NEWS FLASH

CASE LAWS

2016-TII-42-HC-DEL-TP

DAIKIN AIRCONDITIONING INDIA PVT LTD Vs ACIT: DELHI HIGH COURT (Dated: July 27, 2016)

Income tax - Sections 92B & 92CA.

Keywords - ALP - AE - AMP expenses - bright line test - BLT - international transaction - jurisdiction of TPO & remand of matter.

Whether where the materials necessary for determining the question as to existence of international transaction between the assessee and its AE, are already on record, then the ITAT should not remand the determination of the said question to the DRP or the TPO - YES: HC

Whether where the ITAT decides the above question regarding the existence of an international transaction between the Assessee and its AE in the negative, then no other question regarding determination of an adjustment will survive for adjudication as far as the Assessee is concerned - YES: HC

Case remanded

2016-TII-41-HC-DEL-TP

PR CIT Vs TREND MICRO INDIA PVT LTD: DELHI HIGH COURT (Dated: July 26, 2016)

Income tax - Sections 92, 92CA(3) & Rule 10B(3).

Keywords - exclusion of comparables - functional dissimilarity - permission to cross objection & suo moto power of ITAT.

Whether an issue as to inclusion/exclusion of comparables on grounds of functional dissimilarity, raises a substantial question of law warranting interference by the jurisdictional High Court - NO: HC

Whether the Revenue deserves a direction from the jurisdictional High Court to be imposed on the ITAT, for exercising sou moto powers requiring fresh exercise of TP adjustment by the TPO, when there was no provision permitting the filing of cross objection by the Revenue against DRP's Order in the concerned A.Ys - NO: HC

Revenue's appeal dismissed

TII Instructions

Instruction No: F.No. 225/195/2016/ITA.II

Order under Section 119 of the Income-tax Act, 1961

Instruction No: F.No. 225/195/2016/ITA.II

Order under Section 119 of the Income-tax Act, 1961