India: Determination of arm’s length prices by Tribunal subject to review by High Courts (Supreme Court decision)

Supreme Court reversed a batch of High Court decisions

Supreme Court reversed a batch of High Court decisions

The Supreme Court reversed a batch of High Court decisions in which those courts held that determinations of arm’s length prices by the Tribunal were questions of fact and thus not subject to review.

The Supreme Court held that the determination of arm’s length prices involves both questions of law and fact, and whether the Tribunal followed the relevant transfer pricing rules and guidelines is subject to review.

The case is: SAP Labs India Prv. Ltd.

Read an April 2023 report [PDF 540 KB] prepared by the KPMG member firm in India 



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