Condonation of Delay: directoral disputes and pending company proceedings can constitute reasonable cause, allowing a belated return to be treated as ...
Revisionary jurisdiction under section 263 upheld; faceless assessments subject to revision when AO fails requisite enquiries, remitted for fresh asse...
Limited scope of processing under section 143(1): enhancement without show cause is unsustainable; remand for residency, taxation and TDS verification...
Transfer pricing comparables must rest on reliable, internally consistent financial data: MSL Driveline was excluded because its annual report and financial statements conflicted on related party transactions, and the threshold was treated as crossed. Under TNMM, the persistent loss filter turns on operating profit, not profit before tax, and a company with profit in one relevant year is not a persistent loss-maker; Bharat Gears Ltd. and JMT Auto Ltd. were therefore to be included. In a capital-intensive manufacturing business, depreciation differences may warrant adjustment if they materially affect margins. Transfer pricing adjustment is confined to AE transactions, not entity-level non-AE dealings. An intimation under section 143(1) issued after notice under section 143(2) lacked jurisdiction, so the adjustments were deleted.
Transfer pricing comparables must rest on reliable, internally consistent financial data: MSL Driveline was excluded because its annual report and financial statements conflicted on related party transactions, and the threshold was treated as crossed. Under TNMM, the persistent loss filter turns on operating profit, not profit before tax, and a company with profit in one relevant year is not a persistent loss-maker; Bharat Gears Ltd. and JMT Auto Ltd. were therefore to be included. In a capital-intensive manufacturing business, depreciation differences may warrant adjustment if they materially affect margins. Transfer pricing adjustment is confined to AE transactions, not entity-level non-AE dealings. An intimation under section 143(1) issued after notice under section 143(2) lacked jurisdiction, so the adjustments were deleted.
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