2016-TII-INSTANT-ALL-292
26 February 2016   

CASE LAWS

2016-TII-10-HC-MUM-INTL

CIT Vs TECH MAHINDRA LTD: BOMBAY HIGH COURT (Dated : February 23, 2016)

Income Tax - Sections 90, 115WJ, 143(3), 147, 199, 206C, 244A(1), 260A & 263.

Keywords - interest on refund - TDS - DTAA relief - tax collection - computation of taxes - advance tax.

Whether if DTAA relief is available in respect of taxes paid abroad and the tax credit goes on to reduce the tax payable in India, as a result assessee would be entitled to a refund of tax paid in India either through advance tax or by way of tax deduction at source, interest on the same u/s 244A can be denied to the assessee - NO: HC

Revenue's appeal dismissed

2016-TII-102-ITAT-MUM-TP

TAMASEK HOLDINGS ADVISORS INDIA PVT LTD Vs DCIT: MUMBAI ITAT (Dated: February 25, 2016)

Income tax - ALP - AE - additional mark-up - classification of revenue - FAR analysis - investment advisory services - turnover filter & TNMM.

Whether where any unique function or property of a company significantly affects its operating costs or net margin or has a bearing in the generation of revenue itself, then it cannot be considered to be a fit comparable for benchmarking the net margins - YES: ITAT

Whether two entities providing consultancy & advisory services can be disregarded as comparables, merely because one entity provides only investment advisory services whereas the other provides consultancy as well as advisory services in diversified fields - NO: ITAT

Whether the turnover filter cannot be one of the tool for cherry picking by either of the parties at a later stage - NO: ITAT

Whether where turnover filter has not been applied, then comparability has to be done at qualitative level based on FAR Analysis - YES: ITAT

Whether where a company has been held to be good comparable consistently for three years, then without any change in the material facts, it cannot be held that this comparable could be rejected in subsequent year - YES: ITAT

Whether mere classification of revenue as 'advisory fees' will not put the company in a comparable basket sans functional similarity and transactional analysis - NO: ITAT

Whether any addition or adjustment on account of extra markup can be made, where the additional mark-up applied by the TPO is without any FAR analysis or without any benchmarking exercise with any comparables - NO: ITAT

Assessee's appeal partly allowed

 

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