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2012 (11) TMI 89 - AT - Income TaxAddition towards profit attributable to the expenditure incurred on representatives of Australian Educational Institutions for visiting India for the purpose of enrolment of students - held that:- it will be appropriate to assume that the expenditure has not been incurred by the assessee in this year also looking to the factual position that the expenditure was incurred by the institutions last year. Therefore, it is held that there is no evidence on record to come to a conclusion that assessee incurred the expenditure in respect of stay of representatives of Australian Educational Institutions in India. Accordingly, it is held that no income is attributable to the Indian offices on this ground. - Decided in favor of assessee. Attribution of head office expenses to the LO – computation of profit on cost plus basis - Allowance of expenditure incurred by Head office in relation to offices in India - held that:- The income is being offered for tax on cost plus basis, therefore, the general and administrative expenditure incurred by the head office for running India offices has to be considered for working out the cost base. The fact of the matter is that the Indian offices have not incurred any expenditure. If any income accrues on account of expenditure incurred by the head office, it will be the income of the head office and not Indian offices. At the same time, if any expenditure is attributed to Indian offices deduction of the expenditure will have to be allowed. Thus seen from any angle the revenue does not have any case in this matter. - Decided in favor of assessee.
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