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 HC upheld the ITAT's decision affirming the arm's length price (ALP) determination for power supplied by a captive power plant (CPP) to non-eligible units using the internal comparable uncontrolled price (CUP) method. The court emphasized that the assessee's CPP, established primarily for self-consumption and cost savings, differs fundamentally from commercial power generators and State Electricity Boards (SEBs). Consequently, ALP cannot be benchmarked against SEB supply rates to distribution companies. The HC relied on the Electricity Act provisions granting CPPs open access rights and regulatory exemptions, reinforcing that CPP transactions reflect mutually agreed rates distinct from SEB tariffs. The ruling disapproved reliance on external CUPs or precedents inconsistent with current statutory frameworks. The revenue's appeal was dismissed, validating the internal CUP method as the most appropriate, robust, and reliable approach for transfer pricing of CPP power sales under the Income Tax Act and associated rules.
The HC upheld the ITAT's decision affirming the arm's length price (ALP) determination for power supplied by a captive power plant (CPP) to non-eligible units using the internal comparable uncontrolled price (CUP) method. The court emphasized that the assessee's CPP, established primarily for self-consumption and cost savings, differs fundamentally from commercial power generators and State Electricity Boards (SEBs). Consequently, ALP cannot be benchmarked against SEB supply rates to distribution companies. The HC relied on the Electricity Act provisions granting CPPs open access rights and regulatory exemptions, reinforcing that CPP transactions reflect mutually agreed rates distinct from SEB tariffs. The ruling disapproved reliance on external CUPs or precedents inconsistent with current statutory frameworks. The revenue's appeal was dismissed, validating the internal CUP method as the most appropriate, robust, and reliable approach for transfer pricing of CPP power sales under the Income Tax Act and associated rules.
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