Transfer pricing comparables and operating income principles applied to software development services, with exclusions, inclusions, and tax credit ver...
Transfer pricing on performance guarantees and overdue receivables deleted where warranty obligations were embedded and working capital adjustment alr...
The HC held that a writ petition can be entertained at the show cause notice stage where the notice is alleged to be without jurisdiction, and rejected the objection to maintainability on that basis. It further held that confiscation proceedings under Section 130 of the Act, 2017 cannot be initiated before determination of tax liability under Sections 73 or 74, and that a notice under Section 130 cannot rest on an alleged breach of record-keeping requirements under Section 35 alone. The impugned show cause notice and consequential confiscation order were therefore quashed, with liberty to the department to proceed afresh in accordance with law and the refund claim left open.
The HC held that a writ petition can be entertained at the show cause notice stage where the notice is alleged to be without jurisdiction, and rejected the objection to maintainability on that basis. It further held that confiscation proceedings under Section 130 of the Act, 2017 cannot be initiated before determination of tax liability under Sections 73 or 74, and that a notice under Section 130 cannot rest on an alleged breach of record-keeping requirements under Section 35 alone. The impugned show cause notice and consequential confiscation order were therefore quashed, with liberty to the department to proceed afresh in accordance with law and the refund claim left open.
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