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2011 (7) TMI 963 - HC - Income TaxTransfer Pricing - determination of ALP - Tribunal directed AO to re-compute ALP at 21.97%, however TPO arrived at 35.26% - adjustment for the depreciation on administrative assets - Held that:- As Tribunal found the four comparable companies for adopting the Arm’s Length Price no perversity could be pointed out by appellant that may warrant interference in the finding recorded by the Tribunal In respect of adjustment on account of depreciation, Tribunal observed that TPO after accepting the working of Depreciation/Total cost ratio, failed to make adjustment for extraordinary items of depreciation in the order. Therefore, no perversity is found in said order. Advertisement expenses - Capital or revenue expenditure - Held that:- Cost of a signboard cannot be contemplated as a capital expenditure because the benefit accruing to the assessee cannot be said to be in the capital field. It merely facilitates the assessee’s trading operations. Thus rightly held as revenue expenditure See Empire Jute Co. Ltd. vs. CIT [1980 (5) TMI 1 - SUPREME Court] - Decided in favor of the assessee
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