Section 92A

Section 92A — the law in short

What the courts have decided on section 92A, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• PCIT v Veer Gems High CourtHelps taxpayer
  The TPO says I control the foreign party in substance, so we are associated enterprises. Is de facto control enough under s.92A?
  No. s.92A(1) and s.92A(2) have to be read together. Sub-section (2) is not a list of examples of the participation described in sub-section (1) — it controls what counts as participation, so unless one of its clauses is actually satisfied, de facto or even de jure participation in the capital, management or control of the other enterprise does not make the two enterprises associated enterprises, and the transfer pricing machinery never starts.

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.