Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
Contingency expenses, exempt-income disallowance, and royalty benchmarking: unsupported adjustments were deleted under consistent accounting and trans...
The ITAT ruled against the assessee regarding applicability of section 92BA in a power supply transaction case. The Tribunal held that claiming deduction u/s 80IA is not prerequisite for invoking section 92BA provisions. The assessee's captive thermal plant transactions with related parties required arm's length price determination. The TPO correctly used internal comparables (power supply to 14 independent consumers) rather than state utility rates for benchmarking. The average rate of Rs. 2.97 per unit charged to other units, compared to assessee's transfer price of Rs. 7.85 per unit based on GSEB tariff, demonstrated significant price variation. The ITAT rejected assessee's argument that state electricity board rates should be the benchmark, affirming TPO's use of arithmetic mean from actual third-party transactions.
The ITAT ruled against the assessee regarding applicability of section 92BA in a power supply transaction case. The Tribunal held that claiming deduction u/s 80IA is not prerequisite for invoking section 92BA provisions. The assessee's captive thermal plant transactions with related parties required arm's length price determination. The TPO correctly used internal comparables (power supply to 14 independent consumers) rather than state utility rates for benchmarking. The average rate of Rs. 2.97 per unit charged to other units, compared to assessee's transfer price of Rs. 7.85 per unit based on GSEB tariff, demonstrated significant price variation. The ITAT rejected assessee's argument that state electricity board rates should be the benchmark, affirming TPO's use of arithmetic mean from actual third-party transactions.
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