India: Transfer pricing framework in MAP agreement cannot extend to other transactions (court decision)

Transfer pricing officer cannot apply the terms of a MAP agreement with one jurisdiction to a taxpayer's transactions with another jurisdiction.

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April 23, 2025

The Delhi High Court on February 6, 2025, held that a transfer pricing framework agreed under the mutual agreement procedure (MAP) of the India-United States income tax treaty cannot be extended to similar transactions not covered by the MAP agreement.

The case is: AON Consulting Pvt. Ltd. (Successor Entity of AON Services (I) Pvt. Ltd.) v. Principal Commissioner of Income Tax – 1 and Ors., ITA 244/2024, High Court of Delhi (February 6, 2025)

The High Court concluded that the transfer pricing officer cannot apply the terms of a MAP agreement with one jurisdiction to a taxpayer's transactions with another jurisdiction.
 

For more information, contact a KPMG tax professional in India:

Gaurav Goyal | gauravgoyal5@kpmg.com

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