Tata Consumer Products Limited vs. JCIT (IN SITU) & DCIT, Cir -4

Parties Involved

Facts Summary

These cross appeals are preferred by the assessee and Revenue against the order of the Commissioner of Income-tax (Appeals), Kolkata-22 (hereinafter referred to as the 'Ld. CIT(A)') even dated 30.05.2023 for the AY 2010-11 & 2011-12 respectively. The appeals involve issues related to the classification of corporate guarantee transactions as international transactions under section 92B of the Act and the disallowance of expenses under section 14A read with Rule 8D of the Rules. The assessee had provided a corporate guarantee on behalf of its Associated Enterprises, and the Revenue had made additions to the assessee's income based on disallowances under section 14A.…

Legal Issues

• 1. Whether the corporate guarantee given by the appellant on behalf of its Associated Enterprises falls within the definition of international transactions under section 92B of the Act.
• 2. Whether the order of the AO/Transfer Pricing Officer not following the binding order of Tribunal in ITA No.1854/KOL/2016 and 1899/KOL/2017 is valid.
• 3. Whether the deletion of addition of ₹1,80,74,565/- as made by the AO under section 14A read with Rule 8D of the Rules is valid.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

Similar Judgements

• Shapoorji Pallonji and Company Private Limited vs Deputy Commissioner of Income Tax

• National Engineering Industries Limited vs. DCIT, Circle 5(1), Kolkata

• M/s Mahabhadra Constructions Ltd. Vs DCIT

  Delhi Bench ‘E’, New Delhi benchAY 2014-15Allowed

• Bloomsbury Publishing India Private Ltd. vs. Addl.CIT

  Delhi Bench benchAY 2016-17Allowed

• DCIT-CC 5(4) Mumbai Vs. Awas Developers & Construction Private Limited

• DCIT, Circle-5(1), Kolkata Vs. Hindusthan National Glass And Industries Limited

  Kolkata ‘C’ Bench benchAY 2011-12Dismissed