INCOME TAX ACT, 1961

Section 92CA

Transfer pricing - Computation of ALP - Upward adjustment of notional guarantee fees -

Issue was as regards validity of upward adjustment made of notional guarantee fees. Assessee contended that issue was covered by decision of Tribunal in its own case for assessment year 2008-09. Held: Tribunal relied upon judgment passed by Mumbai Tribunal in case of Siro Clinpharm Pvt. Ltd. whereby, upward adjustment made on notional guarantee fees was deleted. Thus, taking into consideration, judgment passed by Co-ordinate Bench in assessee's own case on identical issue, no reason was found to deviate from decision and observation in its support made therein. Thus, AO was directed to delete upward adjustment of Rs. 10,77,945 for notional guarantee fees.

Followed:Siro Clinpharm (P) Ltd. v. Dy. CIT (2016) 134 DTR 1 (Mumbai) : 2016 TaxPub(DT) 1898 (Mum-Trib) Meghmani Organics Ltd. v. Asstt. CIT [I.T.A. No.: 592/Ahd/2013, dt. 30-11-2016]

REFERRED : Krishnaswamy S. Pd. & Anr. v. UOI & Ors. (2006) 281 ITR 305 (SC) : (2006) 151 Taxman 286 (SC) : 2006-TIOL-12-SC-IT : 2006 TaxPub(DT) 1378 (SC) U.P.S.R.T.C. v. Imtiaz Hussain 2006 (1) SCC 380 Shaikh Salim Haji Abdul Khayumsab v. Kumar & Ors. 2006 (1) SCC 46 (SC), Mohammed Gazi v. State of M.P. & Ors. 2000 (4) SCC 342 Gursharan Singh & Ors. etc. v. New Delhi Municipal Committee & Ors. 1996 (2) SCC 459 (SC) CIT v. Sun Engineering Works (P) Ltd. (1992) 198 ITR 297 (SC) : (1992) 64 Taxman 442 (SC) : 1992 TaxPub(DT) 1434 (SC) Smt. Tarulata Shyam & Ors. v. CIT (1977) 108 ITR 345 (SC) : 2002-TIOL-991-SC-IT-LB : 1977 TaxPub(DT) 0899 (SC) H.H. Maharajadhiraja Madhav Rao Jiwaji Raoscindia Bahadur v. UOI AIR 1971 SC 530 DIT v. New Skies Satellite BV TS-64- HC-DEL (2016) : 2016-TII-06-HC-DEL-INTL : 2016 TaxPub(DT) 1115 (Del-HC), CIT v. Ansal Land Mark Township (P) Ltd. (2015) 377 ITR 635 (Del) : (2015) 234 Taxman 825 (Del) : (2015) 61 taxmann.com 45 (Delhi) : 2015-TIOL-2026-HC-DEL-IT : 2015 TaxPub(DT) 3482 (Del-HC) M/s. Vodafone India Service (P) Ltd. v. UOI 2013 TaxPub(DT) 2842 (Bom-HC) CIT v. EKL Appliances Ltd. (2012) 345 ITR 241 (Del) : (2012) 209 Taxman 200 (Del) : (2012) 24 taxmann.com 199 (Delhi) : 2012-TII-01-HC-DEL-TP : 2012 TaxPub(DT) 2071 (Del-HC), CIT v. Sunbeam Auto Ltd. (2009) 332 ITR 167 (Del) : 2009-TIOL-552-HC-DELIT : 2011 TaxPub(DT) 0088 (Del-HC) CIT v. BR. Constructions (1993) 202 ITR 222 (AP) : (1994) 73 Taxman 473 (AP) : 1993 TaxPub(DT) 0467 (AP-HC) CIT v. Visakhapatnam Port Trust (1983) 144 ITR 146 (AP) : (1983) 15 Taxman 72 (AP) : 1983 TaxPub(DT) 1556 (AP-HC) Ostime (Inspector of Taxes) v. Australian Mutual Provident Society (1960) 39 ITR 210 (HL) : 1960 TaxPub(DT) 0062 (House of Lords) Micro Ink Ltd. v. Addl. CIT (2016) 175 TTJ 8 (Ahd) : 2015-TII-520-ITAT-AHM-TP : 2015 TaxPub(DT) 5007 (Ahd-Trib) Hindalco Industries Ltd. v. Addl. CIT 2015 TaxPub(DT) 4287 (Mum-Trib) Advanta India Ltd. v. Asstt. CIT 2015-TII-294-ITAT-BAN : 2015 TaxPub(DT) 5382 (Bang-Trib) Prolifics Corporation Ltd. v. DCIT 2015 TaxPub(DT) 5041 (Hyd-Trib) Rajeev Kumar Agarwal v. Addl. CIT (2014) 249 ITD 363 (Agra) : 2014-TIOL-289-ITAT-AGRA : 2014 TaxPub(DT) 2460 (Agra-Trib) Bharti Airtel Ltd. v. Addl. CIT 2014 TaxPub(DT) 1899 (Del-Trib) Everest Kanto Cylinder Ltd. v. Dy. CIT (2012) 34 taxmann.com 19 (Mum) Channel Guide India Ltd. v. Asstt. CIT (2012) 139 ITR 49 (Mum) : (2012) 25 taxmann.com 25 (Mum.) : 2012-TII-139-ITAT-MUM-INTL : 2013 TaxPub(DT) 0056 (Mum-Trib) Mahindra & Mahindra Ltd. v. Dy. CIT 2012-TII-70-ITAT-Mum : 2014 TaxPub(DT) 1869 (Mum-Trib) Asstt. CIT v. Genom Biotech (P.) Ltd. (2012) 21 taxman.com 315 (Mum.) : 2012 TaxPub(DT) 2478 (Mum-Trib) M/s. Four Soft Ltd. v. Dy. CIT (2011) 142 TTJ 358 (Hyd) : 2011-TII-92-ITAT-HYD-TP : 2012 TaxPub(DT) 2534 (Hyd-Trib) JKT. Fabrics (P.) Ltd. v. Dy. CIT (2005) 4 SOT 84 (Mum.) : 2005 TaxPub(DT) 1569 (Mum-Trib)

FAVOUR : In assessee's favour

A.Y. : 2009-10

INCOME TAX ACT, 1961

Section 10B read with Section 155(11A)

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