ITAT adjudicated a transfer pricing dispute involving ...

Transfer Pricing Dispute: ITAT Validates CUP Method, Mandates Indigenous Tested Party and Comprehensive Service Comparisons

April 7, 2025

Case Laws Income Tax AT

ITAT adjudicated a transfer pricing dispute involving international transactions. The tribunal upheld the TPO's rejection of the assessee's transfer pricing study, determining that the tested party should be indigenous rather than foreign affiliated entities. The ITAT mandated adoption of the Comparable Uncontrolled Price (CUP) method for benchmarking and validated Kotak as a suitable comparable, subject to specific service comparisons. The tribunal critically noted that the TPO should comprehensively examine evidence regarding intra-group services, emphasizing the need for thorough analysis of arm's length pricing mechanisms. The decision underscores the importance of substantive evidence and proper transfer pricing methodology in evaluating cross-border transactions, ultimately remanding the matter for detailed quantitative assessment consistent with income tax regulations.

View Source

← Previous Next →

ITAT adjudicated a transfer pricing dispute involving ...

Transfer Pricing Dispute: ITAT Validates CUP Method, Mandates Indigenous Tested Party and Comprehensive Service Comparisons

April 7, 2025

Case Laws Income Tax AT

You may also like:

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

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...

TP adjustment - tested party - As per Guidance Note on report u/s 92E and transfer pricing guidelines issued by the OECD and united nation practical manual of transfer...

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 - Rejection of Associated Enterprises as the tested party - foreign Associated Enterprises satisfied all the criteria for being taken as a tested party....

Transfer pricing adjustment - CUP method as the Most Appropriate Method for determination of ALP for international transactions. The assessee is also directed to...

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

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...

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

Valuation of imported goods - The applicant's proposed valuation method, Transfer Pricing System and Steering Concept (TPuS) method also known as Resale Price...

The Tribunal meticulously analyzed each issue, heavily relying on precedent ITAT decisions and the specifics of the case presented. For the major contentious points,...

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...

Quick Updates: