9911796707
TMI Blog2018 (3) TMI 1849X X X X Extracts X X X X X X X X Extracts X X X X ..... rom under/over invoicing. It accepts the value shown in the books of the Assessee. However, the value of the transactions by legislative mandate is brought in line with the consideration which would pass between two independent parties i.e. nonrelated/ nonassociated enterprises. In fact, when the new provisions viz: Section 92 to 92F of the Act was introduced w.e.f. Assessment Year 200203, the Explanatory Notes to the Finance Act, 2001 explained its objectives. The Legislature has introduced a special provisions in respect of International Transactions to bring the income to tax having regard to Arms Length Price (ALP). In such case, the parties are obliged is to establish the ALP of the International Transactions entered into between th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10th January, 2014 of the Assessing Officer under Section 143(3) read with Section 144C of the Act. The Assessing Officer has passed the order dated 10th January, 2014 in conformity with the directions given by the Dispute Resolution Panel (DRP). 4 The impugned order hold that the loans and advances given by the AppellantAssessee to its Associated Enterprises (AE) would be an International Transactions hit by the provisions of Chapter X of the Act. In terms of the Explanation to Section 92(B) of the Act, loans/ Advances to AE is an International Transactions. Therefore, the interest income earned on such loans and advances has to be reworked to determine the Arms Length Price (ALP). Thus, upholding the enhancement of the income of the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a special provisions in respect of International Transactions to bring the income to tax having regard to Arms Length Price (ALP). In such case, the parties are obliged is to establish the ALP of the International Transactions entered into between the two AE is to bring to tax the real income i.e. the correct price of the transactions, shorn of, the price arrived at on account of relationship. It means the real income on application of a new measure. The object of the Transfer Pricing Officer is to put a stop to capital erosion and transfer of profits from one taxable territory to another taxable territory. 8 In the above settled position in law, the question as framed does not give rise to any substantial question of law. 9 Accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
