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2014 (9) TMI 517 - AT - Income TaxTransfer pricing adjustment - International transactions – Payment of corporate charges – Details could not furnished before the authority earlier - Held that:- The assessee received various technical, marketing and administrative support service from its AE - The TPO had restricted the payment of service fee to an amount - In terms of application dated 4.7.2014 under Rule 29 of the ITAT Rules, the assessee had sought to place on record the summary of invoices raised on the assessee by its AE during the financial year 2007-08 - The detailed break up of invoices on the basis of nature of services and the summary of the man hours spent by the various divisions of the AE in rendering technical, marketing and administrative service to Contitech group of companies - the specific details or complete break up of how the cost has been allocated could not be furnished before the completion of the proceedings before the TPO/DRP, since these details were to be obtained from its AE Germany - the details now produced have an important bearing for resolving the transfer pricing dispute – thus, the matter is remitted back to the AO for fresh adjudication – Decided in favour of assessee. Invocation of section 14A r/w Rule 8D – Disallowance made for expenses incurred – Held that:- The assssee received dividend income - For making investment in shares and for earning such huge dividend income, it cannot be said, that the assesee has not incurred any indirect expenses such as management establishment expenses and other office overheads - The AO has given a categorical finding that the assessee’s method of calculating expenditure in relation of income not included in the total income is not satisfactory - the AO’s disallowance by invoking provisions of section 14A read with 8D (2) (iii) is justified and is in accordance with law – Decided against assessee.
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