Revenue neutrality in domestic related-party loans can require deletion of interest transfer pricing adjustments after domestic-transaction verificati...
Pre-enactment land-sale agreements escape stamp-duty value substitution where substantial banking-channel consideration was received before Section 43...
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The ITAT held that the assessee, providing limited logistics and administrative services without inventory holding or significant value addition, qualifies as a low-risk distributor. The Tribunal accepted the assessee's application of the Berry ratio for determining the ALP in the distribution segment, rejecting the AO/TPO's adjustment based on PLI under TNMM. It was directed that cost of goods be excluded from the denominator while computing PLI. Consequently, adjustments made by the AO/TPO in both distribution and manufacturing segments were deleted. Regarding interest under section 234A, the AO was instructed to verify if the return was filed within the extended deadline under CBDT Circular No.1/2022; if so, no interest would be leviable. Grounds 4 to 8 raised by the assessee were allowed, with the interest claim partly allowed for statistical purposes.
The ITAT held that the assessee, providing limited logistics and administrative services without inventory holding or significant value addition, qualifies as a low-risk distributor. The Tribunal accepted the assessee's application of the Berry ratio for determining the ALP in the distribution segment, rejecting the AO/TPO's adjustment based on PLI under TNMM. It was directed that cost of goods be excluded from the denominator while computing PLI. Consequently, adjustments made by the AO/TPO in both distribution and manufacturing segments were deleted. Regarding interest under section 234A, the AO was instructed to verify if the return was filed within the extended deadline under CBDT Circular No.1/2022; if so, no interest would be leviable. Grounds 4 to 8 raised by the assessee were allowed, with the interest claim partly allowed for statistical purposes.
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