The TPO made adjustment for payments made towards intra-group services and payment made towards import of capital goods amounting to Rs.12,40,40,466/-, after accepting ALP of all other transactions under TNMM. The assessee had clubbed all the international transactions together and adopted TNMM for benchmarking. The Tribunal held that the TPO was not justified in selectively […]
Undercarriage and Tractor Parts Pvt Ltd v DRP [TS-554-HC-2023(BOM)-TP]
Facts of the Case Date Events 30.10.2018 The TPO passed proposing adjustment of Rs 11.92 crores 03.12.2018 Draft Assessment order was passed by the AO 14.12.2018 The Assessee filed a Letter before the AO he it in the process of filing objections before DRP and requested the AO not to pass the final assessment order. […]
ITAT held that no mark-up required for actual costs allocated to eligible unit absent service element
Case Name: Finolex Cables Ltd [TS-319-ITAT-2023(PUN)-TP] Facts: The assessee was engaged in manufacturing and sales of electrical cables, optical fiber cables, lamps and switches etc. For AY 2013-14, the assessee allocated expenses to its FCL-Roorkee Unit (eligible 80-IC unit) and explained that these expenses were allocated on turnover basis except the derivative losses and interest, […]
SC held that Question as to what proportion of Profit is attributable to India is question of fact
Director of Income-tax v. Travelport Inc. – [2023] 149 taxmann.com 470 (SC) Facts: The taxpayers are engaged in the business of providing electronic global distribution services to Airlines through “Computerized Reservation System” (CRS). The taxpayers maintain and operate a Master Computer System consisting of several main frame computers and servers located in other countries, including […]
Changing the Most Appropriate Method by the Assessee from one selected in TP Study
Section 92C(1) provides that ALP of international transaction and SDT shall be determined by adopting “MAM”, having regard to the nature of transaction or class of transaction or class of associated persons or functions performed by such persons or such other relevant factors as the Board may prescribed. Rule 10C lays down the guiding principles […]
The Bangalore ITAT held that Order u/s 263 without DIN is invalid.
Dilip Kothari v PCIT (Central) ITA Nos.403 to 405/Bang/2022 In this case there is no dispute about the fact that the impugned order u/s. 263 of the Act has been issued manually and DIN for the order is generated through two separate intimations one bearing the same date as the date of the order u/s.263 […]
PRECEDENT VALUE OF NON-JURISDICTIONAL HC RULING
In the case of Luxora Infrastructure Pvt Ltd [TS-842-ITAT-2022(Mum)], the ITAT explains that “Unlike the decisions of the Hon’ble jurisdictional High Court, which bind us in letter and in spirit on account of the binding force of law, the decisions of the Hon’ble non-jurisdictional High Court are followed by the lower authorities, only in the […]
Abbasbhai A. Upletawala v. ITO – [2022] 143 taxmann.com 384 (Mumbai – Trib.)
The Assessee was a director and had given his personal guarantee to the SBI in respect of his company’s commercial borrowings. Later, SBI invoked the personal guarantee given by the assessee. SBI entered into an assignment agreement with Asset Reconstruction Co India Ltd (ARCIL). The land, which was offered as collateral security, was assigned to […]
ANALYSIS OF TDS PROVISIONS UNDER SECTION 194R
Background Section 28(iv) provides that the value of any ‘benefit’ or ‘perquisite’ received, whether convertible into money or not, arising from business or the exercise of a profession, would be assessable as income under the head “Profits and gains from business or profession”. However, at practical level, the taxpayers do not report the receipt of […]
Sunil Kumar Sharma v DCIT TS-677-HC-2022 (KAR HC)
The Karnataka High Court has laid down certain important legal principles. These are as follows: Action based on the Material contained in material contained in Diaries and loose sheets is contrary to the decision of the Supreme Court and therefore the assessment orders are void and illegal. Recording of reasons is hallmark of a valid […]