ITAT: Assessee can’t be penalized for attorney's mistake; Deletes TP-adjustment following SC-ruling ratio

Kolkata ITAT sets aside TP-adjustments ordered by TPO for AY 2011-12 and AY 2012-13 considering assessee’s plea that such adjustments resulted from incorrect advice by the assessee’s erstwhile

Dec 19, 2017

ITAT: TNMM requires only broad functional similarity; Retains Cybermate despite exclusion in earlier-year

Mumbai ITAT upholds AO’s retention of Cybermate Infotek Ltd. (chosen by assessee itself) as comparable for assessee providing low-end software development & localization services to AE for AY

Dec 19, 2017

ITAT: Safe-Harbour Rules inapplicable for AY 2009-10; Rejects assessee’s ‘different yardstick’ for RPT computation

Delhi ITAT rules on the selection of comparables for assessee’s provision of software development services to its AE for AY 2009-10; Excludes Infosys for functional dissimilarity following co-ordinate

Dec 18, 2017

HC: Upholds TP-adjustment on Dabur’s royalty receipts; Refuses to ignore previous structure

Delhi HC dismisses assessee’s appeal, affirms ITAT’s restriction of TP-adjustment in the hands of Dabur India Ltd towards royalty from Dabur International Ltd, UAE for use of brand

Dec 15, 2017

ITAT: Benchmarking interest on AE-receivables with capital bonds amounts to transaction re-characterization

Delhi ITAT rules that interest on outstanding AE-receivables qualifies as an international transaction for AY 2009-10, relies on Bombay HC ruling in Patni Computer Systems, Ameriprise India and

Dec 14, 2017

HC: Dismisses Revenue’s appeal; No reason to exclude Govt.-owned undertaking absent specific provision

Madras HC dismisses Revenue’s appeal seeking exclusion of HMT Limited as comparable for assessee (engaged in the manufacture and export of tractors) for AY 2006-07; Upholds ITAT’s view

Dec 14, 2017