Saturday, 19 March 2016

DECISIONS OF AAR SUPPORTING NO TP ADJUSTMENTS IN TRANSACTIONS OF SUBSCRIPTION OF SHARES OF SUBSIDIARY OUTSIDE INDIA

 
·                  Dana Corporation., AAR No. 788 of 2008 reported in 30th November, 2009
Para 8 and 8.1 of the Ruling
Section 92 is not an independent charging provision. The expression ‘income arising’ in the opening words of section92 postulates that income has arisen under the substantive charging provisions of the Act. If by application of the provisions of section 45 read with section 48, which are integrally connected one with the other, income cannot be said to arise, section 92 does not come to the aid of the Revenue even though it is an international transaction. Section 92 obviously is not intended to bring in a new head of income or to charge tax on income which is not otherwise chargeable under the Act.”
 
·             Amiantit International Holding Ltd., AAR No. 879 of 2009 reported in February 23,2010
wherein it was held that in a case where income was not chargeable at all transfer pricing provisions of section 92-B(i) of the IT Act would not apply.
 
 
 
 
 
Disclaimer: The view expressed above posted here for knowledge sharing purpose without any commercial aspect. Professional opinion must be sought before entering into any similar transactions mentioned above. Author shall not be held liable for loss of any kind arising from the exercise of information contained in it.
 

No comments:

Post a Comment