HC held that Comparable Uncontrolled Price (CUP) method was ...

Power Transfer Pricing u/s 80IA: High Court Validates CUP Method Using State Electricity Board Rates as ALP Benchmark.

January 24, 2025

Case Laws Income Tax HC

HC held that Comparable Uncontrolled Price (CUP) method was appropriate for determining Arm's Length Price (ALP) for power transfer between eligible and non-eligible units u/s 80IA. The court affirmed that Rs. 4.39 per kWh, being the rate at which assessee supplied excess power to UPPCL, constituted a valid internal uncontrolled transaction and was correctly accepted as ALP. Following precedent from Jindal Steel case, HC confirmed that State Electricity Board rates for industrial consumers represent market value u/s 80IA(8). The regulated nature of electricity market necessitates comparable transactions to be materially similar without price-affecting differences. Matter resolved in assessee's favor, validating their ALP computation methodology and transfer pricing adjustments.

View Source

← Previous Next →

HC held that Comparable Uncontrolled Price (CUP) method was ...

Power Transfer Pricing u/s 80IA: High Court Validates CUP Method Using State Electricity Board Rates as ALP Benchmark.

January 24, 2025

Case Laws Income Tax HC

You may also like:

Deduction u/s 80IA in respect of profits of captive power plants ('CPPs') - The tribunal, referring to the Comparable Uncontrolled Price (CUP) method and previous...

The ITAT Chennai ruled on deduction u/s 80IA, focusing on determining the market value of power supplied by the assessee to its industrial units. The AO argued for using...

Transfer pricing adjustment - Determination of arm's length price for power transferred by assessee's captive power plant to non-eligible manufacturing units, reducing...

The High Court upheld the order of the Income Tax Appellate Tribunal (ITAT) which had approved the Comparable Uncontrolled Price (CUP) method adopted by the assessee for...

The ITAT allowed the revenue's appeal for statistical purposes and remitted the matter back to the Assessing Officer to re-examine the issue and refer it to the Transfer...

Transfer pricing (TP) adjustments - The method adopted by the TPO suffered from the defect of the comparing uncomparable chemicals, using an average variation between...

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

Deduction u/s 80IA - quantum of profits and gains of the eligible business - Scope of expression “market value” - The market value of the power supplied by the assessee...

CENVAT Credit - generation of electricity which, later on, is cleared to its sister unit - The Appellate Tribunal finds that the appellant is indeed entitled to Cenvat...

TP adjustment - ALP determination - Selection or change in Most Appropriate Method (MAM) - “Other Method" v/s "CUP Method" - Assessee can resile from the most...

TP Adjustment - 'arranged' pricing' - TNMM method or CUP method - the superiority of any particular method to arrive at the ALP is ruled out.The TNMM (Transactional Net...

Transfer pricing adjustment - arm's length price of broking commission - selection of most appropriate method - considering brokerage rate of all non-associates for...

Transfer pricing adjustment deleted - the comparables adopted by the assessee are uncontrolled parties and can be considered for the purpose of determining the Arms'...

Determining the ALP under transfer pricing provisions - Determination of market value of of electricity - When a captive power plant in an industry supplies electricity...

The High Court held that a change in the approach of assessing tax, without any statutory change, leads to uncertainty in cash flow and fund flow, which are crucial for...

Quick Updates: