https://www.taxtmi.com/caselaws?id=456944 The ITAT Mumbai held that the assessee, Ambico UK and Narayan UK do not qualify as associated enterprises under section 92A of the Income Tax Act. The DRP erred in applying only sub-section (1)(b) without considering sub-section (2) requirements. The Revenue failed to establish that the entities fell within the deeming provisions of section 92A(2)(a) to (m). Consequently, transactions between these parties fall outside transfer pricing provisions. The tribunal also found the TPO reference under section 92CA(1) procedurally defective as no proper show cause notice was served before making the reference, violating natural justice principles. Both grounds of appeal were allowed in favor of the assessee. en-us Tue, 30 Mar 2021 00:00:00 +0530 Wed, 28 Aug 2024 09:08:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456944 The ITAT Mumbai held that the assessee, Ambico UK and Narayan UK do not qualify as associated enterprises under section 92A of the Income Tax Act. The DRP erred in applying only sub-section (1)(b) without considering sub-section (2) requirements. The Revenue failed to establish that the entities fell within the deeming provisions of section 92A(2)(a) to (m). Consequently, transactions between these parties fall outside transfer pricing provisions. The tribunal also found the TPO reference under section 92CA(1) procedurally defective as no proper show cause notice was served before making the reference, violating natural justice principles. Both grounds of appeal were allowed in favor of the assessee. Case-Laws Income Tax Tue, 30 Mar 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456944