Success Stories – Transfer Pricing

CASE 1

Industry – Real Estate

Nature of Work : Income Tax (Delhi Tax Tribunal)

Work Description
Based on the arguments presented by Amicus, tax tribunal quashed the levy of penalty (u/s 271(1)(c) of the Income-tax Act, 1961) imposed by lower authorities.

Arguing Counsel: Ashutosh M Rastogi and team

CASE 2

Industry – Retail Industry

Nature of Work : Income Tax (Delhi Tax Tribunal)

Work Description
Amicus succeeded in quashing the demand and addition made by Assessing Officer (AO). The Tax Tribunal made following commendatory observations:-

  1. Assessing Officer has not given a proper opportunity to the assessee and merely granted 3 days for submitting voluminous evidence.
  2. Also, AO simply rejected books of accounts without satisfying the conditions in 145(3) which is not just and proper.
  3. The CIT(A) which is an appeal authority also failed to give any reason for non-admission of the additional evidence.

Thus, as no opportunity of hearing was provided, the tax tribunal quashed the demand and Assessment Order and remanded the matter.

Arguing Counsel:- Ashutosh M Rastogi and team

CASE 3

Industry – Information Technology

Nature of Work : Transfer Pricing Litigation (Delhi High Court)

Work Descriptio
Amicus approached Delhi High Court for indefinite extension of Stay of Demand for a leading IT company under High Court’s extra-ordinary Writ Jurisdiction. Amicus was successful in securing indefinite stay of demand from High Court and the client was saved from paying any additional money towards the demand stayed by the Tax Tribunal. The case was represented by Amicus Partner Ashutosh Mohan Rastogi assisted by a team of attorneys.

CASE 4

Industry – Information Technology

Nature of Work : Transfer Pricing Litigation (Income Tax Appellate Tribunal)

Work Description
Amicus succeeded in deleting the entire Transfer Pricing adjustment at Income Tax Appellate Level. Legal submissions comprised of Transfer Pricing and Economic Arguments against inappropriate benchmarking of Indian Captive’s profitability by Tax Department relying on a comparables’ set that comprised of companies owning software products and intangibles and having a different functional profile. The case was represented by Amicus Partner Ashutosh Mohan Rastogi assisted by a team of attorneys and professionals.

CASE 5

Industry – Packaging

Nature of Work : Tax Litigation (Delhi High Court)

Work Description
Amicus Attorneys successfully acted as the legal counsel for a Company securing tax relief from Delhi High Court in a corporate tax matter involving incorrect disallowance of loss to the tune of Rs 2 crores (approx USD 400,000) . Representation by Amicus, resulted in dismissal of the appeal by tax department with the High Court noting that “Department Appeal has no merit and appeal is dismissed”. The case was represented by Amicus Partner Ashutosh Mohan Rastogi assisted by a team of attorneys.

CASE 6

Industry – Automobiles

Nature of Work : Transfer Pricing Litigation (First Appellate Authority – Dispute Resolution Panel)

Work Description
Amicus succeeded in deleting the entire Transfer Pricing adjustment at the first appellate Level, i.e. Dispute Resolution Panel. The entire Transfer Pricing adjustment was deleted by the first appellate authority based on economic arguments/ comparability adjustment computation securing significant relief for the client. The decision also set a precedent for future years on allowability of a fair and just comparability adjustment for foreign exchange fluctuation risk faced by auto part manufacturers importing parts/ components from overseas.

CASE 7

Industry – Publishing

Nature of Work : Transfer Pricing Litigation (Transfer Pricing Officer)

Work Description
Amicus assisted a leading publishing house in defending international transactions pertaining to import of books, payment of royalty and guarantee fee to group companies. Based on the legal and economic submissions the client was saved from Transfer Pricing adjustment and further litigation.

CASE 8

Industry – Medical Equipment

Nature of Work : Transfer Pricing Planning and Documentation

Work Description
Transfer Pricing planning services covered Transfer Price setting and modelling for agency and distribution operations and provision of technical support services by Indian distributor of medical equipment to group companies in Japan and Singapore. Comprehensive supporting documentation including drafting of inter-company agreements was undertaken to defend inter-company pricing.

Advice was innovative as the Company was provided with a Transfer Pricing solution that focussed on price rather than profitability which is influenced by extraneous market forces.