Tax authority's substitution of projected figures with actuals overturned; original acquisition valuation upheld; transfer pricing issues remitted for...
Beneficial owner held liable for differential customs duty; royalties added under Rule 10(1)(c); confiscation, penalties under s.111(m), s.114A, s.112...
ITAT allowed the assessee's appeal. Additions on account of cash and jewellery seized during search were quashed as the assets were not found at premises of the AOP or its members and the consortium itself was not a legal entity. Additions for alleged bogus purchases from three suppliers were deleted, the Tribunal holding that payments were routed through banking channels, recognized in an arbitral award, and advances written off due to delay could not be treated as non-genuine. Disallowance of expenses was also set aside since payments were by cheque with TDS and duly accounted in the AOP's financials. The TP adjustment, based on an improper application of CUP without comparables and contrary to earlier directions, was held unsustainable and the corresponding addition was set aside.
ITAT allowed the assessee's appeal. Additions on account of cash and jewellery seized during search were quashed as the assets were not found at premises of the AOP or its members and the consortium itself was not a legal entity. Additions for alleged bogus purchases from three suppliers were deleted, the Tribunal holding that payments were routed through banking channels, recognized in an arbitral award, and advances written off due to delay could not be treated as non-genuine. Disallowance of expenses was also set aside since payments were by cheque with TDS and duly accounted in the AOP's financials. The TP adjustment, based on an improper application of CUP without comparables and contrary to earlier directions, was held unsustainable and the corresponding addition was set aside.
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