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2012 (8) TMI 256 - AT - Income TaxTransfer pricing - Arm's length price - assessee used adjusted profit computed in relation to sales affected as appropriate PLI - TPO found that profits of comparable companies was 8.47 per cent as against that of assessee at 12.18 per cent and accordingly, he proposed Transfer Price adjustment - Commissioner held that 30 per cent of travelling and conveyance, legal and professional charges and communication expenses were extraordinary expenses – Held that:- Commissioner of Income Tax (Appeals) thus failed to follow rules of natural justice, as there was apparent violation of Rule 46A in as much as no opportunity was provided to the TPO - order of the Ld. Commissioner of Income Tax (Appeals) is non-speaking order as it does not give reasons for making adjustment to the operating results of tested party i.e. assessee - not clear how she arrived at the conclusion that 30% of expenses were extraordinary and required adjustment - assessee company had not claimed any adjustment on account of specified expense in the Transfer Pricing Study or documentation prepared under Rule 10D read with section 92D of the Act - matter remitted to the file of the Ld. Commissioner of Income Tax - assessee's cross objection stand allowed for statistical purposes.
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