TP adjustment - application of the Resale Price Method (RPM) as ...

Supreme Court allows assessees to change transfer pricing methods if they align with correct legal principles, per Kedarnath Jute case.

July 21, 2022

Case Laws Income Tax HC

TP adjustment - application of the Resale Price Method (RPM) as the Most Appropriate Method (‘MAM’) - trading activity - The decision of Supreme Court in Kedarnath Jute Manufacturing Co. Ltd.[1965 (4) TMI 91 - SUPREME COURT] is an authority for the proposition that tax authorities and adjudications as well as assessee are not precluded by the positions taken in returns, documents or accounts and have the duty (and a corresponding right) to apply the correct legal principle. Thus, the use of one method in a transfer pricing report does not estop the assessee from later claiming that another method is the most appropriate one, provided that is indeed the correct position. - HC

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TP adjustment - application of the Resale Price Method (RPM) as ...

Supreme Court allows assessees to change transfer pricing methods if they align with correct legal principles, per Kedarnath Jute case.

July 21, 2022

Case Laws Income Tax HC

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