https://www.taxtmi.com/caselaws?id=310928 ITAT Mumbai ruled on transfer pricing adjustments for international transactions involving expense recovery. The tribunal held that day-to-day pocket expenses incurred while rendering services to associated enterprises should be reimbursed on cost-to-cost basis without benchmarking, as no profit element exists. TPO's 10% markup on expense recovery was deleted for non-compliance with prescribed methods under section 92C. Regarding procedural violations under section 143(1), the tribunal directed AO to decide pending rectification application within three months. However, following Supreme Court precedent in Checkmate Services case, the tribunal upheld disallowance of delayed PF/ESIC deposits beyond statutory due dates, ruling against the assessee on this ground. en-us Thu, 23 Feb 2023 00:00:00 +0530 Mon, 27 Nov 2023 05:53:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310928 ITAT Mumbai ruled on transfer pricing adjustments for international transactions involving expense recovery. The tribunal held that day-to-day pocket expenses incurred while rendering services to associated enterprises should be reimbursed on cost-to-cost basis without benchmarking, as no profit element exists. TPO's 10% markup on expense recovery was deleted for non-compliance with prescribed methods under section 92C. Regarding procedural violations under section 143(1), the tribunal directed AO to decide pending rectification application within three months. However, following Supreme Court precedent in Checkmate Services case, the tribunal upheld disallowance of delayed PF/ESIC deposits beyond statutory due dates, ruling against the assessee on this ground. Case-Laws Income Tax Thu, 23 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310928