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...
Functional comparability governs software-service benchmarking: dissimilar companies are excluded, while related-party filters, margins and working-ca...
The ITAT upheld the disallowance of royalty payments made to an entity not holding the registered trademark, deeming such expenses not wholly and exclusively for business purposes and indicative of tax avoidance, thereby dismissing that ground of appeal. Conversely, the tribunal allowed the deduction of consultancy fees paid to unrelated professionals, recognizing these as necessary and bona fide business expenses for running the school. Additionally, the ITAT accepted the assessee's explanation regarding a typographical error in lease documentation and allowed the claim for additional rent, supported by substantial revenue growth and increased operational scale. Thus, the appeal was partly allowed, with disallowance of royalty payments sustained, while consultancy expenses and additional rent claims were permitted.
The ITAT upheld the disallowance of royalty payments made to an entity not holding the registered trademark, deeming such expenses not wholly and exclusively for business purposes and indicative of tax avoidance, thereby dismissing that ground of appeal. Conversely, the tribunal allowed the deduction of consultancy fees paid to unrelated professionals, recognizing these as necessary and bona fide business expenses for running the school. Additionally, the ITAT accepted the assessee's explanation regarding a typographical error in lease documentation and allowed the claim for additional rent, supported by substantial revenue growth and increased operational scale. Thus, the appeal was partly allowed, with disallowance of royalty payments sustained, while consultancy expenses and additional rent claims were permitted.
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