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2015 (10) TMI 1387 - ITAT JAIPURTransfer pricing adjustment - AO determining the Arms Length Price under CUP Method i.e. 11.40% in respect of interest free advance given to the Associated Enterprises of the assessee and in making addition of the same to returned income - Held that:- It is a fact that there was international transaction between the assessee and Associate Enterprise during the year under consideration on which no interest has been charged on the loan given to the subsidiary company. The DRP applied 11.40% interest rate on international transaction on the basis of BBB Bond and considering the risk in case of loan given to the Associate Enterprise. The loan given to subsidiary company has a lower risk as the assessee has indirect control on it. Further LIBOR + nominal adjustment has been upheld by various ITAT Benches as reasonable. Therefore, we find that interest rate proposed by the assessee @ 8.90% is reasonable as against 11.40% decided by DRP. - Decided partly in favour of assessee. Disallowance of belated payment of PF and ESI - Held that:- Where the payments on account of contribution to the provident fund, employees' State insurance, etc., are made within the due date of filing the return, such deductions are allowable - See CIT vs. Udaipur Dugdh Utpadak Sahakari Sangh Ltd. [2014 (8) TMI 677 - RAJASTHAN HIGH COURT] - Decided in favour of assessee. Restricting the brought forward business losses and unabsorbed depreciation - Held that:- The DRP already directed the AO to verify the assessee's claim for brought forward unabsorbed depreciation on the basis of I.T. records or assessee's records and allow the same as per law. We are also of the considered view that this issue requires reconsideration by the AO and the AO is directed to very the assessment records of the assessee and allow unabsorbed depreciation as per law. The assessee is also directed to cooperate and produce the evidence before the AO to decide the issue afresh - Decided against assessee.
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