Transfer pricing comparability requires functional alignment and permits working capital adjustment, while APA margins cannot govern non-covered years...
Treaty benefit, goodwill depreciation and hedging costs: export commission disallowed, while key business deductions and depreciation claims succeeded...
Undisclosed foreign asset classification requires an unexplained source; unrebutted affidavits and corroborative evidence defeated the Black Money Act...
ITAT held that where the payee has declared the receipts and discharged tax liability, the payer cannot be treated as an assessee in default under s.201/201(1A); the AO must first ascertain default before invoking disallowance. Applying this principle, the Tribunal found the taxpayer's contract involved a 4% supervision margin payable to the contractor for construction of an institutional facility and, given the charitable context and non-commencement of the project, afforded the assessee the benefit of doubt. The AO was directed to treat only the 4% margin as fees chargeable under s.194J. Other administrative and allied payments were sustained. Grounds were accordingly partly allowed.
ITAT held that where the payee has declared the receipts and discharged tax liability, the payer cannot be treated as an assessee in default under s.201/201(1A); the AO must first ascertain default before invoking disallowance. Applying this principle, the Tribunal found the taxpayer's contract involved a 4% supervision margin payable to the contractor for construction of an institutional facility and, given the charitable context and non-commencement of the project, afforded the assessee the benefit of doubt. The AO was directed to treat only the 4% margin as fees chargeable under s.194J. Other administrative and allied payments were sustained. Grounds were accordingly partly allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4800
Join Channel
TaxTMI 
