1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

WHETHER ASSESSEE CAN RESILE FROM MOST APPROPRIATE METHOD ADOPTED IN ITS TP REPORT

ByCA Gopal Nathani

Aug 16, 2023

The transfer pricing report and the most appropriate method adopted by the assessee is not sacrosanct and may require a relook due to change in market dynamics and market conditions such as in Star India case involving a transaction of purchase of bundle of sport broadcasting rights. Other method were preferred over CUP method in such kind of transactions.

In a unified view the special bench of the Tribunal in Star India case @(2023] 105 ITR (Trib) 1 (ITAT[Mum]) thus held that assessee can resile from the most appropriate method as was adopted in the transfer pricing study report, provided that the new method conforms to the requirement of rule 10C(2) of the Income-tax Rules, 1962.

In the sequel the Tribunal being the last fact finding authority is more so duty bound to ascertain the correct facts, nature and class of transactions, the FAR analysis, reliability of data and thereafter arrive at the most appropriate method to benchmark the impugned international transaction, which may resile from the method adopted by the assessee in the transfer pricing study report.