ITAT Ahmedabad Deletes ₹3.88 Crore Transfer Pricing Adjustment, Upholds TNMM Consistency

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 27 May held that in the absence of any change in facts or functional profile, tax authorities must consistently follow transfer pricing positions accepted in earlier years, and deleted a transfer pricing adjustment of Rs.3.88 crore in the case of Inductotherm (India) Pvt. Ltd. Vice-President Dr. B.R.R. Kumar and Judicial Member T.R. Senthil Kumar rejected the Revenue's attempt to replace the Transactional Net Margin Method...

Partner Cannot Claim Deduction On Interest Paid For Capital Invested In Firm: Kerala High Court

The Kerala High Court on 20 May held that a partner cannot claim deduction under Section 36(1)(iii) of the Income Tax Act for interest paid on funds borrowed and contributed as capital to a partnership firm, since the borrowed capital was not used for the partner's own business. A Division Bench of Justices Devan Ramachandran and Basant Balaji dismissed the appeal filed by Alice Arun Thomas and upheld the order of the Income Tax Appellate Tribunal (ITAT), Cochin Bench. It held: "The provisions...

ALP Of Intra-Group Services Cannot Be Fixed At Nil Once Receipt Of Services Is Proven: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 27 May held that tax authorities cannot determine the arm's length price (ALP) of intra-group services at nil merely on a subjective perception of benefit once the taxpayer proves receipt of services and substantiates them with evidence. Vice-President Dr. B.R.R. Kumar and Judicial Member T.R. Senthil Kumar allowed an appeal by Roquette India Pvt. Ltd. and deleted transfer pricing adjustments for Assessment Years 2017–18 and...

ITAT Ahmedabad Grants Relief To Milacron India, Says CSR Donations May Qualify For Section 80G Deduction

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 27 May held that tax authorities cannot deny a deduction under Section 80G of the Income Tax Act merely because a company made the donation to fulfil its Corporate Social Responsibility (CSR) obligations. Vice-President Dr. B.R.R. Kumar and Judicial Member T.R. Senthil Kumar partly allowed an appeal filed by Milacron India Private Limited for Assessment Year 2020-21 and remanding the matter to the Assessing Officer for fresh...

ITAT Delhi Allows PNB Housing Finance's CSR Deduction Claim, Deletes ₹3.36 Crore Penalty On Cash EMI Repayments

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has granted relief to PNB Housing Finance Ltd. by allowing its claim for deduction in respect of eligible CSR-related donations and deleting a ₹3.36 crore penalty imposed for accepting cash EMI repayments from borrowers. A bench of Judicial Member Satbeer Singh Godara and Accountant Member Naveen Chandra passed the order while deciding a batch of appeals filed by the housing finance company for assessment years 2017-18 to 2020-21. The...

Per Diem Received By EY Employee During UK Assignment Taxable Only In UK, Not India: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted a ₹17.25 lakh addition made in the hands of an employee deputed to the United Kingdom, holding that ₹16.17 lakh received as per-diem during the overseas assignment was taxable, if at all, in the UK and not in India. Per diem is a daily allowance received by the employee during the his UK assignment. A bench of Judicial Member Vikas Awasthy and Accountant Member Brajesh Kumar Singh allowed the appeal filed by Sachin Saxena...

FTS Receipts Of Thai Company Not Taxable Under India-Thailand DTAA's Residuary Clause: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that Fee for Technical Services (FTS) received by Thailand-based Denso International Asia Co. Ltd. from its Indian group companies cannot be taxed in India under the residuary clause of the India-Thailand Double Taxation Avoidance Agreement (DTAA). A bench comprising Judicial Member Vikas Awasthy and Accountant Member Renu Jauhri allowed the assessee's appeal for AY 2021-22 and deleted an addition of ₹17.28 crore made by the...

Supreme Court Grants IT Dept. Liberty To File HC Appeal In Google Ireland ₹116 Crore Tax Dispute

The Supreme Court on Thursday declined to entertain the Income Tax Department's challenge to a Karnataka High Court judgment dated June 3, 2025, which had quashed assessment orders passed against Google Ireland for AYs 2009-10 and 2010-11.The Court held that the Revenue must first pursue the available intra-court appeal before the High Court. A Bench of Justices Aravind Kumar and Prasanna B. Varale dismissed the Revenue's Special Leave Petition, holding that an intra-court appeal against the...

ITAT Ahmedabad Deletes ₹20 Crore+ 14A Disallowance Against Axis Bank, Bars Mechanical Use of Rule 8D

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 20 May held that disallowance under Section 14A of the Income Tax Act cannot be made by mechanically invoking Rule 8D unless the Assessing Officer first records dissatisfaction with the taxpayer's own computation of expenditure relatable to exempt income. Judicial Member Sanjay Garg and Accountant Member Annapurna Gupta allowed the appeal filed by Axis Bank Limited and directed deletion of the disallowance made under Section...

ITAT Bangalore Allows 80P Deduction On Interest Income Earned From Co-Operative Bank Deposits

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) on 20 May held that a co-operative credit society is entitled to deduction under Section 80P of the Income Tax Act on interest income earned from deposits placed with co-operative banks, as the income remains attributable to its business of providing credit facilities to members. A single-member Bench comprising Vice-President Shri Prashant Maharishi also held that transactions with nominal members do not disentitle the society...

ITAT Delhi Deletes ₹99.50 Crore Addition Against Baker Hughes, Finds No Permanent Establishment In India

On 27 May, the New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) held that Section 44BB of the Income Tax Act could not be invoked to tax offshore supply receipts in the absence of a Permanent Establishment (PE) in India and deleted an addition of Rs.99.50 crore made against Baker Hughes Energy Technology UK Ltd. Judicial Member Vikas Awasthy and Accountant Member Renu Jauhri observed: “The burden of establishing existence of a PE rests upon the Revenue. Not a single piece of...

ITAT Delhi Remands Cargill India's Intra-Group Services TP Dispute To TPO

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has remanded transfer pricing adjustments relating to intra-group services received by Cargill India Pvt. Ltd., after observing that the Arm's Length Price (ALP) of various services had been determined at nil without discussing the evidence produced by the taxpayer. A bench comprising Judicial Member Vimal Kumar and Accountant Member S. Rifaur Rahman and partly allowed cross-appeals filed by Cargill India Pvt. Ltd. and the Revenue for...