The Tax Publishers2020 TaxPub(DT) 1798 (Del-HC) : (2020) 424 ITR 0162

INCOME TAX ACT, 1961

Section 92C

Tribunal was not justified in remanding matter to AO/TPO for determining ALP of alleged international transaction involving AMP expenses, when in fact, revenue was unable to show that there existed an international transaction between assessee and its AE in the first place.

Transfer pricing - Computation of ALP - Revenue did not show existence of international transaction between assessee and its AE in first place -

Issue was as regards determination of ALP of international transaction involving AMP expenses, wherein revenue failed to show existence of an international transaction between assessee and the AE. Held: In a series of decisions including Maruti Suzuki Ltd., Bausch & Lomb Eye care (India) Pvt. Ltd., and Honda Siel Power Products Ltd., importance is emphasized for Revenue having to first discharge the initial burden upon it with regard to showing the existence of an international transaction between assessee and AE. Tribunal was not justified in remanding matter to AO/TPO for determining ALP of alleged international transaction involving AMP expenses, when in fact, revenue was unable to show that there existed an international transaction between assessee and its AE in the first place.

Followed:Honda Siel Power Products Ltd. v. Dy. CIT (2016) 237 Taxman 304 (Del) : 2015 TaxPub(DT) 5376 (Del-HC), Bausch & Lomb Eyecare (India) (P) Ltd. v. Addl. CIT (2016) 381 ITR 227 (Del) : 2015 TaxPub(DT) 5476 (Del-HC), Maruti Suzuki India Ltd. v. CIT (2016) 381 ITR 0117 (Del) : 2015 TaxPub(DT) 5219 (Del-HC), Maruti Suzuki India Ltd. v. Addl. CIT (2010) 328 ITR 210 (Del) : 2010 TaxPub(DT) 2073 (Del-HC)

REFERRED : LE Passage to India Tour & Travels (P) Ltd. v. Dy. CIT (2017) 391 ITR 207 (Del) : 2017 TaxPub(DT) 0425 (Del-HC), Valvoline Cummins (P) Ltd. v. Dy. CIT [I.T.A. No. 1566/Ahd/2016, 1562/Ahd/2016, 1565/Ahd/2016, 1567/Ahd/2016, 1568/Ahd/2016, 1569/Ahd/2016 And Ors., dt. 13-12-2019], Sony Ericsson Mobile Communications India (P) Ltd. v. CIT (2015) 374 ITR 118 (Del) : 2015 TaxPub(DT) 1653 (Del-HC), M/s. Valvoline Cummins (P) Ltd. v. DCIT 2019 TaxPub(DT) 0569 (Del-Trib), Valvoline Cimmins (P) Ltd. v. Dy. CIT [I.T.A. No. 608/DEL/2015, dt. 31-3-2015], LG. Electronics India (P.) Ltd. v. Asstt. CIT (2013) 22 ITR (Trib.) 1 : 2013 TaxPub(DT) 0634 (Del-Trib)

FAVOUR : In assessee's favour

A.Y. :

IN THE DELHI HIGH COURT

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