The Week That Was - Episode 33 (April 8, 2016)

CASE LAWS

2016-TII-196-ITAT-MUM-TP

RUSABH DIAMONDS Vs ACIT : MUMBAI ITAT (Dated: March 31, 2016)

Income tax - Sections 92B, 143(3) & 144C.

Keywords - ALP - delayed realization of debts - export proceeds from AE - mark up on PLR - profitability as per PBIT & TNMM.

Whether a separate ALP adjustment for interest income on delayed realization of debt, was warranted, where the profitability as per PBIT, is found to be comparable - NO: ITAT

Whether there can be an occasion to make a separate adjustment for delay in realization of debts by the AE, as long as the sale proceeds to the assessee is benchmarked on TNMM basis - NO: ITAT

Assessee's appeal allowed

2016-TII-195-ITAT-MUM-TP

ICICI PRUDENTIAL ASSET MANAGEMENT CO LTD Vs ADDL CIT : MUMBAI ITAT (Dated: March 31, 2016)

Income tax - ALP - AE - assets under management - determination of price - EBIT- internal CUP - investment advisory fees & TNMM.

Whether the quantum of work involved in investment advisory services can be governed solely by the size of the assets under management, even though the consideration for services, as a matter of practice or convenience, is sometimes fixed on the basis of assets under management - NO: ITAT

Whether the exercise of ascertaining the ALP, simplictor on the basis of the fees in percentage terms with non AEs and without having regard to the other factors governing determination of price, is sustainable - NO: ITAT

Case remanded