Specified Domestic Transaction

Specified Domestic Transaction- Penalty for Concealment of Income

Income Tax - The provisions of transfer pricing are designed to keep a check on the practice of reducing the tax liability by entering into transactions at prices higher/lower than market prices with one or more associated entity....

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CBDT Extends Time Limits for Tax/TP Audit/ITR Filing – AY 2021-22

Income Tax - The Finance Ministry vide Circular no. 17/2021 dated 09 September, 2021 announced extensions to the deadline for the filing of the Income-tax Returns, as well as some other allied compliances for the Assessment Year 2021-22: Sr. No. Particulars Original Due Date Extended to vide earlier Circular no.9/2021 Now Extended to vide Latest Circu...

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Specified Domestic Transactions – Overview of Transfer Pricing implications

Income Tax - The related party transactions have always been under the close scanner of the Tax Authorities. Owing to the inherent nature of such transactions it is believed that such transactions are by far the most convenient way of shifting profits and accordingly subjected to detailed scrutiny by the Tax Authorities. The international transactions...

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What is Domestic Transfer Pricing?

Income Tax - Applicability of transfer pricing provisions was earlier limited to International Transactions only. With effect from 01.04.2013, the scope of Transfer Pricing provisions is extended to 'Specified Domestic Transactions' and is accordingly applicable from A.Y. 2013-14....

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Related Party – AS 18 vs Transfer Pricing

Income Tax - AS 18 defines the disclosure requirements related to related party relationship and transaction between a reporting enterprise and its related parties in the financial statement of that enterprise. The basic assessment during disclosure is centered upon two things viz., who is related party and what amounts to related party transaction. A...

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Reference to TPO without fulfilling the conditions of threshold limit is not valid

Garg Acrylics Ltd. Vs Addl. CIT (ITAT Delhi) - Garg Acrylics Ltd. Vs Addl. CIT (ITAT Delhi) It is the case of the assessee that reference made to the TPO in the instant case without fulfilling the conditions of threshold of Rs.5 crore monetary limit is without the sanction of law in view of the Section 92BA of the Act. This being so, the [&helli...

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ITAT explains Transfer Pricing Method in case of Sale of Electricity to AEs

ACIT Vs Electrosteel Casting Ltd. (ITAT Kolkata) - ACIT Vs Electrosteel Casting Ltd. (ITAT Kolkata) It is clear from the rival contentions that determination price at which Power generated can be sold is subject to statutory control under the provisions of Section 61 & 62 of the Electricity Act, 2003. The Hon’ble Calcutta High Court in its...

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No section 263 Proceedings for related party transaction excluded from definition of specified domestic transaction

Shri Ashish Subodchandra Shah Vs PCIT (ITAT Ahmedabad) - Commissioner issued a show cause notice under section 263 and ultimately passed impugned order; by that time the alleged domestic transaction of purchase from related party was not required to be considered as a specified domestic transaction under section 92BA of the Act. It has been omitted, and t...

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Section 56(2)(v) relative definition not apply for Specified Domestic Transactions

Smt. Anita Sunil Mahajan Vs ACIT (ITAT Pune) - Smt. Anita Sunil Mahajan Vs ACIT (ITAT Pune) Definition of ‘relative’ for Specified Domestic Transactions (SDTs) should be as per Section 2(41) of Income Tax Act, 1961 and Section 56(2)(v) would not apply. Case Summary: – Facts of the case: During AY 2013-14, Smt. Anita Sunil Mahaj...

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Addition deleted in respect of TP Adjustment related to Specified Domestic Transactions

DCIT Vs Bhairavanath Sugar Works Ltd. (ITAT Pune) - everting to the CUP method applied by assessee as the most appropriate method for benchmarking the SDT of rent payment, assessee had given a comparable instance of rent paid @ Rs.112 per sq.ft. by ICICI bank under a lease agreement dated 17.02.2012 for a nearby premises. As against that, the assesse...

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How to register and submit Statement of Reportable Account

Notification No. 4 of 2018-DGIT(S) - (05/04/2018) - Procedure for registration and submission of Statement of Reportable Account as per section 285BA of Income-tax Act, 1961 read with Rule 114G of Income-tax Rules, 1962. ...

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How to register and submit statement of financial transactions (SFT)

Notification No. 3 of 2018-DGIT(S) - (05/04/2018) - Procedure for registration and submission of statement of financial transactions (SFT) as per section 285BA of Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962. ...

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How to register and submit Form No. 61 under Income Tax Rule 114D

Notification No. 2 of 2018-DGIT(S) - (05/04/2018) - As per sub-rule (1)(i) and sub-rule (4) of Rule 114D, the statement in Form No. 61 shall be furnished through online transmission of electronic data to a server designated for this purpose and in accordance with the data structure specified in this regard by the Principal Director General of Income-...

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How a person not having PAN can submit Form No. 60

Notification No. 1 of 2018-DGIT(S - (05/04/2018) - Under electronic verification, the individual or a person (not being a company or firm) who does not have a permanent account number and who enters into any transaction specified in under Rule 114B of the Income-tax Rules, 1962, shall make a declaration in Form No. 60 giving therein the particulars ...

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Revised Guidelines- Implementation of Transfer Pricing Provisions

Instruction No. 3/2016 - (10/03/2016) - In terms of the provisions, any income arising from an international transaction or specified domestic transaction between two or more associated enterprises shall be computed having regard to the Arm's Length Price....

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Recent Posts in "Specified Domestic Transaction"

Reference to TPO without fulfilling the conditions of threshold limit is not valid

Garg Acrylics Ltd. Vs Addl. CIT (ITAT Delhi)

Garg Acrylics Ltd. Vs Addl. CIT (ITAT Delhi) It is the case of the assessee that reference made to the TPO in the instant case without fulfilling the conditions of threshold of Rs.5 crore monetary limit is without the sanction of law in view of the Section 92BA of the Act. This being so, the […]...

Read More

Specified Domestic Transaction- Penalty for Concealment of Income

The provisions of transfer pricing are designed to keep a check on the practice of reducing the tax liability by entering into transactions at prices higher/lower than market prices with one or more associated entity....

Read More
Posted Under: Income Tax | ,

ITAT explains Transfer Pricing Method in case of Sale of Electricity to AEs

ACIT Vs Electrosteel Casting Ltd. (ITAT Kolkata)

ACIT Vs Electrosteel Casting Ltd. (ITAT Kolkata) It is clear from the rival contentions that determination price at which Power generated can be sold is subject to statutory control under the provisions of Section 61 & 62 of the Electricity Act, 2003. The Hon’ble Calcutta High Court in its decision rendered in the case of [&hell...

Read More

CBDT Extends Time Limits for Tax/TP Audit/ITR Filing – AY 2021-22

The Finance Ministry vide Circular no. 17/2021 dated 09 September, 2021 announced extensions to the deadline for the filing of the Income-tax Returns, as well as some other allied compliances for the Assessment Year 2021-22: Sr. No. Particulars Original Due Date Extended to vide earlier Circular no.9/2021 Now Extended to vide Latest Circu...

Read More
Posted Under: Income Tax |

Specified Domestic Transactions – Overview of Transfer Pricing implications

The related party transactions have always been under the close scanner of the Tax Authorities. Owing to the inherent nature of such transactions it is believed that such transactions are by far the most convenient way of shifting profits and accordingly subjected to detailed scrutiny by the Tax Authorities. The international transactions...

Read More
Posted Under: Income Tax |

No section 263 Proceedings for related party transaction excluded from definition of specified domestic transaction

Shri Ashish Subodchandra Shah Vs PCIT (ITAT Ahmedabad)

Commissioner issued a show cause notice under section 263 and ultimately passed impugned order; by that time the alleged domestic transaction of purchase from related party was not required to be considered as a specified domestic transaction under section 92BA of the Act. It has been omitted, and therefore, no proceedings under section 2...

Read More

Section 56(2)(v) relative definition not apply for Specified Domestic Transactions

Smt. Anita Sunil Mahajan Vs ACIT (ITAT Pune)

Smt. Anita Sunil Mahajan Vs ACIT (ITAT Pune) Definition of ‘relative’ for Specified Domestic Transactions (SDTs) should be as per Section 2(41) of Income Tax Act, 1961 and Section 56(2)(v) would not apply. Case Summary: – Facts of the case: During AY 2013-14, Smt. Anita Sunil Mahajan (Assessee), filed her return declarin...

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Addition deleted in respect of TP Adjustment related to Specified Domestic Transactions

DCIT Vs Bhairavanath Sugar Works Ltd. (ITAT Pune)

everting to the CUP method applied by assessee as the most appropriate method for benchmarking the SDT of rent payment, assessee had given a comparable instance of rent paid @ Rs.112 per sq.ft. by ICICI bank under a lease agreement dated 17.02.2012 for a nearby premises. As against that, the assessee paid rent @ Rs.75.28 per sq.ft., which...

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No addition for TP adjustment related to Specified Domestic Transactions

Sobha City Vs ACIT (ITAT Bangalore)

Sobha City Vs ACIT (ITAT Bangalore) No addition for transfer pricing (TP) adjustment related to Specified Domestic Transactions (SDT). Conclusion: The reference to TPO for transfer pricing adjustment in respect of specified domestic transactions mentioned in clause (i) of section 92BA was not valid, as the said provision had been omitted....

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Penalty justified for failure to maintain Transfer Pricing Documents

DCIT Vs Convergys Customer Management Group Inc. (ITAT Delhi)

DCIT Vs Convergys Customer Management Group Inc. (ITAT Delhi) It is mandatory for all taxpayers, without exception, to obtain an independent accountant’s report in respect of all international transactions between associated enterprises or specified domestic transactions. The report has to be furnished by the due date of the tax ret...

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