Section 36(1)(ii)

Section 36(1)(ii) — the law in short

What the courts have decided on section 36(1)(ii), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• ChrysCapital Investment Advisors v DCIT High CourtCuts both ways
  The TPO kept a comparable with an abnormal profit margin. Can I get it excluded just for that?
  No, not on the margin alone. A company that otherwise satisfies Rule 10B(2) is not excluded merely because it presents a peculiar feature such as a huge profit or a huge turnover. What the high margin does is trigger an enquiry: the officer must ask whether it flows from a comparability defect that materially affects price or profit, and if it does, attempt to eliminate the difference under Rule 10B(3) — exclusion follows only if that cannot be done.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.