https://www.taxtmi.com/caselaws?id=448953 The ITAT Mumbai held that transfer pricing provisions apply to merger transactions involving associated enterprises, even if they are capital account transactions. The assessee paid Rs. 188.35 crore to its parent company DIHBV during a merger, which the TPO examined as an international transaction under section 92B. The tribunal found that while share issuance represented fair value, the cash payment of Rs. 100 crore and CCDs constituted excessive payment. The cash payment was treated as a deemed loan requiring interest computation, and interest disallowance on CCDs was upheld. The NCLT's merger approval did not waive the tax department's right to examine transfer pricing implications. en-us Tue, 30 Jan 2024 00:00:00 +0530 Thu, 01 Feb 2024 12:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448953 The ITAT Mumbai held that transfer pricing provisions apply to merger transactions involving associated enterprises, even if they are capital account transactions. The assessee paid Rs. 188.35 crore to its parent company DIHBV during a merger, which the TPO examined as an international transaction under section 92B. The tribunal found that while share issuance represented fair value, the cash payment of Rs. 100 crore and CCDs constituted excessive payment. The cash payment was treated as a deemed loan requiring interest computation, and interest disallowance on CCDs was upheld. The NCLT's merger approval did not waive the tax department's right to examine transfer pricing implications. Case-Laws Income Tax Tue, 30 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448953