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2014 (4) TMI 475 - AT - Income TaxTransfer Pricing adjustments confirmed by DRP and the directions which are not complied TPO – Held that:- The TP adjustments made to assesses ALP is not justified - Assessee furnished its split financials along with AE - Whereas the appellant has earned profit in India, its AE has continuously sustained losses - with no element of profit in the hands of the AE, in all fairness there is no case of shifting of profits, practicable or probable - AE is resident in USA which has a higher tax rate in India, therefore, there was little commercial prudence to shift profit out of India - The Far has not been properly evaluated by TPO and DRP - Proper justifications for applying TNMM method have not been assigned by lower authorities - No objective justifications are provided by lower authorities as to why and how, PSM method applied by assessee in the above peculiarities of business was not an appropriate method – Relying upon DCIT vs. Indo American Jewellery Ltd [2010 (5) TMI 530 - ITAT, MUMBAI] and CIT Vs. KRMTT Thiagaraja Chetty & Co. [1953 (10) TMI 7 - SUPREME Court] – the TP adjustments added to the income of the assessee are set aside – Decided in favour of Assessee. Disallowance of depreciation on computer peripherals – Held that:- The decision in COMMISSIONER OF INCOME TAX Versus BSES YAMUNA POWERS LLD. / BSES RAJDHANI POWERS LTD. [2010 (8) TMI 58 - DELHI HIGH COURT] followed - the asseessee is eligible for depreciation @60% on the items – Decided in favour of Assessee.
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