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1 - 6 of 6 (0.25 seconds)Section 37 in The Income Tax Act, 1961 [Entire Act]
Section 92 in The Income Tax Act, 1961 [Entire Act]
Dcit, Circle-14(1)(2), Mumbai vs M/S Gmr Warora Energy Limited, Mumbai on 15 June, 2023
13.3 It was further contended that the assessee's reliance on section
37(1) of the Act was misconceived. The allowability of expenditure under
section 37 operates in a different sphere from determination of ALP
under section 92 of the Act. Even if an expenditure is commercially
expedient and otherwise allowable, it must still comply with the arm's
length principle where it arises from an international transaction.
Therefore, the ld. CIT(TP) was correct in holding that section 37
considerations do not override Chapter X provisions.
13.4 The ld. DR also relied on the earlier decision of the Bangalore
Tribunal in DCIT vs. GMR Airports Ltd., wherein it was held that SBLC
commission borne by the assessee and not recovered from the AE
constituted an international transaction liable for transfer pricing
adjustment. In light of this binding precedent, it was all the more
necessary for the TPO to examine the issue in detail, which he failed to
do.
The Income Tax Act, 1961
Section 92B in The Income Tax Act, 1961 [Entire Act]
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