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2023 (4) TMI 624 - ITAT BANGALORETP adjustment on account of excess AMP expenditure - Assessee is engaged in the business of manufacturing and distribution of desktop, laptop, servers, and smartphones and incurred expenditure in connection with campaigning, depicting features of new products, providing information to the public about details of product, its specification etc. - HELD THAT:- We notice that the TPO has not made any adjustment in the trading segment and also in the manufacturing segment in which the AMP expenses are included as part of operating cost. In our view, this would mean that there is no adverse inference drawn by the TPO in respect of the arm’s length price in the trading segment in the order passed u/s. 92CA and has accepted the entity level margins earned by the assessee with respect to trading segment. Therefore, we hold that no adjustment is warranted separately with respect to AMP expenses in the case where the TPO has accepted the overall margin of the trading segment which included the AMP expenses as part of the operating cost. Accordingly, we delete the adjustment made by the TPO. TPO considering incorrect margins - As prayed to direct the Ld. TPO to rectify the above Arithmetical errors in computation of the weighted average of operating margin to operating cost ratio (`OP/OC') margin of the company - HELD THAT:- As considering the submissions, remit the issue back to the TPO to consider the correct margins of the above companies. Working capital adjustment - HELD THAT:- It is a settled position that working capital adjustment need to be given while computing the ALP - We direct the Ld.AO/TPO to compute the working capital adjustment while computing the operating margin of the comparables following the decision of Coordinate Bench of this Tribunal in case of Huawei Technologies India P. Ltd. [2018 (10) TMI 1796 - ITAT BANGALORE]
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