https://www.taxtmi.com/caselaws?id=449367 The ITAT Mumbai ruled on multiple transfer pricing and taxation issues involving a foreign company. The tribunal held that comparables cannot be excluded solely for being loss-making or having low profit margins. Additions made on estimate basis without applying approved PSM to non-AE transactions were deleted, following Star International Movies Ltd precedent. Regarding capital gains from channel transfer, the tribunal determined the Star World channel asset was situated outside India despite Indian viewership, making the transfer income non-taxable under section 9(1)(i). The tribunal rejected revenue's argument about business nexus, citing Asia Satellite Telecommunications precedent. For royalty income, the tribunal directed taxation at 10.5575% under section 115A instead of the 42.23% rate applied by the AO. en-us Fri, 08 Dec 2023 00:00:00 +0530 Fri, 09 Feb 2024 14:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449367 The ITAT Mumbai ruled on multiple transfer pricing and taxation issues involving a foreign company. The tribunal held that comparables cannot be excluded solely for being loss-making or having low profit margins. Additions made on estimate basis without applying approved PSM to non-AE transactions were deleted, following Star International Movies Ltd precedent. Regarding capital gains from channel transfer, the tribunal determined the Star World channel asset was situated outside India despite Indian viewership, making the transfer income non-taxable under section 9(1)(i). The tribunal rejected revenue's argument about business nexus, citing Asia Satellite Telecommunications precedent. For royalty income, the tribunal directed taxation at 10.5575% under section 115A instead of the 42.23% rate applied by the AO. Case-Laws Income Tax Fri, 08 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449367