Associated enterprises — Whether one enterprise controls the decision-making of the other or whether the decision-making of two or more enterprises are controlled by the same interests, these enterprises are required to be treated as “associated enterprises”, as held by MumTrib in Diageo India (P) Ltd v DCIT — In favour of: The assessee (partly).
Merely because an assessee has made a high profit or high loss, that cannot be sufficient ground for its exclusion from comparables.
Where the pre-1st October 2009 position is concerned, the adjustment of 5 per cent is to be allowed even in cases where the difference in the value of international transactions and its ALP is more than 5 per cent.
The reference to the TPO is transaction-specific and not enterprise-specific, the TPO has no powers to go into a matter which has not been referred to him by the AO.
Business expenditure — Expenditure incurred by the appellant on account of software is assessable as capital expenditure.
Decided on: 5 September 2011.
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