Notional letting value on unsold stock-in-trade and unsupported brokerage benchmarking cannot sustain tax adjustments for pre-amendment years.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....For pre-amendment years, completed but unsold flats held by a builder as stock-in-trade are not subject to notional annual letting value under the general house-property provisions. The specific rule for stock-in-trade property applies prospectively from Assessment Year 2018-19, so its treatment cannot be extended to earlier years. Transfer-pricing adjustments to marketing brokerage require a recognised benchmarking method, reliable comparable or market evidence, and functional analysis of the services performed. Replacing an agreed brokerage rate with a general estimated market rate, without examining marketing, sales-support and customer-related functions, lacks an adequate arm's-length basis.....