News
Bombay High Court Upholds Aggregation Approach for Benchmarking International Transactions in Transfer Pricing
01 Apr 2026
- DMD Advocates
- Matter Reporting
Tetra Pak India Pvt Ltd — TS-264-HC-2026(BOM)-TP
Tetra Pak India Pvt Ltd (the “Assessee”), engaged in the manufacture and sale of packaging machines, systems, and straws, adopted an aggregation approach for benchmarking 13 categories of international transactions with its associated enterprises under the Transactional Net Margin Method (“TNMM”). The Transfer Pricing Officer (“TPO”) proposed adjustments in respect of these transactions and challenged this methodology. The Assessee’s position was accepted by the Dispute Resolution Panel (“DRP”) and affirmed by the Income Tax Appellate Tribunal (“ITAT”), following which the Revenue appealed to the Bombay High Court. The matter was heard by a Division Bench comprising Justice Suman Shyam and Justice Shyam C. Chandak.
The Bombay High Court dismissed the Revenue’s appeal. The Court noted that the DRP had specifically held that the Assessee’s aggregation approach should not be rejected and that the transfer pricing analysis ought to be conducted on that basis, a finding affirmed by the ITAT. Placing reliance on the ruling of the Bombay High Court in the case of Cummins India Ltd (which was upheld by the Hon’ble Supreme Court), the Court held that no substantial question of law arose on the facts warranting its interference and dismissed the appeal as devoid of merit.
Fereshte Sethna (Founder & Managing Partner, Mumbai) and Mrunal Parekh (Partner) appeared for Tetra Pak India Private Limited.
