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...
CESTAT set aside the impugned order insofar as it held that royalty payments to a foreign related entity were includible in the transaction value of imported components under rule 10(1)(c) of the 2007 Valuation Rules. The Tribunal concluded the royalty related to domestically manufactured finished goods, was not a condition of sale of the imported goods, and therefore could not be added to assessable value; consequential imposition of penalty under s.114A of the Customs Act was unsustainable. The Tribunal further held the extended period of limitation could not be invoked because there was no evidence of suppression of facts with intent to evade duty. The appeal was allowed and the impugned order set aside.
CESTAT set aside the impugned order insofar as it held that royalty payments to a foreign related entity were includible in the transaction value of imported components under rule 10(1)(c) of the 2007 Valuation Rules. The Tribunal concluded the royalty related to domestically manufactured finished goods, was not a condition of sale of the imported goods, and therefore could not be added to assessable value; consequential imposition of penalty under s.114A of the Customs Act was unsustainable. The Tribunal further held the extended period of limitation could not be invoked because there was no evidence of suppression of facts with intent to evade duty. The appeal was allowed and the impugned order set aside.
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TaxTMI 
TaxTMI 
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