Facts and Contentions
Suzuki Powertrain India Limited ("SPIL") is a joint
venture between Suzuki Motor Corporation and Maruti Suzuki India
Limited ("MSIL"/"the taxpayer") with a
shareholding of 70% and 30% respectively. On 29 January 2013, a
scheme for amalgamation of SPIL and taxpayer was approved by the
High Court with effect from 1 April 2012.
During the course of assessment proceeding, On 22 January 2016,
the Transfer Pricing Officer ("TPO") passed an order u/s
92CA(3) of the Income tax Act, 1961, determining the Arm's
Length Price ("ALP") of royalty at 3% and thereby making
an upward adjustment of INR 78.97 crores in respect of the royalty
paid by the SPIL.
On 11 March 2016, Assessing Officer after considering the order
of TPO passed a draft assessment order in the name of SPIL
(amalgamated with MSIL) wherein the total income of the SPIL has
been increased by INR 78.97 to ensure that the international
transaction of payment of royalty to its Associated
