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2011 (7) TMI 508 - AT - Income TaxAddition - Arm's length price - the assessee is dependent contractor - As submitted by the assessee's counsel, the assessee is a new entrant in the field and came into business in March, 2000 and being so the assessee is not in a position to charge at 22 USD per man hour as that of M/s WIPRON is charging. M/s WIPRO is a large industrial giant undertaking working independently with principles to principle relationship. On the other hand, the assessee is dependent contractor - The assessee has also stated before us that the billing rate changes depending upon the various factors as enumerated in the report of NASCOM which has been filed by the assessee before the CIT(A) and not considered the same as being additional evidence - If the Assessing Officer is unable to bring on record the comparable case, the Assessing Officer is at liberty to consider the rate adopted by the assessee immediate next year and thereafter he is required to discount the same after considering the inflationary rate - Once he arrived at the discounted rate, there is no question of further giving any deduction towards any adjustments at 5% - Accordingly, direct the Assessing Officer to follow the CUP method as adopted by the assessee itself in this assessment year - However, he has to re-determine the TPO as per the above directions.
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