Attachment and proclamation of sale of immovable property: limitation treated from financial year end; proclamation held within period, petition dismi...
Second Schedule attachment and validity of a post-notice mortgage: TRO cannot declare mortgage void ab initio; sale and appropriation allowed thereaft...
Limitation for final assessment under sections 144C and 153 treated jointly, resulting in quashing of timebarred assessment order and liberty to reviv...
Deductibility of settlement payments for securities law penalties and treatment of unexplained cash credits in share trading -- Tribunal upholds posit...
Threshold for allottee-initiated insolvency petitions in leasehold real estate upheld; petition admitted after possession letters deemed legally ineff...
Contravention of foreign exchange rules in crossborder diamond payments; appellate tribunal reduces one appellant's penalty for delay and proportional...
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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