https://www.taxtmi.com/caselaws?id=327176 Transfer pricing under TNMM should ordinarily use the least complex entity as the tested party where reliable comparables are available; on the facts, overseas associated enterprises were accepted on that basis and recomputation was directed. ESOP discount was treated as ascertained employee compensation allowable as business expenditure, and section 40(a)(ia) was held inapplicable. Contributions to the healthcare society and science foundation were allowed as business deductions. The section 14A disallowance, and the corresponding MAT adjustment under section 115JB, were deleted because the Assessing Officer had not recorded the requisite dissatisfaction and the disallowance could not exceed exempt income. Deductions under sections 80IB and 80IC were upheld, while the section 35(2AB), Drug Price Control Order and exchange fluctuation claims were remanded for verification; write-back of provision for diminution in investment value was allowed. en-us Mon, 25 Apr 2016 00:00:00 +0530 Tue, 03 May 2016 10:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=327176 Transfer pricing under TNMM should ordinarily use the least complex entity as the tested party where reliable comparables are available; on the facts, overseas associated enterprises were accepted on that basis and recomputation was directed. ESOP discount was treated as ascertained employee compensation allowable as business expenditure, and section 40(a)(ia) was held inapplicable. Contributions to the healthcare society and science foundation were allowed as business deductions. The section 14A disallowance, and the corresponding MAT adjustment under section 115JB, were deleted because the Assessing Officer had not recorded the requisite dissatisfaction and the disallowance could not exceed exempt income. Deductions under sections 80IB and 80IC were upheld, while the section 35(2AB), Drug Price Control Order and exchange fluctuation claims were remanded for verification; write-back of provision for diminution in investment value was allowed. Case-Laws Income Tax Mon, 25 Apr 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=327176