Author : Ashwath S Pai, Sameer and Surya, ASA
The appellant Samsung India Electronics Pvt. Ltd. (SIEL or Appellant) was a company primarily engaged in the business of manufacture and sale of consumer electronics and home appliances goods. The appellant company is a part of the Samsung group of companies and a wholly owned subsidiary of Samsung Electronics Co. Ltd. Korea (‘SEC’).
The Appellant incurred certain AMP expenditure during the year concerned and failed to disclose the same in Transfer pricing report. The Transfer Pricing Officer (‘TPO’) had determined the Arm’s Length Price (‘ALP’) of the transaction stating it as International Transaction with the help of Bright Line Test (‘BLT’).
Aggrieved by the same, the appellant had filed appeal before the First Appellate Authority and then subsequently before the Income Tax Appellate Tribunal (ITAT). ITAT had issued order in favour of the the Appellant and thereafter the Tax Department challenged this order before the Delhi High Court (Delhi HC).
Published in Taxmann
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