Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
The ITAT upheld that payments to third-party clinical laboratories are pass-through costs and must be excluded from the assessee's cost base when computing operating margin for CSMM services; the assessee's adjusted margin was accepted at 13.71% (versus 10.34% prior). The Tribunal rejected benchmarking by reference to contract R&D companies and sustained deletion of additions based on improper comparables, and affirmed that marketing support services should not be compared with high-end contract R&D providers. Grounds of appeal by the Revenue were dismissed. The assessee's objection to the AO's exercise of jurisdiction under s.143(3) after 14 years was rejected.
The ITAT upheld that payments to third-party clinical laboratories are pass-through costs and must be excluded from the assessee's cost base when computing operating margin for CSMM services; the assessee's adjusted margin was accepted at 13.71% (versus 10.34% prior). The Tribunal rejected benchmarking by reference to contract R&D companies and sustained deletion of additions based on improper comparables, and affirmed that marketing support services should not be compared with high-end contract R&D providers. Grounds of appeal by the Revenue were dismissed. The assessee's objection to the AO's exercise of jurisdiction under s.143(3) after 14 years was rejected.
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