The Tribunal deleted TP addition on account of<\/p>\n
a) alleged excess consideration paid on investment in share capital of wholly owned subsidiary re-characterized as loan<\/p>\n
b) and notional interest thereon on the ground that<\/p>\n
i. Chapter X of the Act is inapplicable to an international transaction on capital account which does not result in income chargeable to tax and<\/p>\n
ii. Re-characterisation of the transaction is not permitted under the Act, and<\/p>\n
iii. That potential income, to qualify as income subject to transfer pricing under the Act, should arise from the impugned international transaction which is before the TPO for consideration and not out of a hypothetical transaction that may or may not take place in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Tribunal deleted TP addition on account of a) alleged excess consideration paid on investment in share capital of wholly owned subsidiary re-characterized as loan b) and notional interest thereon on the ground that i. Chapter X of the Act is inapplicable to an international transaction on capital account which does not result in income chargeable to tax <\/p>\n