| 2016-TII-INSTANT-ALL-307 | 25 March 2016 |
simply inTAXicating - Amendments in Service Tax (Budget 2016) CASE LAWS VODAFONE INDIA SERVICES PVT LTD Vs DCIT : MUMBAI ITAT (Dated: March 18, 2016) Income tax - ALP - AE - framework agreements - indirect enhancement in share holding - outstanding demand - stay application & transfer of call options. Whether the 'right of call options' can be presumed as property rights in the hands of an AE, and hence capital assets for the purpose of Section 2(14), unless such right was exercised and the call options was transferred by the assessee to its AE during the concerned A.Y - NO: ITAT Assessee's stay application allowed LI AND FUNG INDIA PVT LTD Vs DCIT : DELHI ITAT (Dated: March 23, 2016) Income Tax - Sections 143(3), 144C & rule 10B (1)(e). Keywords: Provision of buying services - export trading - TNMM - FOB value of exports - tested party - net operating income - ALP determination. Whether for the purposes of making TP adjustment, the amount of adjustment can be calculated by picking up 'profit margin' of the assesee or comparables and then comparing it with the 'price' charged by the comparables or the assessee - NO: ITAT Whether in case the assessee's profit margin for the purpose of determination of ALP is within the permissible range of the profit margin of comparables, is there any need to make transfer pricing adjustment - NO: ITAT Assessee's appeal allowed |
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