Recent Hat-trick of Transfer Pricing Wins- Amicus Advocates & Solicitors

Recent Hat-trick of Transfer Pricing Wins- Amicus Advocates

WIN 1

Industry – Automobiles
Nature of Work: Transfer Pricing Ruling & Corporate Tax (Delhi Tax Tribunal)
Work Description: The fundamental issue was whether manufacturing and trading constituted same or separate business.
Keeping in view arguments based on facts and judicial precedents, Tribunal ruled that manufacturing was merely an extension of trading business as there was unity in command and control, single set of audited financial statements, common product and customer for the trading and manufacturing activity. Hence, all expenses incurred in setting up of manufacturing unit were to be allowed even if there were no sales from manufacturing activity and different business segments had been drawn up for Transfer Pricing Benchmarking.

Arguing Counsel –Ashutosh M Rastogi and Team

WIN 2

Industry – Automobiles
Nature of Work: Transfer pricing Litigation (Dispute Resolution Panel)
Work Description: Amicus  succeeded  in  deleting  the  entire  Transfer  Pricing  adjustment  at  the  first  appellate  Level,  i.e. Dispute  Resolution  Panel.  Below  are  the  reliefs  provided  by  Dispute  Resolution  Panel  (First  Appellate Forum after Transfer Pricing Scrutiny):

  1. Deletion of Royalty Adjustment.
  2. Allowance of Depreciation  adjustment to  account  for  differential depreciation policy  between assessee and comparables.
  3. Allowance of Working Capital Adjustment.

Arguing Counsel –Ashutosh M Rastogi and Team

WIN 3

Industry – Information Technology
Nature of work – First Appellate Authority (Commissioner of Income Tax Appeals)
Work Description: The Transfer Pricing Officer had characterized outstanding receivables vis-à-vis associated enterprises as loan transactions and charged interest on account of delayed payments. The entire Transfer Pricing adjustment was deleted by the first appellate authority based on economic arguments/ comparability adjustment computation securing significant relief for the client.

Arguing Counsel –Ashutosh M Rastogi and Team