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 assessee trust claimed depreciation on assets, but the documents like balance sheet, income and expenditure account, and depreciation chart were not signed by auditors, chairman or accountant. The issue of depreciation claim requires verification of records to determine if assets were considered for application of income earned. Therefore, the matter was restored to the Assessing Officer to verify records, allow depreciation benefit u/s 11 after granting reasonable opportunity of hearing to the assessee. Regarding payment to a specified person, there is no provision to add advance given to income. Relying on a case, it was held that when money advanced for an agreement was returned with interest after cancellation, it cannot be treated as violation of Section 13(1)(c). Hence, this ground was allowed. Additions on account of interest-free advances given to various persons were confirmed. It was held that a mere book entry cannot be income unless income has actually resulted. The reduction in income was part of an agreement for a long-term managing agency arrangement, not a gift. Considering the facts and legal position, the additions were upheld.
The assessee trust claimed depreciation on assets, but the documents like balance sheet, income and expenditure account, and depreciation chart were not signed by auditors, chairman or accountant. The issue of depreciation claim requires verification of records to determine if assets were considered for application of income earned. Therefore, the matter was restored to the Assessing Officer to verify records, allow depreciation benefit u/s 11 after granting reasonable opportunity of hearing to the assessee. Regarding payment to a specified person, there is no provision to add advance given to income. Relying on a case, it was held that when money advanced for an agreement was returned with interest after cancellation, it cannot be treated as violation of Section 13(1)(c). Hence, this ground was allowed. Additions on account of interest-free advances given to various persons were confirmed. It was held that a mere book entry cannot be income unless income has actually resulted. The reduction in income was part of an agreement for a long-term managing agency arrangement, not a gift. Considering the facts and legal position, the additions were upheld.
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