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2020 (7) TMI 367 - AT - Income TaxTP Adjustment - Comparable selection - HELD THAT:- Assessee company is providing customized business process outsourcing services which include voice based inbound phone support, e-mail support, on line chat and back office processing to Tracmail group of companies (Associated Enterprises) - direct the TPO/Assessing Officer to exclude Genesys from the final list of comparables as functionally dissimilar with that of assessee. Exclusion of Excel from the final list of comparables on the ground that the company is having fluctuating margins - A company having super normal profits or highly unstable margins should not be idly considered as good comparable. Thus, in view of the decision of Baxter India [2017 (8) TMI 1557 - ITAT DELHI] we find merit in the contentions of the assessee and direct the Assessing Officer to exclude Excel from the list of comparables. Depreciation on goodwill - HELD THAT:- ln assessee’s own case when the assessee by virtue of such amalgamation has received back the goodwill in its book, depreciation has to be allowed on goodwill. As regards the doubt raised by learned DRP that the assessee cannot claim depreciation on the entire amount of goodwill, it must be observed that the assessee has claimed goodwill on the opening WDV only and not on the entire amount. It is now fairly well settled that goodwill being an intangible asset, depreciation has to be allowed. In view of the aforesaid, we direct the Assessing Officer to allow assessee’s claim of depreciation on goodwill. Claim of additional depreciation on goodwill subsequent to amalgamation - In the light of decision of the Co-ordinate Bench in assessee’s own case on same set of facts, we restore this issue back to the file of Assessing Officer with similar directions Non-granting of set off of brought forward business losses - HELD THAT:- As assessee has prayed for restoration of this issue with a direction to Assessing Officer to allow assessee’s claim. The issue is restored back to Assessing Officer for reconsideration in accordance with law. Assessing Officer shall grant reasonable opportunity of hearing to the assessee in accordance with law.
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