Transfer pricing requires evidence for AMP transactions, functionally reliable comparables, and appropriate aggregation or Berry Ratio benchmarking me...
Revisionary jurisdiction cannot reopen share capital assessments where adequate inquiry supports a permissible view and no independent error is establ...
Reassessment jurisdiction fails where unverified portal information is aggregated without examining the taxpayer's explanation or relevance of entries...
Statutory sanction for delayed reassessment requires approval from the prescribed authority; approval by an inferior authority invalidates jurisdictio...
Transfer pricing margin adjustments require matching treatment of non-operating income and related costs, with comparability issues reconsidered on ev...
Preliminary-expense amortisation and MAT exempt-income adjustments prevailed, while trademark costs and managerial remuneration require fresh verifica...
Export valuation requires contemporaneous evidence; unrelated invoices cannot prove overvaluation, and dual penalties on firm and partner are impermis...
Non-reporting of an international transaction may attract penalty under section 271AA, but a bona fide belief based on reasonable cause can exclude liability where the transaction has no effective nexus with an Indian project office or permanent establishment, no related income is attributed to India, and the transaction is accepted at arm's length. The notes state that penalty for a Korean sale of raw materials to an Indian associated enterprise was deleted on this basis. They further explain that appellate enhancement cannot introduce transactions outside the scope of the original penalty proceedings. Enhancement relating to guarantee fees and trade affairs services was therefore unsustainable because initiation had concerned only the raw-material sale.
Non-reporting of an international transaction may attract penalty under section 271AA, but a bona fide belief based on reasonable cause can exclude liability where the transaction has no effective nexus with an Indian project office or permanent establishment, no related income is attributed to India, and the transaction is accepted at arm's length. The notes state that penalty for a Korean sale of raw materials to an Indian associated enterprise was deleted on this basis. They further explain that appellate enhancement cannot introduce transactions outside the scope of the original penalty proceedings. Enhancement relating to guarantee fees and trade affairs services was therefore unsustainable because initiation had concerned only the raw-material sale.
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