Case Law Details
Case Name : M/s. Topsgrup Electronic Systems Ltd. Vs ITO (ITAT Chennai)
Related Assessment Year :
Courts :
All ITAT ITAT Chennai
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Brief of the case:
The ITAT bench of Mumbai in the above cited case held that investment in share capital of a subsidiary being an international transaction on capital account does not result in income as defined under section 2(24) of the Act, the Transfer Pricing provisions a would not be applicable to such transaction.
Further, in the absence of thin capitalization rules, re-characterization of debt capital into equity or vice versa not allowed.
Facts of the case:
The assessee company, a wholly owned subsidiary of the Tops Securities Ltd. (TSL) is engaged in the business of providing ...
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Author Bio
Great Judgement by Tribunal. Now a days AO’s are misusing their power & making addition of items like loans which can not be constituted as income of the assesse and raising a huge amount of demand with interest payable on it. Then assesse goes for the appeal but meanwhile hearing of Appeal comes AO start sending the recovery notices . At the end assesse ask for the stay of recovery but he is asked to pay 15% of demand. This is what is happening in lots of cases .