Bombay HC Allowed Additional Transfer Pricing Ground as AE Treated Tested Party

PCIT Vs Nivea India Pvt Ltd. (Bombay High Court) The Bombay High Court dismissed the Revenue’s appeal and upheld the order of the Income Tax Appellate Tribunal (ITAT) admitting an additional transfer pricing (TP) ground raised by the assessee for the first time at the appellate stage. The dispute arose after the ITAT allowed the assessee to raise an additional ground contending that its Associated Enterprises (AEs), being the least complex entities, should be treated as the tested party for benchmarking international transactions. The Revenue challenged this, arguing that the ground was pure...