Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (8) TMI 1012 - AT - Income TaxAdmission of additional evidence - transfer pricing adjustment - Held that:- All the evidences sought to be canvassed for admission are relevant and germane to appropriately determine the arm's length price of the international transactions entered by the assessee with its associated enterprises. Considering the circumstances explained by the assessee, and the bonafides of the reasons not having been assailed by the Revenue, the same deserve to be admitted. Therefore, we deem it fit and proper to admit the additional evidences having regard to the facts and circumstances of the present case. Once additional evidence is required to be admitted, there is no gainsaying that an appropriate opportunity to the Department is required to be afforded to consider and evaluate the evidence for the purposes of working out the appropriate tax liability of the assessee. Therefore, we deem it fit and proper to set-aside the orders of the authorities below on the aspect of the transfer pricing assessment, and restore the matter back to the file of the Assessing Officer who shall re-visit the determination of arm's length price of the international transactions having regard to the material and submissions that assessee may put-forth in support of its stand, including the aforesaid additional evidence. Needless to say, the Assessing Officer shall allow an appropriate opportunity to the assessee of being heard and to furnish appropriate material and evidence in support of its plea that the international transactions entered into with the associated enterprises during the year under consideration are at an arm's length price. The Assessing Officer shall consider the submissions and material put-forth by the assessee and thereafter pass an appropriate order in accordance with law. Addition on deduction on account of product warranty liability - Held that:- We find that in para 5 of the assessment order, the Assessing Officer has summarily sustained the disallowance of ₹ 8,95,141/- on account of provision of warranty existence without determination the issues, which the DRP required him to address. Therefore, we are unable to uphold the order of the Assessing Officer on this aspect also. As a consequence, we set-aside the assessment order on this aspect also and direct the Assessing Officer to pass a speaking order after taking into consideration each of the points enumerated by the DRP in its order dated 30.08.2010 on this aspect. Needless to mention, the assessee shall furnish relevant material as would be required by the Assessing Officer to carry out the directions of the DRP. The Assessing Officer shall consider the material and submissions put-forth by the assessee and thereafter pass an order on this aspect afresh in accordance with law - Decided in favour of assessee for statistical purposes.
|