| 2016-TII-INSTANT-ALL-313 | 08 April 2016 |
Legal Wrangle - Episode 37 (Corporate Law)
TII CASES TP Pr CIT Vs AVAYA INDIA PVT LTD Whether while selecting comparables, the market risk that arises, if at all it is quantifiable, has to be adjusted in view of Rule 10B(1)(e)(iii) as per CAPM model by availing the services of technical experts - YES: HC Delhi High Court CIT Vs GOLDMAN SACHS INDIA SECURITIES PVT LTD Whether if the comparable company was engaged in merchant banking business, it can be compared with the assessee company which is engaged in Investment Advisory Services - NO: HC Bombay High Court DCIT Vs BATA INDIA LTD Whether the reasoning applied by CIT(A) for making deletion of the disallowance of employee's shares of contribution to PF equally apply to the contribution made towards ESI also - YES: ITAT Whether in case there is no dispute in the fact that a fund was constituted bonafidely for the welfare of its employees in the smooth running of the business, the contribution made to this fund is to be allowed u/s 37(1) - YES: ITAT Whether if the personnel from the Bata group were relocated in specific country keeping in mind commercial interest of the AEs, the decision is taken by the intra group service provider, its salary paid can be disallowed in assessee's hands - NO: ITAT Whether if no royalty was charged by the AE in the earlier years, can this be considered as an estoppel against charging a fair or arm's length rate of royalty in the subsequent years - NO: ITAT Whether in case no remuneration was paid for similar services rendered by the AE in the past, can this be a ground to reject payment in a later financial year as for non business consideration - NO: ITAT Whether if the rate of royalty paid by assessee was lower than the rate of royalty paid by the comparable uncontrolled enterprises in a similar condition, can the assessee claim that the price paid in the transaction is to be regarded as having been undertaken at arms length price - YES: ITAT Kolkata ITAT |
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