Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 1518 - AT - Income TaxTransfer Pricing Adjustment made on Software Development Services Segment - comparable selection criteria - Held that:- The assessee company has set-up unit for development of telecommunication software for its group entities and it also provides marketing and customer services and back-office support services (ITES) to its group entities. One of the segment is Provision of software development services to its Associated Enterprise based in Israel and USA, thus companies functionally dissimilar with that of assessee need to be deselected from final list. Expenditure in PSE (Nondomestic Division) - Held that:- One thing that is clearly discernible is that the disallowance has been made on an adhoc basis without pointing out any particular item of expenditure which is relatable to the non- PSE division. It is also emerging from the record that the action of the Assessing Officer is based on similar addition made in assessment year 2008- 09. Before us, nothing has been brought out to show the finality of the addition made in preceding assessment year 2008-09. However, additions made on mere conjectures and surmises are unsustainable. Be that as it may, considering the entirety of circumstances, we deem it fit and proper to restore the matter back to the file of Assessing Officer, who shall reconsider the aforesaid addition afresh as per law, after allowing the assessee a reasonable opportunity of being heard in support of its stand. Thus, on this aspect assessee succeeds for statistical purposes.
|