Transfer pricing comparability requires functional alignment and permits working capital adjustment, while APA margins cannot govern non-covered years...
Treaty benefit, goodwill depreciation and hedging costs: export commission disallowed, while key business deductions and depreciation claims succeeded...
Undisclosed foreign asset classification requires an unexplained source; unrebutted affidavits and corroborative evidence defeated the Black Money Act...
The ITAT held that u/s 56(2)(viib), addition on premium amount in excess of FMV for issuing Optional Convertible Preference Shares to holding company is unsustainable. The NAV method for valuation is valid only for equity shares, not OCPS. FMV based on equity shares for conversion is justified. Allotting shares to 100% holding company benefits existing shareholders, defeating the purpose of deeming provision u/s 56(2)(viib). CIT(A)'s decision is upheld as it aligns with law and facts. Revenue's appeal is dismissed.
The ITAT held that u/s 56(2)(viib), addition on premium amount in excess of FMV for issuing Optional Convertible Preference Shares to holding company is unsustainable. The NAV method for valuation is valid only for equity shares, not OCPS. FMV based on equity shares for conversion is justified. Allotting shares to 100% holding company benefits existing shareholders, defeating the purpose of deeming provision u/s 56(2)(viib). CIT(A)'s decision is upheld as it aligns with law and facts. Revenue's appeal is dismissed.
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