Transfer of passive infrastructure assets to Vodafone Infrastructure was a ‘Gift’ eligible for sec 47(iii) exemption

DCIT Vs Vodafone Idea Limited (ITAT Mumbai) Conclusion: Transfer of passive infrastructure (PI) assets under a court-approved scheme of demerger without consideration qualified as a ‘gift’ under Section 47(iii), thereby legitimizing the claim of depreciation on such assets. Section 80-IA(2A) granted broad deduction for telecom undertakings; RBI-approved ECB pricing was a reliable benchmark in transfer pricing and ALP could not be determined at NIL without applying prescribed methods. Held: Revenue had challenged the DRP’s directions on several grounds, primarily arguing that...