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2010 (10) TMI 693 - AT - Income TaxArms length price – Interest u/s 234D - As per the Audit report in Form 3CEB, the assessee has aggregated the above transactions into two heads (i) Trading Functions & (ii) Project Functions - Search is conducted by TPO and as per the search the arithmetical mean was working out to 5.65% - The A.O. also declined to consider the results Mahindra Ashtech Ltd. as in view of the TPO, the results shown by the said company was on account of abnormal circumstances being faced by the company - However, while passing the transfer pricing order, the TPO has not considered this analysis and concluded that the transactions under the project business as not meeting the arm’s length test merely on the fact that the project business of the appellant incurred losses - The order of the TPO u/s.92CA(3) which has been adopted by the A.O. suffers from non-application of mind as well as in gross violation of the principles of natural justice – Matter is remanded back to AO for fresh adjudication - Accordingly, ground nos.2 to 5 are allowed for statistical purpose Regarding interest u/s 234D - in the case of Ekta Promoters (2008 -TMI - 65270 - ITAT DELHI-E) the issue is covered in favor of assessee. – Accordingly, additional ground is allowed
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