Transfer pricing comparability requires functional alignment and permits working capital adjustment, while APA margins cannot govern non-covered years...
Treaty benefit, goodwill depreciation and hedging costs: export commission disallowed, while key business deductions and depreciation claims succeeded...
Undisclosed foreign asset classification requires an unexplained source; unrebutted affidavits and corroborative evidence defeated the Black Money Act...
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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