TP adjustment upheld as per Special Bench ruling in Instrumentarium rejecting base erosion argument....

The Special Bench ruling in the Instrumentarium case upheld the transfer pricing (TP) adjustment, rejecting the base erosion argument. The benefit of the tax treaty against TP provisions was denied, consistent with a prior ITAT order. The application of the mirror Arm's Length Price (ALP) principle was dismissed, referencing Filtrex Technologies. Taxability of receipts on a receipt basis, as per Ampacet Cyprus, is to be reassessed. Software income was classified as non-royalty, and Global P&T services, HLPL receipts, and L&T services income were deemed non-fees for technical services, leading to the deletion of respective additions in line with previous ITAT decisions. .....

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