ITAT ruled on multiple issues in a tax dispute. TPO adjustments ...

Tax Tribunal Deletes TPO Adjustments, Orders ALP Recomputation for Drug Pricing, and Rules on R&D Claims u/s 35(2AB).

January 24, 2025

Case Laws Income Tax AT

ITAT ruled on multiple issues in a tax dispute. TPO adjustments regarding Northstar Health Care were deleted following prior precedent. For drug sales pricing adjustments, ALP recomputation was ordered. Provision for rebates written back was deleted based on statutory benefit principles. Addition for restructuring-related provisions was confirmed due to rate differential concerns. Job work charges addition was deleted as genuineness was established. For R&D deduction under s.35(2AB), claim denied due to missing Form 3CL but alternative relief under s.37/32 permitted subject to proper bifurcation. FCCB premium redemption expense disallowed under s.40(a)(i) for non-deduction of TDS, to be allowed in year when TDS is deducted.

View Source

← Previous Next →

ITAT ruled on multiple issues in a tax dispute. TPO adjustments ...

Tax Tribunal Deletes TPO Adjustments, Orders ALP Recomputation for Drug Pricing, and Rules on R&D Claims u/s 35(2AB).

January 24, 2025

Case Laws Income Tax AT

You may also like:

TP Adjustment - ALP is determined by TPO by not applying any method at all or by choosing a method which is not prescribed u/s.92C(1) of the Act, then such a...

TP Adjustment - Provision of Administrative and Agency Services - Determination of Arm's Length Price (ALP) - allocation of expenses relating to income streams between...

The Appellate Tribunal reviewed a case involving Transfer Pricing (TP) Adjustment for management service fee paid to Associated Enterprises. It was held that the...

The case pertains to the levy of penalty u/s 271G for failure to furnish documents and information u/ss 92CA/92D. The key points are: The Transfer Pricing Officer (TPO)...

Transfer pricing officer (TPO) erred by considering non-associated enterprise (non-AE) revenue and costs while computing transfer pricing (TP) adjustment, contrary to...

The Appellate Tribunal examined Transfer Pricing Adjustment disallowing cost of support services. The cost allocation key based on 'headcount' was accepted by the...

Transfer pricing adjustment made to alleged international transaction of AMP expenditure incurred by assessee disallowed due to lack of evidence that assessee agreed to...

Transfer Pricing Adjustment - arm's length price (ALP) of international transactions- MAM - “other method” - The Tribunal analyzed the transfer pricing methods applied...

Comparable selection - Tribunal remanded issue of inclusion of companies to TPO to examine functional comparability after applying applicable filters. If functionally...

TP Adjustment - Arm's Length Price (ALP) adjustment - The gross margins of assessee are much more than the gross margins of comparable companies chosen by the ld. TPO....

TP Adjustment - adhoc adjustment - duty of the TPO is restricted only to the determination of the ALP of an international transaction between two related parties by...

TPA - This is a case in which transfer pricing provisions cannot be applied because the application of ALP adjustment will indeed result in erosion of Indian tax base-...

TP Adjustment - Notional Interest on Outstanding Receivables - While acknowledging that receivables from AEs constitute an international transaction, the tribunal held...

The ITAT held that the TPO erred in deeming international transactions and determining arm's length price (ALP) for the period after cessation/expiry of the service...

TP Adjustment - selection of MAM - Tribunal held that resale price method adopted by the assessee in determining its ALP of international transactions with AE, is not...

Quick Updates: