Transfer pricing requires evidence for AMP transactions, functionally reliable comparables, and appropriate aggregation or Berry Ratio benchmarking me...
Revisionary jurisdiction cannot reopen share capital assessments where adequate inquiry supports a permissible view and no independent error is establ...
Reassessment jurisdiction fails where unverified portal information is aggregated without examining the taxpayer's explanation or relevance of entries...
Statutory sanction for delayed reassessment requires approval from the prescribed authority; approval by an inferior authority invalidates jurisdictio...
Transfer pricing margin adjustments require matching treatment of non-operating income and related costs, with comparability issues reconsidered on ev...
Preliminary-expense amortisation and MAT exempt-income adjustments prevailed, while trademark costs and managerial remuneration require fresh verifica...
Export valuation requires contemporaneous evidence; unrelated invoices cannot prove overvaluation, and dual penalties on firm and partner are impermis...
The Appellate Tribunal addressed the issue of characterizing interconnect utility charges (IUC) as 'Royalty' for TDS u/s 195 of the Income Tax Act and India-Japan DTAA. The revenue argued that the payments constituted 'Royalty' due to the use of process or equipment. However, the Tribunal found that no intellectual property rights were transferred to service recipients, thus Explanation 2 to section 9(1)(vi) did not apply. The Tribunal also noted that changes in the Act did not impact the DTAA definition of 'Royalty.' Citing precedents, the Tribunal held that the payments for services provided did not qualify as 'Royalty' under section 9(1)(vi) Explanation 5 & 6. Since the process was not secret and no exclusive rights were granted, it couldn't be classified as 'Royalty' under the DTAA. The Tribunal ruled in favor of the assessee, stating that the payments constituted business profits taxable in the resident country and not in India, as there was no permanent establishment in India.
The Appellate Tribunal addressed the issue of characterizing interconnect utility charges (IUC) as 'Royalty' for TDS u/s 195 of the Income Tax Act and India-Japan DTAA. The revenue argued that the payments constituted 'Royalty' due to the use of process or equipment. However, the Tribunal found that no intellectual property rights were transferred to service recipients, thus Explanation 2 to section 9(1)(vi) did not apply. The Tribunal also noted that changes in the Act did not impact the DTAA definition of 'Royalty.' Citing precedents, the Tribunal held that the payments for services provided did not qualify as 'Royalty' under section 9(1)(vi) Explanation 5 & 6. Since the process was not secret and no exclusive rights were granted, it couldn't be classified as 'Royalty' under the DTAA. The Tribunal ruled in favor of the assessee, stating that the payments constituted business profits taxable in the resident country and not in India, as there was no permanent establishment in India.
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