In the recent ruling Honorable Tribunal dismissed the rectification application made by the Transfer Pricing Officer (TPO) for the rectification of directions issued by the Dispute Resolution Panel (DRP). Honorable Tribunal state that from a plain and careful reading of Rule 13 of the Income Tax (Dispute Resolution Panel)Rules, 2009 (“the Dispute Resolution Rules”) makes it clear and unambiguous that the rectification powers…
Category: Transfer Pricing Case Updates
TV 18 Broadcast Limited vs. Asst. CIT ITA No. 1975/Mum/2021 AY 2012-13
Optionally Convertible Debentures (OCDs) aren’t debentures rather in the nature of quasi-capital; throws light on the relevance of the concept of “Quasi Capital” in the context of transfer pricing by relying on the decision given by co-ordinate bench; therefore, no TP adjustment is required where interest-free OCDs are issued by Foreign AE. Facts: However, Ld. TPO brushed aside all above…
MUMBAI ITAT PREFERRED THE DATA GIVEN IN AUDITED FINANCIAL STATEMENTS OVER THE DATA GIVEN IN PROWESS DATABASE FOR CALCLULATION OF PLI
Case Name: M/s Basell Polyolefins India Private Limited v. Asst. CIT [ITA No. 4724 & 4725/Mum/2018] [AY 2009-10 & 2010-11] Outcome: In favor of Assessee Facts: Issues: Observations/findings and decision of Hon’ble ITAT are: “10. Regarding the submissions advanced by both the parties relating to the inclusion/exclusion of the 2 comparables being Goldiam International Ltd. and Punit Commercials Ltd, it…
PCIT vs. Gulbrandsen Chemicals Pvt. Ltd (Gujarat High Court)
Gujarat High Court in the case of PCIT vs. Gulbrandsen Chemicals Pvt. Ltd (Gujarat High Court) explain the importance of OECD Guidelines and state that1. The significance of the aforesaid guidelines lies in the fact that they recognize that barring exceptional cases, the tax administration should not disregard the actual transaction or substitute other transactions for them. The examination of…
Internal CUP is not applicable where the Intra AE transactions are different in character under economic circumstances.
1. In the given case, the assessee is engaged in manufacturing of chemicals. It had sold said products to its AE and non-AE and applied TNMM to benchmark said transactions.2. However, Ld. TPO relying upon internal CUP and made addition to the assessee’s ALP in respect of various products sold to AE.3. Since intra AE transactions were fundamentally different in…
BENEFIT OF SECTION 10A OF THE ACT IS ALLOWED ON THE ENHANCED INCOME PURSUANT TO THE MUTUAL AGREEMENT PROCEDURE (MAP) RESOLUTION
Case Name: Dell International Services India Private Limited v. Dy. CIT [IT/(TP)A No. 879/Bang/2018] [AY 2007-08] Outcome: In favor of Assessee Facts: ITeS Segment: SWD Segment: Issues: ITAT’s Decision: ITeS Segment: Observations and findings of Hon’ble ITAT are: “55.12 The first proviso to section 92C(4) recognizes the commercial reality that even when a transfer pricing adjustment is made under that…