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2010 (1) TMI 795 - AT - Income TaxDeduction u/s 80HHC - Assessing Officer to exclude duty and sales tax from the total turnover for the purpose of computation of deduction u/s 80HHC - AO to exclude the excise duty and sales-tax from the total turnover while computing deduction u/s 80HHC[Supreme Court in the case of Laxmi Machine Works - 2007 -TMI - 6557 - SUPREME Court] Assessing Officer not deducted 90% of the receipts by way of Write back suppliers. Write back customers, sales tax refund, provision write back, excise duty and tender fees, as provided for by explanation (baa) while computing the deduction u/s 80HHC without appreciating that the same had no nexus with the business profits derived from the business of exports - Held that:- All these items are connected with the operations of the assessee, Revenue appeal dismissed. Arm's length price under Transfer Pricing Regulations - AO to grant a reduction of 5% from the arm's length price in view of the proviso to section 92C(2). The learned DR, submitted that in view of the CBDT Circular on the issue, if the variation is less than 5% being arm's length price determined by the TPO and the arm's length price determined by the assessee, no adjustment is called for. Revenue is dismissed
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