Relevance of Economic Principles over Judicial Precedents - Lodha Group Ruling
The Mumbai Bench of Income-tax Appellate Tribunal (ITAT) in a recent ruling of Macrotech Developers Limited [TS-237-ITAT-2023(Mum)-TP] (a Lodha Group company and hereafter referred to as the ‘taxpayer’) set aside the Dispute Resolution Panel (DRP) directions in relation to determination of arm’s length price (ALP) of corporate guarantee and accepted benchmarking conducted by the taxpayer using scientific and credible approach in accordance with the transfer pricing principles governed by the Income-tax Act (the Act).
