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...
HC upheld assessee's claim that losses of eligible units under s.10A could be set off against profits of non-eligible units, following SC in Yokogawa. It held that payments to Sprint USA for IPLC services, for pre-2012 years, did not constitute "royalty" under s.9(1)(vi) or the India-USA DTAA, as the 2012 Explanations are substantive and not retrospective, and the contrary view in Verizon stands overruled to that extent. Consequently, disallowance under s.40(a)(i) was unsustainable, being discriminatory under Art. 26(3) of the DTAA. Miscellaneous income (employee loan interest, scrap sales) was held eligible for deduction under ss.10A/10B as business income. However, levy of interest under s.234D on excess refund was sustained against the assessee.
HC upheld assessee's claim that losses of eligible units under s.10A could be set off against profits of non-eligible units, following SC in Yokogawa. It held that payments to Sprint USA for IPLC services, for pre-2012 years, did not constitute "royalty" under s.9(1)(vi) or the India-USA DTAA, as the 2012 Explanations are substantive and not retrospective, and the contrary view in Verizon stands overruled to that extent. Consequently, disallowance under s.40(a)(i) was unsustainable, being discriminatory under Art. 26(3) of the DTAA. Miscellaneous income (employee loan interest, scrap sales) was held eligible for deduction under ss.10A/10B as business income. However, levy of interest under s.234D on excess refund was sustained against the assessee.
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TaxTMI 
TaxTMI 
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