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2013 (9) TMI 444 - AT - Income TaxTransfer pricing adjustment - Method of computation of operating profit - Rejection of comparables - Held that:- TPO has totally rejected the assessee's claim on this account, the CIT (A) has allowed a deduction of 1% by accepting the fact that the assessee might be facing certain utilisation problems in its new unit and unutilised capacity might have adversely affected the overall profit for the year. However, the CIT (A) has given no reason as to why he considers 1% margin to be appropriate and on what basis he has adopted such margin. When it is accepted that assessee's overall profit is adversely affected due to idle capacities and idle facilities then the entire issue requires to be considered properly and in an objective manner taking into account all the datas available in this regard. Therefore, considering the facts and the circumstances of this case, we remit this issue to the file of the Assessing Officer who shall consider the assessee's claim with regard to idle capacities after due consideration of all materials available on record and affording a reasonable opportunity of being heard to the assessee - Decided in favour of assessee.
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