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Transfer pricing and tax deductions upheld on established principles, while employee contributions and warranty provisions returned for fresh examinat...
Captive transfer pricing relies on industrial consumer tariffs, while genuine quotations can benchmark effluent treatment transfers under the Other Me...
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Commission payments to agents were allowable as business...
Commission expenditure linked to pharmaceutical marketing income qualifies as business deduction when recipient identity, genuineness and business purpose are established.
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Commission payments to agents were allowable as business expenditure where they were intrinsically linked to commission income earned from pharmaceutical companies for facilitating marketing and sales. The disallowance based on an assumption that payments related to direct sales to Government hospitals lacked factual support. Recipient details, tax deduction at source, banking-channel payments and recipients' income-tax returns established the identity of recipients, genuineness of payments and business purpose. With no evidence of fictitious payments, non-existent recipients or diversion back to the assessee, the expenditure satisfied the wholly and exclusively business-purpose test and the disallowance was deleted.
Commission payments to agents were allowable as business expenditure where they were intrinsically linked to commission income earned from pharmaceutical companies for facilitating marketing and sales. The disallowance based on an assumption that payments related to direct sales to Government hospitals lacked factual support. Recipient details, tax deduction at source, banking-channel payments and recipients' income-tax returns established the identity of recipients, genuineness of payments and business purpose. With no evidence of fictitious payments, non-existent recipients or diversion back to the assessee, the expenditure satisfied the wholly and exclusively business-purpose test and the disallowance was deleted.
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