Revisability of return invalidation communications under tax procedure affirmed, impugned non revisional finding quashed and matter remitted for fresh...
Transferable duty credit scrips validity and bona fide transferee entitlement to exemption upheld where scrips were subsisting at import, appeals allo...
Classification of knocked down motor vehicle component imports: Notification benefit denied because items are standalone non kit parts requiring subst...
The dominant issue was whether the arm's-length price of intra-group management service fees could be determined at Nil and whether the "Other Method" was the appropriate MAM. The assessee's cost-based benchmarking using internal mark-up policy (5% for support and 10% for managerial/technical services) was held consistent with OECD principles for low value-adding services and supported by contemporaneous documentation and cost allocation workings; consequently, Nil ALP could not be inferred merely by alleging no benefit or services. The corroborative TNMM, with the assessee's net cost-plus margin within the interquartile range of comparables, further validated arm's-length conditions. The Nil ALP adjustment was deleted, with a direction to verify the benchmarking in the TPSR applying "Other Method" as primary. - ITAT
The dominant issue was whether the arm's-length price of intra-group management service fees could be determined at Nil and whether the "Other Method" was the appropriate MAM. The assessee's cost-based benchmarking using internal mark-up policy (5% for support and 10% for managerial/technical services) was held consistent with OECD principles for low value-adding services and supported by contemporaneous documentation and cost allocation workings; consequently, Nil ALP could not be inferred merely by alleging no benefit or services. The corroborative TNMM, with the assessee's net cost-plus margin within the interquartile range of comparables, further validated arm's-length conditions. The Nil ALP adjustment was deleted, with a direction to verify the benchmarking in the TPSR applying "Other Method" as primary. - ITAT
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