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2011 (6) TMI 154 - AT - Income TaxArm's length price - Reference to TPO - Addition - Software Technological Park (STP) - TNMM method - In the present year, on an analysis of the international transaction with the associate parties and data of comparables, assessee has selected TNMM, using net profit margin based on cost as PLI. This method is not disputed by the TPO hence we can say that both sides are in agreement on the method - for taking up the internal benchmarking, an adjustment be made for eliminating the geographic condition effecting the value of such services - the operating profit margin with respect to unrelated transaction is minus 14.10 per cent whereas the assessee is showing operating profit with related parties at 14.33 per cent - if we examine this result within the right of the ITAT's order for assessment year 2006-07, then also no adjustment is required in the result of international transaction shown by the assessee - Decided in favour of the assessee Prior period expenses - CIT(A) deleted the addition following the decision in the case of Saurasthra Cement & Chemical Industries Ltd. v. CIT (1979 -TMI - 36941 - GUJARAT High Court) - Order of CIT(A) upheld - decided in favor of assessee.
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