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

In no way the AO has power to question arm’s length pricing in unrelated party transactions

ByCA Gopal Nathani

Dec 17, 2024

Quoting from 288 ITR 1 (SC)- S. A. Builders Ltd.‘s case the Delhi bench of ITAT in UK INDIA BUSINESS COUNCIL INDIA P. LTD. (2024] 120 ITR (Trib) 635 (ITAT[Del]) held that the AO is not powered by the Act to question any agreement on the ground of business expediency or prudence of such agreement entered with the independent unrelated party during the ordinary course of business. It is held that the same is beyond power vested on the AO.
In this case the AO went on to analyse facilities management agreement with unrelated party by applying the yardstick of business expediency and commercial prudence undeservingly.