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2014 (1) TMI 1634 - AT - Income TaxDisallowance of Transfer Pricing Adjustments - Assesse followed TNMM method to determine the ALP with its AE transactions and in its return itself offered to tax an amount of ₹ 3,31,652 calculated at 4.88% qua the bulk sale of books to AEs - Held that:- Apropos T.P. adjustments, there is merit in the argument of ld. Counsel for the assessee that bulk discount and reduce bad debt liability risk with AEs is well known factor and is to be considered while making T.P. adjustments. In view thereof CIT(A) has rightly appreciated the issue and held that the suo motu offer of adjustment by assessee at 4.88% as net profit margin adjustment was reasonable. The CIT(A)’s order being based on sound reasoning and proper appreciation of facts, needs no interference, which is upheld. - Apropos advertisement also assessing officer has not given any rational basis or cogent reasons to come to a conclusion that 15% ad hoc of the total expenditure on publicity & advertisement was attributable to brand building. CIT(A) has rightly held that the expenditure has been incurred on profit generating apparatus of the assessee. - Respectfully following Hon’ble Supreme Court judgment in the case of Emporium Jute Co. Ltd. [1980 (5) TMI 1 - SUPREME Court] And Citi Finance (2011 (3) TMI 622 - Delhi High Court) we uphold his order - Decided against Revenue.
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