Transfer Pricing -Domestic leg of cross-border deal, even if consequential to overseas deal by parent AE, not covered if terms not dictated by parent AE

Kodak India Pvt. Ltd vs. Addl. Commissioner of Income Tax (ITAT Mumbai), ITA No. 7349/Mum/2012, Date of Pronouncement : 30-04-2013 It is undisputed that the transaction involve two domestic companies, who are individual and independent subsidiaries of their own and independent holding companies. This is also not in dispute that neither of the holding companies could be called the AE of the other contracting party. This is also not in dispute that, there is any transaction, involving a non resident company. The case as developed by the TPO/DRP and the DR is that despite the fact that there is n...