NTT India Private Limited Vs DCIT (ITAT Mumbai)
Summary: The appeal filed by NTT India Private Limited before the Mumbai Bench of the Income Tax Appellate Tribunal arose from the order of the learned CIT(A) dated 09.10.2024. The source heading identifies the appeal as ITA No. 6377/MUM/2024 for AY 2021-22, while paragraph 1 refers to the CIT(A)’s order as relating to AY 2020-21. That inconsistency is retained as appearing in the supplied order.
The principal dispute concerned a transfer pricing adjustment of INR 112,92,51,158/- relating to management fees paid by the assessee to its Associate Enterprise, NTT Asia Pacific Holdings Pte. Ltd. The assessee challenged the treatment of management fees as a separate class of transaction, rejection of its TNMM benchmarking, alleged failure of the authorities to apply the prescribed transfer pricing methodology, rejection of evidence concerning services and benefits received, treatment of certain services as shareholder or routine activities, and the DRP’s alternate disallowance under section 37. The assessee also relied upon earlier decisions of the Mumbai Tribunal in its own case.
The assessee submitted that it was engaged in trading networking products and providing related services including training, maintenance, installation, consultancy, facility management, sourcing and systems integration. It contended that the same management-fee issue had arisen in earlier years and had repeatedly been decided in its favour. The assessee relied, among other things, upon the Tribunal’s order for AY 2020-21 dated 05.05.2026. The Tribunal’s earlier AY 2020-21 decision is also independently available on TaxGuru as ITAT Deletes Management Fee TP Adjustment as Issue Was Already Decided in Earlier Years.
