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2022 (3) TMI 1469 - AT - Income TaxTP Adjustment - markup to 5% computed by the Ld.AO on the net reimbursement of costs by the AE - AR submitted that assessee made payments to the 3rd party vendor’s towards these expenses and across charged to its group companies at cost without any element of markup - HELD THAT:- We note that identical issue arose before the Coordinate Bench of this Tribunal in assessee’s own case for A.Y. 2011-12 wherein the issue has been remanded to the Ld.AO, THUS we are of the view that the issue need to be remanded back to the Ld.AO to consider the claim in accordance with law. In the event the expenditure incurred, against which reimbursement is made by the AE, forms part of working capital adjustment, no further adjustment is warranted. We also note that there are receivables which are also being reimbursed by the AE which also needs to be subsumed in the working capital adjustment in order to escape the rigors of adjustments. Restricting the minimum alternate tax credit set of as per the provisions of section 115JAA - HELD THAT:- Assessee is directed to file requisite documents in support of the claim. The Ld.AO shall verify the details and consider the claim in accordance with law.
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