Transfer Pricing Alert Rulings

Income tax Appellate Tribunal

ITAT: Holds corporate-guarantee as international transaction; Fixes guarantee amount @ 0.50%

Feb 21, 2023

In Favour of Both, Partially
Citation Number : TS-97-ITAT-2023(VIZ)-TP
Tax Payer : 3F Industries Limited

Income tax Appellate Tribunal

ITAT: Excludes comparables for market support and warranty support services, Cites functional dissimilarity

Feb 21, 2023

In Favour of Both, Partially
Citation Number : TS-96-ITAT-2023(Bang)-TP
Tax Payer : Technicolor India Pvt Ltd, (Formerly known as Thomson Holdings India Pvt Ltd)

Income tax Appellate Tribunal

ITAT: Excludes 9 comparables under SWD segment; Holds outstanding-receivables as international transaction

Feb 20, 2023

In Favour of Both, Partially
Citation Number : TS-1275-ITAT-2020(Bang)-TP
Tax Payer : Metric Stream Infotech (India) Pvt Ltd

Income tax Appellate Tribunal

ITAT: Upholds LIBOR based benchmarking for interest on AE-loan, Approves guarantee commission at 0.75%; Follows Everest Kento

Feb 20, 2023

In Favour of Assessee
Citation Number : TS-95-ITAT-2023(Mum)-TP
Tax Payer : Wockhardt Ltd

Income tax Appellate Tribunal

ITAT: Adopts LIBOR+2% as ALP interest rate for AE-loan, follows earlier order

Feb 20, 2023

In Favour of Both, Partially
Citation Number : TS-92-ITAT-2023(Ahd)-TP
Tax Payer : Soma Textiles & Industries Ltd

Income tax Appellate Tribunal

ITAT: Quashes TPO order and consequent assessment order being barred by limitation; Follows precedents

Feb 20, 2023

In Favour of Assessee
Citation Number : TS-93-ITAT-2023(Mum)-TP
Tax Payer : DSV Air & Sea Pvt. Ltd. [Successor to Panalpina World Transport (India) Pvt Ltd]

Income tax Appellate Tribunal

ITAT: Upholds assessee's RPM over TPO's TNMM qua distribution segment, deletes AMP adjustment

Feb 20, 2023

In Favour of Assessee
Citation Number : TS-94-ITAT-2023(Bang)-TP
Tax Payer : Acer India Private Limited

Income tax Appellate Tribunal

ITAT: Upholds ALP adjustment on interest free loan at LIBOR + 2% and on corporate guarantee at 0.5%; Follows precedents

Feb 17, 2023

In Favour of Revenue
Citation Number : TS-90-ITAT-2023(Mum)-TP
Tax Payer : Piramal Glass Ltd (earlier known as ‘Gujarat Glass Pvt Ltd’)

Income tax Appellate Tribunal

ITAT: Sets aside issue of MAM-selection; Assessee to prove rendition of various services by AEs

Feb 17, 2023

In Favour of Both, Partially
Citation Number : TS-91-ITAT-2023(HYD)-TP
Tax Payer : Zuari Cement Ltd

High Court

HC: Stays AO's intimation for appointment of independent valuer for Star India; Directs awaiting Special Bench order

Feb 17, 2023

In Favour of Assessee
Citation Number : TS-89-HC-2023(BOM)-TP
Tax Payer : Star India Private Limited

Income tax Appellate Tribunal

ITAT: Directs TPO to examine treatment of expenses in other years and consider inclusion in computing PLI

Feb 16, 2023

In Favour of Both, Partially
Citation Number : TS-1147-ITAT-2017(DEL)-TP
Tax Payer : Becton Dickinson India Pvt Ltd

Income tax Appellate Tribunal

ITAT: Deletes TP-adjustments qua customisation fee, interest on outstanding balances; Follows earlier orders

Feb 16, 2023

In Favour of Assessee
Citation Number : TS-88-ITAT-2023(Mum)-TP
Tax Payer : Oracle Financial Services Software Ltd. (Formerly known as I-flex Solutions Ltd)

Income tax Appellate Tribunal

ITAT: Cites inconsistency in authorities’ reasons to determine NIL ALP for intra-group services; Remits for fresh consideration

Feb 16, 2023

In Favour of Both, Partially
Citation Number : TS-87-ITAT-2023(Mum)-TP
Tax Payer : Hafele India Pvt Ltd

Income tax Appellate Tribunal

ITAT: Upholds corporate-guarantee as an international transaction; Restricts guarantee fee at 0.5% basis Greenply Industries

Feb 16, 2023

In Favour of Both, Partially
Citation Number : TS-86-ITAT-2023(Kol)-TP
Tax Payer : Tata Global Beverages Ltd

Income tax Appellate Tribunal

ITAT: Upholds SDT adjustment u/s 80IB qua inter-unit sale of chocolate

Feb 16, 2023

In Favour of Both, Partially
Citation Number : TS-85-ITAT-2023(Mum)-TP
Tax Payer : Jindal Drugs Pvt Ltd

Income tax Appellate Tribunal

ITAT: Holds TP-adjustment cannot be added to MAT book profits; Rejects use of multiple-year data

Feb 15, 2023

In Favour of Both, Partially
Citation Number : TS-84-ITAT-2023(Kol)-TP
Tax Payer : Normura Research Institute Financial Technologies India Private Limited (formerly known as Anshin Software Private Limited)

Income tax Appellate Tribunal