Permanent Establishment and Business Connection: foreign consultancy receipts not attributable where no fixed base or corporate veil piercing establis...
Limitation period commencement and procedural inquiry rules: identity-based limitation upheld; complaints by authorised public servants need not attra...
Revision under Section 263 was sustained because the appellate merger doctrine applied only to matters actually considered by the CIT(A), and the separate issue of apportioning common Head Office expenses for the Section 80-IA deduction had not been examined. The Court held that transfer pricing proceedings under Section 92CA addressed arm's length price, not the full computation of eligible profits, so the Assessing Officer retained a duty to verify overhead allocation. It also held that a plausible view requires actual inquiry, and the absence of inquiry made the assessment erroneous and prejudicial. For the abated search year, the absence of seized material did not bar scrutiny, and the appeals were dismissed.
Revision under Section 263 was sustained because the appellate merger doctrine applied only to matters actually considered by the CIT(A), and the separate issue of apportioning common Head Office expenses for the Section 80-IA deduction had not been examined. The Court held that transfer pricing proceedings under Section 92CA addressed arm's length price, not the full computation of eligible profits, so the Assessing Officer retained a duty to verify overhead allocation. It also held that a plausible view requires actual inquiry, and the absence of inquiry made the assessment erroneous and prejudicial. For the abated search year, the absence of seized material did not bar scrutiny, and the appeals were dismissed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4814 
Join Channel 
