Supervisory permanent establishment requires project-wise duration and qualifying construction nexus; offshore supplies and salary reimbursements rema...
Transfer-pricing comparability permits fresh objections and filters where software service comparables are functionally unsuitable for arm's-length pr...
Territorial rendering requirement excludes China-based management and consultancy services from fees for technical services under the India-China DTAA...
Section 263 revision was sustained for fresh examination of interest capitalisation because the actual use of external commercial borrowings for working capital was not demonstrated and the Assessing Officer had made no enquiry; a board resolution stating the borrowing purpose was insufficient. Revision could not, however, reopen matters already examined or direct unfocused verification. Directions concerning tax deduction on interest paid to Government authorities were deleted as they amounted to a fishing or roving enquiry without an identified assessment error. Re-examination of miscellaneous expenditure and service-provider charges was also deleted because the Assessing Officer had examined the evidence and adopted a plausible view, including on the treaty's make available clause.
Section 263 revision was sustained for fresh examination of interest capitalisation because the actual use of external commercial borrowings for working capital was not demonstrated and the Assessing Officer had made no enquiry; a board resolution stating the borrowing purpose was insufficient. Revision could not, however, reopen matters already examined or direct unfocused verification. Directions concerning tax deduction on interest paid to Government authorities were deleted as they amounted to a fishing or roving enquiry without an identified assessment error. Re-examination of miscellaneous expenditure and service-provider charges was also deleted because the Assessing Officer had examined the evidence and adopted a plausible view, including on the treaty's make available clause.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4891 
