{"id":62211,"date":"2026-07-18T15:33:49","date_gmt":"2026-07-18T10:03:49","guid":{"rendered":"https:\/\/itatonline.org\/digest\/dcit-v-elitecore-technologies-p-ltd-now-merged-with-sterlite-technologies-ltd-2025-132-itr-740ahd-trib\/"},"modified":"2026-07-18T15:33:49","modified_gmt":"2026-07-18T10:03:49","slug":"dcit-v-elitecore-technologies-p-ltd-now-merged-with-sterlite-technologies-ltd-2025-132-itr-740ahd-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/dcit-v-elitecore-technologies-p-ltd-now-merged-with-sterlite-technologies-ltd-2025-132-itr-740ahd-trib\/","title":{"rendered":"DCIT v. Elitecore Technologies P. Ltd. (now merged with Sterlite Technologies Ltd.) (2025) 132 ITR 740(Ahd) (Trib.)"},"content":{"rendered":"<p style=\"margin: 0in;margin-bottom: .0001pt;text-align: justify;line-height: 150%\"><span lang=\"EN-IN\" style=\"font-family: &#039;Verdana&#039;,sans-serif\">The TPO\u2019s upward adjustment on interest charged to the assessee\u2019s Bahrain associated enterprise, based on US\/European loan data with added risk spreads, was held unsustainable since the Bahrain prime lending rate already reflected regional risk and had been consistently applied; payments for product certification services evaluating software quality were held not to constitute fees for technical services, requiring no TDS given the payees\u2019 absence of a fixed place of business in India; and the provision for royalty expenses was held rightly allowed since royalty became payable only on activation of software by the end-user, so withholding tax liability under section 195 did not arise until then. (AY. 2011-12)<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 92C: Transfer pricing-Arm\u2019s length price-Avoidance of tax-International transaction-Specified domestic transaction-Loan to associated enterprise in Bahrain-Benchmarking using US\/European data inappropriate-Bahrain Central Bank&#8217;s prime lending rate reflects arm&#8217;s length rate-Upward adjustment unsustainable-Business expenditure-Disallowance-Payment for product certification services-Not fees for technical services-No tax deductible at source-Disallowance deleted.-Withholding liability arises only when income taxable in recipient&#8217;s hands-Royalty payable only on activation by end-user-Provision for royalty rightly allowed. [S.9(1)(vii) 40(a)(ia(195 R.10B]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62211","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gbp","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=62211"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62211\/revisions"}],"predecessor-version":[{"id":62212,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62211\/revisions\/62212"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}