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...
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 
of 4918 
