Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (3) TMI 225 - ITAT DELHITransfer Pricing Adjustment - AMP expenses - Held that:- There is a merit in the contention of the ld. AR that the selling commission and discount etc. should be excluded from AMP expenses for working out the TP adjustment, if any. The Special Bench in LG Electronics India (P.) Ltd. (2013 (6) TMI 217 - ITAT DELHI) has specifically dealt with this issue in para 18 of its order and held that the sales specific expenses such as commission and discount etc. should not be included within the overall AMP expenses for processing them u/s 92 of the Act. Following the Special Bench decision, we hold that the selling expenses and discount paid by the assessee should be excluded from the total of AMP expenses and thereafter a fresh determination should be made for ascertaining the extent of TP adjustment, if any, in accordance with the directions given by the Special Bench in the case of LG Electronics India (P.) Ltd. (supra). - Matter remanded back - Decided in favour of assesse. Non recording of transactions in books of account - assessee explained that the PAN of the assessee company got reported against this expenditure incurred by Mr. I. Rahumathullah, who was earlier working for the assessee and after leaving the assessee, joined M.J. India - Held that:- relevant material on record we find that the said Mr. I. Rahumathullah categorically admitted the version stated by the assessee. There is further corroboration of this version from Citi Bank, a copy of which has been reproduced in the direction of the DRP. These facts amply prove that the credit card with the PAN of the assessee was actually used by its former employee, who admitted this fact. Further in view of the fact that the bank has also supported the version of the assessee, we are unable to see as to how any addition can be made in the hands of the assessee. This addition is directed to be deleted - Decided in favour of assesse.
|