ITAT dismissed grounds 1 and 2 regarding validity of assessment ...

Tax Tribunal Allows Assessee's Appeal on Intra-Group Services, Fixed Asset Mark-ups, and Royalty Payments Under Transfer Pricing Rules

March 29, 2025

Case Laws Income Tax AT

ITAT dismissed grounds 1 and 2 regarding validity of assessment order, relying on Aztec Software precedent. The Tribunal allowed ground 3 concerning Intra Group Services, following a coordinate Bench decision in assessee's own case for AY 2010-11, as Revenue failed to demonstrate distinguishing features in the current assessment year. Similarly, ground 4 regarding disallowance of mark-up charged by AEs on fixed asset purchases was allowed, directing deletion of the ALP adjustment. Regarding royalty payments, ITAT rejected Revenue's appeal, citing EKL Appliances which negated the need-benefit test, and Magneti Marelli Powertrain which established that TPO cannot segregate transactions already aggregated and benchmarked under TNMM to reduce their ALP to nil under CUP method.

View Source

← Previous Next →

ITAT dismissed grounds 1 and 2 regarding validity of assessment ...

Tax Tribunal Allows Assessee's Appeal on Intra-Group Services, Fixed Asset Mark-ups, and Royalty Payments Under Transfer Pricing Rules

March 29, 2025

Case Laws Income Tax AT

You may also like:

The summary relates to the taxability of management service fees received by a foreign entity from an Indian entity under the India-Netherlands Double Taxation Avoidance...

Adjustment of excess service tax paid with subsequent service tax liability - case of Revenue is that Rule 6 (3) of Service Tax Rules, 1994 do not provide for such...

Transfer pricing adjustments - Location Savings and Imputation of mark-up on pass through costs - this intra-group services rendered by the assessee to the parent...

The Appellate Tribunal examined the classification of services provided by the appellant to overseas educational institutions, determining whether they constituted...

The Tribunal held that the appellant rightly issued credit notes to government entities that refused payment of consideration and service tax, allowing adjustment of...

Taxability of income in India - Taxability as Royalty or FTS - The tribunal systematically addressed the taxability of each type of service. It concluded that the...

Eligibility of claiming CENVAT credit for service tax paid on renting immovable property services. The lower authority denied the credit, considering it as a service...

ALP of the international transaction of payment of Fees for Management services - 5% mark-up under Cost plus method - Even if, we proceed with the assumption that the...

Levy of service tax - Life Insurance Service - Renting of Immovable Property Service or not - On the taxability of life insurance service, the Tribunal determined that...

Eligibility to make adjustment of excess service tax paid against future service tax liability - Claim of Excess service tax paid due to issuance of revised invoice -...

The case involved various issues related to Service Tax, including demand on reverse charge basis for services from Indian Railways, royalty payment to State Government...

The services provided by the appellant, a referral service for Canadian banks and foreign universities, were examined to determine whether they constituted 'Export of...

TP Adjustment - Purchase of fixed assets - TPO added the entire amount of fixed assets purchased by the assessee from its AE’s during the year - the fixed assets...

Non-payment of service tax on management consultancy services, royalty services, intellectual property right services, business auxiliary services, and banking and...

Dispute regarding non-payment/short payment of service tax, tax demand and interest u/ss 73(2) and 75, penalties u/ss 77 and 78 of the Finance Act, 1994, and extended...

Quick Updates: