Transfer Pricing | Existence Of International Transaction Must Be Determined Before Benchmarking Analysis Is Commenced: Delhi HC
1 week, 6 days ago

Transfer Pricing | Existence Of International Transaction Must Be Determined Before Benchmarking Analysis Is Commenced: Delhi HC

Live Law  

The Delhi High Court has held that before the Income Tax Department commences transfer pricing benchmarking analysis of an assessee's international transactions, the very existence of such 'international transaction' must be determined. A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar, while dealing with the case of an Indian entity producing liquor for brands like Jim Beam, observed, “the commencement of a benchmarking analysis would have to necessarily be preceded by the Revenue identifying the existence of a transaction as defined and which undoubtedly constitutes a sine qua non. It referred to Maruti Suzuki India Ltd. vs. Commissioner of Income Tax where the High Court had negated the contention of the Revenue that the mere rendering of service by one party to another would constitute a transaction irrespective of whether the same was based on a mutual agreement or an arrangement and which would qualify the prescriptions provided in Section 92F of the Act. “We have no hesitation in observing that the existence of an international transaction cannot rest or be founded upon a mere surmise or conjecture,” the Court thus held and dismissed Revenue's appeal.

India International Court Transaction Expenditure Itat Ita Mere Existence Amp International Transaction Transfer Pricing Transfer Pricing Benchmarking Pricing Benchmarking Benchmarking Analysis Section 92F  hc  transfer  pricing  benchmarking  transaction  delhi  international  commenced  expenditure  ae  mere  incurred  held  amp  existence  court  determined

History of this topic

Transaction Value Is Not The Only Basis For Assessment Of Duty: CESTAT
1 month ago

Transaction Value Is Not The Only Basis For Assessment Of Duty: CESTAT

Live Law  

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal has stated that the transaction value is not the only basis for assessment of the duty. When rejecting the transaction value, the customs officer does not modify the transaction value but only rejects it as the assessable value for determination of the duty.” In this case, the assessee …

TPO's Role Is To Determine ALP Of International Transactions, Can't Act As AO To Probe Legitimacy Of Such Transactions: Delhi High Court
Trending News
1 month, 1 week ago

TPO's Role Is To Determine ALP Of International Transactions, Can't Act As AO To Probe Legitimacy Of Such Transactions: Delhi High Court

Live Law  

The Delhi High Court has made it clear that the role of a Transfer Pricing Officer is to conduct a transfer pricing analysis and determine the arm's length price of an assessee's international transaction and the TPO cannot act as an Assessing Officer to probe the legitimacy of such transactions. The question whether any expenditure has been incurred by the …

ALP Not Concerned With Commercial Expediency Of International Transaction, Assessee Reporting Loss Not Grounds To Deem ALP Nil: Delhi HC
1 month, 1 week ago

ALP Not Concerned With Commercial Expediency Of International Transaction, Assessee Reporting Loss Not Grounds To Deem ALP Nil: Delhi HC

Live Law  

The Delhi High Court has held that a Transfer Pricing Officer cannot compute the arm's length price of an assessee's international transactions as nil, merely because despite the services availed from such transactions, the assessee incurred a loss in business. It held, “The question whether the activities conducted by the Assessee ultimately resulted in a profit or loss, is not …

High Court Within Whose Jurisdiction AO Passes Assessment Order Has Jurisdiction To Entertain Appeal U/S 260A Income Tax Act: Delhi HC
1 month, 1 week ago

High Court Within Whose Jurisdiction AO Passes Assessment Order Has Jurisdiction To Entertain Appeal U/S 260A Income Tax Act: Delhi HC

Live Law  

The Delhi High Court has reiterated that only such High Court within whose jurisdiction the Assessing Officer passing an impugned assessment order is situated would have the jurisdiction to entertain an appeal under Section 260A of the Income Tax Act, 1961. It submitted that since the original assessment order was passed by the AO in Amritsar, therefore, Delhi High Court …

Transfer Pricing | Resolution Under Mutual Agreement Procedure Is By Consensus, Cannot Be Imposed Upon Assessee: Delhi HC
1 month, 1 week ago

Transfer Pricing | Resolution Under Mutual Agreement Procedure Is By Consensus, Cannot Be Imposed Upon Assessee: Delhi HC

Live Law  

The Delhi High Court has made it clear that a dispute with respect to arm's length price in a transfer pricing can be resolved under Mutual Agreement Procedure only by consent and negotiations between contracting parties. Thus, the question before the Court was whether it is apposite to use the framework agreed by competent authorities of the US and India …

Tax Weekly Round-Up [23rd December - 29th December 2024]
2 months, 3 weeks ago

Tax Weekly Round-Up [23rd December - 29th December 2024]

Live Law  

HIGH COURTS Bombay HC ITO Acted On Complete Change Of Opinion On Same Material With Intent To Review Assessment Order Passed By Him: Bombay HC Quashes Reopening Case Title: Imperial Consultants and Securities vs. Deputy CIT Case no. Amendment In Finance Act Can't Retrospectively Affect Vested Right Of Taxpayer To Adjudicate Settlement Application U/S 245: Calcutta HC Case Title: Pradeep …

Assessing Officer Not Required To Examine Commercial Expediency Of Transaction When Evaluating Assessee's Explanation U/S 68 Of IT Act: Delhi HC
3 months, 3 weeks ago

Assessing Officer Not Required To Examine Commercial Expediency Of Transaction When Evaluating Assessee's Explanation U/S 68 Of IT Act: Delhi HC

Live Law  

The Delhi High Court has made it clear that once an assessee offers explanation about nature and source of a credit transaction standing in its books, the burden of proof to show that such explanation is unsatisfactory shifts on the Assessing Officer.A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma further held that in evaluating the transaction so …

Once Issue Of Arm's Length Remuneration Settled By TPO, Question Of Ascertaining Existence Of PE Is Academic; Delhi High Court Quashes Reassessment Proceedings
9 months, 2 weeks ago

Once Issue Of Arm's Length Remuneration Settled By TPO, Question Of Ascertaining Existence Of PE Is Academic; Delhi High Court Quashes Reassessment Proceedings

Live Law  

The Delhi High Court, while quashing the reassessment proceedings initiated by the income tax department against the Caterpillar Group, held that once the issue of arm's length remuneration was settled by the Transfer Pricing Officer, the question of ascertaining the existence of a permanent establishment was academic.The bench of Justice Yashwant Varma and Justice Purushaindra. The Delhi High Court, while …

Direct Tax Cases Weekly Round-Up: 7 April To 13 April 2024
11 months ago

Direct Tax Cases Weekly Round-Up: 7 April To 13 April 2024

Live Law  

Delhi High Court Case Title: Agra Portfolio Pvt. Case Title: Saksham Commodities Limited Versus Income Tax Officer The Delhi High Court has held that a reopening or abatement would be triggered only upon the discovery of material that is likely to “have a bearing on the determination of the total income” and would have to be examined bearing in mind …

AO Is Not Clothed With Powers To Ascertain ALP Of Any International Transaction: Delhi High Court
11 months, 1 week ago

AO Is Not Clothed With Powers To Ascertain ALP Of Any International Transaction: Delhi High Court

Live Law  

The Delhi High Court has held that AO is not clothed with the powers to ascertain the Arm's Length Price of any international transaction.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the AO is not clothed with the powers to ascertain the ALP of any international transaction that is selected based on the transfer …

Direct Tax Cases Weekly Round-Up: 17 To 23 March 2024
11 months, 3 weeks ago

Direct Tax Cases Weekly Round-Up: 17 To 23 March 2024

Live Law  

Delhi High Court Case Title: National Association Of Software And Services Companies Versus Deputy Commissioner Of Income Tax Circle 2 The Delhi High Court has held that a 20% pre-deposit demand is not a precondition for consideration of a stay application during the pendency of the first appeal. Case Title: The Salem Urban Co-operative Bank limited Versus The Income Tax …

Delhi High Court Upholds ITAT’s Decision On Selection Of Comparables For Determination Of Arm’s Length Price Of An International Transaction
1 year, 4 months ago

Delhi High Court Upholds ITAT’s Decision On Selection Of Comparables For Determination Of Arm’s Length Price Of An International Transaction

Live Law  

The Delhi High Court had upheld the decision of the Income Tax Appellate Tribunal on the selection of comparables for the determination of the arm’s length price of an international transaction.The Bench of Justice Rajiv Shakdher and Justice Girish Kathpalia observed that the Tribunal not only followed the previous orders mentioned above to maintain consistency but also examined. The Delhi …

Claim That Investment In Shares Was A Capital Account Transaction, Non-Application Of Mind By AO: Delhi High Court Quashes Reassessment Notice
2 years, 1 month ago

Claim That Investment In Shares Was A Capital Account Transaction, Non-Application Of Mind By AO: Delhi High Court Quashes Reassessment Notice

Live Law  

The Delhi High Court has quashed the reassessment notice as the AO failed to apply his mind as to whether an investment in shares was a capital account transaction.The division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that the principal allegation against the assessee is that it purchased shares of an Indian company and that …

Tax Cases Weekly Round-Up: 13 November To 19 November 2022
2 years, 4 months ago

Tax Cases Weekly Round-Up: 13 November To 19 November 2022

Live Law  

Supreme Court Sec.194H Income Tax Act Attracted For 'Supplementary Commission' Earned By Travel Agents ; Airlines Liable To Deduct TDS : Supreme Court Case Title: Singapore Airlines Ltd. vs C.I.T., Delhi Citation: 2022 LiveLaw 959 The Supreme Court held that Section 194H of the Income Tax Act is attracted in the case of Supplementary Commission amounts earned by the travel …

Inland Haulage Charges Received By Shipping Companies Not Taxable As Business Profit: ITAT Mumbai
2 years, 7 months ago

Inland Haulage Charges Received By Shipping Companies Not Taxable As Business Profit: ITAT Mumbai

Live Law  

The Mumbai Bench of ITAT has reiterated that the activity of Inland Haulage is directly connected with the transportation of goods in international traffic and thus, Inland Haulage Charges are not taxable as business profit in India in view of Article 8 of the India-UAE DTAA. The Bench, consisting of Vikas Awasthy and Gagan Goyal, held that since the activity …

Inland Haulage Charges Received By Shipping Companies Not Taxable As Business Profit: ITAT Mumbai
2 years, 7 months ago

Inland Haulage Charges Received By Shipping Companies Not Taxable As Business Profit: ITAT Mumbai

Live Law  

The Mumbai Bench of ITAT has reiterated that the activity of Inland Haulage is directly connected with the transportation of goods in international traffic and thus, Inland Haulage Charges are not taxable as business profit in India in view of Article 8 of the India-UAE DTAA. The Bench, consisting of Vikas Awasthy and Gagan Goyal, held that since the activity …

Union Budget 2021: Global firms, Indian MNEs better off with predictable tax regime, transfer pricing certainty
4 years, 1 month ago

Union Budget 2021: Global firms, Indian MNEs better off with predictable tax regime, transfer pricing certainty

Firstpost  

The economy crippled by the pandemic is showing signs of a rebound. Global and Indian multinational enterprises while focussing on business want a predictable tax regime and often regard transfer pricing as a key risk for cross-border transactions and structures. It would also supplement India’s successful Advance Pricing Agreement programme and provide long-lasting transfer pricing certainty. The APA programme itself …

Relief in sight for MNCs as govt moves to expedite resolution to tax disputes
8 years, 11 months ago

Relief in sight for MNCs as govt moves to expedite resolution to tax disputes

India TV News  

Relief in sight for MNCs as govt moves to expedite resolution to tax disputes Aimed at reducing the number of tax disputes India is involved in with top multi-national companies, the government is now looking to expedite the resolution process and do so aggressively. New Delhi: Aimed at reducing the number of tax disputes India is involved in with top …

Vodafone wins transfer pricing tax dispute case
9 years, 5 months ago

Vodafone wins transfer pricing tax dispute case

The Hindu  

In a major relief to British telecom major Vodafone in the transfer pricing case, the Bombay High Court on Thursday ruled in its favour, setting aside a >tax demand of Rs. The court decision came as Vodafone challenged the order of the Income Tax Appellate Tribunal >which held last year that it structured the deal with Hutchison Whampoa Properties, a …

Relief for MNCs as Delhi High Court lays down rules regarding tax on advertisements [Read the Judgment]
10 years ago

Relief for MNCs as Delhi High Court lays down rules regarding tax on advertisements [Read the Judgment]

Live Law  

Addressing the issue of taxation of advertising and marketing spends by multinational companies; the Delhi High Court today laid down rules regarding the same. The dispute before the Court involved questions regarding applicability of transfer pricing rules, which apply to transactions between multinational companies and their Indian arm.The court decided that promoting and. The dispute before the Court involved questions …

FM takes transfer pricing route to rake in the moolah
12 years, 1 month ago

FM takes transfer pricing route to rake in the moolah

Firstpost  

If the capital-hungry govt falls for blackmail by global majors, it is sure to loose a huge amount of money. With the government scrambling for funds to fill the huge gaps in its finances, the income tax department seems to be training its guns on foreign companies in India over transfer pricing issues. According to the ET report today, the …

India has 3rd largest number of transfer pricing cases: E&Y
12 years, 7 months ago

India has 3rd largest number of transfer pricing cases: E&Y

Firstpost  

With about 3,500 disputes, India has the third largest number of pending cases related to transfer pricing in the world, says global consultancy E&Y. Currently, India has about 3,500 disputes related to transfer pricing pending at various authorities, as per data compiled by Ernst & Young from different parts of the world. E&Y noted that pending disputes on transfer pricing …

After Vodafone, will Budget 2012 change norms on taxing international deals?
13 years, 1 month ago

After Vodafone, will Budget 2012 change norms on taxing international deals?

Firstpost  

The APA mechanism will allow companies to enter into agreements with the tax authorities to prevent future disputes with regard to pricing of products and services for the purpose of cross-border trade between related entities Following the Vodafone tax saga, the government has come under increasing pressure to change taxation rules on international transactions, especially in areas of transfer pricing …

Discover Related