Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (2) TMI 1209 - ITAT CHENNAITPA - adjustment of idle capacity and aggregation of transactions allowed by the CIT(Appeals) - Held that:- It is not disputed that the Transaction Net Margin Method is a most appropriate method for the purpose of making adjustment on the transfer pricing matters. The Transfer Pricing Officer after relying on five comparables, determined the arithmetic mean of 7.16%. The assessee’s margin after adjustment for idle capacity comes to only 11.77%. Therefore, the CIT(Appeals) has rightly allowed the claim of the assessee. Therefore, we do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. Disallowance towards software expenses - Held that:- The expenditure was for the purpose of utilising the application service and compensation received from Danfoss A/S, Denmark. The CIT(Appeals) by placing his reliance on the order of this Tribunal in the assessee's own case, for the assessment years 2005-06, 2007-08 and 2008-09, allowed the claim of the assessee. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. Payment made to AE for imparting training and marketing skills to the employees of the assessee - Held that:-Since the Ld.counsel for the assessee has very fairly admitted before this Tribunal that expenditure relating to imparting training and marketing skills to the employees of the assessee is enduring benefit spread over a period of four years, the CIT(Appeals) is not justified in allowing the claim of the assessee. Accordingly, the order of the CIT(Appeals) is set aside and that of the Assessing Officer is restored.
|