Nikon India Pvt. Ltd., Gurgaon Vs DCIT, Circle- 3(1), Gurgaon

Last updated: 16 December 2020

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Quick Summary

This Income Tax Appellate Tribunal case involves Nikon India Pvt. Ltd. appealing against an adjustment made by the Assessing Officer (AO) to their total income for the assessment year 2011-12. The core of the dispute centres on the AO's adjustment of INR 4,30,85,529 to the arm's length price (ALP) of Advertisement, Marketing, and Promotion (AMP) expenditure, using an intensity approach.

Court :
ITAT New Delhi

Brief :
This appeal is filed by the assessee against the order dated 10/07/2017 passed by the Assessing Officer u/s 144C(3) read with Section 143(3) of the Income Tax Act, 1961 for Assessment Year 2011-12.

Citation :
ITA No. 5146/DEL/2017 ( A.Y 2011-12)

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: ‘I-2’ NEW DELHI
BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER
AND
MS SUCHITRA KAMBLE, JUDICIAL MEMBER
ITA No. 5146/DEL/2017 ( A.Y 2011-12)

Nikon India Pvt. Ltd.
Plot No. 71,
SEctdor-32, Institutional Area,
Gurgaon, Haryana
PIN 122001
AACCN5100F
(APPELLANT)

DCIT
Circle-3(1)
2nd Floor, HSIIDC Building,
Vaniyjaya Nikunj, Udyog
Vihar, Gurgaon, Haryana
(RESPONDENT)

Appellant by Sh. Vishal Kalra, Adv & Sh.
Ankit Sahni, Adv
Respondent by Sh. Mritunjoy Baranwal, Sr.
DR

Date of Hearing 06.11.2020
Date of Pronouncement 14.12.2020

ORDER

PER SUCHITRA KAMBLE, JM

This appeal is filed by the assessee against the order dated 10/07/2017 passed by the Assessing Officer u/s 144C(3) read with Section 143(3) of the Income Tax Act, 1961 for Assessment Year 2011-12.

2. The grounds of appeal are as under:-

1. That on the facts and circumstances of the case and in law, the AO has erred in assessing the total income of the Appellant under section 143(3) read with section 144C and 254 of the Act, for the relevant assessment year at INR 16,66,11,280 as against the returned income of INR 12,35,25,748.

2. That on the facts and circumstances of the case and in law, the AO / Transfer Pricing Officer (“TPO”) have erred in making an adjustment of INR 4,30,85,529 to the arm’s length price (“ALP”) of (alleged) international transaction of Advertisement, Marketing and Promotion (“AMP”) expenditure holding the same to be not at ALP, applying the intensity approach.

To know more in details find the attachment file

FAQ :

The main issue is the adjustment made by the Assessing Officer to Nikon India's Advertisement, Marketing, and Promotion (AMP) expenditure, challenging its arm's length price (ALP).

The Assessing Officer made an adjustment of INR 4,30,85,529 to the arm's length price of the AMP expenditure.

This appeal is for the assessment year 2011-12.

The Assessing Officer applied the intensity approach to determine the adjustment to the arm's length price of the AMP expenditure.

The returned income was INR 12,35,25,748, and the Assessing Officer assessed the total income at INR 16,66,11,280.