Transfer-pricing benchmarking and capital-receipt principles sustained taxpayer relief, while unsupported property-advance write-offs remained disallo...
Pre-existing operational debt disputes require genuine evidence, while undirected running-account payments may be appropriated on a first-in-first-out...
Agency in CNG distribution makes outlet operators commission agents, rendering taxable Business Auxiliary Service rather than purchasing goods for res...
Sections 92 to 92F operate as a self-contained code for arm's length price determination, so RBI or Government approvals for royalty rates do not create any presumption for income-tax purposes. The Court accepted that the assessee's comparability analysis was inadequate and that arm's length pricing required a detailed functional and economic examination, not a bare comparison of royalty percentages. The Tribunal's fixation of royalty at 1% of export sales was treated as a factual finding, with no perversity shown, and the disallowance of excess royalty was upheld. The assessee's acceptance of 1% in later assessment years was only an additional circumstance, not the principal basis of decision, and no substantial question of law arose under Section 260A.
Sections 92 to 92F operate as a self-contained code for arm's length price determination, so RBI or Government approvals for royalty rates do not create any presumption for income-tax purposes. The Court accepted that the assessee's comparability analysis was inadequate and that arm's length pricing required a detailed functional and economic examination, not a bare comparison of royalty percentages. The Tribunal's fixation of royalty at 1% of export sales was treated as a factual finding, with no perversity shown, and the disallowance of excess royalty was upheld. The assessee's acceptance of 1% in later assessment years was only an additional circumstance, not the principal basis of decision, and no substantial question of law arose under Section 260A.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4821 
Join Channel 
