Transfer pricing comparability requires functional alignment, reliable financial data, and careful review of working capital and receivables adjustmen...
Transfer pricing rules require benchmarking corporate guarantees and associated-enterprise advances, while invalid domestic-transaction adjustments ca...
The Delhi High Court held that the Indian establishment did not constitute a Fixed Place PE for the petitioner. The court noted that the premises in Noida and Varanasi did not meet the criteria of a "virtual projection" or complete takeover for conducting core business activities. The impugned notices u/s 147/148 lacked evidence to establish a Fixed Place PE. The court emphasized that the Indian subsidiary's activities were "preparatory" or "auxiliary" and not core business functions. The respondents failed to prove that the Indian subsidiary was a mere conduit for the petitioner. The court quashed the reassessment proceedings and notices u/s 148, while keeping open the issue of whether the Delhi office constitutes a PE. The transfer of the petitioner's PAN jurisdiction was also quashed.
The Delhi High Court held that the Indian establishment did not constitute a Fixed Place PE for the petitioner. The court noted that the premises in Noida and Varanasi did not meet the criteria of a "virtual projection" or complete takeover for conducting core business activities. The impugned notices u/s 147/148 lacked evidence to establish a Fixed Place PE. The court emphasized that the Indian subsidiary's activities were "preparatory" or "auxiliary" and not core business functions. The respondents failed to prove that the Indian subsidiary was a mere conduit for the petitioner. The court quashed the reassessment proceedings and notices u/s 148, while keeping open the issue of whether the Delhi office constitutes a PE. The transfer of the petitioner's PAN jurisdiction was also quashed.
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