TP Adjustment - Arm's length price of purchases through a pass-through associated enterprise Arm's length price adjustment on purchases of raw materials routed through the associated enterprise, which acted solely as an intermediary - HELD THAT: - The associated enterprise was found to be only a pass-through entity for sourcing the raw materials from an unrelated foreign supplier. The goods were directly supplied by that supplier and, after credit notes, the effective price paid by th... ... ...

Stay of recovery of outstanding tax demand - Tax deduction at source on payments to foreign advocates - Stay of recovery of the balance demand arising from disallowance for non-deduction of tax at source on payments made to foreign advocates HELD THAT: - The Tribunal noted that a reference application to the Special Bench, founded on conflicting Coordinate Bench decisions, remained pending and that the assessee had paid 30% of the original demand. These circumstances warranted protection agai... ... ...

Revisional jurisdiction under section 263 - Lack of enquiry and inadequate enquiry - Revision beyond show-cause notice Validity of revision of the assessment for alleged non-enquiry into unsecured loans, trade payables and expenditure accumulated as work-in-progress - HELD THAT: - Revisional jurisdiction requires the assessment order to be both erroneous and prejudicial to the interests of the Revenue. Explanation 2(a) does not permit revision merely because further or more elaborate enquiry ... ... ...

TP Adjustment - Arm's length price of captive electricity transfers - Comparable uncontrolled price method - Regulated electricity tariffs as uncontrolled comparables - Premature challenge to initiation of penalty proceedings Arm's length price of captive electricity transfers - Internal comparable uncontrolled transaction - Regulated independent power producer tariffs as comparables - Arm's length price of electricity transferred from eligible captive power plants to the non-elig... ... ...

Validity of directions of the DRP u/s. 144C (5) - HELD THAT:- The assessee's appeal was dismissed, the Tribunal finding no basis on the record to differ from the DRP's order in the absence of representation.... ... ...

TP characterisation of compulsorily convertible debentures - Notional interest on associated-enterprise receivables - Deductibility of interest on compulsorily convertible debentures Characterisation of compulsorily convertible debentures as debt before conversion - Arm's-length determination of interest on compulsorily convertible debentures - Transfer pricing adjustment for interest on compulsorily convertible debentures recharacterised as equity from inception - HELD THAT: - Compulsory... ... ...

Rectification of foreign tax credit - Mistake apparent from the record Validity of rectification of foreign tax credit claimed in respect of Nepal income after scrutiny assessment - HELD THAT: - The power of rectification is confined to an obvious and patent error apparent from the existing record; it cannot be exercised for a re-examination requiring further calculations or reference to material outside the record. The foreign tax credit claim had been considered in scrutiny after the ass... ... ...

Deduction u/s 80IC - profits derived from an eligible manufacturing undertaking - Withholding tax on foreign consultancy fees-absence of permanent establishment Profits derived from eligible manufacturing undertaking - Transit insurance recoveries and trade debt or liability reversals - Vendor contractual penalties - Eligibility of transit insurance recoveries, reversals of doubtful-debt provisions and trade liabilities, and vendor contractual penalties in computing the profits of the eligibl... ... ...

Service-income filter for ITES comparables - Related-party transaction filter for ITES comparables - Turnover filter for comparable selection - Delayed trade receivables as a separate international transaction - Arm's length interest on delayed foreign-currency receivables Service-income filter for ITES comparables - Verification of the service income-to-total income filter for two assessee-proposed ITES comparables in benchmarking back-office support services - HELD THAT: - The DRP had d... ... ...

TP Adjustment - Rejection of transfer-pricing study report u/s 92C(3)(c) - Comparability analysis for sourcing support and ITeS services Validity of rejection of the transfer-pricing study report for sourcing support and ITeS services on the ground that the comparability data was unreliable or incorrect - HELD THAT: - The Transfer Pricing Officer accepted the filters applied by the assessee but rejected its study and undertook fresh searches on a different database without examining the study... ... ...

TP Adjustment - Comparable uncontrolled price method - comparability of purchases of agricultural produce from associated enterprises - Interest disallowance on interest-free advances - nexus with borrowed funds - Suppression of interest income - receipt accounted under rate difference Comparable uncontrolled price method - Comparability of purchases from associated enterprises - TP adjustment on purchases of agricultural produce from associated enterprises benchmarked under the CUP method - ... ... ...

Mandatory draft assessment order for non-resident eligible assessee - Non-resident eligible assessee Validity of a final reassessment order making a prejudicial variation to a non-resident individual without first forwarding a draft assessment order under section 144C - HELD THAT: - Following the amendment to section 144C(15)(b), a non-resident other than a company expressly falls within the definition of an eligible assessee. As the reassessment involved a variation prejudicial to the assess... ... ...

Conditional stay of recovery of disputed tax demand pending appeal - Stay of recovery of demand arising from transfer-pricing adjustments HELD THAT: - Without expressing any view on the merits of the transfer-pricing issues, the Tribunal granted stay of the balance demand subject to deposit of 20% of the outstanding demand, after excluding the proportionate demand relating to services claimed to have been rendered by the assessee to its associated enterprise. [Paras 3] The balance demand w... ... ...

Penalty u/s 271BA - Effect of omission of a statutory provision without a saving clause - Penalty for non-furnishing Form No. 3CEB for specified domestic transactions Validity of penalty for failure to furnish Form No. 3CEB in respect of related-party purchases treated as specified domestic transactions under the omitted clause (i) of section 92BA - HELD THAT: - The foundational provision treating the transactions as specified domestic transactions had been omitted before initiation and compl... ... ...

Assessment in conformity with binding Dispute Resolution Panel directions - Binding Dispute Resolution Panel directions - Non-conforming final assessment order Validity of the final assessment order where the AO retained the transfer-pricing adjustment without giving effect to the Dispute Resolution Panel's directions excluding certain comparables - HELD THAT: - Directions of the Dispute Resolution Panel are binding and the assessment must be completed in conformity with them. The Panel h... ... ...

Jurisdictional satisfaction for penalty u/s 271(1)(c) - Substitution of penal provision at penalty stage - Initiation under a distinct penal provision Validity of penalty for concealment or furnishing inaccurate particulars where the assessment order initiated penalty only u/s 271AAC and recorded no satisfaction or direction u/s 271(1)(c) - HELD THAT: - The requisite satisfaction for invoking section 271(1)(c) had to be recorded in the course of assessment proceedings; the statutory deeming o... ... ...

TP Adjustment - Aggregated TNMM for intra-group services linked to manufacturing transactions - Rejection of aggregated TNMM for benchmarking intra-group services availed from associated enterprises as part of the assessee's manufacturing business - HELD THAT: - The Tribunal found that the intra-group service agreements and material on record described the services and their economic value. It noted that the other international transactions had been accepted at arm's length under TNMM... ... ...

TP Adjustment - Berry ratio for transfer pricing of jewellery manufacturing transactions - Notional interest on delayed associated-enterprise receivables - Binding Dispute Resolution Panel directions in minimum alternate tax book-profit computation Berry ratio as profit level indicator - Transfer pricing of jewellery manufacturing transactions - Applicability of the Berry ratio as the profit level indicator for the international transactions of a manufacturer and exporter of coloured gemstone... ... ...

Cash-payment disallowance for material purchases and labour charges u/s 40A(3) - Co-terminus appellate powers to reject books and estimate civil-contract profits Validity of disallowance u/s 40A(3) for cash payments towards construction materials and labour charges where the AO did not verify and identify each payment exceeding the statutory threshold to a person in a day - HELD THAT: - Although section 40A(3) is mandatory once its statutory conditions are established, its deeming consequence... ... ...

GST refund - taxability as income - Tax-audit-report disclosure - Taxability of GST refund reported in clause 16(b) of the tax audit report - HELD THAT: - Disclosure of refund of Goods and Services Tax in the tax audit report, by itself, does not determine its taxability. GST is a statutory levy collected and paid on behalf of the Government, and its refund is a return of tax paid rather than income. The coordinate-Bench decisions M/s Tanyo Exports Pvt. Ltd. [2025 (12) TMI 1431 - ITAT MUMB... ... ...