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No international transaction due to lack of pre-requisite agreement; Shilpa Shetty gets another favourable ruling

June 25, 2019[2019] 106 304 (Mumbai - Trib.)/[2019] 178 ITD 461 (Mumbai - Trib.)

TRANSFER PRICING: Where pursuant to share purchase agreement (SPA) entered into by husband of assessee with Mauritius company to buy shares of said company, assessee (Shilpa Shetty) rendered brand ambassadorship services to JIPL, 100 per cent subsidiary of Mauritius company, without any consideration, since parties to SPA was not an AE of assessee nor JIPL entered into a prior agreement with AE of assessee, section 92B(2) could not be applied to hold that transaction between JIPL and Shilpa Shetty was international transaction

TRANSFER PRICING: In order to constitute relationship between AEs, parameters laid down in both sub-sections (1) and (2) of section 92A should be fulfilled

TRANSFER PRICING: Section 92 is not an independent charging section to bring in a new head of income or to charge tax on income which is otherwise not chargeable under Act, and thus, where no income has accrued to or received by assessee under section 5, no notional income can be brought to tax under section 92

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