Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
The HC partly allowed the appeal, holding that the Tribunal erred in upholding an ALP fixed by equating a corporate guarantee with bank guarantee fees; the Tribunal's reliance on average bank guarantee commissions was set aside and the matter remanded to the Tribunal for fresh adjudication, with directions to consider safe harbour principles and relevant precedent. The HC affirmed the Tribunal's conclusion under s.92B that deferred export receivables may attract transfer pricing adjustment. As to s.14A disallowance, the HC held the assessing officer must first establish applicability of s.14A before invoking Rule 8D(2), and remanded the issue for reconsideration in light of the assessee's audited financials.
The HC partly allowed the appeal, holding that the Tribunal erred in upholding an ALP fixed by equating a corporate guarantee with bank guarantee fees; the Tribunal's reliance on average bank guarantee commissions was set aside and the matter remanded to the Tribunal for fresh adjudication, with directions to consider safe harbour principles and relevant precedent. The HC affirmed the Tribunal's conclusion under s.92B that deferred export receivables may attract transfer pricing adjustment. As to s.14A disallowance, the HC held the assessing officer must first establish applicability of s.14A before invoking Rule 8D(2), and remanded the issue for reconsideration in light of the assessee's audited financials.
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TaxTMI 
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