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2014 (11) TMI 291 - AT - Income TaxTransfer pricing adjustment Determination of ALP CUP or TNMM- Held that:- The assessee applied CUP as the most appropriate method for benchmarking the international transactions undertaken by it - what persuaded the TPO to observe departure in these two later years from the consistent stand taken by him in the immediately preceding four years up to A.Y. 2006-07 in following the CUP method, is not available on record - There may have been some change in the factual position necessitating the adoption of TNMM in these later years- the mere fact that the TPO adopted TNMM in a later year can be no ground to argue before the tribunal that the same method be followed in a preceding year, which stand has been specifically rejected by him in the instant years - the application of TNMM on this reason alone cannot be upheld, more specifically, when in the immediately preceding year, where the facts are admittedly similar, the tribunal has restored the matter to the TPO for de novo adjudication thus, as decided in assessees own case for the earlier assessment year it has been held that the matter is remitted back to the TPO/AO for fresh adjudication Decided in favour of revenue. Renovation and maintenance expenses disallowed Held that:- The sum was not towards any renovation of building, but, paid to a company, namely, Towerbase Services Pvt. Ltd., as maintenance charges for Vasant Vihar office on monthly basis - Month-wise details of such payment made aggregating to ₹ 25.20 lac were made available to the CIT(A), which were sent to the AO for comments - No objection was taken by the AO to the correctness of the nature of amount in the remand report the order of the CIT(A) in allowing deduction for the full amount, which was incurred for the maintenance of office on monthly basis is upheld Decided against revenue. ISO certification fee paid by the assessee deleted Held that:- The payment of ISO certification fee is a routine expenditure incurred on annual basis - By no stretch of imagination it can be considered as amounting to acquisition of a capital asset or advantage of an enduring nature - thus, the order of the CIT(A) is upheld Decided against revenue.
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