Transfer-pricing treatment of ITeS margins excludes pass-through tax recoveries and separate delayed-receivables interest after working-capital adjust...
Capacity-utilisation adjustments under TNMM can neutralise substantiated COVID-related idle costs where underutilisation materially affects profitabil...
TNMM functional comparability requires excluding rice manufacturers from a pure Basmati rice trader's benchmark and recognising operating export recei...
Working-capital adjustment subsumes delayed-receivable effects in TNMM benchmarking of captive software-development services, avoiding separate notion...
Transfer-pricing comparability requires exclusion of financially illogical super-profit comparables and correction of unsupported annual-report and ma...
Charitable character assessment preserves Section 80G approval despite inclusive spiritual teachings and incidental religious expenditure within the s...
Penalty proceedings for cash-loan acceptance require assessment proceedings and recorded Assessing Officer satisfaction; absent these, the proceedings...
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The High Court examined whether the nature of functions performed by foreign principals in favor of the assessee would constitute "fees for technical services" u/s 9(1)(vii), thereby requiring tax deduction at source (TDS) u/s 195 and leading to disallowance u/s 40(a)(i) for non-deduction. The Court held that the obligation to deduct TDS u/s 195 arises only if the reimbursement of remittances falls within the scope of Section 9, which introduces legal fictions for income accrued in India. The Court found that the appellants failed to establish that the remitted amounts fell within the ambit of technical, managerial, or consultative services rendered. Consequently, no substantial question of law arose, and the addition u/s 40(a)(i) was not sustainable.
The High Court examined whether the nature of functions performed by foreign principals in favor of the assessee would constitute "fees for technical services" u/s 9(1)(vii), thereby requiring tax deduction at source (TDS) u/s 195 and leading to disallowance u/s 40(a)(i) for non-deduction. The Court held that the obligation to deduct TDS u/s 195 arises only if the reimbursement of remittances falls within the scope of Section 9, which introduces legal fictions for income accrued in India. The Court found that the appellants failed to establish that the remitted amounts fell within the ambit of technical, managerial, or consultative services rendered. Consequently, no substantial question of law arose, and the addition u/s 40(a)(i) was not sustainable.
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