Transfer pricing requires evidence for AMP transactions, functionally reliable comparables, and appropriate aggregation or Berry Ratio benchmarking me...
Revisionary jurisdiction cannot reopen share capital assessments where adequate inquiry supports a permissible view and no independent error is establ...
Reassessment jurisdiction fails where unverified portal information is aggregated without examining the taxpayer's explanation or relevance of entries...
Statutory sanction for delayed reassessment requires approval from the prescribed authority; approval by an inferior authority invalidates jurisdictio...
Transfer pricing margin adjustments require matching treatment of non-operating income and related costs, with comparability issues reconsidered on ev...
Preliminary-expense amortisation and MAT exempt-income adjustments prevailed, while trademark costs and managerial remuneration require fresh verifica...
Export valuation requires contemporaneous evidence; unrelated invoices cannot prove overvaluation, and dual penalties on firm and partner are impermis...
The ITAT held that no transfer pricing adjustment could be made on interest-free loans advanced to associated enterprises where the assessee had not commenced business, had capitalised all expenditure as work-in-progress, and had earned no income during the year. On those facts, there was no factual basis to infer profit shifting from the assessee to its holding company or group entities, and the proposed interest imputation under transfer pricing principles was unsustainable. The Tribunal also accepted that the related contention on specified domestic transaction treatment was covered by the same reasoning. The transfer pricing adjustment was deleted and the appeal was allowed.
The ITAT held that no transfer pricing adjustment could be made on interest-free loans advanced to associated enterprises where the assessee had not commenced business, had capitalised all expenditure as work-in-progress, and had earned no income during the year. On those facts, there was no factual basis to infer profit shifting from the assessee to its holding company or group entities, and the proposed interest imputation under transfer pricing principles was unsustainable. The Tribunal also accepted that the related contention on specified domestic transaction treatment was covered by the same reasoning. The transfer pricing adjustment was deleted and the appeal was allowed.
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