Revenue neutrality in domestic related-party loans can require deletion of interest transfer pricing adjustments after domestic-transaction verificati...
ITAT held that the foreign subsidiary incorporated under UAE law, notwithstanding 100% shareholding by the assessee, cannot be treated as the assessee's proprietorship and its income cannot be taxed as proprietary concern; the Tribunal consistently decided this issue in favour of the assessee. The Tribunal also upheld that electric fittings and installations constitute part of plant and machinery and allowed depreciation at 15% accordingly. Further, payments made to settle a patent infringement dispute were characterised as compensatory commercial expediency and not a penalty or expenditure for a purpose prohibited by law; the disallowance under s.37(1) was deleted and the assessee's related grounds were allowed.
ITAT held that the foreign subsidiary incorporated under UAE law, notwithstanding 100% shareholding by the assessee, cannot be treated as the assessee's proprietorship and its income cannot be taxed as proprietary concern; the Tribunal consistently decided this issue in favour of the assessee. The Tribunal also upheld that electric fittings and installations constitute part of plant and machinery and allowed depreciation at 15% accordingly. Further, payments made to settle a patent infringement dispute were characterised as compensatory commercial expediency and not a penalty or expenditure for a purpose prohibited by law; the disallowance under s.37(1) was deleted and the assessee's related grounds were allowed.
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