TMI Blog2016 (3) TMI 1459X X X X Extracts X X X X X X X X Extracts X X X X ..... subsidy has not been reduced from the operating cost and therefore, in the absence of information even though adjustment is not possible, but in such circumstances, for uniform comparability, the freight subsidy in the case of the assessee company has to be considered as operating in nature. The AO is accordingly, directed to consider the said subsidy as part of operating revenue. Working capital adjustment - As reliance has been placed by the assessee are of the view that the working capital adjustment needs to be allowed. AO is accordingly, directed to allow the working capital adjustment. Decided against revenue. - IT(TP)A No. 194(Bang) 2015 And C.O. No. 90(Bang)/2015 - - - Dated:- 18-3-2016 - X X X X Extracts X X X X X X X X Extracts X X X X .....
4. For these and other grounds that may be urged at the time of hearing, it is prayed that the directions of the DRP in so far as it relates to the above grounds may be reversed. 5. The assessee craves leave to add, alter, amend and/or delete any of the grounds mentioned above. 3. Brief facts of the case are as under; The assessee company is engaged in manufacturing processing and export of vegetables. For the assessment year 2010-11, the assessee company filed its return of income on 18-09-2010 declaring an income of Rs.,56,66,761/-. However, the same was set off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ghtful consideration to the submissions of the rival parties and also relevant order passed by the DRP, as the DRP held in its order that “Having heard the objection, it is noticed by us, from the findings given in the paragraph 9.3 of the order of the TPO that the figures of the freight subsidy is not separately available in the annual report and therefore, in absence of such figure, the adjustment cannot be computed. We are not in agreement with the findings of the TPO, in view of the fact that in para-20 schedule to the notes of account of the annual report of global green, it is clearly mentioned that transportation outward expenses are net of freight subsidy. IT was further o ..... X X X X Extracts X X X X X X X X Extracts X X X X .....
a. A company will need funding to cover the time gap between the time it invests money (i.e pays money to suppliers) and the time it collects the investments (i.e collects money from customer). b. This time gap is calculated as the period needed to sell inventories to customers + the period needed to collect money from customers –the time period granted to pay debts to supplier. Since assessee is a captive manufacturer selling products to its AE. The payment cycle in the case of assessee is shorter as against a considerable time lag in the case of comparable. Comparable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r judicial pronouncements; - Philips Software Centre (P) Ltd., Vs DCIT (2008) 26 SOT 226 (Bag) - Demag Cranes & Components (Ind) Pvt.Ltd Vs DCIT (2012) 17 Taxman.com 190(Pune). - Emerson Process Management (ind.) Pvt.Ltd Vs DCIT (2011) 13 Taxmann.com 149(Mum.) - Acts Advisers Pvt.Ltd.,Vs DCIT TS -688 ITAT- 2012(Del.)TP “Having heard the objections and perusal of the judicial pronouncements on which the reliance has been placed by the assessee are of the view th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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