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2010 (11) TMI 630 - AT - Income TaxArms length price - Reference to TPO - Addition - TNMM or cost plus method - Advertising business - method of computing profit/TC margin whether on gross basis as done by the TPO or net basis as worked out by the assessee - Held that:- a mark-up is to be applied to the cost incurred by the assessee company in performing its agency function and not to the cost of rendering advertising space on behalf of its AEs. - the method adopted by the assessee while submitting transfer pricing study based on net revenue has been accepted by the Department in earlier year and, therefore, there is no reason to depart from that stand already accepted by the Department in earlier year. - Decided in favor of assessee. Regarding depreciation at the rate of 60 per cent on computer peripherals and accessories - the addition on this issue was made and Tribunal, Delhi Bench vide their order No. ITA No. 1451/Delhi/2008, dt. 13th Feb., 2009 have allowed the claim of depreciation of 60 per cent on printers, scanners etc - it is pertinent to note that the order of the Tribunal allowing depreciation at higher rate of 60 per cent on computer accessories and peripherals instead of the normal rate of 25 per cent has been upheld by the Hon'ble Delhi High Court in the case of CIT v. BSES Rajdhani Powers Ltd. [2010 -TMI - 78240 - DELHI HIGH COURT] - Decided in the favor of the assessee
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