Shell India Markets Private Limited was assessed by Indian tax authorities, who applied mark-ups to upstream technical services priced at cost under Production Sharing Contracts and disallowed certain downstream cost allocations. The Income Tax Appellate Tribunal ruled in favour of the taxpayer in November 2025, accepting that sovereign contractual restrictions prohibited profit mark-ups and that the cost-based pricing was arm's length ... Read more

Vodafone Idea paid royalties for use of the Vodafone and Essar brands in AY 2016–17. Indian tax authorities rejected the CUP benchmarking, set the arm's length rate at 0.25% using a Virgin Enterprises arrangement as a comparable, and raised a ₹1,205 crore adjustment. The Delhi Bench of India's Income Tax Appellate Tribunal deleted the adjustment in 2025, finding the authority's chosen comparable was itself a controlled related party transaction, disqualifying it as a valid CUP ... Read more

Netflix Entertainment Services India LLP, the Indian subsidiary of Netflix, was characterised by tax authorities as an entrepreneurial licensee rather than a limited risk distributor, with its distribution fee recast as royalty. The Income Tax Appellate Tribunal rejected this recharacterisation in 2025, ruling in favour of the taxpayer and upholding the transactional net margin method applied by Netflix India ... Read more

Sony India faced transfer pricing adjustments across multiple assessment years covering AMP expenses, royalty payments, and advisory services. India's Income Tax Appellate Tribunal held that neither the Bright Line Test nor intensity adjustments are permissible benchmarking methods under the Income Tax Act, deleting both AMP and royalty adjustments. The Tribunal also directed revisions to the comparables set for advisory services, deciding the case mostly in Sony's favour ... Read more

Hyatt International, a UAE resident, received fees under Strategic Oversight Services Agreements with Indian hotels. Indian tax authorities assessed these as royalties or PE profits. The Supreme Court of India, in 2025, dismissed Hyatt's appeals, affirming a fixed-place permanent establishment existed under Article 5(1) of the India-UAE DTA and that payments were taxable as business profits attributable to that PE ... Read more

Hitachi Solutions India excluded goodwill amortisation from operating costs in its transfer pricing comparability study, treating it as a non-operating capital item. The Indian tax authority included it, reducing the profit level indicator. The Chennai Income Tax Appellate Tribunal ruled in the taxpayer's favour in 2025, holding that goodwill amortisation arises from a capital transaction and must be excluded from operating expenses to preserve comparability under the transactional net margin method ... Read more

Hitachi Solutions India excluded goodwill amortisation from operating costs in its transfer pricing comparability study, treating it as a non-operating capital item. The Indian tax authority included it, reducing the profit level indicator. The Chennai Income Tax Appellate Tribunal ruled in the taxpayer's favour in 2025, holding that goodwill amortisation arises from a capital transaction and must be excluded from operating expenses to preserve comparability under the transactional net margin method ... Read more

Beam Global Spirits & Wine faced transfer pricing adjustments after Indian tax authorities applied the Bright Line Test to its advertisement, marketing, and promotion expenses, inferring a deemed international transaction with its foreign associate. The Delhi High Court upheld the ITAT's decision in 2025, ruling that an international transaction requires tangible evidence such as an agreement, and that high AMP spending alone cannot trigger a transfer pricing adjustment ... Read more

AON Consulting priced its US-related-party transactions under a US-India Mutual Agreement Procedure. The Indian tax authority sought to apply the same MAP framework to non-US controlled transactions. The Delhi High Court set aside the ITAT ruling, holding that a MAP agreement between two contracting states cannot substitute the statutory arm's length price determination under Section 92C for transactions outside the MAP's scope ... Read more

Cyient Limited issued bank guarantees to related parties, and the Indian tax authority applied a 1.90% arm's length guarantee fee based on bank rates, resulting in additional taxable income. The Income Tax Appellate Tribunal reduced the fee to 0.53%, finding that corporate guarantee fees should be significantly lower than external commercial borrowing rates. Letters of comfort were treated as equivalent to corporate guarantees and subject to the same reduced benchmark ... Read more

JCB India Ltd challenged a ₹166 crore transfer pricing adjustment on royalty payments to associated enterprises for AY 2017–18, arguing that MAP settlements and a subsequent APA should govern the arm's length rate. India's Income Tax Appellate Tribunal found that neither the MAP nor the APA covered the relevant assessment year or non-UK entities, and remanded the matter to tax authorities for fresh determination of the arm's length royalty rate ... Read more

Sabic India, an intra-group marketing services provider, used TNMM with a Berry ratio and cost-based profit level indicators to price controlled transactions. The tax authority rejected the method without reasons and applied an alternative other method. The Income Tax Appellate Tribunal overturned the assessment, and the Delhi High Court upheld that decision in 2024, finding the TPO had failed to justify rejecting TNMM used in prior years ... Read more

Hyatt International argued that no profit attribution to its Indian permanent establishment was warranted because the parent company had suffered global losses in the relevant year. The Full Bench of the Delhi High Court rejected this contention in 2024, holding that Article 7 of the tax treaty concerns only profits attributable to the PE itself, entirely independent of the enterprise's worldwide profitability ... Read more

Sony India Private Limited, a wholly owned subsidiary of Sony Corporation Japan, faced transfer pricing adjustments by Indian tax authorities who applied TNMM to benchmark distribution activities and used the bright-line test to separately benchmark advertising, marketing and promotion expenses. The Income Tax Appellate Tribunal Delhi Bench ruled mostly in favour of Sony India in 2024, remanding key comparability issues for re-examination ... Read more

Samsung India paid 8% royalties to its Korean parent under a technology licence agreement. Indian tax authorities disallowed the deductions, classifying Samsung India as a contract manufacturer. The Income Tax Appellate Tribunal overturned the assessment, and the Delhi High Court upheld that decision in 2024, confirming Samsung India operated as a full-fledged licensed manufacturer and that the royalty payments were at arm's length ... Read more

A US-based railway equipment manufacturer faced an Indian tax authority assessment concluding its wholly-owned Indian subsidiary constituted a permanent establishment. The High Court of Delhi ruled in favour of the taxpayer in 2024, holding that a subsidiary's mere existence does not establish a PE and that the treaty conditions for PE status were not satisfied on the actual facts of the case ... Read more

Mercer Consulting India paid a related party for administrative services, which were included in the cost base used to calculate its cost-plus remuneration for IT-enabled services. The Indian tax authorities disallowed these deductions, but the Income Tax Appellate Tribunal and the High Court of New Delhi ruled in 2024 that removing costs from the base without adjusting the recoverable amount would erode the tax base, deciding in favour of the taxpayer ... Read more

Toyota Kirloskar Motor challenged the separate benchmarking of royalty payments to its associated enterprises for FY 2018-19. The Indian tax authorities rejected entity-level TNMM, applying CUP instead and raising a transfer pricing adjustment of Rs. 279.84 crores. The Bangalore Income Tax Appellate Tribunal ruled mostly in favour of the taxpayer in January 2024, finding that royalty was sufficiently integrated with other transactions to justify aggregation under TNMM ... Read more

Asian Hotels Limited paid strategic, technical and management fees to Hyatt International-Southwest Asia Ltd under several agreements. Indian tax authorities classified part of these payments as royalties and found a permanent establishment in India. The Delhi High Court in 2023 set aside the royalty characterisation, holding the fees were consideration for services, not use of know-how, while largely upholding the permanent establishment determination ... Read more

Herbalife International India paid royalties and management fees to its US parent, HLI Inc., benchmarked using TNMM. The Indian tax authorities denied administrative service deductions and reduced royalty payments. The Tax Appellate Tribunal dismissed Herbalife's appeal, but the High Court found the Tribunal's evidence findings unsustainable and remanded the case for reexamination by the Income Tax Appellate Tribunal in 2023 ... Read more

A Swiss multinational sought automatic application of Most Favoured Nation clause benefits under India's tax treaties without a formal government notification. The Indian Supreme Court ruled in 2023 that MFN benefits under a DTAA or protocol only take effect after notification by the Government of India under Section 90(1) of the Income Tax Act, 1961, and do not integrate automatically into earlier treaties ... Read more

Auronext Pharma applied the CUP method to benchmark related-party purchase and sales transactions, but Indian tax authorities rejected it, substituting TNMM on the basis that the comparables were related-party transactions. The Income Tax Appellate Tribunal remanded the case in 2023, directing authorities to examine available unrelated-party data and determine whether the transactions met the arm's length standard under the CUP method ... Read more

A German software company's Indian subsidiary challenged whether transfer pricing comparability issues could be appealed to the High Court. India's Supreme Court reversed the 2018 Softbrands ruling, holding that High Courts may review Income Tax Appellate Tribunal arm's length price determinations under Section 260A, examining compliance with transfer pricing rules and any perversity in findings on a case-by-case basis ... Read more

Travelport Inc., a global distribution services provider, was assessed by Indian tax authorities on its full CRS booking revenue earned through hardware at travel agents' premises. The Tribunal attributed 15% of revenue to the Indian permanent establishment based on functions, assets, and risks, finding that remuneration paid to the Indian agent exceeded apportioned income. The Delhi High Court and Supreme Court upheld this outcome in favour of the taxpayer ... Read more

Mylan Pharmaceuticals, a pharmaceutical trading and services company, had deductions for advertising and promotional expenses partially disallowed by Indian tax authorities. After the Principal Commissioner overturned the assessment, the tax authority appealed. The Income Tax Appellate Tribunal ruled in favour of the taxpayer in December 2022, finding that the original assessing officer had conducted adequate inquiries and taken a permissible view, meaning the order could not be deemed erroneous ... Read more

Google India made payments to Google Ireland for AdWords technology licences without withholding tax, prompting Indian authorities to assess USD 224 million in unpaid withholding tax. After the Karnataka High Court remanded the case, India's Income Tax Appellate Tribunal ruled in 2022 that the payments did not constitute royalties under the Income Tax Act or the India-Ireland tax treaty, as no underlying copyright was transferred ... Read more

Akzo Nobel India claimed deductions for administrative services paid to a related entity in Singapore. Indian tax authorities disallowed the deduction, finding no evidence the services were actually rendered. The Income Tax Appellate Tribunal upheld the assessment, and in September 2022 the Delhi High Court dismissed Akzo Nobel's appeal, confirming the taxpayer had failed to discharge its burden of proof ... Read more

Amway India paid royalties to a foreign group company for FY 2013-2014. The Indian tax authorities challenged the payments, arguing AMP expenses created marketing intangibles warranting a transfer pricing adjustment. The Income Tax Tribunal had set aside the assessment, and the Delhi High Court upheld that decision in 2022, finding the rejection of comparable companies by the transfer pricing officer was based on conjecture ... Read more

Sulzer Tech India paid its Swiss parent for IT and support services using a cost-plus 5% methodology supported by a benchmark study. Indian tax authorities disallowed the full payment, arguing no benefit was received. The Income Tax Appellate Tribunal set aside the adjustment in 2022, finding the lower authorities were not justified in rejecting the evidence of services rendered and misapplied the benefit test under the cost-plus method ... Read more

Whirlpool of India, a subsidiary distributing Whirlpool products in India, faced a transfer pricing adjustment for FY 2016-17 after the tax authorities treated its advertising, marketing and promotion expenses as an international transaction benefiting other group companies. The Income Tax Appellate Tribunal set aside the assessment in 2022, finding no substantial evidence that the AMP expenses were incurred for the benefit of other group entities ... Read more

Olympus Medical Systems India, a subsidiary of Olympus Corp, reported losses in FY 2012–2013 and failed to provide audited financials of its associated enterprises during a transfer pricing audit. The Indian tax authority applied the Residual Profit Split Method to benchmark AMP expenses using a Bright Line Test. The Delhi Income Tax Appellate Tribunal ruled in 2022 that Olympus could not benefit from its own non-cooperation and upheld the authority's approach, remanding the matter for re-examination ... Read more

Adidas India Marketing faced tax authority adjustments for allegedly excessive advertising and marketing expenses benefiting the Adidas group, excessive royalty payments to related parties, and fees for technical services subject to withholding tax. The Delhi Income Tax Appellate Tribunal ruled predominantly in favour of Adidas in April 2022, restoring the first two issues to the tax authorities for fresh determination and setting aside the withholding tax adjustment entirely ... Read more

UPS Asia Group, a Singapore freight and logistics company, was assessed by Indian tax authorities as having a permanent establishment in India through its affiliate UPS India. The tribunal found that since UPS India was remunerated at arm's length under Article 9, no further profit attribution under Article 7 was warranted, and set aside the assessment in favour of the taxpayer ... Read more

An Indian subsidiary of Akzo Nobel paid fees to a Singapore group company for administrative support services and claimed a deduction of INR 19.4 million. The tax authority determined the arm's length price to be nil after the taxpayer failed to prove actual receipt of the services. The Income Tax Appellate Tribunal Delhi upheld the adjustment in 2022, confirming the burden of proof rests with the taxpayer ... Read more

Kellogg India Private Limited distributed Pringles products imported from its Singapore affiliate, which acted as a cost-plus intermediary. The company selected the Singapore entity as the tested party for benchmarking. Indian tax authorities rejected this approach, instead selecting Kellogg India as the tested party. The Mumbai Income Tax Appellate Tribunal ruled in favour of the taxpayer in February 2022, upholding the foreign affiliate as the appropriate tested party ... Read more

Synamedia Ltd., a digital pay-TV technology provider, was assessed by Indian tax authorities who treated intra-group software licence payments as royalties subject to withholding tax. The Bangalore Income Tax Appellate Tribunal disagreed, finding that the non-exclusive, non-transferable licence granted no proprietary interest in the copyright. Applying the Supreme Court's Engineering Analysis precedent, the Tribunal set aside the assessment in 2022 ... Read more

BMW India Financial Services received IT support services from its parent BMW AG, priced at cost plus a 5% markup. The Indian tax authorities disallowed the markup, citing no contractual basis. On appeal, the Income Tax Appellate Tribunal set aside the assessment, finding the 5% markup acceptable under international guidelines and EU Joint Transfer Pricing Forum guidance on intra-group low-value-adding services ... Read more

Times Infotainment Media Ltd advanced an interest-free loan to its overseas subsidiary to fund the acquisition of Virgin Radio UK shares. India's tax authority applied the CUP method to impute an arm's length interest rate, later revised by the Dispute Resolution Panel. The Mumbai Income Tax Appellate Tribunal ruled in favour of the taxpayer in August 2021, accepting that the loan was quasi-equity and not subject to arm's length interest imputation ... Read more

Sabic India Pvt Ltd provided marketing support services for the Sabic Group without holding title to inventories. The Indian tax authorities rejected TNMM in favour of the CUP method, issuing a transfer pricing adjustment. The Delhi Income Tax Appellate Tribunal set aside the assessment in 2021, finding that TNMM had been consistently accepted since 2009 and that authorities provided no valid justification for departing from it ... Read more

Dutch shareholders in Indian subsidiaries contested the 10% withholding tax rate applied to dividends, arguing the most-favoured-nation clause in the India-Netherlands tax treaty capped the rate at 5%. The Indian tax authorities disagreed. The India High Court ruled in 2021 in favour of the taxpayers, finding that the MFN clause required India to apply the lower 5% rate available under treaties with other OECD member states ... Read more

Indian tax authorities sought withholding tax on payments made by resident companies to foreign software suppliers, characterising them as royalties. The Supreme Court of India, in March 2021, held that such payments do not constitute royalties under applicable tax treaties, as no copyright interest is transferred. The court also ruled the 2012 domestic law amendment expanding the royalty definition could not be applied retroactively and was overridden by treaty provisions ... Read more

Redington India transferred its shareholding in a UAE subsidiary to a Cayman Islands step-down subsidiary without consideration, claiming the transfer was a gift exempt from capital gains tax. The Indian tax authorities disputed this, applying transfer pricing rules and the CUP method. The Madras High Court ruled mostly in favour of the taxpayer in December 2020, accepting the gift characterisation and the legitimacy of the tax planning structure ... Read more

ST Microelectronics Pvt. Ltd., an Indian subsidiary providing integrated circuit design and software development services to group companies, was assessed by the Transfer Pricing Officer who selected 13 comparables and computed a margin of 23.20%, resulting in a significant adjustment. The Income Tax Appellate Tribunal ruled in favour of the taxpayer in September 2020, upholding the arm's length nature of the transactions benchmarked using TNMM ... Read more

Samsung Heavy Industries' Mumbai project office was challenged by Indian tax authorities as constituting a permanent establishment. The Supreme Court of India ruled in favour of the taxpayer in 2020, finding that the office performed only liaison and coordination activities qualifying as preparatory and auxiliary under Article 5(4)(e) of the tax treaty, with no core project execution carried out in India ... Read more

An Indian auto parts manufacturer paid a 5% royalty to its Japanese parent for manufacturing know-how and applied TNMM as the most appropriate method. The Indian tax authorities challenged this, arguing the Profit Split Method was more appropriate. The Bangalore Income Tax Appellate Tribunal disagreed, finding the taxpayer contributed no unique intangibles and upheld TNMM, deciding in favour of Toyota Kirloskar Auto Parts in 2020 ... Read more

Gulbrandsen India, a chemicals manufacturer, switched from the internal CUP method to TNMM for pricing controlled transactions with affiliated enterprises. The Indian tax authorities challenged the change, arguing internal CUP was the most appropriate method. The Tax Tribunal sided with the taxpayer, and India's High Court upheld that decision in 2020, confirming TNMM as a valid most appropriate method based on the documentary evidence presented ... Read more

Fulford India imported active pharmaceutical ingredients from related group companies and applied the cost plus method to determine arm's length prices. The Indian tax authority challenged this, asserting the CUP method was more appropriate. The Income Tax Appellate Tribunal dismissed Fulford's appeal in 2019, upholding the CUP method and remitting the case for further adjustments to be examined by the assessing officer ... Read more

A Cyprus-based investment company held fully convertible debentures in Indian real estate firms, entitling it to a 4% coupon rate. The Indian tax authority sought to attribute notional interest income on unpaid amounts. The Income Tax Tribunal ruled mostly in favour of the taxpayer in August 2019, finding that accrued but uncollected interest could not be treated as taxable income under the applicable India-Cyprus tax treaty provisions ... Read more

An Indian subsidiary of Israeli parent Netafim paid royalties that the tax authority benchmarked at nil using the CUP method. The Income Tax Appellate Tribunal in 2019 dismissed the assessment, finding CUP had not been properly applied and confirming that TNMM was the most appropriate method for determining the arm's length price of intra-group royalty payments ... Read more

An Indian subsidiary applied TNMM to benchmark exports and imports of goods with related parties, arguing its net margins were comparable to third-party companies. The tax authority substituted CUP as the most appropriate method. The Income Tax Appellate Tribunal sided with the taxpayer in 2019, finding that FAR differences, customisation, and geographical variations made CUP unsuitable, and that TNMM should apply consistently across the controlled transactions ... Read more