Prescribed methods to be followed for ALP determination and interest on outstanding trade balances not the same as interest on loan

Court: Mumbai Bench of the Income Tax Appellate Tribunal Citation: Nimbus Communications Ltd Vs. ACIT [2010–TI1-21-ITAT-MUM-T9 Overview :- In a recent ruling in the case of Nimbus Communications Ltd v. ACIT [2010–TI1-21-ITAT-MUM-T9, the Mumbai Bench of the Income Tax Appellate Tribunal (“the Tribunal”), while deciding the case in favour of the assessee, ruled that for determination the of arms’ length price (“ALP”), any one of the methods as prescribed in section 92C(1) of the Income Tax Act, 1961 (“the Act”) must be followed. The Tribunal also rul...