Reopening of assessment cannot rest solely on an audit party's opinion; reassessment under Section 147/148 is impermissible and power of revision shou...
Tested party selection: functional analysis identified the least complex unit as the appropriate tested party, altering the transfer pricing adjustmen...
Additional evidence bearing directly on the transfer pricing adjustment for interest on a loan to an associated enterprise was admitted, including the independent auditor's report, the RBI correspondence and order, and a Hamburg District Court liquidation order. As the subsidiary was stated to be incurring persistent losses and under liquidation, the existing 6% interest adjustment was held unsustainable without examining these materials. The matter was remitted to the Assessing Officer for fresh adjudication in accordance with law after giving the assessee an opportunity of hearing, and no final ruling on the merits of the adjustment was made.
Additional evidence bearing directly on the transfer pricing adjustment for interest on a loan to an associated enterprise was admitted, including the independent auditor's report, the RBI correspondence and order, and a Hamburg District Court liquidation order. As the subsidiary was stated to be incurring persistent losses and under liquidation, the existing 6% interest adjustment was held unsustainable without examining these materials. The matter was remitted to the Assessing Officer for fresh adjudication in accordance with law after giving the assessee an opportunity of hearing, and no final ruling on the merits of the adjustment was made.
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