Indian authorities have no right to question commercial wisdom of taxpayer
October 05, 2011
Sophie Ashley - TPW
The Indian transfer pricing authorities have no right to question the commercial wisdom of the taxpayer in incurring expenditure for business conduct, the Mumbai Income Tax Appellate Tribunal has ruled.
A case involving Dresser-Rand, a manufacturer and exporter of gas compressors, in India, has ruled against the transfer pricing officer (TPO), the assessing officer (AO) and the dispute resolution panel (DRP) in an important decision on cost allocation.
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