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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ITAT held that Revenue failed to establish foreign assessee's permanent establishment (PE) in India for software-based information security solutions income. The burden of proving PE existence lies initially on Revenue per E-Funds IT Solution Inc. precedent. Tax authorities provided insufficient material evidence regarding agency agreements between parties. Email records and travel itineraries were deemed inadequate proof. The Tribunal distinguished Daikin Industries Ltd., noting the Indian entity there acted as distributor, unlike present case. Reliance on Rolls Royce Singapore was misplaced as that involved factual DAPE findings requiring remand. ITAT concluded the Indian entity merely provided marketing support services, not constituting dependent agent PE, ruling in favor of foreign assessee.
ITAT held that Revenue failed to establish foreign assessee's permanent establishment (PE) in India for software-based information security solutions income. The burden of proving PE existence lies initially on Revenue per E-Funds IT Solution Inc. precedent. Tax authorities provided insufficient material evidence regarding agency agreements between parties. Email records and travel itineraries were deemed inadequate proof. The Tribunal distinguished Daikin Industries Ltd., noting the Indian entity there acted as distributor, unlike present case. Reliance on Rolls Royce Singapore was misplaced as that involved factual DAPE findings requiring remand. ITAT concluded the Indian entity merely provided marketing support services, not constituting dependent agent PE, ruling in favor of foreign assessee.
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