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2012 (7) TMI 117 - AT - Income TaxDeduction u/s.10AA - whether foreign exchange fluctuation was not part of the sale proceeds Held that:- Foreign exchange fluctuation is liable to be treated as part of the sale proceeds and consequently liable to be included in the export turnover - Assessing Officer is directed to re-compute the deduction u/s.10AA by including the exchange gain and loss when computing the export turnover Arms' Length Price - transactions where the sale price to Associated Enterprise was lower than the sale price to non-Associated Enterprise Held that:- On the purchase the assessee has a positive differential i.e. the assessee purchases at a lower price from its AE than the non-AE and when its sales to the AE, its selling price is lower than the selling price as compared with the non-AE - Assessing Officer is directed to re-compute the ALP by taking into consideration both the net difference on the sale from the AE and purchase from the AE. The Assessing Officer may look into the fact as to the margins of the profits in regard to the transactions done by the assessee with its AE, as also the non-AE transactions and then compute the adjustment of ALP - assessee stand partly allowed for statistical purposes. Whether 5% tolerance limit prescribed by the second proviso to Section 92V(2) would apply only in those cases where more than one comparable price has been adopted to arrive at the Arm's Length Price Held that:- claim of the assessee for 5% of tolerance limit cannot be granted as no arithmetical mean as provided in the first proviso has been determined Against assessee Levy of interest under sections 234A, 234B and 234C of the Act Held that:- Levy of interest under sections 234A, 234B and 234C are consequential in nature, the same are dismissed - Appeal of the assessee is partly allowed for statistical purposes
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