundering Act, 2002 [PMLA] - The petitioner has preferred bail application seeking regular bail under section 439 of the Code of Criminal Procedure (Cr.P.C) read with section 45 of PMLA in RC No.ECIR/HQ/02/HIU/2015 – the petitioner submits that his arrest under section 19(1) of PMLA is premature and in violation of Article 21 of Constitution of India - he submits that section 45 of PMLA is not applicable to the case of petitioner – the main accused Shri Virbhadra Singh has been granted protection in the FIR/RC filed by the CBI by Himachal Pradesh High Court vide order dated 1.10.2015, and that there is no case against Shri Virbhadra Singh registered by the respondent under the PMLA – he submits that as he has been charged with abetment of the schedule offence, the PMLA cannot be invoked against him and that the rigours of section 45(1)(ii) of the PMLA would not apply to him. Delhi High Court
