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2012 (6) TMI 575 - AT - Income TaxDeduction u/s 10A - exclusion of foreign currency expenses from export turnover and not from the total turnover while computing deduction - Held that:- If an item is excluded from the export turnover, the same should also be excluded from the total turnover to maintain parity between the numerator and denominator while calculating the deduction u/s 10A - Order of lower authorities set aside - AO directed to reduce impugned expenses both from export turnover as well as total turnover - Decided in favor of assessee Transfer pricing - Adjustment in ALP of the contract software research and development services transaction entered by the Appellant with its associated enterprise - AO without giving any opportunity of being heard adopted ALP suggested by TPO on ground that submissions of the assessee were already considered by the Transfer Pricing authority while passing the order u/s. 92CA - Held that:- Issue remanded back to the file of the AO/TPO to be decided afresh after providing due and reasonable opportunity of being heard to the assessee. Benefit of +/- 5% adjustment u/s 92C(2) - AY 2006-07 - assessee contended for standard deduction of 5% as provided under erst while proviso to section 92C(2) before making adjustment for the transfer price on ground that amendment brought in by Finance (No: 2) Act of 2009 is prospective in operation and will be applicable from AY 2009-10 and onwards - Held that:- Proviso is not a procedural piece of legislation and therefore, unless it is so clearly intended, the newly amended proviso cannot be understood to be retrospective in nature. In fact, it is a well-settled proposition that the statutory provisions as they stand on the first day of April of the AY must apply to the assessment of the year and the modification of the provisions during the pendency of assessment would not generally prejudice the rights of the assessee. We therefore find no justification to deny the benefit of +/-5% to the assessee in terms of the erstwhile Proviso for the purposes of computing the ALP - Decided in favor of assessee.
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