Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (2) TMI 707 - ITAT PUNEArms length price - The issue raised in the ground relates to the proper appreciation of the first proviso to section 92(C)(2) of the Act - Considering the multiple prices involved, as per the first proviso, at the option of the assessee, the assessee is entitled to the benefit of reduction of 5% from the arithmetic mean of such prices - First proviso to section 92C(2) of the Act is required to the explained here and same as existed at the relevant point of time reads as follows. “provided that where more than one price is determined by the most appropriate method, the arms length price shall be taken to be the arithmetical mean of such prices or at the option of the assessee, a price which may vary from the arithmetical mean of an amount not exceeding five per cent of such arithmetical mean - In the assessee’s case undisputedly, there are three comparable price data and further, it is a fact that, as per the said first proviso, the assessee exercised the option too - The said first proviso has direct application to the facts of the case and the assessee is entitled for deduction not exceeding 5% out of the arithmetic mean - Consequently, the impugned order of the CIT(A) is required to be reversed on this issue relating to the applicability of the first proviso to the assesse – Decided in the favour of the assessee Regarding deduction u/s. 80HHC – Whether excise duty and sales tax are excluded for the purpose of calculating deduction u/s. 80HHC - Supreme Court in the case of Lakshmi Machine Works 290 ITR 667(SC) – Held that the issue has to be decided in favour of the assessee – Accordingly appeal is dismissed Regarding inclusion of income from scrap, sale, discount and commission, inspection and testing charges, job work and income derived from the suppliers for the purpose of 80HHC deduction should be referred to the files of the AO for re-adjudication after considering various binding judgments on each issue - Assessee is directed to file the evidences to support his case and also the copies of the decisions/judgments if any, which shall be taken into cognizance by the I.T. Authorities while adjudicating the issue afresh - In the result, all the four appeals are decided pro-tanto
|