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 upheld the transfer pricing adjustment under Chapter X of the Income Tax Act, confirming that the foreign enterprise and its Indian PE constitute associated enterprises under Section 92A(2)(g). The PE was held to be a fixed place of business through which the HO's business is conducted, with no separation of capital or control. The Tribunal rejected the assessee's contention that the onshore agreement could be used as a comparable under the CUP method, finding it not at arm's length due to inadequate compensation. The presence of multiple persons and offices in India as PEs of the foreign enterprise was affirmed. The Tribunal upheld the TPO's determination of the ALP using the most appropriate method (TNMM), resulting in a transfer pricing adjustment of Rs. 22 Crores for offshore contract activities. The assessee's arguments challenging the PE status and adjustment were dismissed.
The ITAT upheld the transfer pricing adjustment under Chapter X of the Income Tax Act, confirming that the foreign enterprise and its Indian PE constitute associated enterprises under Section 92A(2)(g). The PE was held to be a fixed place of business through which the HO's business is conducted, with no separation of capital or control. The Tribunal rejected the assessee's contention that the onshore agreement could be used as a comparable under the CUP method, finding it not at arm's length due to inadequate compensation. The presence of multiple persons and offices in India as PEs of the foreign enterprise was affirmed. The Tribunal upheld the TPO's determination of the ALP using the most appropriate method (TNMM), resulting in a transfer pricing adjustment of Rs. 22 Crores for offshore contract activities. The assessee's arguments challenging the PE status and adjustment were dismissed.
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TaxTMI 
TaxTMI 
of 4918 
