ITAT says Economic Dependence Does Not Alone Create an Associated Enterprise

The Tribunal rejected the Revenue's attempt to treat MIA Computers, Israel as an AE of SAS Institute Inc., USA merely because MIA exclusively distributed SAS software. Section 92A(2) operates in aid of the foundational test in Section 92A(1), and commercial dependence is not the same as participation in management, control or capital. 

The Tribunal consequently restored the CUP analysis to the TPO, requiring a transaction-specific examination of contractual differences and objectively verifiable adjustments.