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...
Appellants challenged TP adjustments on interest on receivables and management fees paid for intra-group services. Regarding receivables, HC relied on precedents holding that outstanding receivables beyond a period cannot be re-characterized as loans if impact is factored in working capital and pricing. On management fees, HC held TPO cannot doubt commercial expediency or disallow expenditure incurred for business purposes unless unrelated parties would not undertake it. TPO cannot restructure transactions unless economic substance differs from form or arrangements differ from those adopted by independent enterprises acting rationally. Expenditure on brand promotion cannot be disallowed if adequately compensated. Decision favored appellants.
Appellants challenged TP adjustments on interest on receivables and management fees paid for intra-group services. Regarding receivables, HC relied on precedents holding that outstanding receivables beyond a period cannot be re-characterized as loans if impact is factored in working capital and pricing. On management fees, HC held TPO cannot doubt commercial expediency or disallow expenditure incurred for business purposes unless unrelated parties would not undertake it. TPO cannot restructure transactions unless economic substance differs from form or arrangements differ from those adopted by independent enterprises acting rationally. Expenditure on brand promotion cannot be disallowed if adequately compensated. Decision favored appellants.
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