The author has meticulously and systematically classified forex growth bot ea judgments into various categories to enable ease of reference. A PDF copy of the digest is available for download. The digest will prove invaluable to all practitioners of taxation law.
The Digest comprises of all the important judgements dealing with transfer pricing, international taxes and domestic taxation laws. A brief head note is given for each case. Nike India and its AE in respect of contract with BCCI for promotion and brand building of Nike was an international transaction. 92B as the section postulates at least one non-resident. The assessee provided two types of broking services to related as well as unrelated parties viz. Since an internal CUP was available, the TPO rejected TNMM and applied CUP. TP-ITA No 1599 of 2014 dated 07.
TP-adjustments in respect of export of manufactured steel items to its AE and receipt of commission from AE. Tribunal remitted the issue to the file of AO for fresh adjudication. The Tribunal held that where the assessee was engaged in purchase of finished goods from its AE without any value additions, the most appropriate method for benchmarking the international transactions was the Resale price method. It held that the TPOs reasoning to adopt TNMM i.
TNMM which provides for broad comparability as opposed to higher degree of similarity under the other methods was invalid. ACIT vs Akzo Nobel Car Refinishes India Pvt. Where assessee bought products from AE and resold them without further processing, the Tribunal, relying on the decision in the case of Tektronix India P Ltd , held that RPM was the most appropriate method. It also relied on the case of Frigoglass India Pvt. Ltd which upheld Resale Price Method as the most appropriate method in case of a distributor.
This view was further fortified by OSI Systems Pvt. The Tribunal deleted TP adjustment of Rs. II transactions in respect of import of finished goods in trading segment. India and benchmarked the international transaction adopting TNMM as MAM, which was rejected by TPO and recharacterized the service and commission activities of the assessee as trading segment. CIT vs Mitsui and India Pvt Ltd-TS-602-SC-2017-TP-ITA No. The Tribunal observing that the international transaction of imports from AE had a direct bearing on the export of goods to AE as the price of exports to AE was impacted by import price, held that when the transactions were multiple and inter-related then if a particular transaction out of the composite transactions could not be tested under CUP then it was not proper to apply separate methods for determining the ALP for each of the transaction.