Political contribution deductions require genuine transactions; banking records and party registration alone cannot defeat evidence of accommodation e...
Post-death GST liability permits fresh proceedings against legal representatives, while discontinued-business recovery remains limited to the inherite...
Non-confirmation of FEMA seizure prevents adjudicators from overriding pending appellate findings on recorded reasons and suspected foreign asset hold...
The ITAT held that the revenue authority's transfer pricing segmentation and revenue-based cost allocation were unsustainable. The Tribunal found the taxpayer's core trading activities and attendant after-sales services to be functionally integrated and interdependent, with many services performed with assistance of its associated enterprise (foreign principal), and therefore incapable of reliable segregation for separate benchmarking. The TPO's unilateral bifurcation and allocation by gross revenue, without analysing functions, risks and manpower, was quashed. Consequently the TP adjustment on ground No. 3 was disallowed and the taxpayer's appeal allowed, with directions that no revenue-based segmental allocation be applied absent a proper functional and risk analysis.
The ITAT held that the revenue authority's transfer pricing segmentation and revenue-based cost allocation were unsustainable. The Tribunal found the taxpayer's core trading activities and attendant after-sales services to be functionally integrated and interdependent, with many services performed with assistance of its associated enterprise (foreign principal), and therefore incapable of reliable segregation for separate benchmarking. The TPO's unilateral bifurcation and allocation by gross revenue, without analysing functions, risks and manpower, was quashed. Consequently the TP adjustment on ground No. 3 was disallowed and the taxpayer's appeal allowed, with directions that no revenue-based segmental allocation be applied absent a proper functional and risk analysis.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
