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2015 (12) TMI 1562 - AT - Income TaxTransfer pricing adjustment - selection of comparables - Held that:- After exclusion of Celestial Biolabs Ltd. from the final set of comparables arrived at by the TPO, the arithmetic mean of the comparables, according to the assessee, would be 20.83% which is within the +5% range of 21.11% and the TP adjustment made by the AO/TPO is to be deleted. We, therefore set aside the issue to the file of the AO/TPO for verification of the assessee’s claim and decide the issue afresh in accordance with law, after providing reasonable opportunity of being heard to the assessee. The AO/TPO is also directed to recompute the working capital/risk adjustment as claimed by the assessee. Deduction u/s 10A - expenditure incurred in foreign currency and telecommunication charges are to be excluded from the export turnover for the purpose of computation of deduction u/s. 10A - Held that:- The Hon’ble High Court of Karnataka in the case of CIT v. Tata Elxsi Ltd.(2011 (8) TMI 782 - KARNATAKA HIGH COURT ), held that whatever expenditure is excluded from the export turnover, has to be excluded from the total turnover as well. Respectfully following the decision of the Hon’ble jurisdictional High Court, we allow the alternate ground raised by the assessee in this regard. Relief allowable u/s. 10A of the Act is to be computed after setting off the brought forward depreciation losses of the assessee - Held that:- The issue has to be set aside to the file of the Assessing Officer. Accordingly, we remit the issue to the Assessing Officer for fresh consideration and decision in accordance with the decision of the Chennai Bench of the Tribunal in the case of S.R.A. Systems Ltd. [2014 (3) TMI 357 - ITAT CHENNAI] wherein held un-absorbed depreciation has to be set-off before computing the exemption allowable u/s.10A & the assessee can claim deduction u/s.10A before setting off of brought forward losses
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