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2013 (2) TMI 65 - AT - Income TaxTransfer Price Arm Length Price - Appropriate method for computing the ALP - Assessee has adopted the CUP method Assessee is engaged in providing medical transcription services - Assessee has considered two external comparables and three internal comparables The price charged to its AE, in comparison with the price charged to its other overseas customers, so also by the price charged by the other two Indian companies Held that:- The comparables adopted by the assessee are uncontrolled parties and can be considered for the purpose of determining the Arms' Length Price as per CUP method. The observation of the TPO that the comparables cannot be considered to be uncontrolled is without any basis, and it is based on mere presumptions and surmises. When the comparables considered by the assessee are in no way connected either with the assessee or with its holding company, and all the information/data relating to their transactions are available, the TPO was not justified in rejecting the computation of ALP made by the assessee by applying the CUP method In favour of assessee Exemption u/s 10A Computation of Turnover Adjustment of communication charges from export turnover & total turnover - Held that:- Following the decision in case of Tata Elexi Ltd. (2011 (8) TMI 782 - KARNATAKA HIGH COURT) that the expenditure incurred towards communication charges, if excluded from the export turnover, has also to be excluded from the total turnover. The communication charges have to be excluded both from the export turnover as well as the total turnover, while computing exemption u/s 10A In favour of assessee
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