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 […]
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 […]
COMPUTATION OF ALP – DEVIATIONS FROM PRESCRIBED METHODOLOGY PERMITTED
Section 92C(1) provides that ALP of international transaction and SDT shall be determined by adopting “MAM”. Sub-section (2) provides that most appropriate method shall be applied, for determination of ALP, in the manner prescribed. Rule 10B lays down the methodology for computation of ALP for each of the method. The selection of one method as […]
KODAK INDIA PVT LTD v ACIT (2013) 155 TTJ 697 (Mum ITAT)
The Tribunal rejected the action of the TPO of computing ALP by allocating the consideration received on sale of business on the basis of revenue ratio on the ground that it is not prescribed method and no seventh method could be adopted by the TPO. Facts The taxpayer sold its medical – imaging business to […]
PIAGIO VEHICLE P. LTD v DCIT TS-534-ITAT-2012-TP
The ITAT held that the margin earned from sale of spare parts for after sale service cannot be compared with margin earned from sale of components sourced from India and sold to AEs. The taxpayer had exported parts and components to AE as well as non-AE. The TPO adopted internal TNMM as against external TNMM […]
PCIT VS. LUWA INDIA PVT. LTD. [TS-281-HC-2021 (KAR HC)-TP]
While exercising jurisdiction u/s 92CA(3), the TPO can only determine the ALP of an international transaction and cannot examine the allowability of the claim by applying the benefit test or the conditions as provided under Section 37(1) of the Act Facts The assessee, was engaged in the business of manufacturing textiles machines for textile manufacturers […]
COMPARABLES FOR SOFTWARE DEVELOPMENT SERVICES FOR AY 2016-17
OLF (India) Software Pvt Ltd v ACIT [TS-456-ITAT-2021(Bang)-TP] [Judges: Shri Baskaran and Smt Beena Pillai] – The assessee is engaged in rendering software development services to AE. The assessee sought exclusion of Persistent Systems, Aspire Systems, Larsen and Toubro Infotech, Nihilent Technologies, Infosys Ltd, Thirdware Solution & Cybage Software on the ground that these companies […]
TP ADJUSTMENT FOR CORPORATE GUARANTEEE ONLY TO THE EXTENT LOAN FACILITY AVAILED – ASSOCIATED CAPSULES CASE
Associated Capsules Pvt. Ltd. v ACIT [2020] 121 taxmann.com 103 (Mumbai – Trib.) Facts The assessee is engaged in the business of manufacturing empty hard gelatine capsules. The assessee provided Corporate Guarantee of 2.4 million Euros (Equivalent to Rs. 15.19 crores) to its Croatian AE. The assessee did not make any adjustment on account of […]