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...
Rule 11UA(2) permits an assessee to choose either the NAV or DCF method for valuing unquoted equity shares. Where the NAV method is selected and the audited-financial-statement computation is not disputed, income-tax authorities may scrutinise the valuation only within that method and cannot substitute another approach; a share-premium addition based on rejecting the NAV valuation is therefore unsustainable. Income-tax authorities cannot sustain such an addition by determining alleged FEMA contraventions, particularly where no competent FEMA authority has alleged a violation. A right-share issue is not a colourable device without a demonstrated tax benefit or unaccounted-money element. The share-premium addition was directed to be deleted.
Rule 11UA(2) permits an assessee to choose either the NAV or DCF method for valuing unquoted equity shares. Where the NAV method is selected and the audited-financial-statement computation is not disputed, income-tax authorities may scrutinise the valuation only within that method and cannot substitute another approach; a share-premium addition based on rejecting the NAV valuation is therefore unsustainable. Income-tax authorities cannot sustain such an addition by determining alleged FEMA contraventions, particularly where no competent FEMA authority has alleged a violation. A right-share issue is not a colourable device without a demonstrated tax benefit or unaccounted-money element. The share-premium addition was directed to be deleted.
Note: It is a system-generated summary and is for quick reference only.
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