The Viewpoint: Secondary Adjustment- A Perspective

M&A, POEM

by Arijit Chakravarty and Gohan Raj

  1. Background

As early as in 2014, in the case of PMP Auto Components (P) Limited TS-263-AT-2014 (Mum) the tax authorities had made a secondary adjustment on account of interest chargeable on loan transaction with Associated Enterprise (AE) as the tax payer assessee had not realized any amount of interest from additional capital investment made to its AE. The same was deleted by the Dispute . . .