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2013 (12) TMI 414 - AT - Income TaxDetermination of transfer pricing – Held that:- The comparable companies taken in the given case were not proper and reasonable - The companies having the turnover of less than Rs. one crore or more than Rs.200 crores and companies which are functionally dissimilar unless having segmental results in respect of comparable line of activity should not be taken as comparables - In case of comparable companies foreign exchange loss or gain have been taken into account in computing the profit, in the case of assessee also the foreign exchange gain or loss should be taken into account in determining the overall profit - All facts which impact the financial result of comparable companies should be taken into account and reasonable accurate adjustment should be made for the same - Companies whose employee or directors are involved in fraud should not be accepted as the financial results are not reliable – The issue was set aside for fresh adjudication. Deduction u/s 10A - Held that:- Following CIT vs Gem Plus Jewellery [2010 (6) TMI 65 - BOMBAY HIGH COURT] - Explanation 2 to 10A excludes from the export turnover freight, telecommunication charges, insurance attributable to delivery of articles or computer software outside India - The telecommunication charges and circuit charges of Rs.20,18,437/- should be excluded from both the export turnover and the total turnover – Decided against assessee.
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